Do you own an IRA? Are you thinking about it? If so, which should you own - 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 … [Read more...] about Which Should You Own – a Roth IRA or Traditional IRA?
Since the penalties for not getting required minimum distributions (RMDs) right or severe, I thought it would be a good time to review the rules and deadlines to help you get it right. RMD rules are complicated and making mistakes by not following them are costly. If you miss taking an RMD or take out less than what is required, you will pay a 50% penalty. Yes, you read that … [Read more...] about Rules and Deadlines for Required Minimum Distributions (RMDs)
When transferring retirement accounts, the question of which is best: direct or indirect is a common one. The IRS lays out the rules on how to accomplish both options. Violating those rules will cost you money in taxes, penalties, and loss of growth of these assets. I write and answer investor questions for Investopedia because they try to keep things simple. The goal … [Read more...] about When Transferring Retirement Accounts Which is Best – Direct or Indirect Rollover?
Americans are living longer than ever. The following 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 will live to age 90. Living longer requires our money to last longer. Outliving our money is one of the biggest fears for those planning for … [Read more...] about Five Ways to Make Retirement Assets Last Longer
What does "retirement readiness" actually mean?How do you define retirement readiness? A recent Confidence Survey (RCS) showed that two-thirds of working Americans reported that they are confident or somewhat confident they have saved money for retirement. More than half of those workers have less than $25,000 in total savings and investments (excluding home and defined … [Read more...] about How Do You Define Retirement Readiness?