- What’s Considered an “Aggressive” 401(k) Strategy?
An aggressive 401(k) strategy typically involves allocating a larger share of retirement contributions to stocks, particularly those with higher growth potential. This approach aims to maximize long-term returns by accepting greater short-term volatility. It’s often favored by younger investors who have more time to recover from market downturns. Asset choices might include small-cap funds, emerging… read more…
- Can You Contribute to a Roth IRA Without Having Earned Income?
You generally need earned income—such as wages, tips, or self-employment income—to contribute to a Roth IRA, since these accounts are meant to support retirement savings from active work. If you don’t have earned income, you typically can’t contribute directly, though exceptions like spousal IRAs or indirect strategies may offer alternatives. A financial advisor can help… read more…
- Do You Pay Taxes on 457(b) Withdrawals After Age 70?
If you are approaching retirement and have savings in a 457(b) retirement plan, you might wonder which taxes you’ll pay on withdrawals after age 70. This is important when it comes to retirement planning. Otherwise, it could be hard to accurately estimate your future income and tax liabilities. While 457(b) plans offer unique benefits when… read more…
- Employee Deferral vs. Roth Deferral
If you have to choose between a traditional or Roth deferral, you will have to decide whether it’s better to get a tax break now or in retirement. A traditional deferral lowers your taxable income today, while a Roth deferral offers tax-free withdrawals later. A financial advisor can work with you to determine which is… read more…
- What Is the RMD for a 401(K) If You Still Work?
Retirement accounts like 401(k)s come with specific withdrawal rules. One of the most important is the required minimum distribution (RMD), which determines when you must begin taking money out. But if you’re still working when you reach RMD age, the rules can be different. Whether or not you have to take an RMD from your… read more…
- We Will Make $360k Combined This Year. Can We Use a Backdoor Roth Strategy to Reduce Our Taxes?
A backdoor Roth can sometimes be a good idea. The government puts income limits on who can contribute to a Roth IRA portfolio. In 2025, these limits are set at $165,000 for single filers, and $246,000 for joint filers. If you’re above this cap, you cannot contribute money to a Roth IRA. However, there is… read more…
- What Are the Distribution Rules for Inherited IRAs?
When you inherit an individual retirement account (IRA), it comes with a set of rules that dictate how and when you must take distributions. Knowing which rules apply to you can help you avoid unnecessary taxes or penalties. It can also help ensure that you make the most of your inheritance. The IRS has specific… read more…
- How to Build an Investment Plan for Retirement: Examples
Whether retirement is decades away or just around the corner, knowing how to build an investment plan for retirement is essential for financial security in your later years. A well-designed retirement plan considers your time horizon, risk tolerance and financial goals to create a roadmap for your future. It’s not just about saving money—it’s about… read more…
- Can You Roll Over a 401(k) Into a 403(b) Account?
The IRS does permit rollovers between these 401(k) and 403(b) plans, allowing you to consolidate retirement savings when appropriate. However, not all 403(b) plans accept rollovers from 401(k) accounts. This decision is up to the individual plan administrator. While both 401(k) and 403(b) accounts are tax-advantaged retirement plans, they serve different employer types. 401(k)s are typically… read more…
- When Does the RMD Age Go Up to 75 Years Old?
For retirement savers preparing for required minimum distributions (RMDs), recent legislation has brought significant changes to the timeline. The SECURE Act of 2019 initially raised the RMD age from 70 ½ to 72. This gave retirees more time before mandatory withdrawals begin. Then, the SECURE 2.0 Act of 2022 introduced further adjustments. It increased the… read more…
- Can You Reinvest Your RMD into a Roth IRA?
Reinvesting a required minimum distribution (RMD) into a Roth IRA isn’t allowed directly, since RMDs are considered taxable income. However, if you have earned income and fall within the IRS income limits for Roth contributions, you can contribute to a Roth IRA using funds from any source, including money withdrawn to satisfy your RMD. RMDs… read more…
- We’re in Our 70s With Our Home Paid Off and $350k in IRAs. Can a Nursing Home Take Any of It?
No, but also yes. A nursing home cannot unilaterally take your assets or property, even if you are staying there. Nursing homes have the same rights and limitations as any other business. If you sign a contract and don’t pay, then a nursing home can theoretically sue and collect assets for breach of contract. Even… read more…
- What Tax Bracket Does It Make Sense to Start Converting Traditional IRA to a Roth?
