- How the Windfall Elimination Provision in Social Security Works
Throughout your career, it’s likely that a portion of your income has gone toward Social Security benefits each pay period. The purpose? When the time comes to retire, you are able to draw monthly benefits from this program. This provides… read more…
- LGBTQ Retirees Are Missing Out on This Big Social Security Benefit
Though recent years have seen tremendous strides in areas of social and financial equality for LGBTQ Americans, the history of marginlization that the community faced has left many older LGBTQ people struggling with financial security, according to a new study from the Illinois chapter of the American Association of Retired People and SAGE Publications. “This… read more…
- For Some, COVID-19 Means an Early Retirement
COVID-19 has impacted Americans in many different ways. And while some workers say that the pandemic has caused them to delay retirement, a study from Northwestern Mutual shows that younger people want to retire earlier. If you are planning to retire early, a financial advisor could help you create a financial plan to reach your goals.… read more…
- Worried About Losing Your Old 401(k)s? ‘Portability’ Measures Can Help
In addition to introducing two bills in September to remove savings roadblocks and ensure gig workers and part-timers have access to tax-advantaged plans, Democrats have introduced the Portable Retirement and Investment Account (PRIA) Act of 2021 to allow Americans to take along their retirement funds more easily throughout their careers. And in a move not… read more…
- You May Soon Be Able to Insure Against Social Security Going Bust – But Should You?
You may be able to profit off your pessimism about the health and durability of Social Security. That may be welcome news for young and middle-age adults who are particularly bearish about the future of Social Security. The Nationwide Retirement Institute’s 2021 Social Security Survey found that 71% of people worry the 86-year-old program will run out of… read more…
- U.S. Drops in Global Retirement Rankings: These Countries Do It Better
The U.S. has plenty to improve upon when it comes retirement. While Iceland is rated as the top country for retirement security for the third year in a row, the U.S. dropped to No. 17 in the 2021 Global Retirement Index… read more…
- These Digital Tools Can Help Close the Retirement Gap
It’s fairly common knowledge that many Americans are facing a retirement savings gap. In 2015, the gap between what they needed to have saved and what they’ve actually saved was $28 trillion. But it gets worse: the World Economic Forum now says that the gap is expected to grow to a whopping $137 trillion by… read more…
- What Is an Annuity Period?
Annuities are insurance contracts where you pay a premium upfront for future payments that return your principal plus interest. They can help boost your retirement income, but before buying one, make sure you learn the key terms. One important term is the annuity period, which refer to when payments begin. Knowing how it works can… read more…
- Target Date Fund Popularity Is Through the Roof, But Beware
Investors taking the easy road may be shooting themselves in the foot — and in droves. Conventional wisdom dictates that as investors get closer to retirement, they should periodically rebalance their portfolio to reduce risk. The idea is simple enough: shift your focus from growth to income as you near retirement. This act, known as… read more…
- Your Retirement Account Could Get an Infusion of Cash Under This Plan
A provision of the $3.5 trillion Democratic budget may boost the retirement savings of moderate- and low-income workers. A proposal advanced by the House Ways and Means Committee on Thursday would make the Saver’s Credit refundable for those who don’t owe any taxes. If the provision becomes law, eligible workers would receive the annual tax… read more…
- Don’t Get Scared Into This Social Security Mistake
The Social Security Board of Trustees announced last month the trust fund partially responsible for paying out benefits is set to run out of money by 2033, likely leading some retirees to worry that their monthly benefits could run out before they pass. A study conducted by the Retirement Research Center at Boston College, though,… read more…
- Medicare Takes On Big Pharma in New Biden Plan
For older Americans, healthcare costs are always a concern. And the costs of prescription medicines can weigh particularly heavy on those who need them to survive. President Joe Biden has called on Congress today to pass legislation that will lower the costs of prescription drug prices. A linchpin in the plan: allowing Medicare to negotiate… read more…
- Congress Could Make Your Employer Offer You a 401(k)
While many companies offer their employers access to 401(k) plans, there is no requirement mandating them to do so. But this could soon change under a proposal that would require more employers to offer their workers 401(k) plans and other tax-advantaged retirement savings plans. A financial advisor can help you sort out your retirement accounts… read more…
- Congress Wants Medicare to Cover Retirees’ Insane Dental Costs
Nearly half of all Medicare beneficiaries don’t have any dental coverage, but that could change under a proposed expansion of the safety net program. As millions of beneficiaries spend hundreds – or even thousands – of dollars out of pocket for dental care each year, Democrats in Washington, D.C., want Medicare to cover dental services,… read more…
- Retirees Could Get Social Security Pay Boost That Reflects True Costs
A bill has been introduced in the House of Representatives that aims to change how Social Security payments are calculated. Social Security currently adjusts payments annually for cost of living. Experts say that retirees could see a 6.2% hike to benefits in 2022, the biggest increase in decades. But inflation could also undercut this increase. And… read more…
- How to Retire in the United Arab Emirates
Once organized as separate sheikdoms, the seven emirates of the United Arab Emirates, Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al-Khaimah, Sharjah and Umm Al-Quwain, are now a popular destination for expatriates. In fact, according to the Congressional Research Service, around… read more…
- 71% of People Think Social Security Will Run Out – Are They Right?
