- Can You Day Trade in a Roth IRA?
Day trading is a type of active investment. And while you can day trade in your Roth IRA, active investments are relatively uncommon in retirement accounts. Roth IRAs are intended to be stable, long-term portfolios and the IRS tries to… read more…
- Here’s How Much Schwab Says You Need for Retirement
A thousand workers told Schwab that they need an average of $1.7 million in savings to pay for retirement. But inflation, monthly expenses, stock market volatility and other retirement obstacles are keeping them from reaching their goals. Here’s what the… read more…
- Is an Annuity the Silver Bullet You Need to Recession-Proof Your Portfolio?
LIMRA announced that annuity sales have increased 22% to $77.5 billion in the second quarter. This marks the highest quarterly sales ever recorded since the not-for-profit trade association began tracking data in 2014. Let’s break down why this surge is happening… read more…
- Congress May Soon Pass RMD Age Hikes And Retirement Aid For Student Borrowers
The House of Representatives has passed the SECURE Act 2.0, otherwise known as the Securing a Strong Retirement Act. This bill tweaks the laws around tax-advantaged retirement accounts in several different ways, but it’s particularly good news for two groups:… read more…
- How to Avoid Taxes on Lump Sum Pension Payout
When your pension matures, there are multiple distribution options that you can choose from. Unfortunately, many of these distribution methods result in a tax liability that reduces your payout. However, you can avoid taxes on a lump sum by rolling… read more…
- TIAA Recommends Getting In-Plan Annuity to Cover Higher Life Expectancy
When it comes to saving for retirement, workers often choose between investing in a popular defined contribution (DC) plan like a 401(k) or an annuity. But the Teachers Insurance and Annuity Association (TIAA) says that you should consider investing in… read more…
- Are You Saving as Much in Your 401(k) As Others Your Age?
Saving for retirement is something that most everyone has to do. Unless you have generational wealth that will take care of you from cradle to grave, you probably have to spend some of your working years figuring out how to fund the final stage of your life. Participation in 401(k) programs, though, is not universal. Despite… read more…
- 6 Strategies to Reduce Your RMDs
Individual retirement accounts (IRAs), 401(k)s and other workplace plans can help you build wealth for the future while enjoying some tax benefits. However, once you retire, you’ll need to account for required minimum distributions (RMDs). The IRS requires you to begin taking distributions from certain retirement accounts, but applying these RMD strategies can potentially help… read more…
- Medicare Open Enrollment Is Almost Closed: Medicare Advantage vs. Medicare
Medicare is designed to help eligible individuals pay for healthcare. One of the most important decisions to make when enrolling for the first time or making changes to your coverage during open enrollment is whether to opt for Medicare Advantage… read more…
- How Massive COLA Increase Could Actually Eat Into Your Social Security
Social Security increased by 5.9% in 2022, the biggest cost-of-living hike in four decades. And next year, it could go even higher depending on inflation. Larger payments, however, may come with a significant caveat for some beneficiaries, pushing their income beyond the thresholds that determine Medicare Part B premiums and how much of their Social Security benefits… read more…
- Top 3 Fears Americans Have About Retirement – and How to Combat Them
While many Americans idealize retirement as sitting on the beach and traveling with loved ones, the crushing reality is that many people cannot afford that life in retirement. A recent survey from the TransAmerica Institute gathered data on the top fears that Americans have about retirement. You may find that some of them are the… read more…
- Most Americans Are Behind on Retirement Savings – Are You One of Them?
When it comes to retirement savings, American workers have a lot of work to do. A recent Insured Retirement Institute survey found that workers between ages of 40 and 73 have insufficient retirement savings to cover their income needs, and they aren’t saving enough to catch up. The online survey, which polled 990 workers in March… read more…
- How to Buy Real Estate With Your IRA
An IRA, or individual retirement account, may already play an important role in your overall retirement plan. What you may not realize about this kind of tax-advantaged plan, however, is that you can use it to purchase real estate and further… read more…
- The Bucket Strategy is Helping Retirees Limit Their Losses and Keep their Cash Flowing in 2022
With the recent arrival of a bear market, the newly retired are facing a sobering reality: having to sell investments during a downturn to meet their income needs. This nightmare scenario, known as sequence risk, can shorten the lifespan of… read more…
- Is an Annuity a Good Investment?
