Retire

Stock markets have been surging, with an 18.7% uptick year-to-date, invigorating portfolios and 401(k)s. But here’s a shocking revelation: a mere ten S&P 500 companies have contributed to over 80% of these gains in 2023. The tech giant Apple alone has fueled a whopping 15.6% of the market’s growth. For many, this concentration might seem like a boom. But, as with any financial structure skewed heavily towards a handful of players, there lurk risks beneath the surface, posing potential threats to unsuspecting investors. S&P 500’s Concentration Dilemma A closer look…

The potential advantages of converting funds from a traditional 401(k) or IRA to a Roth variant have been acknowledged for some time now. Not only does the conversion potentially allow you to manage your retirement taxes with more flexibility, but it can also enhance your after-tax income. In this blog post, we will delve deeper into the intricacies of Roth conversions and the compelling reasons why this might be the year to consider it. The Upside of Roth Conversion Tax-Free Withdrawals: Upon converting to a Roth IRA, all qualified withdrawals…

“How much do I need to retire?” This seemingly simple question is one that many grapple with as they approach retirement age. The answer is both complex and multifaceted, varying based on individual circumstances, desires, and uncertainties that loom large over future financial plans. Decoding the Retirement Savings Factors We dove deep into the data and have created a series of age-based retirement savings factors to serve as beacons in the often foggy landscape of retirement planning. It’s essential to note that while these milestones are aspirational, you may not…

Introduction The landscape of retirement savings vehicles in the U.S. is vast and varied. Among the most popular are the Roth 401(k), Roth IRA, and the Traditional 401(k). Each offers its own unique set of benefits, but which one is right for you? This article will delve into the intricacies of these accounts and help you make an informed decision. Definitions Roth 401(k) A Roth 401(k) is a type of employer-sponsored retirement account where contributions are made after-tax. This means that you pay taxes on the money before it goes…

Retirement, the time to enjoy the fruits of your labor, can ironically bring on the overwhelming task of managing healthcare. Medicare, the federal health insurance program for those aged 65 and older, with its guidebook exceeding 100 pages, is complex and fraught with potential pitfalls. It’s all too easy to make costly mistakes that could leave you with unnecessary expenses or a gap in coverage. While Medicare mistakes can happen to anyone, being aware of the potential traps can help you navigate the landscape better and save you time, money,…

There’s a common anxiety that plagues millions of Americans today: the fear of outliving their retirement savings. This concern isn’t without merit given the rising cost of living, healthcare expenses, and increased life expectancy. However, a tax-advantaged annuity known as a Qualified Longevity Annuity Contract (QLAC) is a potential solution to this worry. The Power of QLACs Starting this year, Americans can use up to $200,000 of their retirement accounts to purchase QLACs, as set by Congress. This limit is a significant increase from the previous cap of $145,000 or…

In an ideal world, one would never run out of money during retirement, having enough to cover all essentials and even some extras. However, reality often involves battling against stock market volatility, stubborn inflation, and rising interest rates. More than ever, individuals are seeking predictable income strategies to meet their retirement needs. One such strategy revolves around the use of annuities. Annuities can offer a boost to retirement savings or provide a dependable income stream for those approaching or already in retirement. They can give the same benefit as other…

Hello, readers. A significant shift is on the horizon that will impact the way high-earning Americans save for their retirement. New rules passed by Congress last December will affect the popular tax deduction associated with 401(k) catch-up contributions, and these changes are set to take effect next year. This could have far-reaching consequences on retirement saving and financial planning strategies for millions of Americans. Let’s delve into what this means for you, particularly if you’re a high-income earner. New Rules on 401(k) Catch-Up Contributions Every year, Americans who are aged…

As the golden years approach, many soon-to-be retirees look forward to improved golf scores, but there’s another score that doesn’t necessarily follow the same positive trajectory: the credit score. This might seem counterintuitive; after all, shouldn’t years of diligent on-time payments, coupled with a reduction in income obligations, result in an improved credit score during retirement? According to Ethan Dornhelm, Vice President of Scores and Analytics at FICO, it’s not quite so simple. Dornhelm explains that while the act of retirement itself does not directly impact credit scores, related lifestyle…

As we approach retirement, our wish list for the golden years often includes extensive travel, quality time with grandkids, and the pursuit of long-standing passions. However, a critical need overshadows all these aspirations, and it’s non-negotiable: we mustn’t outlive our money. The twilight of our lives often signals an increased need for care and support. Financial dependence at this stage is not an option for many of us. While Social Security and pensions provide a level of certainty for some, for many, these income sources fall short of covering basic…