- Should You Invest in a 401(k) Without Matching?
An employer match is one of the most valuable features of a 401(k), but not all plans offer it. Even without an employer matching your contributions, a 401(k) can still be useful for retirement savings. The tax-deferred growth and potential for disciplined, automatic contributions make it a worthwhile option to consider. If your 401(k) plan… read more…
- How to Use Buffered ETF Strategies for Retirement Planning
Buffered ETFs are a newer investment option designed to minimize risk in retirement portfolios. They protect against market downturns while still capturing gains, making them ideal for retirees who want to safeguard their savings against volatility. This strategy helps in planning for retirement by balancing risk and growth potential. A financial advisor can specifically assist… read more…
- What’s a Realistic Retirement Budget? I’m 58 With $665k Saved, Making $95,000 Annually.
A retirement budget balances your expected income in retirement with your expected living expenses and taxes. Financial planners may use some rules of thumb to generate estimates of how much you are likely to receive in income and use to pay your costs after getting a good understanding of your goals, habits and circumstances. In… read more…
- With $715k in a Roth IRA and $3,400 Monthly Between My Pension and Social Security, Can I Retire at 64?
Retirement becomes financially feasible when projected income exceeds projected expenses. Retiring at age 64 with $715,000 in a Roth IRA and $3,400 monthly in combined pension and Social Security benefits could be realistic based on typical investment returns and retiree expenses. However, this may not be true for everyone. Your current age, life expectancy, lifestyle… read more…
- 8 Strategies to Help You Plan for an Early Retirement
Planning for an early retirement demands a well-thought-out strategy to secure financial stability and comfort. Key early retirement strategies include establishing disciplined saving and investment practices that focus on building your wealth over time. You might also consider maximizing your contributions up to retirement accounts limits, diversifying your investment portfolio to spread risk and budgeting… read more…
- I’m 63 With $1.4 Million in My 401(k) and Have Started Social Security. Is It Too Late for a Roth Conversion?
Procedurally, it’s never too late to make a Roth conversion. The IRS allows you to move this money at any time, so long as you have funds in a qualifying pre-tax account. In many cases though, the closer you are to retirement, the likelier a Roth conversion could cost you big. This doesn’t mean that… read more…
- I’m 58 and Retiring Soon. How Should I Structure My $890k Portfolio?
Retiring early means approaching your portfolio differently. In your working life, you will likely focus on growing your wealth as quickly as possible. The earlier you want to retire, the sooner you will need this portfolio ready and the more you will need in it. You will have less time for this money to grow,… read more…
- I’m 67 With $900k in My 401(k), $200k in Cash and $2,400 Social Security Benefit. What’s My Retirement Budget?
From one perspective, by age 67 your retirement budget is largely set in stone. The accumulation phase of your working life is over, and whatever set of savings and benefits that you have is… well, what you have. Looking at things that way, when it’s time to set your budget the next thing to do… read more…
- I Have $1.3 Million Saved and Will Collect $2,800 per Month in Social Security. Can I Retire at 62?
While the traditional retirement age is around 65—and full Social Security benefits start at 67—many people hope to retire sooner. Age 62 is the earliest you can claim Social Security, and even if you delay benefits, it’s a natural point to assess whether you’re ready to stop working. Suppose you’re 62 with $1.3 million in… read more…
- What’s a Realistic Retirement Budget? I’m 48 With $430k Saved, Making $95,000 Annually
When it comes to estimating your retirement income, a popular rule of thumb is that you’ll usually need about 80% of your working income to maintain the same standard of living. This comes from a number of factors, including the fact that you won’t need to set aside money for retirement anymore. This number is… read more…
- Safe Harbor 401(k) vs. Traditional 401(k)
When it comes to saving for retirement, 401(k) plans are a popular choice for both employers and employees. However, not all 401(k) plans are the same. Employers can choose between a traditional 401(k) plan and a Safe Harbor 401(k) plan, each offering unique features and benefits. Whether you’re an employer or employee, it’s important to… read more…
- 5 Retirement Savings Basics Everyone Needs to Know
Retirement saving is a long-term plan to set aside and invest money to provide income after you stop working. It often involves contributing to accounts like 401(k)s or IRAs. Starting early helps savings grow through compound interest. Understanding these five basics could help you make decisions to support your financial goals. A financial advisor can… read more…
- I Have $940k in an IRA and Will Receive $2,200 Monthly From Social Security. Can I Retire at 65?
