- We’re 62 Years Old With $950k in IRAs. Is It Too Late to Convert to a Roth IRA?
Fortunately, there’s no age restriction on converting a pre-tax retirement account to a Roth IRA. You can roll funds from a qualifying pre-tax account to a Roth IRA at any time. A financial advisor can help you manage your retirement savings and build an income plan for your golden years. Connect with a fiduciary advisor… read more…
- I’m 65 With $1.4 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
With $1.4 million in your IRA at age 65, you have a robust nest egg that could potentially fund a secure retirement of 25 years or more. However, making sure that money lasts will require prudent planning. You’ll need to assess your income needs, balance investment risk and return, secure supplemental insured income streams, account… read more…
- We’re 64 Years Old With $750k in an IRA and Social Security. Is It Too Late to Convert to a Roth IRA?
If you’re nearing retirement and you have a sizeable IRA balance, you face some significant decisions surrounding required withdrawals and taxes. Converting a traditional IRA into a Roth account is one move that can increase your planning flexibility. And even at 64 years old, shifting an account from a tax-deferred to tax-free status can result… read more…
- I’m 60 With $1.5 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Making your savings last through retirement can be complex in practice, but it really all comes down to your income vs. spending. In other words, it means understanding how much your portfolio can generate in a more risk-averse time in your life, against how much it costs each year to maintain your lifestyle. Retiring at… read more…
- I Want to Roll Over $720k to a Roth IRA. How Do I Avoid Paying Taxes?
Taxes are a valid concern if you want to roll over $720,000 from your retirement fund into a Roth IRA. While you won’t pay any taxes if the assets you’re rolling over are held in another Roth account, there’s typically no way to completely avoid paying taxes when rolling pre-tax money into a Roth IRA.… read more…
- I’m 65 Years Old With $1.2 Million in an IRA. I’m Taking Social Security – Is It Too Late to Convert to a Roth IRA?
Imagine you’re 65 with $1.2 million in an IRA and a lingering question: should you convert your account into a Roth IRA? The answer may depend on how you go about it. A Roth conversion can provide some sizable advantages, including tax-free withdrawals and freedom from mandated distributions – but that doesn’t mean it’s always… read more…
- We’re 63, Have $1.5 Million in IRAs and Will Receive $4,500 Monthly From Social Security. What’s Our Retirement Budget?
As you make your retirement budget, it’s important to keep two issues in mind. First, understand your needs — what budget will you need to pay your bills, and what budget will you want to afford your lifestyle? And second, understand your capacity — what income can your portfolio comfortably and reliably generate for you? … read more…
- Simple IRA vs. Roth IRA: What’s the Difference?
A Simple IRA (Savings Incentive Match Plan for Employees) is primarily designed for small businesses, allowing both employees and their employers to contribute towards retirement savings. In contrast, a Roth IRA is a type of retirement savings account into which individuals deposit income after taxes, expecting tax-free earnings over time and during withdrawal at retirement.… read more…
- I Have $2.5 Million in a Roth IRA and Will Receive $2,500 Monthly From Social Security. Can I Retire at 62?
Retiring at age 62 and filing for Social Security will reduce a person’s lifetime benefits by up to 30% compared to waiting until their full retirement age. However, a person with $2.5 million in a Roth IRA may feel more comfortable retiring at age 62, despite the impact that early retirement will have on their… read more…
- How a Roth IRA Conversion Ladder Works
A Roth conversion ladder can be a smart strategy that allows you to move funds gradually from one account (traditional IRA) to another (Roth IRA) without triggering any tax penalties. This conversion takes place over several years, and is carefully planned out in advance. In simpler terms: A Roth conversion ladder could let you bypass… read more…
- Make the Most of a Roth Conversion With These Strategies from Schwab
Converting a traditional IRA to a Roth IRA can help you minimize taxes in retirement. But executing the conversion strategically is key to maximizing the benefits. A recent Schwab retirement planning report recommends three tactics to reduce your Roth conversion tax bill: max out your current bracket, spread conversions over multiple years and start planning… read more…
- Are IRAs or Roth IRAs FDIC-Insured?
Portions of your IRA may be protected by the Federal Deposit Insurance Corporation (FDIC). That will include any depository accounts that you hold in a depository institution, such as savings accounts or certificates of deposit with a savings bank. But this protection will not apply to investments, securities or any other IRA portfolios you hold elsewhere.… read more…
- What Is a Silver IRA?
A silver IRA is a self-directed individual retirement account that allows you to own silver and other precious metals in your portfolio. Investors sometimes use this type of account to hedge against inflation. But does it make sense for your retirement? Here are the pros and cons. A financial advisor can help you break down… read more…
- Indexed Universal Life (IUL) vs. Roth IRA
If you’re torn between getting a life insurance policy and investing in the stock market, an indexed universal life (IUL) policy can serve both purposes. This product provides a death benefit to your heirs and returns based on index fund… read more…
- Can You Lose Money in a Roth IRA?
A Roth IRA gets favorable tax treatment that can help you accumulate funds for retirement. Despite the advantages, you can lose some or all of the money you put into a Roth IRA. One possible reason for a decline in… read more…
- Three Tips to Make the Most of Your IRA
An individual retirement account (IRA) is a very popular way to save for retirement — especially if you don’t have access to a workplace retirement account like a 401(k). While there are several important decisions to make when saving with… read more…
- What Is the Minimum Age for a Roth IRA?
Dollar for dollar, a Roth IRA is almost always the best retirement account you can have. They have lower contribution limits than a traditional 401(k), but other than that the advantages of this after-tax account can’t be beaten. If you… read more…
- Life Insurance vs. Roth IRA: Retirement Guide
When choosing where to set aside money for retirement, you need to weigh your options carefully. You’re likely going from one main income source to multiple smaller income sources when you retire. You may also want buy some security for your… read more…
- How a Roth IRA Grows Over Time
A Roth IRA can be a useful tool for accumulating the funds needed to pay for a comfortable lifestyle in retirement. That’s because it permits growth without owing taxes on investment gains, and also allows savers to withdraw funds in… read more…
- Roth IRA vs. 457(b) Retirement Plans
Roth IRA and 457(b) plans give savers tax-advantaged ways to fund a secure retirement. Almost anyone can open a Roth IRA account with after-tax dollars that then grow tax-free. Only state and local government employees can have 457(b) accounts but… read more…
- How to Open and Set Up a Self-Directed IRA
While most individual retirement plans focus on stocks and bonds, self-directed IRAs allow you to invest in a broader range of assets, from petting zoos and laser tag arenas to residential real estate and silver bars. This account type allows… read more…
- 6 Top Benefits of Roth IRAs
Opening an individual retirement account is an excellent step in retirement planning. However, you’ll face a choice when doing so: will you pick a Roth or traditional IRA? Your contributions to one count towards the total annual limit for both… read more…
- Using a Roth IRA Annuity for Retirement
There are different financial vehicles that you can use to save for retirement. A Roth individual retirement account is one option; an annuity is another. A Roth IRA annuity combines features of both into a single financial tool. You can… read more…
- Switch to Roth Contributions If You Have This Much Money
Deciding whether to save in a pretax or Roth account for retirement just got a little easier – at least for people 50 and older. T. Rowe Price has pinpointed how much late-career workers who want to leave money to… read more…
- This Lucrative Retirement Tactic Dodged Biden’s Axe
President Biden signed the Inflation Reduction Act into law in August 2022. This is a trimmed-down version of the Build Back Better Act, a $1.75 trillion social spending initiative that had struggled to get votes in Congress. The expanded bill… read more…