Retirement

Yellow paper with text 2021 tax laws,concept getty Plan Now With the results of the Georgia runoff election in the Democrats Control the House, the Senate and the White House. So, the potential for harsh tax legislation increasing taxation of the wealthy, along the lines of prior Democratic proposals, might be likely to happen. What

I’ve got some good news. You’re not crazy.  That’s the message of one of my favorite books of 2020, “The Psychology of Money,” written by Morgan Housel and inspired by a popular blog post he wrote in 2018. It’s a compelling read and the book offers many great lessons, but I thought this particular encouragement was worthy

A series of strategies for tax-wise investors. Table of Contents. Location getty There are good places and bad places to park certain kinds of investments. Swapping locations can save a bundle at tax time. You have, or should have, three slots for money: a taxable brokerage account, pretax 401(k) or IRA retirement accounts and a

A series of strategies for tax-wise investors. Table of Contents. Conversion getty You can prepay income tax on some of your IRA, making future withdrawals tax-free. This is very clever if (a) your tax bracket is fairly low at the moment, and (b) you can cover the tax bill with money from outside the account.

A series of strategies for tax-wise investors. Table of Contents. Annuitant getty A Qualified Longevity Annuity Contract is a contract with an insurance company that (a) pays out a fixed monthly amount beginning at an advanced age and (b) is bought inside an IRA. The most you can put into a QLAC is $135,000 or

Whole life insurance receives its name because it provides the owner with a death benefit for the whole lifetime. It is a form of permanent life insurance. Whole life also includes an accumulation and savings component through its cash value. Whole life insurance may be viewed as a fixed-income investment vehicle that incorporates a permanent

WILMINGTON, DE – DECEMBER 23: President-elect Joe Biden announces Miguel Cardona as his nominee for … [+] Education Secretary at the Queen theatre on December 23, 2020 in Wilmington, Delaware. Cardona, the Connecticut Education Commissioner, will face the urgent task of planning to reopen schools safely during the COVID-19 pandemic. (Photo by Joshua Roberts/Getty Images)

Now that the 2020 is over, remorse may set in and you may be left wondering if you should have done something different to save taxes. A common question I hear is whether it make sense for retirees to take their required minimum distributions (RMDs) now or if they should save taxes by taking them

getty A note to readers: The main concept of this article was originally published on December 19th, before the ultimate version of this Act was finalized, voted on, and enacted. Now that this Act has been signed into law and we’ve received further guidance from the SBA, I wanted to publish this updated variation to

By Chris Farrell, Next Avenue getty During a recent Minnesota Public Radio program I hosted about Social Security, I was surprised at the number of callers with questions and complaints about the program’s survivor benefits for widows and widowers. One caller protested the “unfairness” of the benefits since she felt they ignored her own work

Mistakes seniors make with HECM Reverse Mortgages getty FHA insured reverse mortgages, called HECMs, allow seniors to withdraw cash from their home while retaining the right to live there indefinitely. They are a potentially powerful tool for helping seniors live better lives during their retirement years. However, the benefits can also be frittered away, with

For most investors, Target-Date (TDFs) or Lifestyle Funds are a great idea. They reside in your 401(k) as a basket of mutual funds. Professional managers pick them and adjust risk based on your age. The closer you are to retirement — your “target date” — the lower the stock market risk in a TDF portfolio.

ELLICOTT, MD – NOVEMBER, 20:Regina Peterson, 83y, and Linda Umstead, are delighted while speaking to … [+] Howard County students that deliver food to her and other disadvantaged senior citizens at the Tiber Hudson Apartment Building, (Photo by Evy Mages/For The Washington Post via Getty Images) The Washington Post via Getty Images Workers’ retirement accounts

Many Households Borrow From Friends and Family In the Current Recession getty Misery loves company or so the saying goes. In the current recession, it is more accurate to say that misery creates company. Millions of households struggle amid the onslaught of rising health care risks, growing childcare costs, and a deep recession with massive

By Kerry Hannon, Next Avenue Eldera When S. Jay Olshansky, 66, a professor of public health at the University of Illinois at Chicago, virtually met math and science whiz Hyunseung Lee, 11, in May, something “sparked,” he says. “It was special. He just reminded me of myself at that age,” Olshansky adds. Olshansky, a renowned

getty Social Security is an important source of income for most U.S. retirees. On average it accounts for almost 40% of retirement income. Social Security becomes more important the longer a person is retired, often accounting for 50% or more of income for older retirees. Yet, many retirees make decisions that cost them additional lifetime

Seneca the Younger Universal Images Group via Getty Images Running out of money is an anxiety that keeps even well-prepared potential retirees in jobs that they hate and keeps many fresh retirees in a state of perpetual dread. The ‘what-ifs’ and ‘buts’ of living on savings or a fixed income keeps untold thousands from making

getty Test your hand to see how well you know the December COVID-19 stimulus package. Tis’ the season for economic relief! It looks like Congress was in the giving spirit as they delivered a much needed COVID Stimulus package just in time for the New Year. It took a few months of negotiations but there

By Richard Eisenberg, Next Avenue Editor getty You might not think there’d be much difference between the way members of Generation X (who are 40 to 55) and boomers (56 to 74) feel about money, since they’re age-adjacent. But truth is, survey after survey is showing that Gen Xers are far more financially fragile and

Economic Security Planning, Inc. Today’s column addresses questions about widow’s benefits when a spouse dies before full retirement age, whether continuing income will increase benefits, having worked in the US and a foreign country and the possibility of taking spousal benefits before retirement benefits. Larry Kotlikoff is a Professor of Economics at Boston University and