Disappearing Pensions Make Investing All The More Vital
It is somewhat hard to grasp today, but the concept of retirement has not been around for very long. Morgan Housel illustrates this well in his most recent book, The Psychology of Money: “The entire concept of being entitled to retirement is, at most, two generations old. Before WWII, most Americans worked until they died. […]
The Emotional Preparation for Retirement
As a person nears retirement, much of the conversation is frequently centered on financial preparedness. If you have done all the right things, you have been saving for retirement for many years leading up to this point and you have a financial plan in place, you have adjusted your portfolio, analyzed Social Security strategies, and planned for various what-if scenarios. That part is all mapped out for you. What is often a last-minute […]
When You Should Contribute to a Retirement Plan
Often the mantra you hear when it comes to contributing to retirement plans such as 401(k) or 403(b) plans is to “max out your plan”. And, if you have the annual income necessary to meet these thresholds, you should absolutely take that approach. But there are many people who cannot “max out” their plan and […]
Target Date Funds: 401k’s Most Popular Investment Choice
The popularity of target date funds has grown substantially over the past 10 years. Currently more than 50% of 401(k) investors have all their assets in target date funds. Not all this popularity is investor driven. Instead, much of this growth is structural. Currently just over 50% of target date funds are with companies that have their own record keeping, but these companies control over 80% of the assets […]
Benefits of Early Retirement Savings
When it comes to retirement savings, it is never too early to start. In the early stages of your career, retirement seems so remote that you might think you can delay saving for awhile. You may not earn a high salary, or you may have debt to pay off, but you have one factor on your side that your older colleagues do not. That factor is time. With time on your side, saving for retirement becomes […]
Time To Think About Roth Conversions
We have written several blogs over the years on Roth IRAs. Today though, they have even more importance given the downturn in the market over the past couple of months. As a quick refresher, a Roth IRA provides tax-free growth on after-tax contributions. When funds are withdrawn, normally after attaining the age of 59 ½, qualified distributions are tax-free. There are two ways to introduce money into a Roth IRA. The first […]
Using Buckets for a Long Term Savings Strategy
In our last blog, we talked about how important human capital can be as it relates to your total economic wealth. Saving as much of your income as possible, especially in your early earning years, is critical. Just as important is the location of those savings. For sure, there are many ways to save today […]
What is a Backdoor Roth IRA?
Roth IRAs are a powerful way to save for retirement. The beauty of a Roth IRA is that all growth and withdrawals from the account are tax-free and having a tax-free income source in retirement can be extremely beneficial. It is important to keep in mind that any contributions to a Roth account will be […]
I’m retiring! What should I do with my retirement plan assets?
Key fact: According to the Pew Research Center, beginning on Jan. 1, 2011, the oldest members of the Baby Boom generation turned 65 years old. On that day and for every day for the next 19 years, 10,000 baby boomers will reach age 65. Age 65 is the most common age associated with retirement. Baby […]