- How to Create Retirement Savings Benchmarks for Your Goals
Creating retirement savings benchmarks can ensure financial security in your golden years. Setting clear retirement goals can help you enjoy a financially secure and fulfilling retirement with peace of mind and a sense of purpose. These benchmarks act as milestones, helping you evaluate whether you are on track to meet your objectives. After assessing your… read more…
- Can You Collect Social Security While Still Working?
As you approach retirement age, the question of whether you can collect Social Security while still working often arises. Understanding how employment affects your Social Security benefits is crucial for making informed financial decisions. The good news is that it is indeed possible to receive Social Security benefits while continuing to work, but there are… read more…
- 8 Retirement Savings Strategies for High-Income Earners
High-income earners can optimize their retirement savings by using strategies like maximizing contributions to retirement accounts, making backdoor Roth conversions and managing investments strategically. These approaches can provide tax advantages and help grow wealth to meet long-term financial goals. If you want to build your nest egg, a financial advisor could help you identify investment… read more…
- How to Use Your 401(k) to Invest in Real Estate
Most 401(k) plans invest in mutual funds, stocks, bonds, and other financial instruments, but you can also use these funds to invest in real estate. Real estate investing can diversify your retirement savings and potentially boost returns. To invest in real estate with a 401(k), you need to follow specific rules and choose the right… read more…
- What Percentage of Income Should You Save for Retirement?
Saving for retirement is a major focus during your working years. You want to make sure you have enough money during your golden years, but also enjoy the present. Determining what percentage of your income to save for retirement can help you set some guardrails to accomplishing both. The general recommendation is to save about… read more…
- How Much Social Security Does a Nonworking Spouse Get?
Many families are concerned about Social Security for a nonworking spouse. When one spouse has not worked or has a limited work history, questions about eligibility for benefits often arise. The Social Security Administration offers spousal benefits based on the working spouse’s earnings record, providing financial support in retirement even for those who have not… read more…
- 6 Places That Offer Free Estate Planning for Veterans
Estate planning is important for managing and distributing assets, especially for veterans who have unique benefits like pensions, VA benefits and healthcare coverage to consider. Veterans can access free estate planning services, including wills, through various organizations, so they don’t have to handle this task alone or pay for professional help. If you need help… read more…
- How Spousal Survivor Benefits Work for a Pension
Pension plans often include spousal survivor benefits, which allow surviving spouses to receive part of the pension payments after the pension holder’s death. These benefits can play a key role in long-term financial planning for married couples, as they provide continued income for surviving spouses. You should know how these benefits work if you or… read more…
- 7 Types of Model Portfolios for Retirees to Consider
As retirees embark on the next chapter of their financial journey, understanding the various types of model portfolios available becomes crucial. These portfolios are designed to align with the unique needs and goals of retirees, offering a structured approach to managing investments during retirement. With the right model portfolio, retirees can balance the need for… read more…
- What Retirement Looks Like for a Lawyer: Things to Consider
For lawyers, retirement looks very different depending on your practice. A big-firm litigator, for example, will have spent decades with very high income and very little time. For them, retirement is typically well-funded but might be their first significant free time since law school. A government regulator, on the other hand, will have spent decades… read more…
- 11 Tips to Help You Retire on a Budget
Many Americans are looking for ways to stretch their savings and retire on a budget without compromising their quality of life. By focusing on practical tips you can create a sustainable retirement plan that allows you to live comfortably in your golden years. Here are 11 general tips that can help you retire on a… read more…
- Is Spousal Consent Required to Change 401(k) Beneficiary?
Changing the beneficiary of a 401(k) plan can involve specific requirements, particularly when it comes to spousal consent. In many cases, to protect your spouse’s financial interests, you need spousal consent to change your 401(k) beneficiary designation. This rule stems from federal regulations under the Employee Retirement Income Security Act (ERISA), which mandates that a spouse… read more…
- What Are the Rules for Late 401(k) Deferral Deposits?
