- New Bill May Allow Penalty-Free 401(k) Withdrawals for This Retirement Expense
When planning for the future, health care ranks as one of the highest concerns for both savers and retirees alike. Not only are health care costs rising by more than 5% every year, but rampant inflation and volatile market performances have also added extra pressure to retirement savings, making many older Americans wonder if they… read more…
- How to Calculate Your High-3 for Federal Retirement
The high-3 retirement calculation helps determine pension benefits for federal employees. Both the Federal Employees Retirement System (FERS) and Civil Service Retirement System (CSRS) use this formula. The high-3 average reflects the average salary from the highest-paid 36 consecutive months. This period isn’t always the final three years of employment. This figure plays a key… read more…
- Five Retirement Risks to Avoid
While 79% of Americans told Fidelity Investments in 2022 that they are confident about their retirement planning, 71% also said that they are concerned about the impact of inflation on reaching their retirement goals. Uncertainty can make people feel anxious about… read more…
- The IRS May Make Your Roth IRA More Valuable With This RMD Rule Change
The Internal Revenue Service has proposed rule changes that could significantly impact how beneficiaries will manage inherited retirement accounts. The proposed regulations, which were published last month, caught some in the financial services industry by surprise, as they offer a new interpretation of the SECURE Act and change the rules governing the required minimum distributions… read more…
- The Most Common Annuity Riders, and How They Work
Annuities are insurance products designed to provide you with a guaranteed stream of income, while an annuity rider can be added to an existing annuity contract to expand or enhance its benefits. There are different categories of annuity riders you might choose to add, depending on your financial needs. Understanding the different types of riders… read more…
- Can I Retire at 60 With $300,000?
While it’s possible to retire at 60 with just $300,000, you’ll most likely need to maintain a modest standard of living. To understand what a 60-year-old with $300,000 might face, it’s important to consider their income both before and after Social Security, as well as post-retirement expenses. The specifics for your exact situation may vary,… read more…
- Can You Have More Than One 401(k)?
Wondering if you can have more than one 401(k)? The answer is yes, but with some qualifications. You can contribute to multiple 401(k) plans if you work for different employers. You may also do so if your employer offers both traditional and Roth options. However, the IRS sets combined contribution limits across all your 401(k)… read more…
- How to Retire at 52: Step-by-Step Plan
Many Americans dream of early retirement. It’s even the basis for movements likeFinancial Independence, Retire Early (FIRE). However, if you want to retire as soon as 52, you need a solid strategy to help you get there. Retiring in your 50s leaves you with less time than the average worker, creating a financial challenge. Despite… read more…
- What Is a Registered Index-Linked Annuity (RILA)?
A registered index-linked annuity (RILA) is a specific type of annuity that’s designed to provide income while managing risk. A RILA tracks the movement of a stock market index in order to produce positive returns, while simultaneously giving the annuitant the ability to establish a maximum risk threshold. This version of an annuity could be… read more…
- How Long Will $600,000 Last in Retirement?
One of the biggest worries associated with retirement planning is ensuring you’ve saved enough money. Some people aim to save $1 million or more. Others target $500,000 to $600,000 instead. But just how long will $600,000 last in retirement? And is it enough? Asking those kinds of questions can help you shape your retirement savings… read more…
- T. Rowe Price Has Identified Two Types of Retirees. Which Type Are You?
T. Rowe Price has identified two types of retirees and launched a retirement tool to serve their financial needs. The global investment management firm divides retirees into two categories: savers and spenders. Let’s break down how they are defined, which… read more…
- 7 Tips for Withdrawing From Retirement Accounts in a Down Market
You’ve spent a lifetime accumulating funds for a smooth retirement. You’ve thought ahead and assumed a decent yield for your investments, calculating exactly how much you’ll need to retire comfortably. What if your retirement years coincide with a down market? Selling your investments at depressed prices creates a two-fold problem for retirees. When prices fall,… read more…
- Here’s Why Crypto May Threaten Your 401(k)
Given Bitcoin’s meteoric rise and enduring popularity, many investors might be interested in investing in cryptocurrencies as part of their portfolios. Nowadays, retirement savers can even take advantage of tax-leveraged accounts like self-directed IRAs and invest in cryptocurrencies and other alternative investments. However, the U.S. Department of Labor (DOL) recently released a report recommending against… read more…
- How to Retire at 55 and Live Off Your Dividends
Retiring at 55 and living off dividends requires careful planning, strategic investing, and a strong focus on income-generating assets. Early retirement dividend investing involves building an investment portfolio of reliable dividend-paying stocks, funds or other income-producing investments. These are what sustain a comfortable lifestyle without relying on traditional employment. Factors such as dividend yield, payout… read more…
- How Much Can a Retired Person Earn Without Paying Taxes?
