Retirement

Building a Nest Egg Out of Acorns

Let’s face it, investing in the future is no easy task. Taking money that you could spend right now and socking it away for decades takes discipline. That bi-monthly 401(k) paycheck deduction, the big fees wealth managers charge, and all those brokerage commissions… who wants any of it? This is especially true for new investors. Shoveling large chunks of cash …

Are Annuities Right for You?

Annuities are not complicated, which is why so many people find them appealing. They come in two basic types — immediate and deferred — with two ways of calculating earnings — fixed and variable. Immediate annuities: As their name implies, these begin paying you as soon as you buy them. Payments are based on your original …

Categories: Insurance, Retirement

Guide to Self-Directed IRAs

The history of retirement plans in the United States is neither as old nor as extensive as most people think. The first private pension fund was introduced by the American Express Co. in 1875 as a means of improving employee retention. By 1900, there were only 13 private pension funds in the entire country, and …

Retiring Abroad? What You Need to Know About Health Insurance

So you want to pack up all your cares and woes and retire overseas. The world is full of possibilities, from hundreds of thousands of miles of warm and habitable coastline to mountain towns and cosmopolitan cities on six continents. Your retirement benefits including Social Security will travel to your destination. However, one thing that …

Should Your Goal Be to Die Broke?

Danny writes in with a good question: A lot of the retirement articles I read talk about saving enough for retirement so that you only have to take out 4% a year so that it will last forever. But why would you want that? I certainly don’t plan to last forever and I don’t have …

Categories: Retirement

Trend Spotting: How Successful Investors Find the Next Big Thing

In “Back to the Future Part II,” Biff Tannen gets rich by using information from the future to make can’t-lose sports bets in the past. While Biff and his special brand of inside information are pure fiction, it is nonetheless a perfect allegory for investment trend spotting. Investment trend spotters seek to gain insight into the future …

Is Your Insurance Ready for Retirement?

Retirement is probably the most anticipated and planned-for milestone of our lives. When it finally arrives, it does so silently like an overnight snowfall that, even though it was expected, renders a once-familiar landscape alien. Retirement planning lends itself to metaphors that reference nest eggs and shedding the chains of responsibility. When it comes to insurance …

Wealthfront Review

As I explained in a previous post, 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 Gradual Savings Strategy

When the time arrives to sign up for a retirement plan at work or open a Roth IRA, people are pulled in two different directions. On the one hand, it’s very obvious that in the long term, saving for retirement is far superior to not saving for retirement. Retirement planning offers the ability to retire …

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 2015

Are you searching for the best CD rates? If you’re frustrated with savings accounts’ low interest rates but are wary of high-risk investment strategies, you’ve probably identified Certificates of Deposit as an ideal middle ground. Your money will be safe and you’ll receive a better return than a savings account would offer, though the best …

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

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