Subscribe to our Newsletter
Jun 15, 2016 More and more seniors are staying in the workforce in their 60s and beyond. Some keep working out of financial necessity. Others want to wait to retire until age 70, when they'll receive the maximum in Social Security income. Still others stay in the labor force because they derive satisfaction and enjoyment from their jobs. Here are the best cities for a "worktirement" in 2016.
Jan 12, 2016 Plenty of the most quotable individuals have weighed in on the topic of retirement. Some praise retirement while others say it's the beginning of the end. Looking for that perfect retirement quote to put on a card or just look at to keep yourself motivated? We've got you covered with our round-up of wit and wisdom about our post-work years.
Jul 13, 2016 Wondering how your retirement savings stack up to other Americans' nest eggs? Or whether your income in your post-work years will be enough to keep you afloat? It's normal to be curious about the average retirement income in the US. Just remember that you need enough in your retiree days to meet your own needs, not to keep up with the Joneses.
Dec 09, 2015 Thinking about an early retirement? If so, you’ll need to plan carefully. There are a number of financial challenges for early retirees that those who wait until 65 or later don’t need to worry about.
Jan 28, 2016 For many Americans the 401(k) is their main - if not their only - retirement account. Given the important role the 401(k) plays in Americans' retirement savings plans, it's natural to want a high degree of control over how one's 401(k) performs. Self-directed 401(k)s let savers decide how to invest their pre-tax retirement contributions. Let us explain.
Jan 04, 2017 If one of your New Year's resolutions is to finally start saving for retirement, an individual retirement account may be just what you need. IRAs offer a tax-advantaged way to save for the future but they're not all created equal. If you're planning to open your first IRA in 2017, we'll help you get started. Here are three tips you'll need to consider.
Dec 08, 2016 Many people look forward to the day they can hang up their work clothes for good and enjoy their golden years. For most people, retirement occurs sometime in their late 60s or even their 70s. However with careful planning and prudent financial management, it is possible to retire even earlier. There are many factors at play when determining whether a place is suitable for an early retirement. First and foremost are financial concerns.
Nov 11, 2016 The governor of California recently signed the Secure Choice Retirement Savings Act into law. This legislation creates a new state-sponsored program that intends to improve retirement savings options for private sector workers in California. If you work in the Golden State, read on for a breakdown of how the new program will work and who it will affect.
Nov 10, 2016 You may be planning to spend your retirement playing golf or traveling the world. But if a financial disaster strikes, you'll have to find a way to bounce back from it. While you can't necessarily prevent an emergency from happening, there are ways to prepare yourself for a rainy day. Let's look at some situations that can derail your retirement plans and the steps you can take to deal with them.
Nov 03, 2016 Deciding where to stash your retirement savings can be difficult. Should you save your money in a 401(k), an IRA or both? Should you open a Roth IRA? Your answers to these questions will depend on your financial situation and in some cases, you might have more retirement savings options than you think. If you don't know whether you need to participate in a non-qualified deferred compensation (NQDC) plan, we'll help provide you with more information. Read on as we explain what NQDC plans are and how they work.
Dec 19, 2016 Your credit score can affect many different aspects of your financial life. If you're hoping to buy a home, refinance your student debt or get a new credit card, your credit is going to come into play. One thing you may not automatically connect your credit score with, however, is your retirement plan. You may be surprised to learn that your score can influence how financially sound you are after you stop working.
Oct 20, 2016 The so-called gig economy is reshaping the way companies sell products and services and it's having an impact on how its workers plan their financial futures. While freelancers and independent contractors may have more flexibility, their jobs typically don't come with built-in retirement plans. If you're part of the gig economy, here's how you can plan for retirement.
Oct 19, 2016 Not everyone leaves the workforce at age 65. Some people decide to retire before they reach full retirement age, even if they have to miss out on some of the Social Security benefits they're entitled to receive. Others try to keep working for as long as they can because retiring early isn't possible or they're afraid of outliving their retirement savings. For the second year in a row, SmartAsset took a look at how the average retirement age varies across the country.
