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
Social Security rules like the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) markedly reduce Social Security benefits for nearly three million US retirees receiving pension income. Under WEP, individuals receiving retirement or disability pension income from public employers that don’t withhold Social Security taxes from their salaries will see their Social Security … Read more
From September onwards, many US retirees in Connecticut, Colorado, Montana, Minnesota, New Mexico, Rhode Island, Utah, Vermont, and West Virginia could start receiving smaller monthly Social Security checks, by up to $200, due to a tax hike these states will impose on the benefits. The remaining 41 states don’t impose income taxes on Social Security … Read more
If you find it hard to plan for retirement, here is a little secret: It is hard for everyone – even the world’s foremost experts on the topic. Take Christine Benz, for example. As the longtime director of personal finance and retirement planning for investment research firm Morningstar, Benz knows pretty much everything there is … Read more
The woman plans to return to the US if the husband passes away first. Tima Miroshnichenko/Pexels.com A 73-year-old woman travelled across the Atlantic three years back to marry and live with his European husband, who is 76. She has a grandchild and grown-up children in the US from her previous marriage, who are financially well-off. … Read more
For multi-millionaire and best-selling author Ramit Sethi, the moment he realised he didn’t have to work anymore was pivotal. At 42, Sethi’s investments were generating far more income than his expenses. In a recent YouTube video, the host of Netflix’s How To Get Rich explained how the FIRE (Financial Independence Retire Early) movement combines long-established … Read more
The US Labor Department’s new proposed standard to protect retirement savers who roll over money from their 401(k)s to individual retirement accounts (IRA) is facing massive backlash from the insurance industry. The rule will ensure insurance agents transition from selling products for high commissions to recommending investments that benefit clients during rollovers. The move will … Read more
Individuals must enrol in Medicare when they turn 65, especially if they have plans to delay retirement further. tiago tins/Pexels.com A 65-year-old woman is mulling divorce since her husband, who inherited millions from his father, doesn’t share the money with her. He forced the woman to withdraw Social Security benefits at 62, which locked her … Read more
Retirement vehicles like 401(k) and individual retirement accounts (IRA) offer multiple tax benefits, high annual contribution limits, and investment options tailored to grow your hard-earned money with the power of compounding interest. Many 401(k) account holders choose to roll over their 401(k) investments into a traditional IRA for more personalised investment choices, better control over … Read more
A retired boomer receiving $1,662 in Social Security has moved in with roommates to help cover her medical expenses, stating that it’s the only way she can maintain a comfortable lifestyle. Marion, a 70-year-old single mother who raised two sons in Washington, often worked two jobs to provide for her family. Following a series of … Read more
