- What Percentage of Income Should You Save for Retirement?
Saving for retirement is a major focus during your working years. You want to make sure you have enough money during your golden years, but also enjoy the present. Determining what percentage of your income to save for retirement can help you set some guardrails to accomplishing both. The general recommendation is to save about… read more…
- 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 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 income, growth and… 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…
- 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…
- When Is the Best Time of Year to Retire?
Choosing the best time of year to retire is largely subjective, impacting your taxes, healthcare costs, retirement account withdrawals and Social Security benefits. Retiring early in the year may allow you to benefit from lower tax rates, while retiring later could maximize your Social Security payments. Aligning your retirement date with the end of a… read more…
- I’m 55 With $1.2 Million in My 401(k). Should I Pivot to Roth Contributions?
Building some savings in a Roth account when you already have a significant balance in a 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. Plus, Roth withdrawals won’t… 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…
- 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…
- Understanding 401(k) Contribution Errors
Correcting 401(k) contribution errors involves identifying the mistake, adjusting future contributions and potentially making retroactive corrections to comply with IRS limits and plan rules. If you discover that you have over-contributed, the first step is to notify your plan administrator. If you need help with your retirement plan, a financial advisor can work with you… read more…
- Roth TSP vs. Roth IRA
Both Roth thrift savings plans (TSPs) and Roth individual retirement accounts (IRAs) can offer significant tax advantages and the potential for tax-free growth, but they cater to different needs and circumstances. Understanding the differences between them can help you make an informed decision about which can be better suited for your retirement strategy. If you… read more…
- IRS Grants Retirement Account Holders Ability to Withdraw $1,000 for Urgent Needs
It is easier to take up to $1,000 out of retirement plan savings to help with an emergency under a new rule from the Internal Revenue Service. The IRS announcement clarifies a 2022 law that aimed to reduce paperwork, costs and delays when savers tap retirement funds to cover unexpected expenses. Previously, withdrawing retirement funds… read more…
- How to Make Your Own Retirement Income Distribution Plan
Creating a retirement income distribution plan involves managing your savings and investments to generate a steady stream of income throughout your retirement. Making a retirement income distribution plan can give you peace of mind and help you avoid the risk of outliving your savings. The goal is to balance income needs, investment growth and tax… read more…
- 11 Financial Planning Tips for Seniors
As you age, your financial priorities can shift to focus more on preserving wealth, ensuring a steady income stream and covering healthcare costs. As a senior, effective financial planning can help you maintain the lifestyle you desire without worrying about running out of money. A plan can also allow you to navigate the uncertainties of… read more…
- How Do Retirees Make Money?
Retirement is a time when individuals finally have the opportunity to devote their lives to leisure. However, it also means transitioning from a steady paycheck to a fixed income, which can be challenging. And you may need to find ways to sustain your lifestyle. Retirees can use different strategies to generate income, ranging from traditional… read more…
- I’m 62 With $425k in a Roth IRA and $2,600 per Month between Social Security and Pension. Can I Retire Now?
For many people, early retirement means 62. This is the age they can start withdrawing money from their retirement accounts and receive Social Security. For example, let’s assume an individual with $425,000 in a Roth IRA, a $1,000 monthly pension, and expect $1,600 in Social Security. Is it going to be enough? As often in… read more…
- 5 Budgeting Strategies to Help You Save More for Retirement
Saving for retirement can be challenging, but learning how to effectively budget money can make a significant difference. While you cannot change what has already been spent or saved, you do have control over your financial decisions moving forward. By focusing on the present and setting a clear plan, you can begin to make substantial… read more…
- We’re 66 With $715k in 401(k)s and $2,700 Social Security Between Us. What’s Our Retirement Budget?
Making a retirement budget calls for considering not only income but also expenses. With $2,700 monthly from Social Security and $715,000 in 401(k) accounts invested and distributed conservatively, a couple may be able to expect about $61,000 in annual income. This is close to the annual expense level reported by the average retiree. However, individual… read more…
- 10 Reasons You May Want to Retire Early
Deciding when to retire is nearly as important as how much you save. Retire too soon, and your nest egg might not last as long as you need it to. Wait too long, and you could miss the chance to enjoy your healthiest years. And if you want to retire early, part of that depends… read more…
- How to Stay Socially Active as a Retiree
Retirement can be an exciting new chapter, offering ample opportunities to stay socially active. Engaging in community activities, joining clubs and pursuing hobbies can significantly enhance your social life. Whether it’s volunteering, participating in fitness classes or attending local events, finding ways to stay socially active in retirement is important for maintaining a fulfilling and… read more…
- When to Start Saving for Retirement
Determining when to start saving for retirement can have a major impact on your financial future. Beginning early allows you to take full advantage of compound interest, which is when you earn money on both your savings and the interest you’ve already earned. Starting to save in your 20s or 30s provides a longer time… read more…
- How to Maximize Retirement Savings
Strategic planning and informed decision-making are key when it comes to how to maximize your retirement savings. By understanding the various retirement accounts available, taking advantage of employer-sponsored plans and consistently contributing to your savings, you can build a robust financial foundation for your future. Additionally, exploring tax-advantaged options and regularly reviewing your investment portfolio… read more…
- How to Make a Retirement Income Plan
When it comes to how to plan for retirement income, start by evaluating your anticipated living expenses, considering healthcare costs and taking into account the amount you’ll need for leisure activities and potential emergencies. Then, assess your expected sources of income and develop a withdrawal strategy that aligns with your lifestyle and longevity expectations. By taking… read more…
- I’m 52 With $1.6 Million in a Taxable Brokerage Account and $1.1 Million in an IRA. Can I Retire Now?
It can be financially feasible to retire when projected retirement income equals or exceeds projected retirement expenses. In many cases, withdrawals from $1.6 million in a taxable brokerage account and $1.1 million in an IRA will total more than a typical retiree’s expenses. However, much depends on the desired retirement lifestyle. Age at retirement is… read more…
- 9 Steps to Planning for Retirement
Planning for retirement involves a series of well-defined steps that aim to maintain financial stability and offer greater peace of mind in later years. Your first step will be to set clear retirement goals. This can help you assess your current financial situation, including savings and investments. Creating a detailed budget helps track expenses and… read more…