Many US retirees above 65 are on a fixed income and are dealing with stress, figuring out how to stretch their retirement savings for the remainder of their lives. Some retirees claim Social Security too early and get locked into reduced monthly checks. The top reasons for early claims are financial and health-related concerns. At … Read more
401(k) retirement accounts are among the most powerful investment tools for US workers, given the high annual contribution limits, tax benefits, and free money from employer-matching options. More millennials are tapping into the potential of 401(k) accounts. Fidelity Investments data show that the number of millennials with 401(k) account balances above £798,170 ($1 million) increased … Read more
The Social Security program was designed to assist people in running their households in retirement. However, Social Security checks are becoming the primary income source for an increasing number of Americans as many didn’t invest adequately in their 401(k)s or focus on building passive income streams during their working years. Those relying heavily on Social … Read more
Tesla chief Elon Musk recently claimed while campaigning for President-elect Donald Trump that he is the largest individual taxpayer in history. Musk claimed he paid over $10 billion in taxes to the Internal Service Revenue (IRS). Jokingly, the billionaire said he wished the IRS would send him a trophy, even a small, inexpensive one that … Read more
When it comes to building a strong financial foundation, money guru Dave Ramsey believes that age or starting late is not a factor – and that one can be stable with just a few, wise financial decisions. This is what Ramsey told a 50-year-old woman who has been widowed for 15 years, who recently called … Read more
As the rate of “grey divorces” rises among baby boomers, the financial impact on their retirement is becoming more apparent. Late-in-life separations not only affect immediate finances but can also derail long-term retirement plans, leaving many unprepared to live comfortably in their later years. For women, these financial setbacks are often more severe, leading to … Read more
Wealthy people often use the most commonly available banking and investment accounts to compound their wealth and avoid tax liabilities on future withdrawals. They love liquidity and tax benefits and generally maintain a frugal lifestyle. For these reasons, high-net-worth individuals often gravitate towards tax-advantaged accounts like 401(k), Roth IRAs, and brokerage accounts that offer them … Read more
Employers can leverage a shared database to ensure new workers receive better or at least the same default savings rates for retirement plans they were receiving from their previous employers. Sora Shimazaki/Pexels.com People who change jobs often might make more money than average in the long run. However, many of them experience opportunity costs that … Read more
Michelle and Ryan, in their early 40s, have a net worth of $970,000 but need help with daily finances. They continue to dig into their savings for regular expenses despite Ryan earning $140,000 annually. The couple spends a lot on their three kids and avoids telling them they don’t have the money. “I don’t say, … Read more
A Morningstar Center for Retirement & Policy Studies research leveraged a new simulation tool to find that 45% of Americans retiring at 65 face risks of running out of money in retirement as people live longer and share greater responsibility for their retirement savings. The simulation considered attributes like health conditions, nursing home expenses, and … Read more
