- 7 Types of Model Portfolios for Retirees to Consider
As retirees embark on the next chapter of their financial journey, understanding the various types of model portfolios available becomes crucial. These portfolios are designed to align with the unique needs and goals of retirees, offering a structured approach to managing investments during retirement. With the right model portfolio, retirees can balance the need for… read more…
- What Retirement Looks Like for a Lawyer: Things to Consider
For lawyers, retirement looks very different depending on your practice. A big-firm litigator, for example, will have spent decades with very high income and very little time. For them, retirement is typically well-funded but might be their first significant free time since law school. A government regulator, on the other hand, will have spent decades… read more…
- 11 Tips to Help You Retire on a Budget
Many Americans are looking for ways to stretch their savings and retire on a budget without compromising their quality of life. By focusing on practical tips you can create a sustainable retirement plan that allows you to live comfortably in your golden years. Here are 11 general tips that can help you retire on a… read more…
- Is Spousal Consent Required to Change 401(k) Beneficiary?
Changing the beneficiary of a 401(k) plan can involve specific requirements, particularly when it comes to spousal consent. In many cases, to protect your spouse’s financial interests, you need spousal consent to change your 401(k) beneficiary designation. This rule stems from federal regulations under the Employee Retirement Income Security Act (ERISA), which mandates that a spouse… read more…
- What Are the Rules for Late 401(k) Deferral Deposits?
Under the Department of Labor’s rules, employers must deposit employee deferrals into 401(k) plans as soon as administratively feasible, typically no later than the 15th business day of the following month. Late contributions to a 401(k) could therefore lead to penalties, interest charges and the need to file a Voluntary Fiduciary Correction Program (VFCP) application.… read more…
- How 401(k) Fee Disclosures Work
401(k) disclosures provide detailed information about the fees and expenses associated with your retirement plan. The costs associated with a 401(k) can significantly impact your retirement savings over time, so being aware of these fees can help ensure that you are maximizing your retirement savings and not overpaying for services you may not need. Reviewing… read more…
- 401(k) Beneficiary Rules Based on Marital Status
A spouse beneficiary is the person who will inherit a 401(k) account if the account holder passes away. The rules for spouse beneficiaries determine how the account assets are distributed, which can affect the financial security of loved ones relying on those funds. Understanding these rules could help you distribute 401(k) benefits according to your… read more…
- How Do I Avoid Medicare Premium Penalties?
The only way to avoid Medicare premium penalties is to enroll in a timely manner. Medicare charges a penalty for Part B and Part D enrollees, and some Part A enrollees, if they have a significant gap in their health care coverage. This can happen either because they didn’t enroll when they turned 65 or… read more…
- 5 Dangers of Trying to Live on Social Security Alone
For many Americans, Social Security serves as a crucial component of their retirement income. However, relying solely on Social Security can pose significant financial challenges. The program was never intended to be the sole source of income for retirees, yet many find themselves in this precarious situation. With the average monthly benefit at less than… read more…
- How to Uncover Hidden 401(k) Fees
Many employees rely on 401(k) plans for retirement savings. But hidden fees in 401(k) plans, including administrative costs, investment fees and individual service fees, can significantly impact your retirement savings. Discuss fee structures with your plan administrator or financial advisor, who can help you optimize your investments. What Are Hidden 401(k) Fees? Hidden 401(k) fees… read more…
- Why Invest in a Roth IRA?
Roth IRAs are unique retirement savings accounts that offer several compelling benefits that make it an attractive option for individuals looking to maximize their financial future. Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars, allowing your investments to grow tax-free. This means that when you retire, you can withdraw your… read more…
- Do 401(k) Contributions Automatically Stop When You Hit the Limit?
Your 401(k) contributions should automatically stop at the annual limit. For 2025, the IRS has set the contribution cap at $23,500, with an additional $7,500 catch-up contribution allowed for those over age 50. In most cases, payroll systems are designed to automatically stop 401(k) contributions once you reach the annual limit. However, not all employer… read more…
- Can a CSRS Retiree Collect Spousal Social Security?
