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3 signs you won’t be ready to retire in 30 years, according to a financial planner
Financial planner Jovan Johnson. Courtesy of Jovan Johnson Even if you have 30 or more years before retirement, it’s possible that there are already some signs you won’t be ready. If you haven’t started using your employer’s 401(k), or are still making the same contribution you started making several years ago, you might need to make…
Read MoreHow to withdraw from your traditional 401(k) account early — the strategies to avoid penalties and fees
Withdrawing money from your 401(k) early is not recommended, since the amount is subject to 20% income tax, plus a 10% IRS penalty. While it’s hard to avoid the tax, there are ways to avoid the 10% penalty, including a loan and a hardship withdrawal. Temporary changes to the rules under the CARES Act may…
Read MoreThe ‘Stretch IRA’ Estate Planning Strategy Is Gone. Here Are 4 Other Options.
The Covid-19 era is a mess, and we’re still in the middle of it. But life goes on. So, let’s be more open to doing what we would do in more normal times. What I normally do is give tax advice. Here’s some updated estate planning advice for well-off folks to consider. Evaluate “stretch…
Read MorePeople who tapped 401(k) plan during pandemic are stealing from their future selves, advisors warn
KEY POINTS Hundreds of thousands of Americans have pulled money from 401(k) plans during the coronavirus pandemic. The CARES Act allowed savers to withdraw up to $100,000 before the end of the year without penalty. Thinking of retirement savings like a monthly income stream, similar to a pension or Social Security, instead of a lump…
Read MoreOpinion: 10 things you should know about diversification
Picking a winner is harder than you think Holding a variety of assets reduces your portfolio’s overall level of risk. GETTY IMAGES/ISTOCKPHOTO One of the most important ways investors take care of their portfolios is by diversifying their holdings. If you’re not sure exactly what diversification is, or how to make it work for you,…
Read MoreThinking of Taking a CARES Act Retirement Plan Withdrawal? Make Sure You Qualify
Not everyone is allowed to remove money from a retirement plan penalty-free. Millions of Americans have been hurt financially in the course of the COVID-19 pandemic and the recession it’s spurred. It’s for this reason that the CARES Act was passed in late March. Its provisions included a direct $1,200 stimulus check, boosted unemployment benefits, and the…
Read MoreThe pandemic showed how volatile 401(k)s can be. Here’s how you can diversify your asset mix before retirement
When the market descended into the fastest bear market on record in March, many watched in horror as 401(k) retirement accounts shed thousands of dollars seemingly overnight. For those at the start of their careers, there was the knowledge that time is on their side. But for savers nearing retirement age, a volatile shake-up in the markets…
Read MoreA Shockingly Small Number of Americans Receive All the Traditional Sources of Retirement Income
You probably won’t be one of those who get income from Social Security, a pension, and a 401(k), so you need to be prepared. For a long time, the retirement system in America was built around a simple concept: Those who had left the workforce would be supported by a “three-legged stool.” These three legs…
Read MoreNearing Retirement? Take Another Look at Roth Conversions
Due to lower tax rates and the recently passed SECURE Act, those nearing retirement should consider a Roth conversion. For those nearing retirement, taking the right planning steps is even more important, given the narrowing time frame to leaving the workforce. This current year brings forth planning opportunities to help you achieve your retirement goals…
Read MoreLayoffs and lawsuits: Colleges resort to last-ditch efforts to stay afloat
KEY POINTS As colleges face extreme budget shortfalls, some schools are laying off staff, slashing salaries and reducing retirement benefits. But teachers are fighting back. With declining enrollments, reduced giving and state funding cuts, colleges are resorting to last-ditch efforts to stay afloat. Now teachers are the latest victims of extreme cost cutting. The University…
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