- Ready to Ditch Your 60/40 Retirement Portfolio? Do This Instead
Perhaps no topic is more hotly debated in retirement planning circles than the viability of the 60/40 portfolio. This investing strategy, which calls for 60% of a portfolio’s assets to be invested in stocks and the remaining 40% in bonds, has been the gold standard for retirees and those approaching retirement for decades. But a… read more…
- How Lower Life Expectancy Could Put Your Retirement at Greater Risk
When it comes to saving and investing for retirement, one of the biggest challenges is figuring out how much money you’ll need to live out the rest of your life comfortably. There’s no telling how long you might end up living. Add in a spouse, children and other dependents, and the calculation become even more… read more…
- What Is a Contingent Deferred Annuity (CDA)?
As you approach retirement, one of the biggest questions you’ll face is how to secure steady income without sacrificing flexibility. A contingent deferred annuity (CDA) offers a modern solution, letting you keep your money invested while guaranteeing income if your portfolio takes a hit. However, it’s not the only option. Whether you want predictable payouts,… read more…
- Did You Know Alternative Investments Could Be Putting Your 401(k) at Risk?
Retirement savings plans have included alternative investments for more than 30 years. Plan sponsors view alternatives as complementary to traditional stock investments and annuities — but most plan participants don’t even know their 401(k) savings include these asset classes. A study released in February 2022 aims to shed light on these under-the-radar investments. Is it… read more…
- The Great Resignation Is Adding These Flexible Options to Your Retirement
The Great Resignation is having a huge impact on many parts of American life. One impact you might not think of immediately is the impact it has on the retirement savings space — fewer people working means fewer participants in workplace-sponsored retirement plans like 401(k) plans. With that in mind, plan providers are focused on… read more…
- You Need to Save This Much For Medical Care in Retirement: Here’s How to Start
How much money will you need to cover your medical care in retirement? The answer may surprise you, especially if you haven’t begun to plan for these future medical expenses. A recent study from the Employee Benefits Research Institute found that a couple with median prescription drug expenses will need $296,000 in savings to nearly… read more…
- How Can I Avoid Paying Taxes on IRA Withdrawals?
Contributing to a Roth IRA can help avoid taxes on IRA withdrawals, as contributions are taxed up front and qualified distributions are not taxed later. You might also lower your tax bill by converting to a Roth in years when your income is relatively low or by taking early withdrawals under specific exemptions. Donating IRA… read more…
- How to Retire at 57: Step-by-Step Plan
Retiring at 57 is a dream for many, offering the promise of more time to pursue passions, travel, or simply enjoy a slower pace of life. Achieving this goal requires careful planning and a strategic approach to financial management. The journey begins with understanding your financial needs and setting clear retirement goals. It’s crucial to… read more…
- A Guide to Nursing Home Costs
Long-term care in residential facilities like nursing homes is a financial challenge for many. When dealing with a loved one who is disabled, elderly or ill, families often try every other kind of long-term care facility first. Because nursing homes provide more health care services than some of the other options, the cost is significantly… read more…
- Medicare Extra Help Income Limits for 2025
Medicare Extra Help is a subsidy program that’s designed to assist eligible Medicare recipients with paying for their prescription drug costs. Some people who have Medicare Part D qualify for Extra Help benefits automatically. Those who don’t qualify automatically can… read more…
- Is a 401(k) Worth It?