Retirement at 65 might be considered a little early for some. For anyone born after 1960, full Social Security benefits do not begin until age 67. Between ages 62 and 67 you can begin collecting benefits, but you will receive reduced payments for the rest of your life. So if you’re looking to retire at 65,… read more…
- How to Find a Retirement Planning Advisor
Finding a retirement financial advisor will require you to evaluate key traits and qualifications that align with your goals. This means looking for advisors who specialize in retirement planning. They’ll need to possess relevant certifications and have a strong track record with retirement-specific strategies. Their experience with different income streams, such as Social Security, pensions,… read more…
- What’s a Realistic Retirement Budget? I’m 52 With $680k Saved, Making $115,000 Annually.
Your early-fifties is an excellent time to start making a retirement budget. In your 40s, you risk jumping the gun. You’re usually not even halfway through your career at age 40, since many people start their careers between 21 and 25 and finish working between 65 and 70. So, with around 25 to 30 earning… read more…
- Should Retirees Follow the ‘100 Minus Your Age’ Rule?
Figuring out how much risk to take in retirement isn’t always straightforward. One popular rule of thumb, the “100 minus your age” rule, offers a quick way to decide how to divide your portfolio between stocks and safer investments. However, while its simplicity is appealing, retirees may wonder whether this decades-old guideline still holds up… read more…
- I’m 69, Taking Social Security and Have $815k in My 401(k). Is It Too Late for a Roth Conversion?
From a legal and regulatory standpoint, it is never too late for a Roth conversion. Under the rules, you can transfer retirement funds from a tax-deferred account such as a 401(k) to a Roth IRA at 69 or any other age. Whether it makes financial sense to do that is another matter. To determine this,… read more…
- Am I too Late to Invest for Retirement at 65? I Own My Home but Only Have $85k in Savings
While 65 is later than most people begin investing for retirement, it is certainly not too late. The question is not whether to invest but how to invest in order to increase your chances of achieving your financial retirement goals. To decide, there are several factors to consider, including your overall health, life expectancy, employment… read more…
- What’s a Realistic Retirement Budget? I’m 55 With $490k Saved, Making $80,000 Annually.
Your mid-fifties is a good time to do a retirement check. To be clear, you should always have at least one eye on retirement. This isn’t something to ever forget entirely. But most of the time, that means nothing more than making sure your annual contributions go through in full, on time and to the… read more…
- I’m a 46 Year Old Divorced Dad. I Have $460k in My 401(k) and Contribute the Maximum. Can I Retire in 10 Years?
Early retirement is an ambitious goal. Reaching it isn’t just about making sure that you have the money saved up. It’s also about making sure you address the potential risks, changes and needs that can come along in your 40s and 50s, because most people will have more obligations in their mid-life than they will… read more…
- I Have $850k in My 401(k). What Should I Do With It When I Retire?
For households with very little saved, there is a rulebook. A tight retirement requires you to restructure your spending, maximize Social Security and delay withdrawals as late as possible. For households with significant savings, there’s another set of rules. You want to manage your wealth, plan for your estate and minimize taxes. With $850,000 in… read more…
- Should I Take a $78,000 Lump Sum or $650 Monthly Annuity Payments?
When debating between a lump sum pension payout and monthly annuity payments, your decision will depend on your individual circumstances. Key factors include life expectancy, income sources and how soon you will receive the lump sum. Generally speaking, a longer life expectancy makes the annuity a better choice. However, if you have the option to… read more…
- I’m 61 With $1.4 Million in My 401(k). Should I Convert $120k Per Year to Avoid RMDs?
Converting retirement savings held in a 401(k) to a Roth account can help you reduce or even avoid mandatory withdrawals while also providing more tax planning flexibility. Roth conversions can be particularly helpful if you expect to be in a higher tax bracket in retirement. Talk over your retirement plans with a financial advisor any… read more…
- 4 Investment Options to Help You Build Your Retirement Income
Part of planning for a secure retirement is crafting a reliable income stream that can support your lifestyle once you stop working. There are a variety of investment options that can help you grow your savings and generate income throughout retirement. Each choice offers specific benefits, risks, costs and limitations. The key is to find… read more…
- How to Avoid Lifestyle Creep When Working and in Retirement
Lifestyle creep happens when your spending increases gradually as your income grows. It’s important to recognize the difference between necessary expenses and discretionary spending when you’re working or saving for retirement. Tracking your budget closely and setting financial goals are common strategies used to curb lifestyle creep. Regularly consulting a financial advisor and accounting for… read more…