- Should You Max Out Your 401(k)?
Living comfortably in retirement is a crucial part of the traditional American Dream. But many Americans struggle to save enough before they leave the workforce. According to a 2021 survey from the Insured Retirement Institute, 51% of older workers don’t… read more…
- Cashing Out Your 401(k): What You Need to Know
You know the goal of your 401(k) plan is to save. But while you’ve been working hard to contribute part of your salary, life may get in the way. It may be dozens of unexpected medical bills or your house… read more…
- What Is the Average 401(k) Match?
Saving for retirement comes with its struggles. However, you may already know the rates that retirement guides recommend to you. For example, save 15% of your income per year. Or have such-and-such percentage saved by age 35. But maximizing your 401(k) savings takes a little more than contributing as you can. One opportunity waiting for… read more…
- Free Money Is Out There – Here’s How to Claim Retirement Funds That Belong to You
There’s good news for folks out there who like free money: the Employee Benefits Security Administration (EBSA) has more than $2.4 billion in unclaimed retirement funds — and there’s a chance that some of if might belong to you. The EBSA is responsible for monitoring and ensuring the integrity of private employee benefit plans including… read more…
- How to Pay for Long-Term Care
The costs of long-term care for older adults can be significant, and federal Medicare health insurance benefits do not cover most of these costs. Most people who incur costs for long-term care cover them with a combination of personal savings, long-term care insurance and Medicaid, among other sources. Consider working with a financial advisor as… read more…
- 403(b) vs. IRA: Key Differences
In the process of saving for retirement, you’re likely to come across both 403(b) and IRA account options. While both of these can offer you similar benefits, there are some very important differences to note between the two accounts. Here’s a… read more…
- The Big Social Security Conundrum: How to Adjust Benefits for Inflation
As debate continues over how to best adjust Social Security benefits for inflation, a leading voice in retirement research says the answer may not be so straightforward. Since 1975, Social Security’s cost-of-living adjustments (COLA) have been based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an index that tracks the… read more…
- The Actual Million Dollar Question: Will Rising Mortgage Limits Help You in Retirement?
The federal government is reportedly set to enter uncharted waters in 2022 when it begins buying mortgages of nearly $1 million. The Federal Housing Finance Agency will raise the conforming loan limit for single-family home mortgages purchased by Fannie Mae and Freddie Mac to approximately $650,000 in most parts of the country and nearly $1… read more…
- The Biggest Pension Fund Is Taking on More Risk: Is Your Pension Next?
The board of California Public Employees Retirement System (known as CalPERS) approved an investment policy change on November 15 to use borrowed money and alternative assets to reach its investment-return target. Valued at $495 billion with two million members, CalPERS is the largest pension fund in the nation. And this move could become more mainstream as other… read more…
- New Research Shows Why You Should Rethink This Popular Retirement Strategy
Is the 4% Rule no longer a viable strategy for withdrawing retirement savings? That’s the question Morningstar researchers asked when they reexamined this well-known rule of thumb. Developed in the 1990s, the 4% Rule stipulates that a retiree should withdraw 4% of their savings in their first year of retirement and adjust subsequent withdrawals for… read more…
- If the Windfall Elimination Provision Reduces Your Social Security, You May Be in Luck
A decades-old provision that limits the Social Security benefits of nearly 2 million public-sector retirees and workers could be headed to the chopping block. Legislation recently introduced by U.S. Rep. Kevin Brady (R-Texas) aims to nix the windfall elimination provision (WEP) and replace it with a new formula for calculating the Social Security benefits of certain… read more…
- How to Choose Your Annuity Payout Option
Selecting how you’ll receive income from your annuity is one of the most important financial decisions you’ll make in retirement. The payout option you choose determines not only how much you’ll receive each month, but also how long those payments will last, and whether any funds will go to your beneficiaries after you’re gone. From… read more…
- What Is a Long-Term Care Facility?
