Hitting The “Roth Sweet Spot”

2019-09-06 10_48_55-Walkarounds in Amsterdam. _ HD photo by Max van den Oetelaar (@maxvdo) on Unspla“The benefits of owning a Roth IRA are nothing short of amazing,” declares the author of today’s article, pointing in particular to the fact that money in a Roth IRA grows tax-free and is withdrawn tax-free. Of course, taxes are paid on money converted from a regular IRA to a Roth IRA, but, as the author proceeds to outline, with proper planning retirees and soon-to-be retirees can hit the “Roth sweet spot” and get the most bang for their buck from a Roth conversion. For more on this strategy, CLICK HERE.

Read More

What Is “Resulting” – And Why Is It Dangerous To Your Personal Finances?

2019-08-05 21_11_30-Book, text, diary and grey _ HD photo by NORTHFOLK (@northfolk) on UnsplashIf someone saves nothing for retirement, enjoys their hard-earned money during their working years, and then unexpectedly inherits a windfall at age 60, was not saving a good decision? Conversely, if someone saves diligently for retirement, lives frugally during their working years, and then dies suddenly from a heart attack at age 60, was saving a bad decision? This type of thinking, the author of today’s article explains, reflects the concept of “resulting” – and he warns that “In personal finance and investing, resulting is dangerous.” For more on resulting and the danger it poses, CLICK HERE.

Read More

Doing A Zero-Tax Retirement Right

2019-07-26 07_51_58-Key with _Duplication Prohibited_ on it _ HD photo by Kelly Sikkema (@kellysikkeIf you’re one of the many Americans – particularly those in high-tax states – considering moving to a no-tax state like Florida, Nevada or Texas for your retirement, the author of today’s article cautions that successfully carrying out this tax-saving strategy is “not as simple as just buying a property and claiming that you are a resident.” He proceeds to identify five “primary domiciling factors” to be aware of – and outlines a real-world example of a zero-tax retirement relocation done right. For more, CLICK HERE.

Read More

A Midsummer Financial To-Do List For Retirees

2019-07-22 08_23_38-RayBan sunglasses _ HD photo by Ethan Robertson (@ethanrobertson) on Unsplash“Because calendars often become more cluttered between September and year-end, midsummer is a good time to take a closer look at your financial life,” advises the author of today’s article, who proceeds to outline a number of financial tasks that retirees may want to tackle now rather than later. First up on this to-do list? Making a preliminary assessment of whether you’ll itemize deductions or take the standard deduction – and why it may be best to think multiyear when making this determination. For more, CLICK HERE.

Read More

Hack Your Retirement Plan With Behavioral Economics

2019-07-12 07_31_37-Me and my film crew were setting up f... _ HD photo by Nik MacMillan (@nikarthurCalling it “a transformative science”, the author of today’s article outlines some of the ways in which “you and your employer and plan sponsors can hack your retirement” using the principles of behavioral economics – including how simply visualizing your future (older) self can help you boost your retirement savings and how, when it comes to 401(k) plans, it’s important to avoid “the tyranny of too much choice”. For more, CLICK HERE.

Read More

The Unavoidable Retirement Inflation Bet

2019-06-22 19_28_58-Swing by the lake at sunset _ HD photo by Jon Eckert (@joneckert) on Unsplash“Never overlook the pernicious and toxic impact of inflation over periods as long as retirement,” warns the author of today’s article. He outlines why inflation over the next several decades could actually be significantly higher than currently assumed – and how, if that proves to be the case, it would make inflation-indexed annuities (or real annuities), generally considered very expensive, more valuable. For more – including why the author concludes that “you can’t avoid making an implicit bet on inflation no matter what you do” – CLICK HERE.

Read More

Is 16.4 The Critical (And Jaw-Dropping) Retirement Number?

2019-06-01 13_09_58-Girl holding American Dollar Bills _ HD photo by Alexander Mils (@alexandermils)A critical part of retirement planning is figuring out how much you will need to have accumulated to fund your golden years – and one common approach to calculating this figure is to use a multiple of your ending salary. Fidelity, for example, recommends retirement savers have 10 times their ending salary saved by age 67. And while different entities have put forth different numbers, one global professional services firm put forward a jaw-dropping finding in its recent report on the matter. Does the average retiree actually need 16.4 times their ending salary to fully fund their retirement? CLICK HERE.

Read More

Investment Practices Of The “Navy SEALs” Of Retirement Savers

2019-05-26 20_59_32-Pears _ HD photo by Shumilov Ludmila (@lsfineartphotography) on UnsplashThe author of today’s article likens them to an “elite Navy SEALs team of retirement savers”: those with $1 million or more in their 401(k). And after membership in this elite group decreased in the final months of last year as volatility in the stock market took its toll, the number of 401(k) millionaires ticked back up in the first quarter of this year. So what does it take to become a 401(k) millionaire? The author lays it out, noting that “even if you never join this elite group, the boot camp-like discipline its members practice can still leave you in better shape for retirement.” For more, CLICK HERE.

Read More

Congress Might Actually Get Something Done – And It Affects Your Retirement

2019-05-19 18_56_49-Person Wearing Blue Plaid Suit Jacket and Dress Pants · Free Stock PhotoBelieve it or not, Democrats and Republicans in Congress might actually get something done on a bipartisan basis in the coming weeks, and as today’s article notes, that something “has the potential to be a big win for individual investors”. More specifically, there’s a real chance that Congress could pass bipartisan retirement savings legislation that would be signed into law – and enhance retirement savings opportunities. For some of the key provisions of the two Congressional bills that any final compromise bill would be based on, CLICK HERE.

Read More

Completing A Comprehensive Stress Test Of Your Retirement Plan

2019-05-16 08_36_51-WindowStress tests aren’t just for banks – they’re useful for retirement plans too! And a comprehensive stress test of your retirement plan involves more than just stress testing your portfolio: the author of today’s article advises that “you should stress test your venue, your retirement and income portfolios, and anticipated leisure pursuits.” For more on carrying out a comprehensive stress test of your retirement plan – including how to test whether your portfolio can survive a market shock and how many times it may be prudent to visit prospective retirement venues – CLICK HERE.

Read More