Retirement
For high earners over age 50, a retirement-saving strategy that was available for years may now be off the table. Depending on your income, you may have to make catch-up contributions to a Roth account instead of a traditional 401(k). And this change could affect your tax bill today and…
The Thrift Savings Plan (TSP) is the federal government’s defined contribution retirement plan. It is available to federal civilian employees under the Federal Employees Retirement System (FERS). It also includes the Blended Retirement System (BRS), which covers members of the uniformed services. For its participants, the government’s matching contributions represent…
What can I actually spend each month without running out of money? This is one of the most important questions that retirees ask. And one of the hardest to answer. Many people rely on rough estimates, but guessing wrong early in retirement can cost you big for decades.What $720k and…
Many retirees overlook one of the best tax-planning windows in their financial lives: the years between retirement and required minimum distributions (RMDs). During this period, you may be able to convert traditional IRA assets to a Roth at relatively low tax rates before RMDs increase your taxable income. Here’s why…
Gen Z is the youngest generation of workers and they are now out-saving every older age group. They started earlier than Boomers, Gen X and even Millennials. Many are still early in their careers and underpaid, yet they have leaned into one advantage that older savers often overlook. If you…
Every year, your Social Security check gets a small raise to keep pace with inflation. And right now, every retiree gets the same percentage, top to bottom. But a recent proposal could change that for some people. If your annual benefit sits above a certain line, your yearly increase could…
A backdoor Roth IRA allows high-income earners to move money into a Roth IRA. It is a simple two-step strategy that works because, while the IRS sets income limits on direct Roth IRA contributions, it sets no income limits on Roth IRA conversions. Anyone whose modified adjusted gross income (MAGI)…
A retirement plan that needs to last 30 or more years can succeed or fail based on its structure. Account types, contribution levels, asset allocation, tax treatment and withdrawal sequencing will determine how much you keep, how long it lasts and how much goes to taxes. That is why the…
A micro retirement is an intentional, extended career break taken mid-career rather than waiting until traditional retirement age. Unlike standard vacation time, these breaks typically last from a few weeks to a year, are usually unpaid, and are self-funded and self-directed rather than provided by an employer. Micro retirements can…
The order in which you withdraw money from your retirement accounts could cost, or save, you tens of thousands of dollars over the course of your retirement. While most retirees follow the conventional wisdom of tapping taxable accounts first and saving Roth accounts for last, this seemingly logical approach can…
