If you don’t use the account properly, you might not save enough or could pay unnecessary fees and penalties. / Credit: Getty Images Having enough money in retirement often requires decades of careful planning, saving and investing. For many Americans, retirement planning runs through their employers via 401(k) plans. These vehicles enable employees to direct […]
Read More(Bloomberg) — California Public Employees’ Retirement System, the largest public pension fund in the U.S., said it plans to vote for a shareholder proposal that Berkshire Hathaway Inc. replace billionaire Warren Buffett as chairman. The fund has over $450 billion in assets under management and about $2.3 billion in Berkshire shares, it said in a […]
Read MoreIf you don’t need your required minimum distributions (RMDs) from your traditional IRA for living expenses, can it be reinvested in a Roth IRA? Yes, it can—assuming you are eligible for a Roth based on your income. This is because the money to fund your IRA can come from any pool of cash you have […]
Read MoreThe major appeal of Roth IRAs is that, if you follow the rules, your withdrawals will never count as income and, as a result, be totally tax-free. But the rules differ depending on whether the money you withdraw represents your contributions to the account or the account’s earnings over time. This article explains when your […]
Read MoreExhale. That’s the advice from several financial experts across the country who said that investors shouldn’t do anything rash with their 401(k) retirement accounts amid a turbulent 2022 stock market. That turbulence was evident this week. The markets rebounded Friday after going into another tailspin the day before. That’s when a historic plunge in the […]
Read MoreAs inflation has gained traction in the last year, commentators constantly remark about how it is particularly hard on retirees who live on a “fixed income.” Please stop. Retirees do not live on fixed incomes. The 60% of households in the lower portion of the income distribution receive the bulk of their retirement income from […]
Read MoreThe Roth IRA has skyrocketed in popularity with Americans looking to stash money away for retirement. In mid-2020, Roth IRAs were held by 26.3 million U.S. households, or 20.5%, according to data from the Investment Company Institute. The Tax Cut and Jobs Act (TCJA), passed in late 2017, also provided a boost for Roths: The […]
Read MoreThe Internal Revenue Service (IRS) has announced that contribution limits for 401(k)s, 403(b)s, most 457 plans, thrift savings plans (TSPs), and other qualified retirement plans will rise by $1,000 for 2022, going from $19,500 to $20,500. However, contribution limits for individual retirement accounts (IRAs), whether traditional or Roth, will remain the same at $6,000. In addition, the […]
Read MoreDean Rainer finds it hard to believe that anyone would think app-based gig workers can save for retirement. “I needed a good laugh today,” the 60-year-old who delivers for Uber UBER Eats said when asked about his retirement plans. “Thanks for that.” Rainer estimates that he made about $14 an hour on average doing deliveries […]
Read Morefinancial literacy is costing americans A recent study done across several different age groups throughout the country revealed a troubling finding about financial literacy among Americans. The study, which surveyed a total of 3,389 adults, showed that the average adult loses about $1,389.06 annually due to a lack of financial knowledge, including personal finance and […]
Read MoreMany people find themselves outside of the formal workforce from time to time. Some end up unemployed by choice while others find themselves without work because of layoffs. These individuals have several options available to them in order to keep the income flowing. For instance, some may join the gig economy while others try consulting, […]
Read MoreReady for today’s retirement investing pop quiz? What’s the single most consequential thing you can do to improve your chances of not running out of money in retirement? I’ll try answering this question in a minute, but I’ll note first that chances are good that this question isn’t just hypothetical but applies to you personally. […]
Read MoreThe withdrawal rules for Roth individual retirement accounts (IRAs) are generally more flexible than those for traditional IRAs and 401(k)s. Still, you’ll want to do your homework before making any Roth IRA withdrawals. If you don’t meet certain requirements, you could end up owing taxes and a 10% early withdrawal penalty. Key Takeaways Withdrawal rules […]
Read MoreRetirement is a topic that regularly makes headlines, and not all of them are encouraging. Americans are living longer than ever before. However, if you assume most people are saving more to prepare for their longer-term needs, you’d be mistaken. Here are some of the more startling truths about retirement in the U.S. Key Takeaways […]
Read MoreIf you want to get your new year off to a good start, try some quick and easy money moves to make yourself richer and fatten your retirement account. And don’t sweat the small stuff, because over time even minor savings can add up to big gains. Check out the chart above. It’s based on stock […]
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