For most Americans, retirement isn’t necessarily something to look forward to. Instead, it’s a source of financial concern, with a recent survey from Capital One showing that 68% of Americans think they won’t have enough money in their later years. And this was before the coronavirus, which has caused even more concern about retirement readiness […]
Category: Personal Finance
3 great reasons to take Social Security benefits at 62
Your standard Social Security benefit is based on your working history over your 35 highest-earning years. To get the standard benefit amount, you need to retire at a specific age called your full retirement age (FRA). Depending on the year you were born, you’d need to retire between the ages of 66 and 67. Many […]
Do These 3 Things If Your Company Has Cut Your 401(k) Match
Companies are feeling the financial strain of the COVID-19 pandemic as much as their employees, and for some, keeping their doors open and their employees on the payroll requires certain sacrifices, at least for the time being. One of the most unfortunate losses for workers is 401(k) matching. If your company has temporarily done away […]
68% of Baby Boomers Are Taking This Huge Retirement Risk
Preparing for retirement can be daunting, particularly if you’re nearing retirement age and your savings are falling short. You’ll likely need several hundred thousand dollars (if not more than $1 million) to enjoy retirement comfortably, and that’s a challenging goal to achieve. As a result, many older workers are choosing to put off retirement to […]
35 million stimulus checks are still outstanding. What you need to know if you’re waiting for your money
The U.S. government has sent 159 million stimulus checks to Americans. But there are still an estimated 30 million to 35 million payments yet to be issued, according to new data on the progress of the payments from the House Ways and Means Committee. The stimulus checks — up to $1,200 per individual or $2,400 […]
Social Security benefits taxed by these states
Social Security is an important source of retirement income for millions of American workers, so the good news is that benefits are not taxed by a majority of states, which allows retirees to keep a little more of their cash. However, there are about a dozen that tx the benefits, although their methods differ. It […]
A 401(k) loan vs. withdrawal: How your account balance may fare down the road
If you’re eyeing your 401(k) account to help shore up your finances amid the coronavirus crisis, there are a couple of penalty-free ways you can do it if your employer allows it. Just be sure you’re aware of the long-term implications. Each of the options available — a loan or withdrawal — would impact your […]
5 budget roadblocks and how to blast through them
Starting a budget is the first step to preparing for your financial future and getting out of debt. As important as it is, a Debt.com survey shows that 20% of American adults don’t set one. Developing a budget is hard work. Spending within your means — and resisting the allure of credit-card financing — requires discipline, sustained patience and constraint. […]
Don’t Let Your Estate Plan Cause a Rift Between Your Kids
Your estate plan may be your last words to those you leave behind. If you’re a parent, you should think carefully about the message you’ll be sending. Parents who leave their children unequal inheritances risk fueling family feuds. But strictly equal bequests also can cause resentment if the heirs don’t see the distribution as fair. […]
Personal finance: Skip the spare bedroom and be $500,000 richer at retirement
Having an extra bedroom is a popular waste of space. It is often just a lightly used home office, or the guest bedroom that is occupied a grand total of maybe two weeks a year, or the bedroom for your kid who moved out eight years ago, but you don’t dare downsize because of the […]
The Most Powerful Retirement Plan You Have Never Heard of…
A Tale Of Two Tax Bills Mike and Mark are identical twins. Both are 58 years old and have successful medical practices. Their practices are precisely the same size, with the same number of employees and the same revenues. They both earn business income of $350,000. The startling difference between them is that Mark’s income […]
Couple who paid off $200,000 in debt and are on track to ‘retire early’ focus on earning instead of saving—here’s why
Entrepreneurs Julien and Kiersten Saunders are well on their way to achieving financial independence by growing their digital business, creating multiple revenue streams and putting the majority of their disposable income into low-cost index funds, where it can grow over time. They’re part of the FIRE (financial independence, retire early) movement, which embraces the concept […]