Annuities are popular financial products that often guarantee income throughout the course of your retirement. While you may even have access to customizable features and riders, you’ll likely have to pay high fees and may also end up taking home less than you would by investing your money elsewhere. Note that those who sell annuities often… read more…
- Pensions May Actually Be Cheaper For Employers Than 401(k) Plans
With a few notable exceptions, the age of pensions is largely over in the U.S. Traditional defined benefit plans have replaced largely by defined contribution retirement vehicles like 401(k) plans. A new study from the National Institute on Retirement Security, though, seems to suggest that the end of pensions may not actually be as beneficial… read more…
- RMDs May Soon Start Even Later for Retirement Plan Savers
A new law may soon allow retirees to keep their money untouched a bit longer. The Securing a Strong Retirement Act, a bill originally pushed in 2021 but which may finally pass this year, would push the starting point for required minimum distributions (RMDs) from age 72 to 74 and 75. That means retirees could… read more…
- Want to Enjoy Retirement More? Shift Your Assets to Annuities
Most people follow a pretty standard glide path when it comes to retirement investing: focus on stocks when you’re young and shift to bonds as you get older. But a new study from David Blanchett (Prudential Financial) and Michael Finke (The American College of Financial Services) shows that there might be a better option for… read more…
- How a New Supreme Court Decision Could Help You Save For Retirement
A recent Supreme Court decision could result in improved options in your retirement plan. The court sided with Northwestern University employees who alleged the university’s retirement plans had excessively high fees and simply too many options. In a six-page opinion published last week, the nation’s highest court vacated a previous U.S. Court of Appeals ruling… read more…
- Saving for Retirement? Investment Giant Says Make These 3 Moves By Years End
With 2021 coming to a close, T. Rowe Price says there are several moves that people saving for retirement should make by the end of the year. The investment management giant says harvesting losses for tax purposes, reassessing your asset allocation and making catch-up contributions to your retirement plan are three ways to cap the year… read more…
- Boomers Face This Risk in Retirement: Here’s How To Avoid It
Baby boomers are using up their retirement savings too quickly –either because they’re underestimating how much they need or are living longer than they’d guessed they would. New research from the Center for Retirement Research at Boston College found that Boomers may be drawing down their retirement wealth faster than previous generations, because they lack… read more…
- Pension vs. Social Security: Key Differences
Most retired workers depend on multiple streams of income during their retirement. Two of the most common such income streams are Social Security and pensions. If we look at pension vs. Social Security income, we find significant differences. Retired workers need to understand the key differences between the two programs. They are funded, structured and… read more…
- How to Retire With $1 Million
Saving for retirement is an important part of financial planning for most Americans. With pensions no longer in widespread use and Social Security simply not enough to cover retiree expenses, it’s up to individuals to put aside money for their later years. But if you do it right, relaxation and recreation will become more important… read more…
- What’s the Average Rate of Return for an Annuity?
If you’re thinking about purchasing an annuity, you might be curious about the kind of returns you can expect. The rate of return plays a key role in how your portfolio grows and how much income you’ll have in retirement. It’s also important to keep in mind that fees can reduce your overall earnings. Knowing… read more…
- Boost Your Social Security Benefits in Retirement With This ‘Bridge’ Strategy
When it comes to claiming Social Security, most retirees can’t wait to start collecting those checks. A 2020 report from the Bipartisan Policy Center found that more than 70% of Social Security beneficiaries currently claim their benefits before age 64. In fact, nearly 35% and 40% of men and women, respectively, claimed their benefits at… read more…