The average individual turning 65 has nearly a 70% chance of needing long-term care in some capacity as he or she ages, according to the Administration for Community Living (ACL) and the Administration on Aging (AoA). That, combined with higher rates of longevity, means you or someone you know will likely use a skilled nursing… read more…
- Profit-Sharing Plan vs. 401(k)
Two of the most widely used employer-sponsored retirement plans are 401(k)s and profit-sharing plans. Both of these are tax-advantaged retirement plans, meaning that the IRS taxes contributions to these plans differently, if at all. Here’s how each of these plans work.… read more…
- Qualified Default Investment Alternative (QDIA)
A qualified default investment alternative (QDIA) is the default investment for defined contribution employer-sponsored retirement plans. If an employee contributes to a defined contribution retirement plan, like a 401(k), and does not specify how they want their money invested, it is automatically invested in the plan’s QDIA. A financial advisor could help you create or adjust… read more…
- Reverse Mortgages: What You Need to Know
A reverse mortgage is a financial instrument that allows seniors who are 62 and older to borrow against the value of their homes. Maybe their family home has been where they raised their children, but they are now empty-nesters and… read more…
- MSA vs. HSA: What’s the Difference?
Medicare savings accounts (MSAs) and health savings accounts (HSAs) both give consumers tax-advantaged ways to fund the costs of healthcare. MSAs are only for people enrolled in high-deductible Medicare plans. HSAs are restricted to people in high-deductible private insurance plans.… read more…
- What Is a Continuing Care Retirement Community?
Most seniors would prefer to stay in the comfort of their own homes. But at a certain point, it just might not be feasible. The average person 65 and older has almost a 70% chance of requiring long-term care, according to the Administration for Community Living (ACL) and the Administration on Aging (AoA). So, it’s… read more…
- Skilled Nursing Facility: Services and Costs
A skilled nursing facility gives an individual access to round-the-clock, specialized healthcare along with assistance and activities for daily living. These facilities have trained medical professionals to provide in-patient treatment and rehabilitation. A financial advisor could help you create a financial plan for your healthcare goals and needs. Here’s a breakdown of services, costs and insurance. What Is a… read more…
- Custodial Care Services, Costs and Insurance
Many people turn to long-term care (LTC) for a disability or chronic health condition. Sometimes the need for this happens suddenly after a medical emergency, like a stroke, or progressively with age. Either way, facilities like continuing care retirement communities (CCRC) are designed for these groups. Approximately 70% of adults who reach age 65 will… read more…
- Biden’s Build Back Better Could End These Retirement Loopholes
With the passage of the $1.2 trillion bipartisan infrastructure bill, all eyes in Washington have now turned to the $1.85 trillion Build Back Better bill. With both bills combined, Congress would invest more than $3 trillion in infrastructure, education, climate and social programs. The Democrats have scaled-back the Build Back Better bill significantly down from… read more…
- HSA vs. 401(k): What’s the Difference?
Health savings accounts (HSAs) and 401(k) accounts are both savings vehicles that offer substantial tax benefits for people planning for retirement. Beyond that, there are significant differences between the two. HSAs are narrowly focused on paying for costs related to… read more…
- Thrift Savings Plans vs. 401(k) Plans
Thrift savings plans (TSPs) and 401(k) accounts are two vehicles used to save and invest for retirement. Both operate similarly in many ways, including tax advantages, caps on contributions and requirements for minimum withdrawals in retirement. However, TSPs are only… read more…
- HSA vs. HMO: What’s the Difference?
A health savings account (HSA) and a health maintenance organization (HMO) are both intended to help people cover the costs of medical care. However, they take very different approaches. HSAs are tax-advantaged savings accounts that allow people to pay for healthcare using pre-tax dollars. HMOs are health insurance plans that limit policyholders to using healthcare… read more…
- Using a 401(k) vs. Stock Picking
Contributing to a 401(k) retirement account and investing in individual stocks outside a retirement account represent two drastically different approaches. A 401(k) account is part of many employer-sponsored retirement plans. They offer immediate tax savings and, sometimes, employer matching of… read more…