- Can You Contribute to a Roth IRA Without Having Earned Income?
You generally need earned income—such as wages, tips, or self-employment income—to contribute to a Roth IRA, since these accounts are meant to support retirement savings from active work. If you don’t have earned income, you typically can’t contribute directly, though exceptions like spousal IRAs or indirect strategies may offer alternatives. A financial advisor can help… read more…
- Do You Pay Taxes on 457(b) Withdrawals After Age 70?
If you are approaching retirement and have savings in a 457(b) retirement plan, you might wonder which taxes you’ll pay on withdrawals after age 70. This is important when it comes to retirement planning. Otherwise, it could be hard to accurately estimate your future income and tax liabilities. While 457(b) plans offer unique benefits when… read more…
- Employee Deferral vs. Roth Deferral
If you have to choose between a traditional or Roth deferral, you will have to decide whether it’s better to get a tax break now or in retirement. A traditional deferral lowers your taxable income today, while a Roth deferral offers tax-free withdrawals later. A financial advisor can work with you to determine which is… read more…
- What Are the Distribution Rules for Inherited IRAs?
When you inherit an individual retirement account (IRA), it comes with a set of rules that dictate how and when you must take distributions. Knowing which rules apply to you can help you avoid unnecessary taxes or penalties. It can also help ensure that you make the most of your inheritance. The IRS has specific… read more…
- How to Build an Investment Plan for Retirement: Examples
Whether retirement is decades away or just around the corner, knowing how to build an investment plan for retirement is essential for financial security in your later years. A well-designed retirement plan considers your time horizon, risk tolerance and financial goals to create a roadmap for your future. It’s not just about saving money—it’s about… read more…
- I’m 65 and Retiring Soon. How Should I Structure My $890k Portfolio?
Do you have a backup plan? This is one of the key questions when it comes to managing your portfolio in retirement. Your income will be determined in large part by how much growth your portfolio generates, but investing for more growth means accepting more risk. Investing for security, on the other hand, comes with… read more…
- 6 Reinvestment Options for Retirement Income
Many retirees receive distributions from retirement accounts, pensions, dividends or even part-time work. Should this income exceed immediate spending needs, retirees often look to put the excess back to work. Thoughtfully reinvesting surplus retirement income can help preserve wealth, protect against inflation and even grow your financial resources over time. However, the reinvestment options you… read more…
- What Percentage of a Retirement Portfolio Should Be in Cash?
Planning for retirement involves making a lot of decisions, including how to allocate your portfolio. Among stocks, bonds and other investments, many pre-retirees wonder what percent of a retirement portfolio should be in cash. Cash plays an important role in ensuring stability, accessibility and peace of mind. However, holding too much cash can also reduce… read more…
- Bonds vs. Stocks in a 401(k): Which Should You Invest In?
Bonds and stocks each offer benefits, but they come with different levels of risk and return. A balanced mix can help build wealth while also reducing the impact of market swings, which is especially important as retirement approaches. The allocation for your 401(k) will depend on your age, risk tolerance, investment timeline and overall goals.… read more…
- Stock Market vs. Bond Market: Which One Is Larger?
Stocks tend to dominate financial headlines due to their volatility and potential for rapid gains or losses. But, bonds also play an important role by providing investors with stability and income. Both markets are large, and their size can change depending on the economy, interest rates and investor behavior. Knowing how money moves between stocks… read more…
- Is There Anything Better Than an Annuity for Retirement?
Annuities are often marketed as a retirement solution because they offer guaranteed income streams that can last a lifetime. However, there are several factors to consider whether an annuity is truly the “best” option. It depends on your financial situation, income needs, risk tolerance and long-term goals. For many, the most effective strategy may combine… read more…
- Safe Withdrawal Rate By Age: How to Calculate
Planning how much to withdraw in retirement often starts with understanding the safe withdrawal rate by age. This concept helps retirees estimate how much they can spend each year without running out of money over time. While a 4% withdrawal rate has been a common benchmark, actual safe rates can vary depending on a retiree’s… read more…
- 5 Strategies to Convert Retirement Assets Into Income
Saving for retirement is only half the battle. Once you leave the workforce, you’ll need a plan for turning your assets into a reliable income stream. Managing how you draw down your nest egg can be just as important as building it. For many retirees, creating sustainable, tax-efficient income is a challenge. Especially while adapting… read more…
- When Can You Retire If You Were Born in 1959?