Oct 04, 2016 Part of planning for retirement is deciding when to leave your job behind. But sometimes plans go awry. If a sickness prevents you from working or your company downsizes, you could be forced to retire months or years ahead of schedule. If you haven't saved enough money, there's no need to panic. Here are five steps to take when you're forced into an early retirement.
Sep 26, 2016 Saving for retirement can be a daunting task and it's hard to do it without a road map. Maxing out your employer-sponsored plan (such as your 401(k) account) can be a great starting point. But there's more than one way to pad your retirement accounts. If you're looking for creative ways to boost your savings, here are some ideas that you can begin to implement.
Sep 23, 2016 SEPP stands for substantially equal periodic payment. Setting up a series of substantially equal payments is a little-known maneuver that can enable you to withdraw money from your retirement accounts before age 59 1/2 - without paying an early withdrawal penalty. Often an SEPP comes as a result of a lay-off. Want to learn more? You're in the right place.
Sep 23, 2016 Knowing that you should save for retirement and actually doing it are two different things. If you never got around to building a nest egg, you run the risk of going broke in retirement. That could be a problem if you have a lot of unpaid debt and financial obligations. But luckily, there are ways to stay afloat when you run out of savings. Here are three ways to cope when you come up short.
Sep 21, 2016 By the time you turn 60, you may be ready to leave the workforce for good. But some seniors aren't in the financial position to quit their jobs. While working in retirement won't prevent you from claiming your Social Security benefits, it could affect your benefit amount. If you're planning to work after you retire, here's what you'll need to consider before taking Social Security.
Sep 08, 2016 Worrying about having enough retirement savings can keep you up at night. If you've barely put anything away, it's easy to panic or give up on saving altogether. But there's a third option: You can find ways to funnel a few extra bucks into your 401(k) account or your IRA. If you're ready to put more effort into saving, here are seven easy ways to fill your retirement accounts.
Sep 07, 2016 Married couples have to figure out how to merge their assets. And whether they're managing budgets or mapping out a plan to eliminate debt, it's important for both people to be on the same page. That's particularly true when it comes to planning for retirement. Whether you're a newlywed or you've been hitched for decades, here are some issues that you can't afford to overlook.
Sep 06, 2016 If you're young, your retirement healthcare needs are probably the last thing on your mind. But even if your golden years are decades away, it might be a good idea to start thinking about how you're going to pay for your medical bills and medications. The average 65-year-old couple who retired in 2015 can expect to spend a total of $394,954 on premiums, co-pays and out-of-pocket healthcare expenses by the time they turn 85, according to a recent report.
Aug 29, 2016 The November election is drawing nearer and speculation about who will be the nation's next president abounds. A recent survey from the Pew Research Center found that the economy is the number one issue American voters are concerned about. Many of the respondents said that Social Security was also an important issue that would likely influence their vote.
Aug 26, 2016 If you're thinking about retiring, you may want to consider how leaving the workforce might affect your adult children. Many millennials live at home with their parents. And a large percentage of those who live on their own rely on their parents for financial support. Before you give up your career, check out some of the factors you'll need to discuss with your kids first.
Aug 15, 2016 October 15 marks the beginning of the annual Medicare open enrollment period. If you're a senior, you'll have until December 7 to make changes to your existing coverage or enroll in Medicare for the first time. While navigating the maze of healthcare options can be tricky, you can't afford to make any mistakes. Here's what you need to know in order to prepare for open enrollment.
Aug 02, 2016 An emergency fund can go a long way in keeping you from running out of cash when you lose your job or you're forced to cover the cost of an emergency expense. Once you retire, you may think that you no longer need a rainy day fund, but that's not necessarily the case. Here are five reasons why having an emergency fund can come in handy after you decide to leave the workforce.
