Retirement Advice | RetirementAdvice.com

Information and Advice on IRA Contribution Limits for 2012

walter — Fri, 20 Jan 2012 15:15:29 +0000

Individual Retirement Accounts (“IRAs”) remain the most popular investment vehicle for many individuals and married couples. 401(k)s are certainly popular, but they’re usually much less flexible than IRAs, and many people don’t like going through the hassle of moving or rolling over their accounts when they change employers. IRAs are generally subject to lower contribution limits than 401(k)s and other investment vehicles. Furthermore, in order to receive the tax advantages of a traditional IRA, your income (or your joint income if you file a joint tax return) must be below a certain level. Here is some information and advice about...

Advice on How to Move Your Prior Employers 401(k) Plan Money to Your Own IRA

walter — Thu, 05 Jan 2012 15:14:11 +0000

Long gone are the days when you’d work your entire adult life at a single job, build up a great pension after 30 or 40 years of service, then retire and live on those pension benefits. In fact, the U.S. Department of Labor estimates that the average American worker will change jobs every three and a half years. Instead of offering pension plans, employers have shifted to offering 401(k) plans. With a 401(k) plan the obligations are now on the employee to contribute funds directly and to decide how to invest those funds. Employees are also responsible for eventually...

Advice on Getting Your Retirement Plan Back on Track in 2012

walter — Tue, 20 Dec 2011 15:39:28 +0000

During the stock market turmoil of the past few years, some individuals were reluctant to continue with their retirement investing. The thinking was that because the stock market is so volatile and risky (the downturns of 2008 and 2009 are still fresh in many people’s memories), it might be preferable not to invest at all. But successful retirement planning relies upon consistent contributions over time. Not saving for retirement at all will certainly lead to problems later. For some people, the recent downturns mean that their retirement account balances are still lower than they were before the significant market declines...

Mistakes That Can Derail Your Retirement

walter — Thu, 17 Nov 2011 15:52:15 +0000

As too many people have learned in recent years, a faltering economy can wreak havoc on your retirement plan. But starting early and investing wisely provides assurance that while you may not end up with as large a nest egg as you had hoped, you will have enough money to sustain you when you retire. More often than not, retirement plans are derailed by our own mistakes rather than economic disaster. You don’t have to be an investment guru to ensure a comfortable retirement. Some basic financial knowledge and a little common sense go a long way toward keeping your...

How to Maximize Your Social Security Benefits

walter — Wed, 26 Oct 2011 15:19:00 +0000

It’s certainly become a hot political topic in recent years, and some people question the long-term stability of the program, but many Americans still depend upon Social Security as a significant source – and sometimes the only source – of income during their retirement years. Despite all the recent discussions, the Social Security program is still a cornerstone of the retirement system in the United States. It’s therefore important for Social Security recipients to maximize the amount that they receive with each of their monthly Social Security checks. Fortunately, there are some factors that are within your control. Here is...

5 Tips to Prepare for Retirement

walter — Tue, 11 Oct 2011 14:29:27 +0000

The face of retirement is changing. People are working longer. The future of social security is being questioned. And the present economy may be adversely impacting your investments and savings. According to the United States Department of Labor; Less than half of Americans have calculated how much they need to save for retirement. In 2009, 13 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate. The average American spends 20 years in retirement. These are shocking statistics to be sure. Whether you’re facing impending retirement or you have decades...

The Changing Trends in Retirement

walter — Wed, 21 Sep 2011 14:54:21 +0000

Retirement is a relatively new concept. It was all but unheard of prior to the 20th century, and it didn’t become common in the United States until the advent of Social Security in 1935. Since then, retirement has changed and evolved in a number of ways. Up until a few years ago, most workers expected to retire by age 65 and enjoy a life of leisure. But the economic turmoil of recent years has led to numerous changes in retirement trends. Here is some retirement advice to consider about the changing trends of planning your retirement.

People are waiting longer to...
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Top 5 Retirement Myths Debunked

walter — Tue, 13 Sep 2011 14:34:37 +0000
Retiring is something that most of us plan to do someday. But relatively few of us understand what we need to do to retire comfortably. Lots of workers who are approaching retirement age have only a fraction of the money they’ll need to get through the years after they stop working. Too many people learn the things they need to know about retirement too late. This can result in running out of money when you need it the most, and possibly the loss of non-monetary assets. Here is some retirement advice on five myths about retirement and why they aren’t...
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What Is a Required Minimum Distribution?

walter — Wed, 24 Aug 2011 14:40:40 +0000
One of the most important features of an IRA or 401(k) is its tax benefits. With an IRA, investment gains are not taxed until they are withdrawn. The same is true for a 401(k), and contributions also come from pre-tax dollars. Once you retire, it’s smart to keep as much of your money in your retirement account as possible while still having enough to live on. But even if you’re working part-time and have sufficient income from other sources, you won’t be able to avoid taxes forever. The IRS eventually wants you to withdraw some funds and pay taxes on...
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Tapping Your Retirement Funds for an Emergency

walter — Mon, 27 Jun 2011 15:17:59 +0000
As any financial advisor will tell you, it’s important to have some savings set aside just for emergencies. But what if an emergency happens before you’re able to get adequate savings together? Or what if you have an emergency fund, but your emergency turns out to be bigger than your fund is? If you have a retirement fund, you can withdraw money from it. But this should only be done in the event of a true emergency, because it depletes your retirement savings and may expose you to tax penalties. Still, it’s good to know that those funds are available...
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