Although many Americans now plan for a retirement up to 20 years, your retirement may last much longer. Believe it or not, living nearly a century may someday soon be almost commonplace. As a result, rather than thinking of retirement as the final stage of life, a more realistic approach may be to view it [...]
For many investors, a large portion of their investments are held in 401(k)s, IRAs, or other tax-favored retirement vehicles. While these accounts can be ideal for sheltering retirement savings from taxes both preretirement and post-retirement, they can also be highly vulnerable to tax losses in an estate, if they are not bequeathed properly. For instance, [...]
While borrowing money from your retirement plan may sound appealing at first glance, what you need to recognize is that it could leave you with less money to live on in retirement. Certainly, with such a loan, your contributions are your own money, and you'll be repaying yourself as you repay the loan. What could [...]
Conducting an annual review of your retirement goals and strategy is an ideal way to check that your plans for your financial future remain realistic and on track. With that in mind, taking the three easy steps outlined below will help you conduct your retirement tune-up. Step 1: Review Your Retirement Goals Your first step [...]
Early retirement is a phrase many Americans wish they could turn into a reality. While retiring in your 50s or early 60s sounds enticing, it typically requires years of planning to make sure you've accumulated enough retirement assets to last for 20 or 30 years or more. It's important to factor in how an early [...]
Your exit strategy may be one of the most important, yet least thought-out, elements of your business plan. Among the important decisions — what you might want to do after you leave the business, what the ongoing roles of your children or other family members might be, and how the sale proceeds will be deployed. [...]
Don't wait to build your Emergency Fund Did you know that most financial experts recommend setting aside enough money in an emergency fund to cover three to six months' worth of expenses in the event of a major financial surprise? That's because a well-funded emergency account has the potential to get you through tough times [...]
There are some key differences between these two types of individual retirement accounts (IRAs). While the contribution limits are the same for both, each has its own specific rules and potential benefits (see table below). It's important to review both types of vehicles and plan your IRA strategy carefully. No matter which type you choose, [...]
Putting off retirement savings is a missed opportunity Most people start saving for retirement at 35—fully 10 years beyond the ideal age, according to a recent Financial Engines survey.1 Reasons to procrastinate are familiar to many. But delaying your savings can be costly, as the chart below shows. Let’s say Tom starts saving 6% of [...]
When changing jobs or leaving employment, decisions you make about taking money from your plan can have serious tax consequences. Here’s what you need to know. Your Options Pros Cons 1. Roll over to an IRA Continue tax-deferred growth Avoid early withdrawal penalties Have flexible investment options Can choose a Roth after-tax IRA Consolidate your [...]
