It’s often reported that underfunded public employee pension systems create barriers to state and local governments’ ability to provide ample public services like education, parks, and libraries. Too often overlooked, however, is another looming fiscal challenge: the rising costs of paying for health insurance for America’s retired public employees. The Federal Reserve estimates that the […]
Social Security isn’t meant to sustain you in retirement by itself. Your benefits will replace around 40% of your former paycheck if you’re an average earner, and most seniors need far more than that to live comfortably. That’s why workers are often encouraged to save for retirement on their own. But in a recent TD […]
Retirement is an expensive prospect, so much so that most seniors need about 70% to 80% of their former income to maintain a decent lifestyle. Social Security will provide about half that amount for anyone who’s an average wage-earner; but the rest of that retirement income needs to be generated elsewhere, and for those who […]
Financial advisers typically advise parents to create a college savings account when a child is young — but it’s the grandparents who should set one up. When Grandma and Grandpa set up a 529 plan, which is a state-sponsored college tuition account, the assets don’t count against the child when they’re filling out their financial […]
While romance may be brewing ahead of Valentine’s Day, so are some dirty secrets. About 44% of U.S. adults admit to hiding a bank account or debt, or to spending more money than their partner would be comfortable with, according to a new study from CreditCards.com, which surveyed 1,378 adults who are married, in a […]
While saving is usually the focus of early retirement discussions, saving exists only in relation to spending. Everyone spends something, no matter how frugal your habits. In early retirement books, blogs and podcasts, we tend to throw around the phrase “spend on your values” flippantly, as shorthand for only spending money on the things that […]
U.S. presidential candidates get asked many questions about the country’s state of affairs — one of which is what they will do about “entitlement programs.” “Entitlement” often refers to Social Security and Medicare, but critics argue that’s the wrong way to describe it. Many Americans take to social platforms saying they’ve paid into the system […]
“Turn off the lights.” “Why would you go out and spend money for coffee?” I grew up middle-class in the 1950s with a litany of lines like that from my Depression-era mother. Usually, I didn’t listen to them. But now that I’m 70 and figuring out ways to budget in retirement in San Francisco, I’m […]
The 2020 income tax season officially started on Monday, January 27, when the IRS started accepting tax returns. Despite the stereotype of people hating doing their taxes, for millions of taxpayers, tax season means getting a refund. But there’s no reason to get a refund loan or similar services, which often include steep fees, since […]
Health savings accounts can be a great tool for retirement medical costs — if you don’t make any mistakes using them. These accounts work alongside high-deductible health plans and they offer three major tax benefits. First, you can make pretax or tax-deductible contributions to your HSA. Second, your funds will grow tax free – and […]
Saving for retirement is likely one of the greatest financial challenges you’ll ever face. It takes decades to successfully prepare for retirement, and you’ll likely need to save hundreds of thousands of dollars (if not more than $1 million) to enjoy your senior years comfortably. While there’s no one-size-fits-all approach to preparing for the future, […]
A $100,000 or even $200,000 balance in a 401(k) plan might seem like a lofty amount of money — and it is — but it may not mean as much in your retirement as you think. As part of the new Secure Act, plan sponsors will have to show Americans how their account balances translate […]
