- The 5 Worst Retirement Mistakes to Avoid at All Costs
To do retirement right you need a disciplined savings plan, a good understanding of Social Security, a sound investment strategy and a vision of retirement that provides for adequate self-fulfillment without overspending your fixed-income budget. Behind those simple principles lies… read more…
- How to Save Money for Traveling During Retirement
Traveling during retirement is one of the main goals that a lot of people have as they think about what those years will look like. To travel the way you want, it’s important to make sure you’re saving enough money for retirement to help cover those travel costs on top of your regular retirement living… read more…
- I’m 63 With a $1.6 Million Net Worth and $4,500 in Monthly Expenses. Can I Retire Now?
With a $1.6 million net worth and $4,500 in monthly expenses, retiring at 63 is a possibility, but quite a bit of that depends on your circumstances. The income your net worth will generate depends first on how much of it is in the form of liquid assets. Your personal risk tolerance is another key… read more…
- We’re in Our Early 60s with $1.4 Million in Investments. Can We Afford to Withdraw $90k Per Year in Retirement?
There are going to be many factors that help you determine if you’re ready to retire to $90k per year for as long as you’ll need it. Withdrawing too much too soon heightens the danger of depletion, so determining a safe and sustainable withdrawal rate in retirement is crucial to ensure savings last your lifetime.… read more…
- We’re in Our 70s With $200k in Savings and Social Security. How Do We Make It Last?
Reaching your 70s with $200,000 in savings and Social Security benefits can feel both reassuring and nerve-wracking at the same time. You’ve built a nest egg, but now the focus shifts from growing your money to making sure it lasts. With rising healthcare costs, market uncertainty and the possibility of living well into your 80s… read more…
- How Do I Cover $4,000 in Monthly Living Expenses? I’m 60 With $800k in Retirement Savings, But I Won’t Collect Social Security for 5 Years
Imagine that you’re 60 years old with $800,000 in retirement savings and $4,000 in monthly living expenses. However, you want to wait until age 65 to claim Social Security, so you need to find a way to generate additional income for five more years. Whether you plan to delay Social Security or not, a financial… read more…
- How to Hire a Retirement Advisor
A retirement advisor can help clients plan, manage and optimize their financial resources to reach retirement goals. They do so by offering expertise in areas such as investment strategies, tax planning, and retirement income plans. Here’s what you need to know about hiring a retirement advisor. A financial advisor can also help you create a… read more…
- How Long Your Money Could Last Using the 4% Rule
The 4% rule offers a straightforward framework to estimate your financial runway. This widely referenced guideline suggests withdrawing 4% of your retirement portfolio in your first year of retirement, then adjusting that amount annually for inflation in subsequent years. Originally developed in the 1990s by financial advisor William Bengen, the rule aims to create a… read more…
- How to Write a Retirement Letter
A retirement letter serves as an official declaration of your departure from a job, giving your employer ample time to find a replacement or allocate your duties elsewhere. This strategy ensures a smooth transition and minimum disruptions in the workflow. However, what are the key components of a retirement letter? Let’s explore together how to… read more…
- 10 Ways to Properly Plan for Retirement
Planning for retirement can be a daunting task. You have to figure out how much to save, determine the right ways to save that money and then make sure you’re consistent while constantly making adjustments to your approach over time. If you’re not experienced in investing and managing finances then you might not know where… read more…
- I’m 59 With a $1.4 Million Net Worth and $5k in Monthly Expenses. Can I Retire Now?
When thinking about whether you’re financially prepared to retire or not, you’ll want to think about it in a certain way. You have a lifestyle that you would like to maintain, and a portfolio that can safely generate a specific amount of income each year. Once your costs and means overlap, you can afford to… read more…
- We’re 63, Have $1.5 Million in IRAs and Will Receive $4,500 Monthly From Social Security. What’s Our Retirement Budget?
As you create your retirement budget, it’s helpful to keep two issues in mind. First, clarify your needs: determine how much you must set aside to cover essential expenses and how much you would like to spend to maintain your preferred lifestyle. Second, assess your capacity by estimating how much income your portfolio can reasonably… read more…
- Is $2.5 Million Enough to Retire at 60?
