The holidays can put a big dent in anyone's bank account. Even if you were smart enough to set aside extra money to spread some holiday joy, you can easily bust your budget if you use the holidays as an excuse to abandon good financial habits.
As more and more baby boomers start eyeing the coastline of retirement, thoughts turn from the daily worry over the Monday-through-Friday commute to concerns about how to fund the golden years. How about your 401(k), IRA and other retirement accounts that make up your nest egg? Do you have a good handle on when to claim Social Security benefits?
The cheap chic pioneer deserves a fresh look from shoppers who drifted away.
The most critical phase of retirement may just be the year before you leave your job. Use the time to get your plan squared away.
With a Roth, you can avoid RMDs and let more of your money grow tax-free.
Overwhelmed by your impending retirement? Your employer may be able to assist with the transition.
The complexity of the system, its evolution and a shift in demographics that threatens its solvency have created confusion over what Social Security can and will deliver . Social Security benefits are primarily based on two variables: your highest earnings over 35 years and your age when you file for benefits. The maximum benefit for someone retiring at full retirement age (66 for people born in 1943 through 1954) in 2016 is $2,639 a month.
Once you turn 70½, Uncle Sam wants his share, so he requires you to take withdrawals from your traditional IRAs, 401(k)s and other tax-deferred plans--or face a penalty of 50% of the amount you should have withdrawn. If you've built up a large balance in 401(k)s, rollover IRAs and other tax-deferred accounts and have another source of income, such as a pension, RMDs can create a host of tax tribulations. Because the withdrawals are taxed as regular income, RMDs could push you into a higher tax bracket.
Avoid these mistakes now, so you don't regret them later.
As a financial professional, I get a lot of questions. Deciding the right age to take your Social Security benefits can be tricky. Although conventional wisdom says to delay taking your benefits for as long as possible, according to the Center for Retirement Research, nearly 40% of retirees file for Social Security as soon as they turn 62, the earliest age at which the Social Security Administration (SSA) allows you to claim your benefits.
Your monthly check could take a hit if you live in one of these 13 states.
If you need additional help covering medical expenses, here's what you need to know.
A few strategies can reduce (or eliminate) the taxes you'll owe on your benefits.
Wise to your showrooming ways, retailers are making it easier for you to buy on the spot, at a discount.
Key differences: Clinton would expand Social Security benefits for women who are widows and caregivers, and let individuals over age 50 or 55 buy into Medicare. Trump has pledged to preserve Social Security and Medicare throughout his campaign, but recently his advisers have hinted at entitlement cuts to keep both programs solvent in the future. Key Clinton quote: “Rather than expand benefits for everyone, I do want to take care of low-income seniors who worked at low-wage jobs.