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?
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
Are you confident you know how to invest your 401(k) money? A lot of people I talk to and meet are not. Most companies provide scant little help to guide their participants. Financial advisors often don't offer much help, especially if they can't get paid for the advice. Printed material leaves a lot to be desired. Many of the funds are similar in their descriptions. … [Read more...] about How to Invest Your 401(k) Money
Have you thought much about how to make your retirement assets last longer? If not, I would suggest you put a plan in place to do just that. Why? Americans are living longer than ever. A recent life expectancy study from the Brookings Institute illustrates this point. For married couples, there is an 88% chance that one will live to age 80, and a 45% chance that one … [Read more...] about Five Strategies To Make Your Retirement Assets Last Longer
No, all caps in FIRE up your retirement isn't a typo. It's an acronym for Financial Independence - Retire Early. When I started Money with a Purpose in late 2017, I discovered this vibrant personal finance blogging FIRE community. To my surprise, this community is full of Millennials and Gen Xers intent on becoming financially independent. The goal of that financial … [Read more...] about How to FIRE Up Your Retirement
It seems everywhere we turn these days we hear about pursuing the American Dream. It's what Wall Street, Madison Avenue and anyone selling any high-value item, thinks we should pursue. We get bombarded with images of the "dream" home, the fancy car, and all the trimmings. The idea is that having a lot of stuff to show for our work defines success - the American … [Read more...] about Is the Pursuit of the American Dream Derailing Your Retirement?
Is the 4 percent withdrawal rule safe? That's a great question. It is one of the most debated and talked about concepts in the personal finance world. In this post, I'll tell you where the concept originated. I'll point you to the latest research on the topic. And, most importantly, I'll tell you whether the rule is still relevant in today's low-interest-rate … [Read more...] about The 4 Percent Withdrawal Rule – Is It Still Safe?
I want you to get Social Security survivor benefits right before you ever claim. Why? Because if you don't, it can cost your survivors tens of thousands of dollars in lost benefits (even hundreds of thousands). I've seen so many people make Social Security claiming decisions without a thought about survivor benefits. DON'T BE ONE OF THOSE PEOPLE! Read on to learn … [Read more...] about Making Sense of Social Security Survivor Benefits