Savings

What are the right withdrawal strategies in today’s low yield environment? The fact that many investors feel stocks are richly valued and predict lower returns ahead complicates the matter. The 4% rule, a popular theory, says one can safely spend down 4% of their portfolio annually, increasing each year with inflation, during one’s retirement. While…

May 29 is nationally recognized at 529 College Savings Day, a day (mostly celebrated by a niche group of higher education experts and personal finance enthusiasts) to draw attention to the tax-advantaged savings plans offered by all 50 states and the District of Columbia. First created in 1996, 529 plans are state-sponsored investment accounts that savers…

Even though they’ve been around for decades, 529 college savings plans are still often misunderstood. The investment vehicles are a tax-advantaged way to save for college or other schooling. Earnings are free from federal tax and the funds aren’t taxed when taken out to pay for qualified expenses. Yet only 36% of Americans can correctly…

People tend to think of “529” education-savings plans as a nifty way to save and invest tax-free for college or schooling costs, and they are.  But accountants, estate lawyers, and financial planners say they also are flexible estate-planning tools that can have utility beyond education spending and cost almost nothing to set up. They could…

Nervous about your retirement planning? You’re not alone. Americans’ retirement planning is in a crisis. The crux of the problem is simple: Most people are not saving enough. Barely half, 50.5%, of U.S. households own retirement savings accounts, according to the Federal Reserve’s latest data. And that’s down from 52.1% in 2016. People fear they…