- A Black and White Approach To Retirement: Advisors Weigh In on BlackRock’s Unconventional Recommendation
It might be time to abandon the idea of a balanced portfolio. Traditional wisdom holds that investors should diversify their assets. While working and saving, you should invest in a mix of assets weighted toward stocks and growth. In your retired life, you should invest in a mix of assets weighted toward security and income.… read more…
- What Are Retirement Money Market Accounts?
A retirement money market account is a money market account that you hold in a tax-advantaged retirement account, like a 401(k) or an IRA. You use it as an interest-bearing account to hold cash in your retirement portfolio. These are depository accounts which means that, like all banking products, they offer a basic upside/downside profile… read more…
- How to Invest in Real Estate for Retirement Income
While traditional retirement accounts like 401(k)s and IRAs are valuable, investing in real estate for retirement can also provide a reliable and stable income stream in your golden years. Real estate has historically been a consistent wealth generator, offering retirees an added layer of security and stability. But market fluctuations, property management issues and unexpected… read more…
- New Study Finds That Planning for Retirement Is Linked to Overall Well-Being
The fact that Americans are living longer has made the usual approach to financial planning incomplete, according to a new study of approximately 1,200 people and 10 focus groups by MIT AgeLab and Transamerica. The traditional three-part plan of education, work and retirement and aiming to ensure that people have enough to live comfortably in… read more…
- Can a 457(b) Retirement Plan Roll Over to an IRA?
A 457(b) retirement plan is a tax-advantaged saving scheme available to government and certain non-profit employees. It allows participants to defer income taxes on retirement savings until the funds are withdrawn. Whereas, Individual Retirement Accounts (IRAs) are retirement accounts that provide tax advantages for retirement savings, offering tax-free growth or on a tax-deferred basis. Taking… read more…
- What a Retirement Lifestyle With $7 Million Looks Like
Imagine retiring with $7 million in your 401(k) or IRA. What kind of lifestyle might that size nest egg support? Picture owning a luxurious home in a high-end neighborhood, driving top-notch vehicles, regularly vacationing in exotic locations and availing best-in-class healthcare without worrying about rising costs. When planning a $7 million retirement it’s important to… read more…
- How Much Should You Save and Withdraw for Retirement?
One of the most important questions to answer as you plan your retirement is how much money you need. The answer depends on a lot of factors, from your potential longevity to your lifestyle to how much you’ll be getting from Social Security. However, according to Fidelity, there are four key guidelines that retirement planning… read more…
- What a Retirement Lifestyle With $20 Million Looks Like
Imagine awakening to the gentle sound of waves washing up on a pristine beach, steps away from your luxury villa. You enjoy a gourmet breakfast while planning your day, debating between taking a tranquil boat trip or enjoying a private tour of a renowned local museum. All of these are made possible because you’ve amassed… read more…
- Can You Retire at 62 With $400,000 in a 401(k)?
It’s certainly possible to retire early on $400,000, but it won’t be easy. If you have the option of working and saving for a few more years, it will likely give you a significantly more comfortable retirement. By waiting until at least age 67, you can collect more in lifetime Social Security benefits and your retirement… read more…
- How Long Will You Live? Most People Don’t Account for This Retirement Data
While no one has a definitive answer to the question “How long will you live?”, coming up with an educated, realistic estimate goes a long way toward building a retirement plan that assures income security. Unfortunately, most U.S. adults lack what a new survey calls “longevity literacy,” a deficiency that can be a major retirement planning… read more…
- Where Can I Retire on $3,000 a Month?
