retirement
The effect of taxes on your retirement savings
Many people often overlook the effect taxes have on their retirement savings. If you have the “ideal” amount of $1 million in your portfolio, it may only be worth $800,000 or even less after taxes. Your investment income can also…
Will working after I retire increase my benefits
A recent reader of MarketWatch asked if they returned to work full time after retiring, could their earnings increase their Social Security benefit? They also asked if they have the option of not paying into Social Security anymore. Jim Blankenship, a…
New research: Young people should be spending their money not saving it for retirement
A recent study goes against the conventional wisdom that states workers should start saving early; instead, they should be spending their money. The study used the life-cycle model, developed in the 1950s, to suggest it is not smart to live…
What is a Safe Harbor 401(k)
According to research by Guideline, 90 percent of the 5.8 million small businesses in the United States do not offer employees a retirement plan. So, of the 42 million people working for a small business, 75 percent don’t have access…
The Financial Independence, Retire Early (FIRE) movement explained
On the “life events scale” used by psychologists to determine stress levels, retirement is the 10th most stressful event you can experience. According to a recent GOBankingRates survey, 66 percent of Americans fear that they will run out of money…
Simpler ways to increase your benefits
Social Security benefits are much more modest than many realize; the average Social Security retirement benefit in January 2022 was about $1,614 per month. The maximum Social Security benefit in 2022 was $4,194 per month; however, only a fraction of…
Taxes can take a significant bite out of your nest egg
There is one area most retirees miss, and that’s taxes. Taxes can take a significant bite out of your retirement savings and investment income from a taxable brokerage account. However, you can have tax-smart investments and retirement accounts to reduce…
How to prepare for medical expenses in retirement
Do you know that a significant portion of your retirement savings and Social Security benefits will go towards your medical expenses? A recent report by the Center for Retirement Research at Boston College found that” in 2018, 12 percent of…
Perceptions vs. Reality in Retirement Planning
The newly released survey from the Stanford Center on Longevity (SCL) examined the challenges and concerns facing individuals as they plan for retirement. “So many Americans manage their finances on their own for years without any advance planning, only to then…
Tips for Retiring on a Budget
According to a recent GOBankingRates survey, the majority of us have less than $1 million saved for retirement, and half of us have less than $20,000 saved. However, even if you do not have the “gold” standard saved for retirement,…