Retirement
Is the 4% Rule Limiting Your Retirement Income? Using a 5% Withdrawal Rate May Let You Spend This Much More.
A lower withdrawal rate can help your retirement savings last longer, but it may also limit how much you spend. Moving from 4% to 5% gives you more income upfront while leaving less room for your portfolio to absorb market losses. Your decision will depend on the answer to this question: Is the…
Will Doubling Your Earnings Double Your Social Security? Here’s How Much You May Collect With $75k and $150k Salaries.
Doubling your salary can increase your lifetime earnings, but your Social Security benefit will not increase at the same rate. As your career earnings rise, each additional dollar has a smaller effect on your monthly benefit. Comparing salaries of $75,000 and $150,000 can show how that difference…
Is $2.5M Enough to Spend $100K a Year in Retirement, Or Will Taxes Leave Me Short?
A $2.5 million portfolio could support $100,000 in annual retirement spending, but taxes might require you to withdraw more than that amount. Account type determines the portion of each distribution you keep. Knowing that amount can help you estimate whether your spending goal is sustainable and…
I Want to Retire at 52. Can a Roth Conversion Ladder Let Me Access Retirement Savings Penalty-Free?
Retiring at 52 could lock up a big part of your nest egg until age 59 ½. If most of your money sits in a 401(k) or traditional IRA, early withdrawals might trigger a 10% penalty. A Roth conversion ladder, however, may provide access sooner without that charge, but you still need to account for
I Rolled Over My 401(k) With a Check. Will It Trigger a 10% Penalty?
You took a $100,000 distribution by check from your 401(k) and are now wondering if the IRS will penalize you. The answer depends on whether you completed the rollover correctly. A check isn’t necessarily problematic, but missing this deadline could cost you roughly $34,000 in taxes and a penalty…
I Need $10,000 in Monthly Retirement Income. Is a $1 Million Portfolio Enough?
If you need to withdraw $10,000 each month from a $1 million portfolio, that’s a 12% annual withdrawal rate. Sustaining this rate over a long retirement could increase the risk of depleting your savings. However, the gap between your spending goal and what your portfolio can support isn’t…
I Need $5,000 in Monthly Retirement Income. Is a $500,000 Portfolio Enough?
While $500,000 is a substantial retirement portfolio, it may not be enough to generate $5,000 in monthly income on its own. How much you can safely withdraw depends on your spending needs, investment returns and any other income sources, like Social Security or a pension. Let’s take a look at how…
I’m 50 and Felt Hopelessly Behind on Retirement. Then I Ran the Real Numbers.
Turning 50 could cause you to take another look at your retirement savings. If your balance is lower than expected, you may wonder whether you’ve fallen too far behind to reach your goals. The good news is that your current balance is only part of the picture. Depending on when you expect to…