Until the 1980s, most of America used pensions to plan for retirement. These defined-benefit plans offered by employers saved a fund on behalf of their workers and calculated each employee’s retirement benefits individually. This put all the responsibility and associated risks on the pension fund and employer. In order to plan properly, they had to make… read more…
- How to Buy an Annuity: A Step-by-Step Guide
Annuities can create an additional stream of income for retirement that’s guaranteed and dependable. An annuity is a contract that you purchase from an insurance or annuity company. In terms of how to buy an annuity, it’s possible to start… read more…
- Qualified Pre-Retirement Survivor Annuity (QPSA)
We all of course want to plan for a long and happy life, but the fact of the matter is it’s possible to die earlier than expected – even before you receive your retirement benefits. For some, a pre-retirement death would pose problems for a spouse or dependent. One possible solution could be a qualified pre-retirement… read more…
- How and When to Use an IRA to Buy a House
You may be considering dipping into your retirement savings to buy a residence, come up with a down payment or cover closing costs. There are plenty of pros and cons when it comes to using your IRA to pay for… read more…
- How to Retire at 59: Step-by-Step Plan
The 60s are probably the most common age at which Americans retire. Retiring at age 59 is a possibility, though, with some proper planning. For most people, once they’ve turned 59.5, they can begin withdrawing from their tax-advantaged retirement accounts without penalty. However, under certain circumstances, you can even withdraw penalty-free from these accounts at age… read more…
- Can You Contribute to an IRA After Retirement?
An IRA (and its corollary, the Roth IRA) is a form of tax-advantaged retirement account that lets you save money during your working years so you can withdraw it during retirement. There is no age limit to contributing to an IRA, meaning that you can do so at any point in life. However, you can only… read more…
- Can I Contribute to an HSA After I Retire?
A health savings account (an HSA) is a form of tax-advantaged retirement account designed for healthcare spending. You can make contributions to your account at any time so long as you aren’t enrolled in Medicare. During any period when you… read more…
- Here’s Why Your 401(k) Savings Are Mysteriously Increasing
The data is in: 401(k) savings have hit record levels. Profit-sharing and 401(k) plans enjoyed more participation than ever before–all despite the negative impact of the COVID-19 pandemic. The reason? The impact of a government program leads to higher contributions, even if the saver isn’t always aware of it. A financial advisor could help you… read more…
- Need Cash From Your IRA Before Retirement? This New Rule Can Help
The costs associated with withdrawing money from a 401(k) or IRA early are well-known. Doing so before age 59.5 means paying a 10% penalty on top of ordinary income tax. However, there is a lesser-known way to avoid this steep penalty when withdrawing money early from a qualified retirement plan. The Internal Revenue Service permits… read more…
- How Lifecycle Funds Work
Lifecycle funds – also known as “target-date funds” – are an option for retirement planners that doesn’t require regular upkeep. By reducing risk as you get closer to your goal, lifecycle funds increasingly focus on preserving capital than boosting capital appreciation. These funds have become popular recently because of their “set-it-and-forget-it” investment approach. In this… read more…
- How to Get a Social Security Award Letter
A Social Security Administration (SSA) award letter confirms that you have been approved for benefits. Unsurprisingly, these letters are sometimes also referred to as benefit letters. These are usually sent to people who have applied for disability coverage, as well as other Social Security programs. Applying for a Social Security award letter is relatively straightforward,… read more…
- What Is the Social Security Administration (SSA)?
Social Security is commonly known for providing an income for people in retirement. However, the Social Security Administration (SSA) does much more than provide social retirement plans. The SSA also provides social insurance protection to workers who become disabled and provides survivor benefits to families when the main income earner dies, among other services. Consider… read more…
- How to Retire at 65: Step-by-Step Plan
The age of 65 is the traditional time when people stop working and retire to live off the fruits of their labor. That doesn’t mean 65 is the ideal age for everyone to retire, though. In order to retire at age 65, you’ll want to evaluate your current assets and their income-producing potential, as well… read more…
- How to Retire at 30: Step-by-Step Plan
For many Americans, the prospect of retiring at or near 30 is a thrilling idea. Although it is possible to do, it takes a monumental amount of work and planning to accomplish. According to a 2021 PWC report and data from… read more…
- This Strategy Can Preserve Your Retirement Savings in a Down Market
The primary risk that retirees and those approaching retirement face is an obvious one: running out of money. However, a study published in the Journal of Financial Planning suggests reverse mortgages can help retirees protect their portfolios from market dips and extend their savings. Rather than relying exclusively on distributions from investments, retirees can temporarily… read more…