No matter your age, you’ve likely given some thought to when you will retire. Is part of that thinking about what will make you happy in retirement? If not, maybe it should be. I realize it’s a strange question to ask when talking about retirement. To me, though, it’s a relevant one. As a financial advisor, I’ve noticed those who are happy in retirement are, for the most … [Read more...] about How Do You Know You’ll Be Happy in Retirement?
Most of the blogs today write about and promote early retirement. That's a great pursuit. Today, I'm going to take a little different approach to the conversation. I want to look at five mistakes I see people make after retirement. There are many more we could list. We'll focus on the five I see most in my planning practice and those I read about in blog articles and … [Read more...] about Five Mistakes People Make After Retirement
If you work for a corporation with publicly traded stock, it's likely you own some of that stock in your 401(k) plan. If you do, it's crucial you understand the rules for net unrealized appreciation. What is net unrealized appreciation? It's the unrealized gain accumulated in your company stock while you own it in your plan. Unrealized gain means the amount the stock price … [Read more...] about Why You Need to Know the Rules for Net Unrealized Appreciation
Do you own an IRA? Are you considering it? If so, which should you hold - a Roth IRA or Traditional IRA? The answer for you may be both. There are benefits to each that we will explore in this post. This post will not include a discussion about investments in your IRA. I'll save that for another day., We will discuss in some detail how each IRA works. What are the advantages … [Read more...] about Traditional vs. Roth IRA – Which Should You Own? (2019)
There is a lot written these days about retirement. Regardless of how you define it, how do you know you’re ready for retirement? Are there financial formulas that need to be satisfied? Is it age based? Is it a lifestyle question? Do you need to have all of the answers before you retire? I’ll address some of these questions in this post and bring up other things you may not … [Read more...] about How to Know If You’re Ready for Retirement
If you're like most people, you have an old 401(k) (403(b), 457, etc.) from a former employer. In today's post, I'll tell you what you need to know about your old 401(k) plan. Financial advisors will often tell you the best option is to rollover (transfer) those retirement plans into an IRA. But is that the best option? What other choices are there? What are the pros and … [Read more...] about What You Need to Know about Your Old 401(k) Plan
In this post, I'll cover my top three reasons to convert to a Roth IRA. Prior to the Tax Cuts and Jobs Act, recharacterization offered you the ability to undo the Roth conversion, making it like it never happened, The tax law eliminated that option. This has caused many to reconsider whether converting to a Roth IRA makes sense. However, if you make too much money to … [Read more...] about My Top Three Reasons to Do a Roth IRA Conversion
At the end of 2018, over 62 million people received Social Security benefits. The number includes those receiving Old Age and Retirement benefits and disability. There are lots of questions surrounding Social Security. Like, when should I apply? When is my full retirement age? What happens if I file early? What happens if I delay? One of the most asked questions is the title … [Read more...] about Is My Social Security Income Tax-Free?
It's highly likely that you own a traditional IRA. You are probably aware of or have heard that the IRS charges 10% early withdrawal penalty. You pay that for withdrawing money before reaching age 59 1/2. That's true for your traditional IRA, your employer retirement plan, and nonqualified withdrawals from a Roth IRA. Did you know there are many exceptions to the pre-59 1/2 … [Read more...] about 16 Ways to Avoid the 10% Early Withdrawal Penalty
As we near the end of the year, I thought it would be a good idea to review the benefits of a backdoor Roth IRA. Many people have incomes too high to allow them to contribute to a traditional IRA with pre-tax money. Though income limits are higher for Roth IRA contributions, there is still a limit. The backdoor Roth IRA is a way to get around the income limits imposed by the … [Read more...] about Is the Backdoor Roth IRA Right for You?