If you were born in May 1959, you are turning 66 in 2025. This puts you right at the doorstep of traditional retirement age. When you can retire depends on your Social Security eligibility, Medicare enrollment and, most importantly, your financial readiness. While age 66 is often associated with retirement, full retirement age (FRA) for… read more…
- How Much Should I Have in My 403(b) to Retire?
Wondering how much you should have in your 403(b) to retire comfortably? It’s a common question for educators, healthcare workers and employees of non-profit organizations who rely on these tax-advantaged retirement plans. The answer varies based on your desired retirement lifestyle, expected expenses, other income sources and retirement age. While financial advisors often suggest aiming… read more…
- Rule of 110: How to Calculate and Examples
When building an investment strategy, your asset allocation is one of the most important decisions you will make. The Rule of 110 helps investors decide how much of their portfolio to allocate to stocks versus bonds based on their age. It is a helpful starting point for those looking to balance growth potential with risk… read more…
- What Is the Typical Wage Replacement Rate?
A key question in retirement planning is how much of your income you’ll need to replace once you stop working. This figure, called the wage replacement rate, is a helpful retirement planning tool. It helps you estimate how much to save and what kinds of income sources to rely on. While everyone’s situation is different,… read more…
- At What Age Can You Retire With $1 Million?
For many Americans, $1 million is the benchmark for a secure retirement. But in today’s economy, at what age you can retire with $1 million dollars will depend on a range of factors. These include lifestyle and expenses, your investment strategy and your withdrawal rate. You might find that it’s only enough for a more… read more…
- How Much Should I Have in Retirement Savings at 55?
At 55, many people are about 10 years from retirement and may wonder how much they should have saved to support their desired lifestyle. Comparing your savings to different benchmarks can help guide your retirement decisions. And a financial advisor can work with you to assess your progress, identify gaps and adjust your plan to… read more…
- How Much Money Does a Couple Need to Retire?
Planning for retirement as a couple adds another layer of complexity to what’s already an important financial goal. How much money does a couple need to retire? The answer is different for every pair, but there are benchmarks and planning strategies that can help you estimate your retirement needs. Here’s how to determine the right… read more…
- How Much Should I Have in Retirement Savings at 35?
Reaching your mid-thirties is a milestone that can prompt you to reflect on your financial future, especially when it comes to retirement savings. At this age, you still have decades to grow your savings, but it’s not too early to make sure you’re on the right track. Industry-developed guidelines can give you a quick estimate… read more…
- 6 Safe Investments for Retirees: Types and Examples
After decades of building wealth, retirees often prioritize preserving capital, generating steady income and reducing exposure to market volatility. So what are the safest investments for retirees? From government-backed securities to insured bank products, these lower-risk investments can serve as the financial foundation of a retirement portfolio. Here are five safe investments for retirees. How… read more…
- Do Retirees Need an Umbrella Insurance Policy?
Umbrella insurance serves as supplemental liability coverage that activates when your standard policies reach their limits. Retirees often find this coverage valuable, especially if they have accumulated substantial assets and face unique risk factors. A serious auto accident, injury on your property or defamation lawsuit could quickly wipe out retirement savings without enough coverage. That… read more…
- Is $2 Million Enough for a Couple to Retire?
Approaching retirement with $2 million in savings puts many couples in a strong financial position. But is $2 million enough for you and your spouse to retire comfortably? The answer depends on lifestyle, health, income needs and how long you expect retirement to last. Having a couple of million in the bank is sufficient for… read more…
- How to Live Off of Dividend Income as a Retiree
Many retirees live off dividend income because dividends from strong companies can grow over time. While annuities and bond funds don’t offer rising income like dividends do, they can still be part of a retirement plan. Careful planning, diversification and risk management are key for making this work. If you need help building a well-balanced… read more…