You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor. It’s both the largest component of a retiree’s budget and it’s the household cost that varies the most according to geography.… read more…
- Five Signs You Might Run Out of Money in Retirement and How to Prevent It
It’s the worst-case scenario of retirement. You have worked, saved and built up the nest egg. You haven’t got a care in the world until one day you notice it… the money seems to be getting a little bit tighter. The bank accounts seem to be a little weaker than they should be. The bills… read more…
- How to Prepare for Disruptors to the Retirement Savings Industry in 2024 and Beyond
Do not count on your 401(k) plan alone. This weakness of many retirement portfolios is just one of the findings from a recent report on the state of retirement in America released by investment firm Principal. Called The Future of Retirement, this research looks at how retirement will change by the year 2030, as Generation… read more…
- You May Need to Rethink Where Your Retirement Income Will Come From
A growing number of workers report that their primary source of retirement income will come from their 401(k) workplace savings plan, according to a new retirement study from Schwab. In 2022, workers said 37% of their retirement money would come from 401(k) cash. That figure has now risen to 40% of workers. Consider working with… read more…
- Retirement Savings Strategies Are Changing: What to Know
A workplace 401(k) retirement savings plan is becoming a requirement for more and more employees, according to a new survey from Charles Schwab, with 88% saying their employer must offer a plan and 75% saying they’d turn down any job offer that didn’t include a 401(k). But as important as 401(k)s and similar tax-advantaged plans… read more…
- How to Plan for a Low-Income Retirement
Retiring on a low income may seem challenging, but with the right strategies, resources and investment choices it is possible to live securely during your retirement years. To start you should calculate what your potential retirement income is likely to be so that you can plan ahead for what to do once you get there.… read more…
- Younger Boomers Have Less: How to Avoid Running Out of Money in Retirement
Younger baby boomers significantly lag older baby boomers in retirement savings by an average of more than $50,000, according to a new study from the Center for Retirement Research at Boston College. The study attributes the lag in savings to the 18-month-long Great Recession and, to a lesser extent, the changing demographics of younger baby… read more…
- Good News for Retirement: Fund Fees Continue to Fall
Do not ignore fund fees. One of the great tricks of finance is how quickly seemingly-small percentages can add up. The difference between 3% and 4% mortgage rates, for example, can mean hundreds of dollars or more per month in extra interest payments. The same is true when it comes to the fees attached to… read more…
- What Are Pretax Contributions?
The concept of pretax contributions might seem complicated but it essentially refers to the funds you invest into specific types of retirement accounts before income tax is withdrawn. This strategy provides immediate tax advantages by reducing your taxable income for the year and becomes quite beneficial if you’re trying to delay your potential tax liability.… read more…
- Your Credit Score Could Plummet in Retirement, But Does It Even Matter?
For most people, a credit score is something to worry about earlier in life. Debt, in general, usually peaks between ages 35 and 54. So it’s understandable that you may view retirement as a time to finally disregard those vaunted three-digit numbers. However, as The Wall Street Journal recently reported via Fidelity, your credit score… read more…
- Americans Need the Most Help With This Piece of the Retirement Planning Puzzle
More than any other aspect of retirement planning, workers need help calculating how much to save for their golden years. That’s according to a new 401(k) survey commissioned by Charles Schwab, which also revealed $1.8 million to be America’s new magic number for retirement. However, calculating a savings goal isn’t the only part of retirement… read more…
- The Success of Your Retirement Plan May Hinge on This Timing Factor
As you plan your retirement, make sure to consider the state of the market. While you don’t want to retire into a bear market if possible, retiring at the top of a bull market can pose the same risks, too. That’s the reminder from recent commentary offered by Morningstar’s Christine Benz. In a recent webcast on… read more…
- Where Can I Retire on $2,500 a Month?
A retirement income of $2,500 a month will pay for a comfortable and secure lifestyle in many places in the United States. While there are pros and cons to living in any location, here are six cities where $2,500 can stretch to cover the monthly living expenses for many retirees and some information about what… read more…
- Where Can I Retire on $2,000 a Month?
Living on $2,000 per month is doable, but you won’t be able to live just anywhere. This is important because at the time of writing the average Social Security benefit paid is $1,976 per month. With a small retirement portfolio, you can relatively easily add a few hundred dollars to that amount, bringing your household… read more…
- More Than 12,000 Americans Will Turn 65 Every Day in 2024. Are You Ready for Retirement?
The U.S. population is approaching a landmark sometimes called Peak 65, the point next year when more than 12,000 people will start turning 65 each day, hitting an estimated total of 4 million for the year, according to U.S. Census Bureau figures. By the end of 2030, all Baby Boomers – those born between 1946 and… read more…