Your current tax bracket is an important consideration when evaluating whether to convert a tax-deferred retirement account to a Roth account. However, it’s just one of several elements to keep in mind. For example, your tax bracket in retirement is just as important as the one you’re in now. If you’re in a lower tax… read more…
- I’m 65 and Retiring Soon. How Should I Structure My $890k Portfolio?
Do you have a backup plan? This is one of the key questions when it comes to managing your portfolio in retirement. Your income will be determined in large part by how much growth your portfolio generates, but investing for more growth means accepting more risk. Investing for security, on the other hand, comes with… read more…
- Annuities vs. Dividend Stocks: Taxes, Pros and Cons, Examples
Annuities and dividend-paying stocks work differently when it comes to income, taxes and risk. Annuities offer fixed or variable payments under a contract, often used for retirement. Dividend stocks pay income from company profits and may also grow in value. Which one works better depends on your needs for taxes, flexibility and risk. Whether you’re… read more…
- 6 Reinvestment Options for Retirement Income
Many retirees receive distributions from retirement accounts, pensions, dividends or even part-time work. Should this income exceed immediate spending needs, retirees often look to put the excess back to work. Thoughtfully reinvesting surplus retirement income can help preserve wealth, protect against inflation and even grow your financial resources over time. However, the reinvestment options you… read more…
- What Happens to Your SSDI When Your Child Turns 18?
If you’re receiving Social Security Disability Insurance (SSDI), you may also receive additional benefits for a dependent child. But what happens to your SSDI when your child turns 18? Many parents rely on this supplemental income and want to understand how their child turning 18 will impact eligibility and benefits. Your SSDI benefit as a… read more…
- What Percentage of a Retirement Portfolio Should Be in Cash?
Planning for retirement involves making a lot of decisions, including how to allocate your portfolio. Among stocks, bonds and other investments, many pre-retirees wonder what percent of a retirement portfolio should be in cash. Cash plays an important role in ensuring stability, accessibility and peace of mind. However, holding too much cash can also reduce… read more…
- How Much Should You Put in Your 403(b) Per Paycheck?
If you work in the education, healthcare or nonprofit sector, you’ve likely asked an important question regarding your plan for retirement: how much should I put in my 403(b) per paycheck? The right amount to contribute depends on several factors, including your age, salary, employer match and overall retirement strategy. Whether you are just starting… read more…
- Bonds vs. Stocks in a 401(k): Which Should You Invest In?
Bonds and stocks each offer benefits, but they come with different levels of risk and return. A balanced mix can help build wealth while also reducing the impact of market swings, which is especially important as retirement approaches. The allocation for your 401(k) will depend on your age, risk tolerance, investment timeline and overall goals.… read more…
- Stock Market vs. Bond Market: Which One Is Larger?
Stocks tend to dominate financial headlines due to their volatility and potential for rapid gains or losses. But, bonds also play an important role by providing investors with stability and income. Both markets are large, and their size can change depending on the economy, interest rates and investor behavior. Knowing how money moves between stocks… read more…
- Is There Anything Better Than an Annuity for Retirement?
Annuities are often marketed as a retirement solution because they offer guaranteed income streams that can last a lifetime. However, there are several factors to consider whether an annuity is truly the “best” option. It depends on your financial situation, income needs, risk tolerance and long-term goals. For many, the most effective strategy may combine… read more…
- What Happens to Money in a 401(k) That Isn’t Vested?
When you participate in a 401(k) plan, both your contributions and your employer’s contributions can help you build retirement savings. However, not all the money in your account may fully belong to you right away. Employer contributions typically follow a vesting schedule, meaning you earn the right to keep those funds over time. If you… read more…
- 5 Reasons You May Want to Take Social Security Early
Deciding when to claim Social Security can be one of the most important retirement decisions you’ll make. Delaying your benefits can result in higher monthly payments. But there are many reasons you might choose to take Social Security earlier — as soon as age 62. Early retirement, health concerns or a need for more income… read more…
- Safe Withdrawal Rate By Age: How to Calculate
Planning how much to withdraw in retirement often starts with understanding the safe withdrawal rate by age. This concept helps retirees estimate how much they can spend each year without running out of money over time. While a 4% withdrawal rate has been a common benchmark, actual safe rates can vary depending on a retiree’s… read more…