Aug 03, 2016 There are lots of reasons why you might consider buying a home overseas. Perhaps you've found the ultimate vacation spot and you want a permanent place to park your stuff. Or maybe the idea of spending your golden years someplace warm and sunny appeals to you. Either way, buying property in a foreign country is going to be a different experience than buying a place on your home turf. Before you fall in love with that Italian villa or a Mexican hacienda, here are five things to take into account.
Aug 03, 2016 One million dollars is often cited as the amount that most people should use as their benchmark when trying to figure out how much they need to save for retirement. But you may be able to retire on less than a million dollars, depending on your financial situation. While having a lot of money in the bank is always a plus, you don't have to be rolling in dough in order to retire comfortably.
Aug 03, 2016 Retirement is supposed to be a time when you can sit back and relax. But for some seniors, their golden years aren't as bright as they anticipated. According to a recent report from the Employee Benefit Research Institute (EBRI), the number of retirees who say their retirement is "very satisfying" declined by nearly 12% within a 15-year period, while the number of those who say it's not satisfying at all has increased by nearly 3%.
Jun 30, 2016 Most people assume that once you hit retirement, it's time to pack up and move someplace sunny. But surprisingly, many American seniors aren't interested in straying too far from home. A survey from The American College of Financial Services found that 83% of retirees or near retirees had no plans to relocate in their later years.
Jun 27, 2016 Full retirement age is now 66 or 67, depending on the year you were born. But a recent survey revealed that one in four workers don't plan to retire until after their 70th birthday. While some people may choose to work longer out of a desire to stay active, others may have to do so in order to keep up with their expenses. If you're thinking about putting off your retirement, here's a look at some of the pros and cons of working until age 70.
Jun 27, 2016 Cutting the apron strings is an important rite of passage for many parents but one thing that many of them fail to do is cut the purse strings while they're at it. According to a recent survey, 6 in 10 Americans provide financial support to their adult children and in doing so, they may be putting their retirement security at risk.
Jun 24, 2016 Getting married means more than merging your lives - it's also about joining your finances together. Handling money as a married couple can be challenging at any age but it can be especially tricky for retirees who are concerned about keeping their nest egg secure. If you're a senior who's planning on walking down the aisle again or for the first time, here are some important rules to keep in mind.
Jun 20, 2016 Planning for retirement involves more than just mapping out your savings strategy. You'll need to know how much you can afford to spend once you leave the workforce. In the past, some financial experts recommended that retirees stick with the 4% rule when making retirement withdrawals. But it may not be the best guideline for everyone. Here's what you need to know about the rule.
Jun 16, 2016 Retirement can be a hotly anticipated stage of life. But things are changing. With people living longer and the Baby Boomers retiring, there are important things we all might forget about retirement. We can't forget about how Social Security works, how much health care is going to cost and, of course, we can't forget that saving for retirement early is one of the most important things we can do to prepare.
Jun 06, 2016 Saving for retirement is a common financial goal, but it's often easier said than done. A new survey suggests that despite the pressure to plan for the future, retirement savings rates have dropped. Meanwhile, concerns about not having enough money in retirement have risen. If you haven't saved much for your golden years, keep reading to see how you compare to the rest of the country.
May 26, 2016 Traveling and volunteering are both great ways to spend your golden years. But some seniors are more interested in starting the businesses they've always dreamed of founding. Donning a small business owner's hat later in life can be rewarding, but it comes with a certain degree of risk. Before you get started, it's a good idea to consider the following financial tips.
May 23, 2016 Social Security benefits supplement existing savings in retirement and while they're valuable to many seniors, they're often misunderstood. In a recent survey, only 28% of participants earned a passing grade when quizzed on their knowledge about Social Security. Here's a look at the most common things seniors get wrong when it comes to Social Security.
May 18, 2016 One of the most challenging aspects of raising teenagers is helping them develop good money management skills. Teaching them how to budget and save can help them build a solid financial foundation. Setting up a custodial IRA can help them start preparing for retirement. Basically, it's a traditional or Roth IRA that you'll maintain control of until your child becomes an adult. If your teen doesn't have one, here are three reasons to consider opening a custodial IRA.
