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Online calculators can help you run the numbers to figure out how much you need to save for retirement. But take a close look at the assumptions they make (or leave out).
Baby Boomers are rightfully stressed out how to manage their nest eggs. Saving up for retirement was hard enough. But now there's the nightmare job of figuring out how much monthly income you can safely withdraw from 401(k)s and IRAs. Safe as in: Your money won't run out before you do.
Withdrawing or borrowing against your retirement account, whether an IRA or a 401(k), is usually a rotten idea. But if you must, here are your options.
People retiring before age 65 (the eligibility age for Medicare) may still face high costs for medical insurance, even after passage of health care reform. However, health care reform does provide some good news for early retirees who don't have affordable retiree medical insurance through their employer.
Now comes the hard part for 401(k) participants: Figuring out how to make their money last through what is looking like a very long retirement. But a key data point is missing from 401(k) statements that would be a huge help in solving this puzzle. What's needed is a simple line-item in every statement that shows what your current lump sum could generate in monthly income in retirement. But will Washington or plan sponsors step up and make sure Americans have this key piece of information?
There are two economies out there: the public one and the private one. And the private economy isn't doing too well.
Various mutual fund families can have different opinions on the appropriate asset allocation for a specific retirement date. It definitely pays to "look under the hood" of target date funds and not just rely on a number on the calendar!
International bond funds seem like the answer to a retirement investors' worries at a scary time for bond investors. But it's not that simple.
A reader asks is there is tax relief for withdrawals from IRA to pay his bills and relief from investment losses. Ray provides the answers.
Nearly two -thirds of wealthy Americans agree with President Obama that they should be paying more income tax. But that at best will put a dent in the deficit; and when it comes to the bigger-ticket deficit reduction moves, Americans are still in deep denial about what needs to happen.
Don't be clueless about how much money you need to retire and how much you should be saving for retirement. Inform yourself by using an online retirement calculator. Here's what to look for when selecting a retirement calculator.
Everyone seems to think something terrible will happen if they give away more than $13,000. Fact is, almost no one ever pays a gift tax.
Knowing what mistakes not to make in a job hunt can be just as helpful as knowing the right moves. A recent study details the costly bad assumptions that are holding back unemployed older Baby Boomers. Their mistakes can serve as good template for what you'll want to guard against in the coming years.
The high cost of retiree medical insurance and the barriers to coverage due to pre-existing conditions have long been a significant obstacle for most Americans who want to retire before age 65, the eligibility age for Medicare. The health reform bill helps some people, but the high cost of retiree medical insurance will still be a challenge for many Americans.
For families that are maxing out on 401(k)s and IRAs each year, there's another great tax-advantaged way to save for retirement. Max out on an HSA and you will effectively boost your retirement savings 14%.
