With the future of Social Security unclear, fewer and fewer workers having a company sponsored pension plan and health care costs continuing to increase, being financially prepared for retirement looms as a significant challenge for many. With the significant fluctuations of the stock market as well as the potential for a long-term economic down turn there are many things that need to be considered as you plan for retirement.
Here are some basic strategies to consider:
Articles Tagged ‘retirement’
Get Your Retirement Plan on Track
With the future of Social Security unclear, fewer and fewer workers having a company sponsored pension plan and health care costs continuing to increase, being financially prepared for retirement looms as a significant challenge for many. With the significant fluctuations of the stock market as well as the potential for a long-term economic down turn there are many things that need to be considered as you plan for retirement.
Here are some basic strategies to consider:
Investors in their peak earning years should take full advantage of employer-sponsored retirement plans, individual retirement accounts and potentially annuities.
Asset allocation should be age appropriate...
Tuesday, April 21st, 2009
With the future of Social Security unclear, fewer and fewer workers having a company sponsored pension plan and health care costs continuing to increase, being financially prepared for retirement looms as a significant challenge for many. With the significant fluctuations of the stock market as well as the potential for a long-term economic down turn there are many things that need to be considered as you plan for retirement.
Here are some basic strategies to consider:
Withdrawing Money From Your Retirement Accounts
There are many rules of thumb about how much money you should withdraw from your retirement accounts every year. One of the more popular ones is that you should withdraw 4 percent of your retirement funds each year. Another one is you will need approximately 70 to 80 percent of your last year’s working income to carry you through retirement.
These are good generalities however you need to evaluate your specific situation and circumstance to come up with a plan that works for you. The reality is that everyone’s retirement goals are different and should be planned based on specific needs,...
Wednesday, March 18th, 2009
There are many rules of thumb about how much money you should withdraw from your retirement accounts every year. One of the more popular ones is that you should withdraw 4 percent of your retirement funds each year. Another one is you will need approximately 70 to 80 percent of your last year’s working income to carry you through retirement.
These are good generalities however you need to evaluate your specific situation and circumstance to come up with a plan that works for you. The reality is that everyone’s retirement goals are different and should be planned based on specific needs,... Convert your Traditional IRA to a Roth IRA?
Given the significant market downturn it may not be a bad time to convert your traditional IRA to a Roth IRA. Right now, anyone with modified adjusted gross income of less than $100,000 a year (individual or joint income) can convert a traditional IRA account to a Roth IRA. Higher-income Americans are scheduled to get the same break in 2010.
Remember that when you do a conversion, you must pay income tax on the amount you are converting, which can be all of the funds in the traditional IRA or just a portion of those assets. But, subject to...
Thursday, March 5th, 2009
Given the significant market downturn it may not be a bad time to convert your traditional IRA to a Roth IRA. Right now, anyone with modified adjusted gross income of less than $100,000 a year (individual or joint income) can convert a traditional IRA account to a Roth IRA. Higher-income Americans are scheduled to get the same break in 2010.
Remember that when you do a conversion, you must pay income tax on the amount you are converting, which can be all of the funds in the traditional IRA or just a portion of those assets. But, subject to... Continue Contributing to your 401K?
Saturday, February 7th, 2009
Simply put the answer is yes - absolutely. Here are the reasons why. Let’s assume you took a substantial hit to your 401K plan when the stock market plummeted approximately 40%.
The amount of stocks, bonds, mutual funds, and other holdings that your 401K provider continues to purchase at the currently lower prices will eventually increase in price once the stock market rebounds. If you do not contribute, you will be losing out on the potential increase your overall portfolio will obtain.
The basic rule of investing is to buy low and sell high. Now is therefore a great time to make...
Withdraw Funds from a 401K?
Friday, February 6th, 2009
With the current economic crisis on everyone’s mind, you may be wondering if you should withdraw money from your 401K. My recommendation is that you do not. Rather your contributions should continue based on the “buy low-sell high” theory.
What does this mean for you? Simply stated, right now most individuals may have incurred a severe loss in their 401K plans. But, considering that the stock market has dropped approximately 40% since the economic decline, your portfolio will likely increase with stocks, bonds, and mutual funds that can now be purchased at lower prices. See my...
Retirement Considerations in the Current Economic Environment
Friday, February 6th, 2009
Just when you thought you could finally retire, stocks take a nose dive and you may have lost much of your retirement savings. What do you do?
Individuals, especially baby boomers, who had chosen to defer retirement for a few years are now forced to work even longer. Conversely, those who have retired in the last two years are faced with an even greater challenge.
Here is one woman's account of how retiring early affected her. "As one who retired two years ago at age 57, I have seen my 401K plummet 30% or more. ...
Should you Retire Now?
Friday, February 6th, 2009
This question is plaguing many baby boomers today. For those on the cusp of retiring, statistics show they plan on working longer. For those who have decided to retire, the decision may carry long-term consequences.
If you have a 401K plan, the maximum annual contribution you can make in 2009 is $16,500. However, if you are over the age of 50 you can contribute a total of $22,000.
If you have an IRA, you can contribute up to $5,000, and for individuals 50 years or older, another $1000 can be added.
The problem with retiring now is...
5 Retirement Mistakes to Avoid
Friday, February 6th, 2009
It really doesn’t take much to derail a retirement plan. Many of the errors in planning for retirement are those of neglect, omission or panic. If you don’t know exactly where your retirement plan stands, get some advice to review your overall retirement options and give you some ideas where to start.
Here are five common mistakes people make:
1) Failing to start: It’s amazing how many people find excuses never to start retirement savings. No matter how daunting debt or other spending priorities seem, you have to save for retirement on a regular basis, even if it’s only a cursory...
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