May 10, 2016 Tying the knot means making a commitment to share every aspect of your life with your significant other. As you begin merging your money, one area that requires special attention is your retirement planning strategy. Building a nest egg as a team can be easier than doing it alone if you know which steps to take. Here are four retirement planning moves for newlyweds.
May 09, 2016 Everyone wants to be able to retire comfortably, but making that dream a reality is easier said than done. Even if you're socking money away here and there, there's no guarantee that you'll have enough cash for your golden years. In fact, you could be sabotaging your long-term financial goals without even realizing it. Here are five mistakes that can leave you feeling the pinch in retirement.
May 04, 2016 As the baby boomer generation ages into their 60s and 70s, the number of retirees in the United States is going to increase. So too will their economic sway. Many retirees, no longer anchored to a city or region by their job, choose to pack up and leave. Some seek a lower cost of living. Others want beautiful scenery, warm weather or both. Some are looking for lower taxes on their retirement income.
Apr 29, 2016 Opening an individual retirement account (IRA) can be an excellent way to supplement your 401(k) or another employer-sponsored retirement plan. A traditional IRA offers tax-deferred savings while a Roth IRA allows for tax-free withdrawals in retirement. In some scenarios, your financial advisor may recommend converting your IRA into an annuity. This type of savings vehicle offers a consistent stream of income but it isn't right for everyone. Before you convert your IRA, let's take a look at the pros and cons of doing so.
Apr 28, 2016 Retirement planning is a hot topic and the research suggests that Americans are overwhelmingly unprepared. According to the Employee Benefits Research Institute, only 22% of workers say they're very confident about their ability to save enough for a comfortable retirement. Seventeen percent said they're not too sure they'll be able to meet their basic expenses once they retire.
Mar 23, 2016 What’s your ideal retirement? For the couch potatoes among us, it probably involves lots of big books, television shows and classic movies. Beach bums might envision a spot in the sand with a cool drink and a bit of shade. Others prefer the purpose (and income) provided by entrepreneurship or a part-time job. For many, however, the perfect retirement isn’t about relaxation or economic productivity. It’s about staying active, staying fit and getting some fresh air in the process.
Nov 04, 2016 In the final stretch of his presidency, Obama has made it his mission to encourage states to make it easier for workers to save for retirement. Currently, there are almost 70 million Americans without employer-sponsored retirement plans. While many states are making an effort to develop new savings vehicles, five of them are ahead of the curve. Read on to find out which ones have already created their own retirement savings programs for their residents.
Feb 22, 2016 If retiring rich is one of your financial goals, one of the best ways to make that happen is to study the habits of wealthy savers. When it comes to money, the rich know a thing or two about growing it and making it last, both of which are evident in the way they build their nest eggs. If you want to enjoy a lavish post-work lifestyle, here are three retirement planning rules you can put into practice.
Feb 19, 2016 You probably understand that saving for retirement is important, but you might not know exactly how to get started. Whether you're able to participate in an employer-sponsored plan or not, contributing to an individual retirement account (IRA) can be a great way to prepare yourself for the future. Check out our beginner’s guide to getting started with an IRA.
Feb 04, 2016 Participating in a 401(k) plan is one of the simplest ways to start planning for retirement. Unfortunately, not all employers offer this tax-advantaged savings plan. If you don't have the opportunity to invest in a 401(k), you may need to convince your employer to provide this benefit. Check out three tips that can improve your odds of getting the retirement support you need for your future.
Feb 02, 2016 For many people, turning 50 signals a shift in the way they approach their finances. If you have kids, they're probably preparing to leave the nest and you may just be hitting your stride in terms of your earning power. With retirement looming, now's the time to amp up your efforts to save. Whether you're a late bloomer or you've been socking money away steadily over the years, here's what you can do to enjoy a rich retirement.