Determining whether a Civil Service Retirement System (CSRS) retiree can collect spousal Social Security benefits has historically been complicated. Previously, those under CSRS did not pay into Social Security, making them ineligible for certain benefits due to the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). However, the Social Security Fairness Act, signed into… read more…
- When Is the Best Time of Year to Retire?
Choosing the best time of year to retire is largely subjective as it can impact your taxes, healthcare costs, retirement account withdrawals and Social Security benefits. Retiring early in the year might allow you to benefit from lower tax rates, retiring later could maximize your Social Security payments, and aligning your retirement date with the… read more…
- Social Security in New York: Everything You Need to Know
Social Security makes a sizable financial contribution to New York State, which receives financial support worth tens of billions of dollars annually for millions of its retired and disabled citizens as well as their relatives and certain low-income people. For its part, the state exempts Social Security benefits from state income taxes, making it moderately… read more…
- Social Security in Texas: Everything You Need to Know
As one of a handful of states with no state income tax, Texas is one of the more financially attractive places to reside for people who are receiving Social Security benefits. Nearly 4.7 million Texans, including almost 3.3 million retired workers plus spouses and other people, got payments from Social Security’s primary program, Old Age,… read more…
- How Does Medicare Work If You Have Retiree Insurance?
Leaving the workforce doesn’t necessarily mean leaving employer-provided health insurance behind. Some companies continue to offer retirees health coverage, even after they stop working and enroll in Medicare. When that happens, Medicare generally becomes the primary payer. Different rules may apply when it comes to prescription drug coverage, however. And age at retirement is another… read more…
- Can Retirees Contribute to a Traditional or Roth IRA?
Tax-advantaged retirement accounts such as traditional and Roth IRAs are important tools for retirement planners accumulating wealth to provide for a secure retirement. And, under the right circumstances, individuals can continue to take advantage of these tax benefits by contributing to traditional or Roth IRAs after they have retired. The key requirement for contributing to… read more…
- How to Create a Retirement Income Stream
Creating a reliable and adequate income stream from investments is one of the main goals of retirement planning. Learning how to do this involves assessing current finances and other retirement income sources, such as Social Security, and then choosing investments that can provide income that is consistent, sufficient and will last throughout the retirement years.… read more…
- I’m 55 With $1.2 Million in My 401(k). Should I Pivot to Roth Contributions?
Building up some retirement savings in a Roth account when you already have a significant traditional 401(k) at age 55 can make sense. For one thing, withdrawals from Roth accounts, unlike traditional 401(k) withdrawals, are generally tax-free in retirement. Roth accounts are also exempt from Required Minimum Distribution (RMD) rules, and Roth withdrawals won’t affect… read more…
- 6 Unexpected Retirement Expenses You May Face
Unexpected expenses could creep up in retirement and put your nest egg at risk. These can include healthcare, housing or inflation, and add up quickly. Preparing for these expenses can help you avoid surprises. Here’s a roundup with six general expenses that could eat into your nest egg. A financial advisor can help you create… read more…
- 401(k) Beneficiary Rules for Non-Spouses
Understanding 401(k) non-spouse beneficiary rules is key for anyone planning their estate and retirement. When a non-spouse inherits a 401(k), the distribution options differ significantly from those available to a spouse. Non-spouse beneficiaries must follow specific guidelines regarding withdrawals, which can impact both taxes and the timeline for accessing the funds. Knowing these rules can… read more…
- How to Catch Up on Retirement Savings in Your 30s
When you’re in your 30s, retirement may be far from your mind. But saving for retirement in your 30s is highly beneficial, especially if you’re trying to catch up. At this stage of life, compound interest has plenty of time to help grow your savings. Regardless of how much you already have saved, there are several… read more…
- How a Government Pension Could Have Offset Your Social Security
Under longstanding Social Security rules, certain public-sector workers and retirees received smaller benefits due to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These rules, intended to adjust Social Security benefits for retirees with government pensions from non-covered jobs, often led to lower or entirely withheld payments for millions. That changed in early… read more…
- Does Virginia Tax Social Security?
Virginia does not tax Social Security benefits, which means that retirees in the state can get their Social Security income without state tax deductions. However, other forms of retirement income, such as pensions or distributions from retirement accounts, may still be subject to Virginia state taxes. If you’re worried about taxes in retirement, a financial… read more…