Could Social Security Really Go Away? June 17, 2019 That may be unlikely, but the program does face financial challenges. Will Social Security run out of money in the 2030s? You may have heard warnings about this dire scenario coming true. These warnings, however, assume that no action will be taken to address Social Security’s financial challenges between now and then. It is true [...]
Pension Plans & De-risking May 6, 2019 Corporations are transferring pension liabilities to third parties. Where does this leave retirees? A new term has made its way into today’s financial jargon: de-risking. Anyone with assets in an old-school pension plan should know what it signifies. De-risking is when a large employer hands over its established pension liabilities to a third party (typically, [...]
Is America Prepared to Retire? March 8, 2019 A look at some ways to get ready. Are Americans saving enough? Only 19% of U.S. adults describe themselves as “very confident” when asked about their savings. Worry spots include retiring without enough money saved (16%) and anxiety about having a “rainy day” emergency fund (14%). These findings come from the 2018 Consumer Financial Literacy [...]
Social Security by the Numbers March 7, 2019 Facts about the federal Old-Age, Survivors, and Disability Insurance (OASDI) program. Social Security has been a pillar of retirement life for several decades, but how much do you really know about it? Here are some facts that might surprise you: The Social Security trust fund exceeds the gross domestic product of every major economy in [...]
Value vs. Growth Investing March 7, 2019 There are those who favor value and those who favor growth. You might be initially confused by these terms or even suspect they aren’t that different in terms of what each model offers you as an investor, but they are very distinct approaches, and it’s good to understand these two schools of thought as you [...]
When Is Social Security Income Taxable? October 4, 2018 To find out, look closely at two factors. Your Social Security income could be taxed. That may seem unfair or unfathomable. Regardless of how you feel about it, it is a possibility. Seniors have had to contend with this possibility since 1984. Social Security benefits became taxable above a certain yearly income level in that [...]
When a Windfall Comes Your Way October 4, 2018 What do you do with big money? Getting rich quick can be liberating, but it can also be frustrating. Sudden wealth can help you address retirement saving or college funding anxieties, and it may also give you the opportunity to live and work on your terms. On the other hand, you’ll pay more taxes, attract [...]
Debunking a Few Popular Retirement Myths October 4, 2018 It seems high time to dispel some of these misconceptions. Generalizations about money and retirement linger. Some have been around for decades, and some new clichés have recently joined their ranks. Let’s examine a few. “When I’m retired, I won’t really have to invest anymore.” Society still sees retirement as an end instead of a [...]
Retirees, Check Your Withholding October 4, 2018 It may need to be adjusted due to the 2017 federal tax reforms. The Internal Revenue Service has a message for you. You may need to adjust the amount withheld from your paycheck or the size of your estimated tax payments because the agency is using new withholding tables this year. Should you underpay your [...]
Taking a Loan from Your Retirement Plan = Bad Idea October 4, 2018 Why you should refrain from making this move. Thinking about borrowing money from your 401(k), 403(b), or 457 account? Think twice about that because these loans are not only risky, but injurious, to your retirement planning. A loan of this kind damages your retirement savings prospects. A 401(k), 403(b), or 457 should never be viewed [...]
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