Feb 01, 2016 When it comes to saving for retirement, you might have unintentionally put it off. Luckily, the government gives older savers the chance to catch up before they reach retirement. So whether you're trying to boost the savings you already have or you've just recently started saving, here's everything you need to know about catch-up contributions.
Feb 01, 2016 Saving for the future can be intimidating. But you don’t want to put it off or settle for strategies that save you very little. There are plenty of ways to take charge of your finances now in order to enjoy a big payoff later in retirement. So whether you've recently started your career or you're counting the months to freedom, here are three simple ways to grow your nest egg.
Jan 29, 2016 As you head into your 60s, you reach the point where retirement is very much a reality. Just because you're close to leaving your job behind for good, however, doesn't mean you can slack off when it comes to getting your financial ducks in a row. In fact, the years leading up to retirement can be crucial to your long-term outlook. If you want to enjoy your golden years, here are the retirement planning mistakes you'll want to avoid in your 60s.
Jan 25, 2016 A 401(k) account is one of the most powerful tools you can have when it comes to saving for retirement. If you're not using yours wisely, however, you could be putting your savings in jeopardy. When you're focused on creating sustainable, long-term wealth through your 401(k), there are certain pitfalls that you need to watch out for along the way.
Jan 22, 2016 If your retirement is in the works for the new year, you don't want to wait until the last minute to prepare yourself for your new lifestyle. Putting your financial house in order sooner rather than later can help you make a smooth transition out of the workforce. Not sure where to start? Here's a checklist of the bases you'll need to cover if you'll be retiring in 2016.
Jan 19, 2016 When saving for retirement, it's common to have overlapping goals. Most of us want to 1) save enough to generate a comfortable monthly income, 2) avoid outliving our savings and 3) leave something for our heirs. A variable annuity is one product marketed at people balancing these objectives. But do the costs outweigh the benefits? Here's our take on the pros and cons of the variable annuity.
Jan 18, 2016 It's best to have a solid grip on your retirement planning strategy by the time you reach your 50s. If you've been saving steadily throughout your 30s and 40s, the next decade or so will hopefully be a cakewalk. But you can't afford to leave room for error. As you get closer to retirement age, it's important to make sure you're avoiding these potentially costly mistakes.
Jan 05, 2016 Maxing out your IRA each year is a smart move when you're focused on growing your retirement fund but contributing too much money can result in a tax penalty. Regardless of how you ended up with excess contributions, it's important to make sure you correct your mistake and minimize the financial damage. If you've got too much money in your IRA, here's what you can do about it.
Jan 04, 2016 Building wealth takes time. Your approach will depend in part on the stage of life you're in. The way you handle your money as a 40-something is likely a bit different than the way you managed your finances in your 20s and your 30s. If retiring rich is your ultimate goal, here are three ways to work toward making that happen as you hit your midlife stride.
Dec 29, 2015 Most of us start each new year with a list of resolutions. Some of us focus on fitness, others on career goals. Unless you're financially flawless (good for you!) you may also have some money-related resolutions. We here at SmartAsset know that when it comes to our finances there's always room for improvement. Here's a sampling of the SmartAsset team's 2016 financial resolutions.
Dec 20, 2016 While you're making your New Year's resolutions, it might be a good idea to set aside time to map out your retirement strategy for the year. And that includes taking a look at where you currently stand with your 401(k) contributions. January is the start of a new contribution year. So if you want to make the most of your 401(k) retirement account this year, here are five steps you can take.
Dec 23, 2015 When it comes to building your nest egg, you can't afford to make any mistakes, especially if your retirement is right around the corner. If you're in your 40s, your window for saving is starting to narrow. So it's important to commit to setting aside as much money as possible. Make any of these serious blunders and your retirement-planning strategy could veer wildly off course.
Nov 18, 2015 Once you enter your 50s, the pressure to make sure you're ready for retirement starts to increase. If you've been saving diligently up to this point, you might not be feeling too stressed. But if you haven't put much effort into building your nest egg, there's no time to waste. Check out some steps you should consider taking now to make sure your golden years look bright.
