With the passage of the SECURE Act in December 2019, current and future retirees can expect to see significant changes which are likely to impact their tax planning for retirement. Most notably, perhaps, is the increase in the Required Minimum Distribution (RMD) age from 70 ½ to 72. For affluent retirees – and soon-to-be retirees – affected by the new RMD age, both the increase in the RMD age and the proposed new life expectancy tables on which individual RMDs are based are a bit of a double-edged sword. Since annual RMDs are simply a calculation of the total amounts …
Thinking About Rolling Over Your 401k?
An increasing number of employers offer 401(k) plans for their employees. It’s estimated that the average employee will have 10 jobs before they hit 40 years old. This means that there are millions of 401(k) accounts that are essentially orphans. Most companies will allow old employees to leave the money alone, and 22% leave their money with their old employers. However, you might want to roll over your 401(k) to your new employer’s plan or an IRA. Check Fees Fees and expenses are one of the most important issues you’ll want to consider before rolling your 401(k) over. If your …
To Work Or Not To Work In Retirement. That Is The Question.
The retirement age of 65 was chosen for Social Security at a time when average life expectancy was 67. Overall, life expectancy has trended up since then, so it should come as no surprise that 9 million Americans over age 65 now work either full time or part time. That’s nearly one in five people who theoretically should be retired. This trend towards working at least part time after age 65 is one of the realities of the new economy that gets relatively little press. This decision-making process looks different depending on where you are in life. If you are …
The Good and Bad of Retiring Early
When it comes to retiring early, some of the benefits are obvious. You get to live your life without the constraints of work, and you are able to pursue your own interests. But there are other good reasons for retiring early, and there are some reasons why retiring early is not the greatest idea. Your Dedication is Gone One of the good reasons to retire early is that you are simply not dedicated to working anymore. When you are no longer emotionally interested in working, your performance deteriorates and your company suffers. Working Took its Toll In some professions, such …
Long Term Care, Why It Matters
Millions of people in the U.S. are unable to care for themselves and need long-term care services. These people need assistance in performing one or more self-care activities of daily living such as eating, bathing, dressing, and executing basic movements like walking, sitting, or standing. Services can be provided in the patient’s home, a residential care community, nursing home, assisted living facility, adult day service center, or at a hospice. Housework, money management, shopping, organizing medication, and helping with communication are some of the other long-term care services that are provided. The need for long-term care services has grown as …
How You Can Catch Up For Retirement
By Nirav Desai Once we dive into our working years, retirement becomes the ultimate goal. Many of us relish the idea of slowing down, changing pace, and finally having all the time we need to pursue passions and invest in relationships. But we all know that in order to make those dreams a reality, you need the time and the money. In retirement, you’ll have three main sources of income: your retirement plan, savings and investments, and Social Security. A solid retirement plan focuses on the first two and uses Social Security as a backup. According to a 2019 Bankrate …
Money Conversation with Your Kids
Planning for retirement sometimes is filled with numerous preparations. One step at a time you put your life and your finances in order so that the remainder of your years are spent enjoying the lifestyle and security you have worked so hard to achieve. Preparing for retirement includes steps to prepare your children for the decisions you have made. Sitting down with them and laying out your plans is an important step in the process and one that can prevent misunderstandings and mistakes along the way. Let Them Know Long Before the Retirement Party When the timeline for retirement grows …
How to Recognize and Prevent Elder Financial Abuse
Financial abuse can be a complicated subject, but at its most basic level it involves taking advantage of an older adult through manipulation or intimidation to steal their money or property. What are the risk factors for financial abuse? Elderly adults are some of the most vulnerable to financial abuse. Some of the biggest risk factors for older adults include: • Isolation Isolation can cause extreme loneliness in seniors, leaving them desperate for any sort of social connection. Many abusers target elder adults for this reason. • Lack of knowledge of financial matters Elder adults who don’t pay much attention …
SECURE Act & Your Retirement
If you were busy with the holiday hustle-and-bustle, you may have missed some of the details of the SECURE Act. Your retirement planning process will likely need to be reviewed because of the SECURE, or Setting Every Community Up for Retirement Enhancement, Act. This act changes age restrictions on when you can contribute to a traditional IRA, when you will be required to take minimum distributions and how your legacy funds contained in a 401(k) plan can be dispersed by your loved ones. Required Minimum Dispersal Ages If you plan to keep working or have access to passive income that …
Retirement Resolutions for a New Year
Some Americans are making their financial health a priority in the new year with resolutions to increase savings, reduce debt, and cut unnecessary spending. According to a survey conducted by Fidelity Investments, the top motivation for considering finance related resolutions is to work toward living a debt free life, to get control of everyday expenses, and to save for a comfortable retirement. Of those who have financial resolutions, over half resolved to increase savings. Surprisingly, those surveyed said that committing to a budget is more important than committing to an exercise plan. The overall goal of many of the respondents …