It’s National Retirement Security Week. It’s the perfect time to do a reality check on your retirement savings account. For everyone over 50, here’s our biggest tip: Catch-up contributions.
Before you settle for a state compliant “free” Roth IRA, you should understand the differences between all of the options at your disposal and select the plan that will best enable you and your employees to meet their retirement goals. Taxation and contribution limits are just the tip of the iceberg.
Imagine it’s Wednesday afternoon and you’re on the downside of your work week. You’re looking forward to working in the yard, taking in a ballgame or perhaps a round of golf on the coming weekend. Off in the Atlantic there is a tropical storm but the forecasters predict it will spin harmlessly off the coast, trailing back into the mid-Atlantic.
“When I retire, I’m going to __________.”
Do you already have this blank filled in, possibly with more than one answer? At what age will your official retirement begin? Depending on where you live the average age of retirement could be vastly different. Check out the five highest and lowest retirement ages around the globe.
Experts agree, the way Boomers will live out their retirement years will look very different from the historical, stereotypical image of “senior citizens.” So, rather than retiring into the background of our society, more will remain vibrant and active throughout their retirement years than was the case of previous generations.
As of June this year there were over 160,000,000 Americans in the workforce. We’ve come a long way since the days of child labor, unsafe working conditions and the 12-hour work day – all part of the labor landscape at the turn of the 19th century. We now have an official day off every year, 40-hour work weeks, vacation, sick days and so much more. And with the establishment of company pensions and 401(k) savings plans, we have the ability to prepare for our retirement in the workplace. As a nation, we have a lot to celebrate!
As an employer, you could be limited in the amount you can personally contribute to the plan under a traditional 401(k) plan. On the other hand, a safe harbor plan allows an employer to make a minimum contribution to their employees’ accounts while giving the owner/employees the ability to maximize their personal contributions to the plan.
Life expectancy can play a major role in when you should take Social Security. Current life expectancies give a person reaching age 65 about a one in five chance of living to age 90. Women tend to have a higher life expectancy than men. Here area few tips on how to make a retirement plan and Social Security work together.
Social Security and life expectancy: Finding the breakeven point.
The number one concern in retirement for most retirees is to make sure their money outlives them and not the other way around. Depending on the recipient’s status (single, married, widow, etc.), the breakeven point is typically in the 77 to 80 years of age range.
It IS possible to retire with a $1 million retirement fund without winning the lottery or getting a substantial inheritance from a rich uncle you didn’t even know existed. According to the Employee Benefit Research Institute (EBRI), 401(k) plans of a million dollars or more make up less than 1% of all plans, but that number is growing fast.
Pull your checkerboard Vans out of the closet and flashback to the 1980s. Ahh, the 80s! You bombed around in your mom’s Ford LTD. You watched Ferris Bueller’s Day Off, over and over until the family VCR broke. Your music came from a boom box and MTV. You rocked out with Whitesnake and R.E.M. and danced to The Pet Shop Boys. You didn’t need apps to entertain you. You were rad. But then the 90s had to go and spoil it – you had to start taking on some real responsibilities.
How much retirement would you like?
“What if I told a 401(k) saver that, based on their current savings rate and investment allocation they would be able to maintain their current lifestyle in retirement for just six year?” asked Michael Kiley, owner of PAi. "After all retirement isn't about money, it's about ...
Whether you’re brand new to retirement planning or an old pro, participating in an employer sponsored 401(k) retirement plan can provide a significant source of retirement income. Here are five long-term strategy tips to apply to your 401(k) to keep you on track to achieve your retirement goals.Don’t worry, you won’t have to go-it alone.
Trying to locate an old 401(k) plan from a previous job? According to the website missingassets.com. About 2% of 401(k) plan assets – roughly $850 million owned by 33,000 workers – are “orphaned” each year. The good news is that the Department of Labor has established rules for protecting money put into a 401(k). So the money may not be “lost,” just waiting for someone to claim it.