Nov 13, 2015 The government recently announced that there will be no cost of living adjustment for Social Security in 2016 due to falling gas prices. This is the third 0% COLA increase in the last 40 years, but the first time in half of a decade. No Social Security COLA means that 30% of Medicare participants will see their premiums rise.
Nov 05, 2015 Saying goodbye to your 20s and hello to your 30s might mean making some slight adjustments to how you manage your money on a daily basis. That can include putting saving for retirement on your financial to-do list. If you're a 30-something saver, there are several retirement planning mistakes you'll likely want to steer clear of when you're in the process of building your nest egg.
Oct 19, 2016 Choosing the right retirement age is as difficult as it is important. Retiring too early could leave you short on savings years into your retirement. A premature retirement can also cost you a chunk of your annual Social Security income.
Oct 26, 2015 Your 40s are a transitional period financially. Instead of attacking student loan debt, you might be looking for ways to pay down your mortgage faster. If you've got kids who are planning to go to college, saving for their tuition might also be on your radar. As far as retirement goes, you still have time to save but the countdown clock is likely ticking a little more loudly. If you haven't squirreled away as much as you would like or you haven't started saving yet, here's what to focus on.
Oct 23, 2015 When you think "golf" do you think executives doing business on the links or wealthy retirees? If so, you might have a good reason for associating golf with money. The sport is big business, from the manicured courses to the televised competitions. Want to know more about the economics of golf? You're in the right place.
Oct 16, 2015 It's natural for your financial priorities to shift once you reach your 30s. Instead of living on a broke college student's budget, you're likely earning more. And if you haven't done it already, now is the time to start building your nest egg. Even though your retirement is still decades away, there are some steps you'll need to take to plan for your golden years.
Oct 12, 2015 Making mistakes in your 20s is natural. The ones that involve your money, though, can come back to haunt you for years to come. That's especially true when it comes to socking away money for your retirement. Some mistakes tend to be more expensive than others, so if you're a 20-something who's just starting to save, here's what you don't want to do.
Sep 30, 2015 The decisions you make in your 20s can shape your future for years to come. That's especially true when it comes to your finances. Between slaying your student loan debt and trying to launch a career, saving for retirement probably falls pretty low on your list of priorities. But it's not something you can afford to neglect, even if you have several decades to build up your nest egg.
Sep 16, 2015 If your retirement strategy involves putting money into a 401(k), you want to make sure you're getting the most out of what you're saving. Choosing low-fee investments is a step in the right direction, but there's a faster way to grow your money. Bumping up your contribution amount so you qualify for the company match can yield a big payoff when you're ready to retire.
Sep 14, 2015 Having access to a 401(k) can be a blessing or a curse depending on how it's structured. If you're forking out big bucks for fees or the match is minimal or nonexistent, you may be wondering whether it's even worth keeping. If your 401(k) isn't helping you save, it can be difficult to keep your retirement planning on track. But it's not impossible if you know how to deal with it.
Aug 28, 2015 Landing a big-time job comes with lots of perks and a retirement plan is one of the best parts of the package. The only problem is that some employers require newcomers to wait a few months or even a year before they can start chipping into their 401(k)s. While you're waiting for your contributions to kick in, here are three smart ways to put your extra money to good use.
Jan 12, 2016 A stretch IRA is a way to limit required distributions on an inherited IRA, avoiding a sizable tax bill in the process. Instead of naming his or her spouse as the IRA's beneficiary, an account holder can name children, grandchildren or great-grandchildren. This stretches the lifespan of the IRA, extending its tax-deferred growth for years or decades beyond the life of the original accountholder. Let us explain:
Jan 12, 2016 Choosing between a Roth and a traditional IRA? It's a good position to find yourself in. It means you're saving for retirement and considering your options carefully. Congrats! Of course, it's possible to have both a Roth and a traditional, but since you can only contribute $5,500 a year to either a Roth or a traditional IRA you might want to choose between the two.
