Retirement Planning

The MTV generation is on the brink of retirement, yet many in Generation X (born between 1960 and 1980) express that they aren’t quite ready. Recent surveys reveal that Gen X feels the least confident about retirement compared to any other age group in today’s workforce. But if you find yourself in this situation, there’s no need to panic. With proper planning, there’s still time to prepare and achieve the retirement lifestyle you desire. While there’s no one-size-fits-all approach to retirement, being well-informed about your options can empower you to…

Introduction: In the quest for a financially secure retirement, navigating the plethora of retirement savings options can be overwhelming. One shining star among the array of choices is the Roth IRA, a powerful tool that offers a myriad of benefits. If you’re looking to lower your taxes in retirement while ensuring tax-free growth and withdrawals for yourself and your heirs, a Roth IRA might be the key to achieving your financial goals. In this comprehensive guide, we’ll delve into nine compelling benefits that make Roth IRA a standout choice for…

Introduction Saving and investing as much as possible during your working years can provide you with financial security and flexibility in your retirement years. Whether you dream of early retirement, a career change, or simply want peace of mind in your later years, maximizing your retirement savings is a key step toward achieving your goals. In this comprehensive guide, we will explore various strategies to help you make the most of your retirement savings. Contribute to Your Workplace Retirement Account Up to the Employer Match One of the most effective…

The landscape of retirement planning is ever-evolving, and in recent years, the rise of cash balance retirement plans (CBPs) has been notable. As the need for financial solutions that accommodate the aspirations of high earners grows, these plans present a compelling option. Why Cash Balance Plans are Gaining Popularity Maintaining a comfortable standard of living post-retirement is an objective many investors share. Traditional vehicles like the 401(k) have served many adequately, but for high earners who have enjoyed plush salaries over the years, the prospect of reproducing that income during…

“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…

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…