“Maybe your retirement plan is on track, but that doesn’t mean you can rest easy. We all exist within a society and an economy. Its problems are ours, too, as we may find out when taxes rise to help pay for others to retire,” warns the author of today’s article. He proceeds to examine the state of retirement in the U.S., including how Social Security is not enough for a secure retirement, the disturbing reality regarding Americans’ retirement savings, the “indexing problem” inherent in retirement accounts, and the “double problem” facing Baby Boomers. For more – including some strategies to help counter these concerns – CLICK HERE.
The retirement expert cited in today’s article calls them “the single biggest risk you face in outliving your money”: out-of-pocket healthcare expenses and costs for long-term care. These expenses can now total over half a million dollars, “almost four times more than the typical couple nearing retirement has saved in their combined retirement accounts”. Given this, the author outlines several steps retirement savers can take to help avoid having their golden years torpedoed by this risk. For more, CLICK HERE.
It has been 10 years since the housing crash of 2008, the fallout from which decimated the retirement accounts of many – and now one financial security expert is warning that “the danger of another crisis lurks despite assurances to the contrary.” She cautions that “The massive regulatory response to the subprime crisis meant that banks were no longer allowed to behave badly. So they have chosen to behave differently – and that’s not a good thing.” For more on this potential crisis developing in the shadows, CLICK HERE.
How should you invest your retirement accounts? With IRAs holding about $9 trillion and 401(k)s holding about $5 trillion, that is the critical question that today’s article tackles. In seeking to answer it, the author highlights the importance of intrinsic stock value, reinvested dividends (and tax deferral), diversification – and Warren Buffett. For more on investing your retirement accounts, CLICK HERE.
Contributing to tax-deferred retirement accounts is an attractive option for building your nest egg. However, the author of today’s article cautions that “While contributing to your 401(k) account can be beneficial, exceeding the statutory limit could cost you a lot.” In order to ensure that your contributions are all above-board, the author proceeds to outline the rules pertaining to contributing to: a 401(k), more than one 401(k)s, SIMPLE IRAs, Roth 401(k)s, Solo 401(k)s – and more. For more – including an example showing how much an excess deferral can cost you – CLICK HERE.
Required minimum distributions from retirement accounts are generally unavoidable for retirees – unless they want to incur a substantial penalty for not taking them. For those who don’t need the money (or the tax bill), this can lead to resenting RMDs. Today’s article, however, outlines how, rather than being a necessary evil, RMDs can actually serve as an opportunity to improve your portfolio: “The starting point for approaching RMDs is to check up on your portfolio. Armed with knowledge of its problem spots, you can then concentrate your RMD-related sales in those areas you wanted to fix anyway.” For more, CLICK HERE.
When it comes to retirement planning, the author of today’s article notes that “What’s been missing for most people is a simple way to calculate the level of spending that can be generated from a given savings amount, that takes into account realistic assumptions about a retiree’s longevity as well as a forecast for market returns.” However, there is a new tool available that seeks to fill that need – and it only requires two simple inputs to generate spending estimates. For more, CLICK HERE.
With almost half of retirement savers having their entire account invested in a single target-date fund last year, the author of today’s article acknowledges that “Target-date funds are taking over retirement accounts” – and this may not be a good thing. He proceeds to explain how a combination of issues with target-date funds “could easily add up to 1 percent to 2 percent a year in lower returns, costing retirement savers hundreds of thousands of dollars over the course of a career.” CLICK HERE.
When it comes to your retirement account, if you just set it and forget it, you could well lose it…to escheatment. As today’s article explains, escheatment is the process whereby firms that manage retirement accounts are required to turn over to the states any accounts that are seemingly not being actively managed. What happens to your retirement account (and related dividends and interest) when it’s escheated? And, more importantly, how can you avoid escheatment? For more, CLICK HERE.
Achieving alpha in the financial markets is no easy feat. As such, the author of today’s article advocates that, in seeking alpha, “all of us need to look in our backyards, where all our personal financial decisions are waiting to be optimized.” How? He outlines a number of strategies pertaining to Social Security benefits, retirement accounts and taxes which, combined, have the potential to raise a couple’s standard of living by nearly 50%. For more, CLICK HERE.