- ESOP vs 401(k): Key Differences and How Each Plan Works
An Employee Stock Ownership Plan (ESOP) gives employees an ownership stake in the company. It does this at no direct cost by allocating shares of company stock to their retirement accounts. In contrast, a 401(k) allows employees to save and invest a portion of their paycheck. These plans often offer employer matching for extra savings,… read more…
- I’m 63 With $1 Million in an IRA. Should I Convert $100,000 a Year to a Roth to Avoid RMDs?
If you’re 63 years old with $1 million in a traditional IRA, you may be wondering whether converting $100,000 per year to a Roth IRA makes sense. Doing so could help you avoid required minimum distributions (RMDs) later on. This strategy may reduce your future tax burden and give you more control over your retirement… read more…
- Trump 401(k): Investment Options to Include Alternative Assets
President Donald Trump is paving the way for a significant shift in retirement investing by permitting 401(k) plans to include alternative investments like private equity, real estate and digital assets. Trump’s recent executive order aims to provide 401(k) participants with greater access to diversified investment opportunities, potentially enhancing retirement outcomes. However, these alternative investments come… read more…
- Can a Couple Retire With $1 Million?
Retiring with $1 million is a common goal for couples, but how long it lasts depends on where they live and the lifestyle they want. For some, low housing costs, manageable healthcare expenses, and reliable Social Security benefits can help make $1 million last. Investment returns also influence how far the money will go. Others… read more…
- How to Collect a Pension From a Former Employer
Many people leave behind pension benefits when they change jobs, and claiming them later can feel complicated. Fortunately, with the right information and preparation, collecting your pension is usually straightforward. The process involves confirming your eligibility, tracking down your plan if it has changed hands and selecting the best payout option for your needs. Knowing… read more…
- How Much Should I Have in My 401(k) at 25?
Figuring out how much you should have in your 401(k) at 25 depends on your income, savings rate and when you started contributing. A common benchmark from financial planners is to aim for one year’s worth of salary saved by age 30, which could translate to about 50% of your annual income by 25. Factors… read more…
- I Have $500k in a Roth IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire at 70?
Waiting until age 70 to retire can offer you some clear financial advantages, including maximum Social Security payments and more time for your investments to grow. But even with those benefits and a half-million-dollar nest egg, determining whether you have enough to retire at age 70 will depend on your lifestyle, health, investment strategy and… read more…
- How to Move Money From a Roth IRA into Stocks
If you have money in a Roth IRA, you may be wondering how to move some of it into stocks to maximize your investment potential. This is an important consideration. Choosing to save in a Roth IRA provides significant tax advantages. However, the way you allocate the funds within the account may have a larger… read more…
- How to Calculate the RMD for an Inherited IRA
Inheriting an individual retirement account (IRA) comes with specific tax obligations that can feel overwhelming during an already difficult time. One of the most important requirements to understand is the required minimum distribution (RMD) for an inherited IRA. This determines how much money you must withdraw each year. Unlike traditional IRAs, where distributions typically begin… read more…
- These Are Americans’ Top Questions About Retirement. Do You Know the Answers?
Many Americans are unsure how to approach retirement planning, and new data helps explain why. In Northwestern Mutual’s 2025 Planning & Progress Study,1 43% of adults said that one of their top questions is how much money they’ll need to retire comfortably. Others worry about the future of Social Security, inflation during retirement and the… read more…
- Cash Balance Plan vs. 401(k): Key Differences for Retirement
Cash balance plans and 401(k)s are both employer-sponsored retirement options, but they work differently. A cash balance plan is a type of pension that promises a set payout at retirement based on a formula, while a 401(k) depends on how much you contribute and how your investments perform. The choice between both affects your savings… read more…
- Provisional Income: What Is It and How Is It Taxed?