Aug 20, 2015 Thinking of converting to a Roth IRA? There are several reasons this might make sense. Maybe you can no longer contribute directly to a Roth IRA because your income is too high (congrats!) or you want to spread your tax risk. At SmartAsset we're all about saving for retirement. Choosing the right retirement savings vehicle is an important step in that process.
Jan 12, 2016 For many Americans, Social Security benefits represent their only source of retirement income. Established in 1935 thanks to Franklin Delano Roosevelt, Social Security works as a forced savings mechanism and provides a basic income for the country's retirees. Social Security benefits alone aren't enough to provide a luxurious retirement. For that you'll have to save on your own.
Dec 11, 2015 Whether your dream is taking early retirement or working through your eighties, you should know why your retirement age matters. Choosing when to retire is one of the biggest financial decisions you'll make, right up there with buying a home. Retire too early and you risk outliving your retirement savings. Wait too long to retire and you might be robbing yourself of hard-earned leisure time.
Jan 15, 2016 We talk a lot about the financial side of planning for retirement. It's hugely important and can mean the difference between a carefree retirement and no retirement at all. But what about the other factors that contribute to a happy retirement? Enjoying your retirement is about more than just tapping into your 401(k). Here are our top tips for enjoying life after work:
Aug 14, 2015 It’s called a worktirement and it’s becoming increasingly common. Instead of leaving the workforce entirely sometime in their 60s, many seniors are continuing to work (at least part-time) well into their 70s and 80s.
Jan 12, 2016 We all know that saving for retirement is a good thing. We often think of retirement savings in terms of a percentage of our paychecks, but what about when someone doesn't work? The IRS has a solution that allows a non-working member of a married couple to save for retirement in an IRA. It's called, appropriately enough, a spousal IRA. Here's how it work:
Aug 18, 2015 Getting started with retirement planning is an important step on the road to financial security. Ideally, you would put a lot of money in and not make withdrawals until your retirement. But hey, life happens. If you need to take a withdrawal from an IRA before retirement age you are free to do so. You may, however, pay penalties and taxes. Here's how it works:
Aug 17, 2015 In the showdown of IRA vs. 401(k), who wins? That depends on your retirement savings needs. Just because you have access to a 401(k) through work doesn't mean you should necessarily max it out. Consider what it can do for you before investing your hard-earned dollars. Let us walk you through the important differences between 401(k)s and IRAs.
Jan 12, 2016 One of the most difficult aspects of ending a relationship is often figuring out how to divide your assets. While splitting up a checking or savings account may be fairly straightforward, figuring out who gets what with regard to a 401(k) usually isn't so simple. If your marriage is drawing to a close, there are some basic rules to apply when dividing retirement accounts during a divorce.
Dec 02, 2016 Around half of American households have no retirement accounts at all. No 401(k)s, no IRAs, nothing. You might think that's because they're all expecting pension income in retirement. In fact, according to the Government Accountability Office (GAO), around 29% of households age 55 and older have neither retirement savings nor a pension. It doesn't paint a pretty picture.
Jan 12, 2016 Saving in your employer's 401(k) could be a wise financial move. But believe it or not, it's not your only avenue for growing a healthy retirement nest egg. If you're approaching the annual contribution limit to your plan, there are three other accounts you can consider if you're looking for places to park some extra cash for your golden years.
Jan 12, 2016 Millennials consistently hear that they should be saving for retirement. Recent studies show 70% of 20-somethings are already socking away money for the future so it seems like the lesson is being heeded. But there are plenty of young adults still stuck at square one. If you're launching a career and have yet to jump on the retirement savings bandwagon, we've got tips on the tools you need to do it right.
