- Types of Pension Payouts: Lump Sum vs. Monthly
A lump sum pension payout allows retirees to receive their entire pension balance upfront rather than in ongoing monthly payments. This option provides flexibility, enabling individuals to invest, spend or manage their funds as they see fit. However, taking a lump sum means assuming responsibility for financial planning, tax implications and potential market risks. In… read more…
- SIMPLE IRA vs. SIMPLE 401(k): What’s the Difference?
If you work for a small business (one with 100 or fewer employees) you may not think much of your retirement savings options. In fact, a recent study from LIMRA found that only 42% of small businesses offered retirement benefits.… read more…
- How Does a Systematic Withdrawal Plan (SWP) Work?
If you’re ready to start taking income from your retirement accounts or investment portfolio, you might consider setting up a Systematic Withdrawal Plan (SWP). SWPs are a way to set up regular payouts from your investments, either monthly, quarterly, semi-annually, or annually. They are commonly used during retirement but can also be utilized at other… read more…
- What Is the Difference Between Medicare and Medicaid?
Medicare and Medicaid are two health insurance programs run by the government. Despite their similar names, they differ in some key respects. Medicare is available to most Americans over the age of 65, whereas Medicaid is exclusive to lower-income individuals… read more…
- What Constitutes Early Retirement Age?
Getting the timing right for retirement matters for your financial well-being. While many people relish the idea of starting their retirement ahead of schedule, retiring too early could leave you without enough savings to maintain your lifestyle over the long… read more…
- How Much Should You Contribute to Your 401(k)?
Most retirement experts recommend you contribute 10% to 15% of your income toward your 401(k) each year. The most you can contribute in 2023 is $22,500 or $30,000 if you are 50 or older (that’s an extra $7,500). Consider working with… read more…
- Is a Solo 401(k) a Good Choice When You’re Self-Employed?
The sole proprietor 401(k) is a retirement plan designed for small-business owners who don’t have any employees or only a spouse as their sole employee. It allows participants to invest more money than they could through a traditional 401(k). As… read more…
- All About Catch-Up Contributions
Catch-up contributions allow people age 50 or older to save more in their 401(k)s and individual retirement accounts (IRAs) than the usual annual contribution limits set by the IRS. The idea is to make up for the years you didn’t… read more…
- Ways to Protect Your Retirement Savings in a Divorce
Protecting your retirement savings during a divorce may not be at the top of your mind when you are going through the process of splitting up with your spouse. The emotional toll on you and your family, after all, likely… read more…
- A Guide to 457(b) Retirement Plans
A 457(b) plan is an employer-sponsored, tax-deferred retirement savings vehicle available to some state and local government employees. It works like a 401(k) in that employees can divert a portion of their pay to their retirement account. This provides an immediate tax… read more…
- What Are the Costs of Living on a Cruise Ship as a Retiree?
The first step in planning for retirement involves forming a clear vision of the lifestyle you want to enjoy. Often that means pulling up stakes and moving to another location in the United States or abroad – choosing your new home… read more…
- IRA Withdrawal Rules
When you’re ready to take withdrawals from your IRA, you’ll find there are plenty of rules to follow. Failure to stick to these guidelines could have serious ramifications. The most notable among these is a 10% penalty tax on IRA withdrawals made before age 59 ½. Beware, though, as traditional and Roth IRAs have two distinct… read more…
- What Is a Gold IRA?
A gold IRA is one way to save for retirement. As its name suggests, instead of stocks or bonds, it holds gold in the form of bars, coins and bullion. It can also hold other precious metals like platinum and silver.… read more…
- How to Make Withdrawals From Your 401(k)
Regardless of when you do it, making a withdrawal from your 401(k) requires you to follow a handful of rules. That’s because you’re tapping your tax-deferred retirement savings, which means the IRS keeps a close eye on it. During retirement, these withdrawals are also known as distributions. Perhaps the most important age when it comes… read more…
- What Is a Non-Deductible IRA? Definition and Contribution Limits
A nondeductible IRA is a retirement plan you fund with after-tax dollars. You can’t deduct contributions from your income taxes as you would with a traditional IRA. However, your non-deductible contributions grow tax-free. Many people turn to these options because… read more…
- A Guide to the 5 Stages of Retirement
Retirement planning is a lifelong process that takes ample organization, forethought and effort to do successfully. The easiest way to manage this sometimes overwhelming venture is to split your retirement planning into different sections. Lucky for you, there are already… read more…
- What Is Indexed Universal Life (IUL) Insurance, and Is It a Good Investment?
In exchange for paying premiums, life insurance provides beneficiaries with a large payment upon the insured’s death. It’s a way to protect your family after you pass, especially if that happens when they still depend on you financially. But there are… read more…
- What Is a Qualified Domestic Relations Order (QDRO)?
Not to be confused with a divorce decree or property settlement, a qualified domestic relations order (QDRO) specifically recognizes an ex-spouse’s, or soon-to-be-ex-spouse’s, interest in the other spouse’s qualified retirement plan. A QDRO can also recognize the rights of the… read more…
- Is a Variable Annuity a Good Idea?
Variable annuities offer strong growth potential and considerable risk all at once. Because the returns you earn through a variable annuity are based on the performance of an investment portfolio, you stand the chance of losing money. However, there are… read more…
- What Is Social Security?
Social Security provides a progressive benefit. This means it’s weighted so that it replaces a larger percentage of earnings for workers who were on the low end of the income scale than on the high end. Still, how much you… read more…
- What Is a Roth 401(k)?
A Roth 401(k) brings many of the benefits of a traditional employer-sponsored 401(k) retirement savings vehicle. But with a traditional 401(k), you save for retirement with pre-tax dollars and write off your contributions from your taxes. With a Roth 401(k),… read more…
- What Is a Target-Date Fund and How Does It Work?
There’s about $1.8 trillion in client assets invested in target-date funds (TDFs), according to Morningstar. In fact, it’s likely your 401(k) or IRA offers a target-date fund as an investment option. This makes TDFs extremely accessible retirement savings options. The beauty… read more…
- What Is the Three-Legged Stool of Retirement?
Retirement is on many people’s minds, whether they are approaching it or still early in their careers and just hoping they won’t have to work until they’re nearly 100. Those contemplating retirement may envision a recliner or deck chair. A three-legged stool, though, is the preferred seat for retirement metaphors. The image of retirement finance as… read more…
- What to Do If You Miss Your RMD Deadline
If you miss the required minimum distribution (RMD) for your retirement account, you’ll essentially have two choices: pay a substantial fine or apply for a waiver. Either way, you’ll have a bit of paperwork to fill out, and of course… read more…
- 10 Ways to Live Frugally in Retirement
You may have visions of spending your retirement on a sun-soaked vineyard in wine country. But according to a 2022 report by the AARP, about 57 million working-age Americans (48%), ages 18-64, do not have retirement account assets. If you… read more…