Young and middle aged adults are particularly pessimistic about the future of Social Security, but their greatest fears will likely never come to fruition. The Nationwide Retirement Institute’s 2021 Social Security Survey found that 71% of people worry Social Security will run out of funding in their lifetimes, while a considerable percentage of Millennials and… read more…
- Missing Retirement Funds? Proposed “Lost and Found” Could Help
There might be missing money out there with your name on it. A pair of bills in Congress could make it easier to find it. The two bills introduced earlier this year call for the creation of an Office of the Retirement Savings Lost and Found within the federal Pension Benefit Guaranty Corporation. The new… read more…
- Why Is Gen Z Saving More for Retirement Than Their Parents?
A 2021 survey from TransAmerica says that the youngest generation of American adults is getting a jumpstart on retirement by saving a lot earlier than older generations. Financial experts will point out that this is in part due to the decline of pensions and the rise of defined contribution plans like 401(k)s, which allow employees to… read more…
- Where Your Social Security Could Go Further Under Projected Massive COLA Increase
As inflation continues to soar, senior citizens next year could receive their largest increase in Social Security benefits in nearly four decades. The Senior Citizens League, a nonpartisan senior advocacy group, projected the annual Cost-of-Living Adjustment (COLA) could be a whopping 6.2% in 2022. That would constitute the largest year-over-year hike in Social Security benefits… read more…
- Are IRA Contributions Pre-Tax?
There are many ways to save for retirement, but one of the best is to get an individual retirement account (IRA). These are especially useful if you don’t have access to a workplace retirement account, like a 401(k) or 403(b).… read more…
- What Is a Money Purchase Plan?
Employees covered by company retirement plans are familiar with defined-contribution plans like 401(k), 403(b) or SEP-IRA accounts. A money purchase plan is another such employer-sponsored plan that can help you save for retirement. It is similar to these other accounts, except that the contributions are typically made by the company instead of the employee. In… read more…
- Eligible Designated Beneficiary Requirements
A designated beneficiary is an individual or entity chosen to inherit assets from a retirement account, such as an IRA or 401(k), after the account holder’s death. Under the SECURE Act, eligible designated beneficiaries include surviving spouses, minor children of the account holder, disabled or chronically ill individuals, and those who are less than 10… read more…
- One-Third of American Workers Are Leaving Free Money on the Table
A 401(k) plan, and other workplace retirement plans like a 403(b) plan, is the most common way for American workers to save for retirement. With Social Security simply not enough to cover expenses for most people and traditional pension plans rarely used anymore outside of the public sector, taking full advantage of your 401(k) is… read more…
- How Do Mega Backdoor Roths Work?
A mega backdoor Roth is a unique 401(k) rollover strategy that’s designed for people whose incomes would ordinarily keep them from saving in a Roth Individual Retirement Account. The advantage of using a Roth IRA to save for retirement is… read more…