Retirement is supposed to be the time of carefree living; the reward for a lifetime of hard work, saving, and sacrifice. But it seems that may be more utopian pipe dream than reality. The wealth gap in the United States is getting wider, which in turn increases the financial...
Call it a gift. Call it crazy.
Call it whatever you want. But it’s good news. The IRS will let you put more
money into your 401(k) account in 2020.
The maximum contribution
to a 401(k) this year is $19,500, up from $19,000 in 2019. If you are age 50 or
older, you can...
Americans are living much longer. Some are running out of money before their death and need additional assistance from the Federal Government, which puts more strain on a system that’s bringing in less money than it’s paying retirees. On January 1, 2020, the SECURE Act (Setting Every Community Up...
This is the time of year
when leaves fall and the Social Security Administration announces the annual
cost of living adjustment (COLA) for people receiving Social Security.
For 2020 the increase will
be 1.6 percent, or about $24 per month, raising the average monthly individual
payout to $1503. It will boost the maximum...
Being
elderly in America has more than its share of issues—affording proper
healthcare, being forced to work much longer because of the need for health
insurance or not having saved enough for retirement. Now, throw one more financial
demon into the mix. More and more elders are being forced into bankruptcy.
In 1991, elder...
Since the Roth IRA was created by the Taxpayer Relief Act of 1997, it’ been an appealing addition to retirement planning. While contributions to a Roth are not tax-deductible, the trade-off is tax-free and penalty-free withdrawals after you cross the age of 59 ½. The withdrawal benefit is one...
It may be one of the biggest misconceptions people have about Medicare—thinking that when they’re eligible they can enroll and then they’re set for life—set it and forget it. Nothing could be further from the truth. Never changing your Medicare plan can be a costly mistake.
Every year, insurance companies...
For years now, there’s been lots of talk about what happens if you claim Social Security benefits before full retirement age (FRA) or even waiting until the maximum age of 70. Claiming early means you’ll receive less money, permanently, than if you waited. In spite of the warnings, only...
It
sounds crazy, but if you’re healthy you probably need to save more for
retirement than people with a battery of health issues. Why? Statistically,
people who are healthy will live longer. That means more years paying for
healthcare in a system where costs continue to increase exponentially. So, the
longer you live the...
It’s
the end of an era, at least for Baby Boomers. Some have already retired; many
more can see the finish line of their working years. For Boomers with highly
appreciated company stock in their 401(k) a major decision is whether to do an
IRA rollover, leave the money in the employer plan,...