The 4% rule — which suggests retirees withdraw 4% of their retirement savings every year for living expenses — may be too high, according to the latest analysis of the popular strategy. Retirement Tip of the Week: Don’t just assume you need to withdraw 4% in retirement because it’s been a general rule of thumb […]
Read MoreI have just been talking to the so-called “father of the 401(k),” and he’s not happy. It’s more than 40 years since Ted Benna helped launch the famous tax-deferred savings plans that now dominate the U.S. retirement market. But today, he says, these plans are being aggressively missold to sole proprietors and small businesses owners by […]
Read MoreEverythingpossible/Dreamstime Sometimes it’s better to get taxes out of the way earlier when using a 401(k) to save for retirement. Financial planner David Born of Orinda, Calif., advises a couple in the top tax bracket who contribute to Roth 401(k)s rather than traditional 401(k)s, even though it means they pay more in taxes now. The […]
Read MoreHow Much Money Do You Need to Retire While there may not be a more common or consequential financial question then “how much money do I need to retire?,” there isn’t a one-size-fits-all answer. One person’s retirement income needs will be different from the next, depending on their circumstances and goals. Though, it’s worth noting […]
Read MoreThe Internal Revenue Service (IRS) gets a little grumpy if you contribute to a Roth individual retirement account (Roth IRA) without what it calls earned income. That usually means you need a paying job—either working for someone else or for your own business—to make Roth IRA contributions. But what if you don’t have one—a job, […]
Read MoreMan walking on a road with the word “RETIREMENT” painted in front of him Too many Americans are unprepared for retirement, according to a PwC analysis. Around a quarter of U.S. adults have no savings at all for retirement, and only 36% are on track. Fortunately, several major brokerages offer age-based benchmarks that folks would […]
Read MorePension vs. Social Security: An Overview There are many different types of income that retired folks draw on, depending on what their life was like during their working days. Two of the most widely-known income streams today include pensions and Social Security, two programs funded and structured in totally different ways. Pensions are typically workplace retirement plans, in […]
Read Moretarget-date fund annuity Nationwide thinks that its new product can change retirement planning for the majority of Americans who do not have access to traditional pension plans. The financial services company is working with Capital Group (the home of American Funds) and Annexus Retirement Solutions to offer a hybrid product: a new target date fund […]
Read MoreIt’s embarrassing to admit in a public forum that I failed at retirement. But I’m doing so—because I think people can learn from me, and thereby avoid making the same mistakes. I spent my entire 38-year career in the banking industry. Naturally, I learned a lot about money and investing. I helped thousands of clients […]
Read MoreWhile most people receive Social Security, a secure financial retirement depends on also having significant savings in a retirement account. Typically these savings must last nearly 20 years (assuming the average age for retirement is 63, and the average life expectancy as of 2021 for someone who reaches that age is 12.1 more years for […]
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