Jan 12, 2016 Funneling money into your retirement accounts is an important link in the wealth-building chain. When it comes to your future, you can't afford to make the wrong move, but that doesn't mean you always have to follow the rules. In fact, there are some scenarios where deviating off the tried-and-true savings path might actually be good for your retirement strategy.
Jan 12, 2016 High fees can undermine your retirement savings strategy by eating into your earnings. But the Supreme Court is stepping in to protect workers' benefits. In a recently issued decision, the court put plan administrators on notice when it comes to high fees. If you're saving in a 401(k) or another employer-sponsored plan, here's what you need to know.
Jan 28, 2016 Retirement savings plans like 401(k)s offer tax advantages, but they come with a catch in the form of required minimum distributions (RMDs). As part of President Obama's 2016 budget proposal, new rules could affect savers with balances below a certain threshold. If you have a retirement plan that requires you to take minimum distributions, here's what you need to know.
Jan 28, 2016 Being married can come with lots of advantages. When both you and your spouse work, having two incomes can make it easier to tackle your debt or save for rainy days. If you're flying solo, the responsibility for all of those things falls squarely on your shoulders. Saving for a comfortable retirement can seem particularly daunting, but it can be done if you make the right moves.
Jan 12, 2016 Do you have a cool million dollars sitting in your retirement account? If not, you probably need to keep saving if you’re planning on retiring in one of America’s largest cities. Thanks to the rising cost of living in urban areas across the country, retiring in a big city is more expensive than ever. In places like New York and Los Angeles, many retirees are forced to either work during retirement, find a new home or live frugally. None of those may appeal to you, but unless you’re a millionaire they may be your only options.
May 16, 2016 Are you factoring Social Security benefits in to your retirement planning? If so, you should know the basics of Social Security eligibility and payments. That way, you won't get any unpleasant surprises when it comes time to claim your benefits after decades of hard work. Don't worry - we've got you covered with our guide to Social Security and how retirement benefits work.
Nov 18, 2016 Paying down your mortgage ahead of schedule can be a smart way to save yourself some serious dough on interest. That doesn't mean, however, that it's always the right move financially. In some cases, it might make better sense to use the extra money you're paying toward your mortgage to fatten up your nest egg. Here are some reasons to make retirement a priority over paying off your home.
May 20, 2015 A profit-sharing plan is a form of Defined Contribution (DC) plan that relies on employer contributions to employees' accounts. A business owner who wants to set up a profit-sharing plan for the benefit of herself and her employees may make generous contributions that are tax-deductible and enjoy tax-deferred growth. Does that sound too good to be true? It's not.
Apr 08, 2016 A traditional IRA lets you make tax-deductible contributions to a retirement account that grow tax-deferred until you're ready to start taking distributions in retirement. It's a popular option for many savers, but it doesn't work for everyone. One alternative is the non-deductible IRA, which lets high earners get in on the IRA action. Let us explain how it works and who can benefit.
Nov 17, 2016 A cash balance plan is a twist on the traditional pension plan. Like a traditional pension, a cash balance plan provides workers with the option of a lifetime annuity. However, unlike pensions, cash balance plans create an individual account for each covered employee, complete with a specified lump sum. Establishing a cash balance plan offers potential savings for employers.
Nov 17, 2016 If you're working on building up a nice nest egg for yourself, it's important to make sure that it's going to last through retirement. One of the ways you can stretch your savings further is by structuring your retirement account withdrawals to minimize your tax burden.
Jan 12, 2016 A 457(b) plan (also referred to as a 457 plan) is a retirement savings vehicle available to some government employees. It works like a 401(k) in that employees can divert a portion of their pay to the retirement account. This provides an immediate tax break by reducing participants' taxable income. Want to learn more? We've got the information with this guide to 457(b)s.
Nov 17, 2016 So you're interested in a Roth IRA? In that case, there are some important rules you should know about. One of the reasons people love Roth IRAs is that they come without some of the requirements attached to traditional IRAs. That doesn't mean that anything goes, however. The IRS still has rules and requirements. Here's what you need to know about Roth IRAs.