Retirement

June 12, 2024Deciding when to retire is one of the most significant financial decisions you’ll make, and getting the timing right is important for the success of your nest egg. If you’re wondering “how do I know when it’s time to retire,” several key factors can guide you. Evaluating your retirement readiness involves assessing your savings, understanding… read more…

June 10, 2024Roth IRAs are not subject to rules on required minimum distributions (RMDs), and qualifying withdrawals from Roth accounts in retirement are also free of federal income taxes. You can get those advantages for funds in your traditional IRA by transferring them into a Roth account. You’ll have to pay income taxes now on funds you… read more…

June 7, 2024Saving for retirement is an important part of financial planning, and choosing the right investment vehicle can make a significant difference in your long-term financial well-being. While employer-sponsored 401(k) plans have become a popular choice for many workers, individual retirement accounts (IRAs) offer several compelling advantages that should not be overlooked. Here are three benefits… read more…

June 6, 2024The thought of your company going bankrupt is unsettling, especially if you were expected to receive a lifetime guaranteed income from a defined benefit pension plan. While bankruptcy can throw the future of a pension plan into flux, it doesn’t mean employees are automatically out in the cold thanks to the Pension Benefit Guaranty Corporation… read more…

June 6, 2024Understanding the nuances of spousal benefits is crucial to maximizing your household’s Social Security payments. For example, if you’re set to collect $3,500 per month from Social Security at full retirement age, your spouse may be eligible to receive $1,750 based on your earnings record, although this won’t happen automatically. Eligibility for spousal benefits ultimately… read more…

June 3, 2024Converting a large sum like $865,000 to a Roth IRA is a strategic move for long-term tax benefits – including tax-free retirement income and eliminating required minimum distributions (RMDs) –  but it often comes with a hefty upfront tax bill. The transition from a traditional IRA or 401(k) to a Roth IRA means paying taxes… read more…

May 31, 2024If you live in New York, you can apply for Social Security benefits online, by telephone or in person. The Social Security Administration maintains a website at SSA.gov, as well as dozens of local offices throughout the Empire State that you can call for information or schedule an appointment with. Before applying, you can use… read more…

May 31, 2024Massachusetts participates in the Social Security system a little differently than most states. Massachusetts residents who belong to public-sector retirement plans don’t pay Social Security payroll taxes. As a result, these workers don’t earn credits toward Social Security benefits for their public-sector work. Some Massachusetts public workers may still qualify for Social Security benefits through… read more…

May 31, 2024Annuities can be a valuable tool for ensuring a steady income stream and managing financial risk, particularly during retirement. One important aspect of certain annuities is the trigger rate, which plays a significant role in determining the growth and performance of the investment. Understanding how trigger rates function within annuities is important for investors, as… read more…

May 31, 2024Unlike 401(k)s and similar workplace retirement plans, nonqualified retirement plans are not bound by the stringent guidelines of the Employee Retirement Income Security Act (ERISA). As a result, companies may use these plans to attract and retain top-tier talent by allowing high-earning executives and other key employees to defer a significant portion of their income… read more…

May 31, 2024If you’re planning to retire in five years, now is the time to ensure your financial house is in order. Of course, the steps you’ll need to follow to retire in five years will vary based on your age, how much you have saved already, your projected expenses in retirement and other factors. Whether retirement… read more…

May 30, 2024Pension trusts are specialized financial arrangements that play a pivotal role in managing and disbursing funds designated for retirement benefits. They come in two primary forms: defined benefit plans (which promise a fixed income post-retirement) and defined contribution plans (where the benefits are influenced by market performance). Understanding the elements of a pension trust can… read more…

May 30, 2024Losing a loved one who served in the military can be an emotionally and financially challenging time for surviving spouses and children. The VA Survivors Pension can serve as a lifeline to eligible survivors by providing a tax-free monetary benefit to help them make ends meet. Surviving spouses and unmarried dependent children of wartime veterans… read more…

May 30, 2024A key decision associated with retirement planning involves choosing where to open and maintain an individual retirement account (IRA). As you contemplate how to choose an IRA account, you’ll want to consider how you want to manage your account or whom you want to handle it for you. Whether you’re considering a hands-on approach, utilizing… read more…

May 30, 2024For many, saving enough money for retirement can feel like a daunting – even insurmountable – task. But with enough knowledge and planning, a secure retirement may be possible. Whether you’re a young professional just beginning to navigate the world of savings or nearing retirement age, understanding compound interest, strategic investment and prudent financial planning… read more…

May 28, 2024Whether you’re just starting to save, looking to optimize your existing retirement plan, or considering how to pass on your wealth, knowing which retirement strategies and financial tools are available can help you secure your financial future. Here are the benefits of maxing out your Roth IRA every year, but if you need to a… read more…

May 28, 2024Qualified retirement plans, such as 401(k)s and pensions, can offer significant tax advantages and are subject to strict regulations set forth by the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA). These plans are designed to provide a broad range of employees with the opportunity to save for retirement while enjoying… read more…

May 28, 2024Deciding whether to take a $400,000 lump sum or monthly pension benefit of $2,000 requires calculating the relative value of each option. Generally speaking, the sooner you can receive the lump sum, the more value it will have since you can invest it over a longer period. The monthly payment option may be more valuable… read more…

May 24, 2024It’s a wise move to plan ahead for the taxes you’ll pay on retirement income, including eventual required minimum distributions (RMDs). Instead of waiting until the RMD deadline to start thinking about tax planning, starting the process at age 60 gives you the luxury of time to weigh all of your options and adjust your… read more…

May 23, 2024Approximately 86% of 401(k) participants don’t save the maximum allowed amount in their tax-advantaged employer-sponsored retirement plans, according to a 2022 study of retirement saving by Vanguard. If you’d like to max out 401(k) savings, techniques include automating contributions, increasing contributions over time, using catch-up contributions when available, taking full advantage of any employer matches,… read more…

May 23, 2024When it comes to the average retirement budget, studies report a wide range of responses. A 2022 survey by the Employee Benefit and Retirement Institute (EBRI) found that half of individuals around retirement age spend less than $2,000 per month, equal to less than $24,000 per year. The Social Security Administration, meanwhile, said 2020 median… read more…

May 23, 2024401(k) plans are not the only way to save for retirement. If your employer is one of the many that doesn’t offer a 401(k) savings plan, there are still plenty of alternatives to save for retirement. Your non-401(k) options include both traditional and Roth individual retirement savings accounts (IRAs), as well as health savings accounts… read more…

May 23, 2024If you have a pension, your employer will usually give you a choice at retirement: buyout or payments. It’s important to review this carefully. In broad terms, many make this choice based on expected lifetime returns. If you take and invest the buyout, what can you reasonably expect in portfolio returns? How will that expectation… read more…

May 22, 2024You can reduce the impact that taxes have in retirement by converting pre-tax savings into Roth assets. Doing so not only unlocks future tax-free growth, but also helps you minimize or avoid required minimum distributions (RMDs). However, converting a large IRA balance like $650,000 all at once would trigger a significant tax bill in the… read more…

May 20, 2024Retirement planning aims to ensure a steady stream of income that could sustain your lifestyle after leaving the workforce. To protect your retirement income you first need to have a clear idea of the different sources that will be available for your retirement, such as Social Security or your own personal investments. You would then implement… read more…