Your Social Security benefits may be taxable depending on your provisional income. This is calculated by adding your adjusted gross income (AGI), any tax-exempt interest and half of your Social Security benefits. The IRS compares this total to set income limits to decide if 0%, up to 50%, or up to 85% of your benefits… read more…
- Trump Obamacare Changes: Requirements and Coverage
Under the One Big Beautiful Act, sweeping reductions to Medicaid and modifications to Affordable Care Act enrollment rules have been enacted. The alterations promise to reshape federal healthcare requirements and change who qualifies for coverage. These shifts could impact millions of Americans, especially those in affordable care markets. Here’s what’s changing and how it may… read more…
- Roth 401(k) vs. After-Tax 401(k) Contributions
Contributions to Roth 401(k) accounts and after-tax contributions to regular 401(k) accounts both involve after-tax dollars, but they follow different tax and distribution rules. Roth 401(k) contributions grow tax-free and allow tax-free withdrawals of both contributions and earnings in retirement if conditions are met. After-tax 401(k) contributions, by contrast, may be withdrawn tax-free but earnings… read more…
- Can You Retire at 35 If You’ve Saved $1 Million?
The idea of retiring early with $1 million by age 35 is appealing. But, whether that is enough depends on how long you will need it to stretch your nest egg and how you plan to live. If you withdraw around 3% to 4% annually, that gives you between $30,000 and $40,000 each year. This… read more…
- Does Contributing to a 401(k) Reduce Taxable Income?
If you have a retirement account, you are probably wondering, does a 401(k) reduce taxable income? The short answer is yes, contributing to a traditional 401(k) plan does indeed reduce your taxable income for the year of contribution. When you make contributions with pre-tax dollars, the money goes into your retirement account before calculating income… read more…
- How Much Should I Have in My 401(k) at Age 60?
By age 60, retirement is no longer a distant goal, it is just around the corner. For many, it begs the question: how much should I have in my 401(k) at age 60? Many financial experts recommend having saved eight times your annual salary by this point to help support a comfortable retirement. At this… read more…
- I Have $1.2 Million in an IRA and Will Receive $2,000 Monthly From Social Security. Can I Retire at 67?
If you’re sitting on $1.2 million in a traditional IRA and expect to receive $2,000 per month from Social Security, you may be wondering if that’s enough to retire at age 67. The answer, as always, depends on several factors, such as how long you expect to live, how much you’ll spend and how you… read more…
- How Much Should I Have in My 401(k) at Age 40?
By age 40, many people begin to evaluate whether their retirement savings are on track. While there’s no single benchmark that fits everyone, national data offers a reference point. Factors like income, years in the workforce and access to retirement plans all influence how much someone may have saved by this stage. However, according to… read more…
- How Much Should I Have in My 401(k) at Age 35?
You may be well into your career by age 35 but still years away from retirement, making it a common checkpoint for assessing your 401(k) progress. According to Fidelity, the average 401(k) balance for people in their mid-to-late thirties was $73,200 at the end of 20241. But averages don’t tell the whole story: how much… read more…
- Why Do Financial Advisors Offer Clients Annuities?
Some financial advisors promote annuities because they offer tax deferral, guaranteed income, or principal protection. But while these features can support retirement planning, annuities often carry high fees and commissions that can influence recommendations. Knowing why advisors recommend annuities can help you ask better questions and evaluate how this option could fit into your financial… read more…
- Breaking Down Inflation Under Trump vs. Biden
Inflation under Trump and Biden reflects two very different economic backdrops. During Trump’s first presidency, inflation remained modest, with rates generally staying below the Federal Reserve’s 2% target. Under Biden, inflation surged beginning in 2021, influenced by supply chain disruptions, stimulus spending and rising energy costs. Forecasts for a second Trump term suggest that his… read more…
- What Is the Average Social Security Check at Age 66?
Social Security is a key source of income for millions of retirees. And knowing what the average Social Security check looks like at age 66 can help you plan more effectively. For those born before 1960, their full retirement age (FRA) is between 66 and 67. While those born after 1960 have an FRA of… read more…
- What Is the Average Social Security Check at Age 65?
For many Americans, Social Security is a foundational source of income in retirement. And knowing how much you can expect to receive, such as what the average Social Security check is at age 65, can help you plan ahead. It’s also important to note that claiming Social Security at 65 or earlier will result in… read more…
- What Is the Average Social Security Check at Age 64?
Knowing what the average Social Security check is at age 64 can help you decide when to retire and create a plan for your income in retirement. Collecting Social Security at 64 does mean you’re claiming benefits before your full retirement age (FRA), which still means a permanent reduction to your monthly benefit. But if… read more…