A key part of retirement planning is to answer the question: How much do I need to retire? The answer varies by individual, and it depends largely on your income now and the lifestyle you want in retirement. Knowing how much you need to save “by age” can help you stay on track and reach […]
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 MoreSome people consider “early retirement” to mean leaving the workforce at age 55, but most of us do not take this path. Unless you’re lucky enough to have a full pension and benefits that kick in that early—such as full military retirement or from work as a police officer or firefighter—you’ll probably need to work […]
Read MoreIt’s no stimulus check, but 17 million Americans are missing out on free money The promise of free money is typically pretty alluring. After all, the stimulus checks Congress handed out during the early months of the pandemic were enormously popular, and nearly 3 million people have signed a petition calling for more. So why, […]
Read MoreThe Capitol The 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act brought key changes to laws governing retirement plans. Among other things, the Act eliminated the age cutoff for traditional IRA contributions and increased the age for required minimum distributions (RMDs) from 70.5 to 72. The proposed SECURE Act 2.0 would further adjust […]
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 MoreIn planning for retirement, couples tend to focus on money. They ask, “When can we afford to retire?” But there’s another question that’s often more fraught: Where should we live? Ideally, they agree to stay put or move to a place they both like. In many cases, however, tensions erupt as they express differing views over […]
Read MoreEven in 2019 B.C. (Before Coronavirus), millions of Americans were filled with anxiety about retirement. Would they really be able to stop working? Would they outlive their savings? What about the steady rise in healthcare costs? On and on. Not surprisingly, the upheaval caused by the pandemic has added to this uncertainty. Nearly a quarter […]
Read MoreFor most people, the road to retirement is a multi-step process that lasts a working lifetime. To that end, here are six ways to plan and ensure a long-lasting retirement. 1. Set Retirement Goals It all starts with setting goals. Long-term goals define how much you want to have saved in various accounts by the […]
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