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?
There is a lot of confusion about what you can do with inherited IRAs. In today's post, I'll tell you what you need to know about inherited IRAs to make good decisions about them. There are required minimum distributions to consider. You also need to understand how to name your beneficiaries. There are special rules and exceptions for spouses, and many other things to … [Read more...] about What You Need to Know about Inherited IRAs
The Social Security Administration (SSA) announced in October (which they do each year) what happens to your Social Security income in 2019. They publish the cost of living adjustments (COLAs), income limits, taxes, etc. I'll cover all of the changes in this post along with the announced changes to Medicare. These government programs are two if the most complicated. … [Read more...] about Find Out What Happens to Your Social Security Income in 2019
Don't you wish you could push the easy button and automate your way to wealth? That would be pretty awesome, wouldn't it? I don't have an easy button to offer, but I can introduce you to some ways to put a process in place that is close. The biggest challenge I see in the clients I've worked with over the years in my financial planning practice is self-discipline. I don't … [Read more...] about How to Automate Your Way to Wealth
There are lots of investment options inside and out of retirement plans. Today, I want to help you get the most out of target-date and lifestyle funds. There is a lot of confusion about how these funds work. They have become the leading qualified default investment alternative (QDIA) in most retirement plans) 401(k), 403(b), etc.). How do they work? What are the … [Read more...] about How To Get The Most Out Of Target-Date And Lifestyle Funds