How much a retired person can earn without paying taxes depends on several factors, including the type of income, total earnings and filing status. Social Security benefits may not be taxable at all below certain income thresholds and standard deductions can offset a portion of other income. For 2026, a single filer age 65 or… read more…
- Are You Entitled to Some of the Extra $2.3 Billion TIAA Will Pay in Annuity Interest?
Annuities have long formed part of the retirement arsenal, and the Teachers Insurance and Annuity Association of America (TIAA) is demonstrating why. TIAA has announced its aim to boost retirement savings for several million of its annuity subscribers, giving back during these volatile times to ensure a smooth retirement experience. TIAA’s latest move comes on… read more…
- How Does a Roth In-Plan Conversion Work?
A Roth in-plan conversion allows employees to shift pre-tax retirement savings within an employer-sponsored plan, such as a 401(k), into a designated Roth account. This process triggers immediate taxation on the converted amount, but future qualified withdrawals become tax-free. Many workplace retirement plans offer this option, though rules vary by employer. Converting pre-tax funds to… read more…
- Understanding the Roth IRA 5-Year Rule
The Roth IRA five-year rule determines when withdrawals of earnings or converted funds can be taken without taxes or penalties. For earnings, the rule requires that at least five tax years have passed since your first Roth contribution. For converted funds, the clock starts on each conversion, and early withdrawals may incur penalties. Knowing the… read more…
- How Much Do You Pay in Roth Conversion Taxes?
Calculating Roth conversion tax involves determining the income tax owed on the amount converted from a traditional IRA or 401(k) to a Roth IRA. Since conversions are taxed as ordinary income, the tax liability depends on the individual’s federal and state tax brackets. For example, if a person converts $50,000 and falls into the 24%… read more…
- How to Retire at 61: Step-by-Step Plan
Retiring at 61 means you’ll need to rely on your savings and investments for several years before Social Security and Medicare benefits fully begin. Determining whether you have enough saved, and how to turn those assets into reliable income, is one of the most important steps. Early retirees must account for healthcare costs, longer withdrawal… read more…
- New Bill Aims to Ban Russian Assets from Your Retirement Plan
As the Russia-Ukraine conflict continues to rage and cease-fire talks have come to a temporary impasse, a new senate bill says “nyet” to Russian stocks in your 401(k). This is part of a concerted effort of Western economic sanctions against Russia to punish the country and hamstring its war effort. The Russian government and major firms… read more…
- How to Convert a Traditional IRA to a Roth IRA
If you have retirement money in a traditional individual retirement account (IRA), you will have to pay taxes on it when you retire and start taking distributions. A traditional IRA is funded with pre-tax dollars. However, if your money is invested in securities in a Roth IRA, that account is funded with after-tax dollars, and… read more…
- Your Retirement Portfolio Needs More International Exposure
For most Americans, investing for retirement in 2026 remains a long-term practice unfolding over many decades. It requires looking beyond the daily ups and downs of the stock market, remaining disciplined amid economic volatility and adopting a long-term focus – and possibly one that looks beyond U.S. borders. While U.S. equities have historically outperformed international… read more…
- How Much Does a $100,000 Annuity Pay Per Month?
How much a $100,000 annuity pays per month depends on several factors, including the type of annuity, the age at which payments begin and whether payments are guaranteed for life or a set period. For example, a $100,000 immediate annuity purchased at age 65 might pay around $500 to $700 per month for life. Rates… read more…
- What Is the Minimum Social Security Benefit for 2026?
Social Security benefits can play an important part in your retirement plan. Understanding how those benefits are calculated can help you to determine when to take Social Security and how much you might receive. The minimum Social Security benefit calculation… read more…