Retirement

Betterment Review

As I explained last week, I’m on a quest to find the best retirement plan to roll over my old 401(k). I’m going to conduct the most thorough research I can — publicly — and then put my money where my mouth is, literally rolling over my old 401(k), worth approximately $85,000, into the best …

If I Can Suggest One Financial Move to Anyone, It’s This

Save for retirement. Period. There are very few adults in the United States that are of working age that aren’t affected in a positive way by saving for retirement. For virtually all of those people, saving for retirement – or saving more for retirement – is a strong positive move. If there was one financial …

How to Find the Best CD Rates in 2014

If you’re frustrated with the low interest rates of savings accounts but wary of high-risk investment strategies, Certificates of Deposit (CDs) might be your ideal middle ground. Your money will be safe and you’ll receive a better return than a savings account would offer, though the best CD rates largely depend on how long you’re …

When Should a Person Start Social Security Benefits?

Whether I like it or not (and I most certainly don’t like it), my parents are growing older. My mother is getting close to the age where she will begin to be eligible for Social Security benefits and my father is already there with his benefits already unlocked. Naturally, one of their biggest questions is …

Categories: Retirement

Our Path to Living Off Our Own Investments

The big financial goal that Sarah and I have in front of us is to reach a point where we can live off of the proceeds of our investments, allowing us to walk away from work. In essence, that’s what retirement is. Between Social Security (which one can see as an investment built up over …

Retirement Age and Changing Lifespans

Not too long ago, I was at the library researching an article on Social Security and the value people could expect to get from it using historical numbers. (I decided not to do the post because it requires some prediction of the politics in the future.) As I was looking for information, I came across …

Categories: Retirement

Roth IRAs and the Fear of Future Legislation

When people realize how incredible the deal is for a Roth IRA, they’re often in disbelief. After all, it lets you earn tax-free income in retirement. No federal income taxes, period, on money taken out of a Roth IRA when you’re at retirement age (and at a few other life opportunities, too). Before we head …

Categories: Retirement

A Roth IRA and The Future of Taxes

A few years ago, I wrote an article looking at the differences between a Roth IRA and a 401(k) with regards to how taxes will change in the future. If taxes go up, then a Roth IRA (or Roth 401(k)) is better. If taxes go down, then a 401(k) is better. When I’m offering financial …

Categories: Retirement, Taxes

The Hows and Whys of a Target Retirement Fund

You’ve finally decided that you need to start saving for retirement. You’ve taken that first step of signing up for a 401(k) or a 403(b) or a Roth IRA. The next step is a doozy, tough. You see tons and tons of investment options. How do you know which one to choose? You turn to …

Categories: Investing, Retirement

Is Time on Your Side?

This stunning article from Yahoo! Finance describes in detail the difficult situation that many people in their fifties and sixties find themselves in. From the article: Thirty-four percent of workers have nothing set aside for retirement, according to the U.S. Social Security Administration. A study by the National Institute on Retirement Security found 40 percent …

Categories: Retirement

Best IRA Accounts of 2014

Most of the top companies that are home to the best IRA accounts are the same places where you would open up an online stock trading account. In a previous post, I ranked the best online brokers so I had a head start when it came to finding the best Roth IRA or best Traditional …

A Lifetime of Choices

Once in a Lifetime Stephen writes in: “I am struggling with continuing to save because of the fragility of my life. Both of my parents and my older sister died in their 50s. I turned 50 last year and there are so many things I still want to do in life. Lately, I have been …

Falling Short on Retirement Savings

It’s a fear that many of us have. For some, it’s a reality. You’re close to retirement age, but when you sit down and run the numbers, it’s pretty clear that if you retire at 65, you’re going to have to make some very tough choices. No matter how you slice it, the money simply …

Categories: Retirement

How to Approach Retirement Catch-Up

This article first appeared at U.S. News and World Report Money. It’s pretty well established that if you start saving about 10% of your income for retirement starting at age 25 or so, you’re going to be in excellent shape for retirement when you hit age 65. This fact should be emblazoned on every single …

Categories: Retirement

Retirement Savings: Sacrifice Today for a Better Tomorrow

The reality of retirement savings comes down to a very simple decision. Each paycheck or each week or each month, you have a choice to make. You can either put a certain amount of money away for retirement, or you can keep it and spend it on other expenses as you see fit. Every time …

Categories: Retirement

How Much Do I Need to Retire? Quickly Figure Out Your Retirement “Number”

This article first appeared at US News and World Report Money. At some point during each of our professional lives, we wake up to the fact that we really need to be saving for retirement (hopefully, we figure it out when we’re young). We’re all going to retire, and that means we’re all going to …

Categories: Retirement

Selling Stocks at an All Time Market High?

By almost every measure, the stock market in the United States has hit several all-time highs over the last few weeks. This has led several Simple Dollar readers to write in and ask whether or not selling stocks now is a good decision or not. Tom, for example, writes: “With stocks being so high I …

Categories: Investing, Retirement

Four Questions to Ask If You’re Nervous About Signing Up for a 401(k)

Beth wrote in with a great question: “I have thought for months about going into the HR office and signing up for the 401(k) plan but I don’t even know what I should say when I go there. What should I ask about so that I don’t feel like an idiot?“ Based on lots of …

The Fear of a 401(k)

When I was in high school, my father’s employer launched a 401(k) program. He’d been there for twenty five years (off and on) at that time and was getting fairly close to his retirement, so it wasn’t a huge deal for him. Still, my father has always been pretty careful with his money. Aside from …