Under the Department of Labor’s rules, employers must deposit employee deferrals into 401(k) plans as soon as administratively feasible, typically no later than the 15th business day of the following month. Late contributions to a 401(k) could therefore lead to penalties, interest charges and the need to file a Voluntary Fiduciary Correction Program (VFCP) application.… read more…
- How 401(k) Fee Disclosures Work
401(k) disclosures provide detailed information about the fees and expenses associated with your retirement plan. The costs associated with a 401(k) can significantly impact your retirement savings over time, so being aware of these fees can help ensure that you are maximizing your retirement savings and not overpaying for services you may not need. Reviewing… read more…
- 401(k) Beneficiary Rules Based on Marital Status
A spouse beneficiary is the person who will inherit a 401(k) account if the account holder passes away. The rules for spouse beneficiaries determine how the account assets are distributed, which can affect the financial security of loved ones relying on those funds. Understanding these rules could help you distribute 401(k) benefits according to your… read more…
- How Do I Avoid Medicare Premium Penalties?
The only way to avoid Medicare premium penalties is to enroll in a timely manner. Medicare charges a penalty for Part B and Part D enrollees, and some Part A enrollees, if they have a significant gap in their health care coverage. This can happen either because they didn’t enroll when they turned 65 or… read more…
- 5 Dangers of Trying to Live on Social Security Alone
For many Americans, Social Security serves as a crucial component of their retirement income. However, relying solely on Social Security can pose significant financial challenges. The program was never intended to be the sole source of income for retirees, yet many find themselves in this precarious situation. With the average monthly benefit at less than… read more…
- How to Uncover Hidden 401(k) Fees
Many employees rely on 401(k) plans for retirement savings. But hidden fees in 401(k) plans, including administrative costs, investment fees and individual service fees, can significantly impact your retirement savings. Discuss fee structures with your plan administrator or financial advisor, who can help you optimize your investments. What Are Hidden 401(k) Fees? Hidden 401(k) fees… read more…
- Why Invest in a Roth IRA?
Roth IRAs are unique retirement savings accounts that offer several compelling benefits that make it an attractive option for individuals looking to maximize their financial future. Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars, allowing your investments to grow tax-free. This means that when you retire, you can withdraw your… read more…
- Do 401(k) Contributions Automatically Stop When You Hit the Limit?
Your 401(k) contributions should automatically stop at the annual limit. For 2025, the IRS has set the contribution cap at $23,500, with an additional $7,500 catch-up contribution allowed for those over age 50. In most cases, payroll systems are designed to automatically stop 401(k) contributions once you reach the annual limit. However, not all employer… read more…
- Can a CSRS Retiree Collect Spousal Social Security?
Determining whether a Civil Service Retirement System (CSRS) retiree can collect spousal Social Security benefits has historically been complicated. Previously, those under CSRS did not pay into Social Security, making them ineligible for certain benefits due to the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). However, the Social Security Fairness Act, signed into… read more…
- When Is the Best Time of Year to Retire?
Choosing the best time of year to retire is largely subjective as it can impact your taxes, healthcare costs, retirement account withdrawals and Social Security benefits. Retiring early in the year might allow you to benefit from lower tax rates, retiring later could maximize your Social Security payments, and aligning your retirement date with the… read more…
- Social Security in New York: Everything You Need to Know
Social Security makes a sizable financial contribution to New York State, which receives financial support worth tens of billions of dollars annually for millions of its retired and disabled citizens as well as their relatives and certain low-income people. For its part, the state exempts Social Security benefits from state income taxes, making it moderately… read more…
- Social Security in Texas: Everything You Need to Know
As one of a handful of states with no state income tax, Texas is one of the more financially attractive places to reside for people who are receiving Social Security benefits. Nearly 4.7 million Texans, including almost 3.3 million retired workers plus spouses and other people, got payments from Social Security’s primary program, Old Age,… read more…
- How Does Medicare Work If You Have Retiree Insurance?
Leaving the workforce doesn’t necessarily mean leaving employer-provided health insurance behind. Some companies continue to offer retirees health coverage, even after they stop working and enroll in Medicare. When that happens, Medicare generally becomes the primary payer. Different rules may apply when it comes to prescription drug coverage, however. And age at retirement is another… read more…