With careful planning, $2.5 million can fund a comfortable retirement starting at age 60. But as with any major life transition, retirees must weigh a complex set of variables from taxes to healthcare to ensure their nest egg lasts decades. Though everyone’s situation differs, this level of savings can provide most the flexibility to retire… read more…
- I Have $640k in a 401(k). How Do I Avoid Paying Taxes When Converting to a Roth IRA?
Converting a 401(k) to a Roth IRA can provide valuable long-term benefits, but you must plan for the bigger tax bill. You cannot avoid taxes on a Roth conversion. However, you can reduce the burden through strategies like gradual conversions and timing adjustments. A financial advisor can help you decide whether a Roth conversion is… read more…
- What Is Rule 72(t) and How Does It Work?
Accessing your retirement funds before age 59 ½ typically comes with a hefty 10% early withdrawal penalty. However, Rule 72(t) offers a potential exception that many retirement savers don’t fully understand. This IRS provision, formally known as Section 72(t) of the Internal Revenue Code, provides a pathway to penalty-free early withdrawals from retirement accounts under… read more…
- I Have $250k in an IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire in 5 Years at 70?
If you’re in your mid-60s and still working, it may be time to start seriously planning for retirement. That doesn’t mean you need to leave work immediately, but retirement is likely on the horizon. Imagine you’re 65 years old, you have $250,000 in an IRA and expect to receive $3,000 per month from Social Security.… read more…
- What Is the Average Monthly Retirement Income in Every State?
The average retirement income varies widely across the U.S. In the state with the highest retirement income, Alaska, the average retired household brings in almost twice as much as retirees in Indiana, the state with the lowest retirement income. Differences stem from local variations in wages and salaries, cost of living, tax rules, the incidence… read more…
- How to Account for Inflation in Retirement Planning
Retirement planning is a critical process that can help secure your financial future. And understanding economic factors, like inflation, is essential. While inflation impacts all consumers, it can significantly affect retirees’ purchasing power or what a given amount of money can buy. Retirees may struggle to maintain their financial stability when their purchasing power is… read more…
- My Wife and I Have $1 Million in a 401(k) and Fully Own a $500k Home. Can I Retire in 5 Years at 60?
With $1 million in a 401(k) and no mortgage on a $500,000 home, retirement at 60 may in fact be possible. However, retiring before eligibility for Social Security and Medicare mean relying more on savings. Deciding to retire at 60 calls for careful planning around healthcare, taxes and more. At any age, deciding whether you… read more…
- Ask an Advisor: I Made $310,000 Last Year and Have $546,000 in Retirement Savings, But My Spouse Doesn’t Work. How Can I Save More?
I am 48 years old. I made $310,000 last year and I currently have $546,000 in my retirement plan at work. My husband is on disability and doesn’t work and does not have a 401(k) plan. I wanted to open a Roth IRA but I read that I make too much money. What options do… read more…
- Retirement Risk Zone: What It Is and How to Navigate
The Retirement Risk Zone is the period of time that can last from five to 10 years before and after you retire. This timeframe can have a significant impact on your retirement savings. And experts say that you should pay careful attention to your retirement savings decisions when you reach this zone. Here’s what you… read more…
- Can You Retire After Working for 10 Years?
Retiring after just a decade of work might sound like a pipe dream, but with careful planning and smart financial choices, it may be within reach. Let’s explore how you can retire after 10 years of work and discuss the key factors and strategies that can help you make it happen. If you need additional… read more…
- Can You Retire After Working for 20 Years?
There’s no clear answer on whether retiring after a 20-year career is possible. The factors affecting any given person’s retirement readiness are extremely personal to their situation. This includes the types of retirement accounts you have, their balances and your tax liability. Other factors include your healthcare needs and what assets or real estate you… read more…
- The Federal Government Will Match Your Retirement Plan Savings By 50%. Here’s Who Qualifies.
A major change coming in 2027 could boost the retirement savings of millions of lower- and middle-income Americans. The federal government will start matching 50% of retirement account contributions up to $2,000 per year through the new Saver’s Match program. This money injects funds directly into savers’ accounts rather than simply reducing tax bills. For… read more…
- Planning Your Retirement? Don’t Forget About Home Equity
Historically, financial advice has treated homes as a source of wealth. When you buy a house – common wisdom holds – you treat it as a financial asset that can accrue value and contribute to your retirement plan. But in reality, there are many problems with this advice. Home prices are slippery and unreliable, and maintaining… read more…