Not sure what to sell before retirement? Many retirees carry unnecessary baggage into retirement. While things like old annuities or other large purchases may have once seemed like smart investments, they now create financial stress, higher costs, and unnecessary complexity.
Is a traditional vs Roth 401(k) better for taxes? Common advice says that a Roth is only for low earners, and that traditional 401(k)s are always better for high earners. But in many cases, the math tells a different story. The real answer depends on future taxes, required minimum distributions, Medicare surcharges, and even what happens when you pass money to your kids.
A pension can be an incredible benefit if you are lucky enough to have one. Pensions help with income, predictability, and peace of mind in retirement. While they provide stability, there are three hidden pension risks that can quietly erode your financial security. If overlooked, these risks could mean the difference between a surplus and running out of money too soon.
The good news is that none of these challenges is insurmountable. With the right type of planning, they can be anticipated and managed.
Did you know you can end up paying thousands more in taxes every year because of how and when you take money out of your IRA? This surprises a lot of retirees, and it usually comes down to required minimum distribution, or RMDs. RMDs are mandatory withdrawals from tax-deferred retirement accounts such as traditional IRAs and 401(k)s.
Under current law, RMDs begin:
If you are already taking RMDs, you may be familiar with how they work. The amount you must withdraw each year is based on your account balance as of December 31 of the prior year and is calculated using the IRS Uniform Lifetime Table, which factors in life expectancy. Below are three strategies, plus one major exception, that can help manage or reduce required minimum distributions.
Long-term care insurance isn’t right for everyone. In fact, there are some situations where it might not make sense at all. We’re covering five reasons why you might not need long-term care insurance at all. If any of these reasons fit your life, you might actually be better off without a policy. Do you already have a policy that’s starting to feel like a burden? If so, learn how to reduce the costs without completely walking away.
Did you know that missing just one required minimum distribution (RMD) could cost you up to 25% in penalties from the IRS? But did you also know that if you catch the mistake within two years, you could get the penalty down to 10%. Learn about how penalties work, the most common required minimum distribution mistakes, and the steps you can take to stay on the IRS’s good side.
Have you heard of IRMAA Medicare premiums? Did you know the Social Security Administration can charge you more for your Medicare premiums if you make over a certain amount of money? It surprises a lot of people. Especially new retirees who suddenly see a higher Medicare bill.
We’re covering everything you need to know about IRMAA (Income-Related Monthly Adjustment Amount), including how it affects your Medicare Part B (medical insurance) and Medicare Part D (prescription drug coverage) premiums. Even better? Learn how you can potentially appeal IRMAA and pay significantly less or nothing, depending on how much you’re making in retirement.
Did you know you could end up owing thousands of dollars back to Social Security, even if you’ve already received the money? Sounds crazy, right? But it’s true. There’s one rule that catches a lot of people off guard. The Social Security earnings test. It’s one of the most misunderstood parts of Social Security. If you plan to keep working while collecting benefits, you need to know how it works.
Are you planning to retire with a pension and want to make the most of it? Unlike 401(k)s or IRAs, pensions tout income for life. Knowing how to optimize your retirement benefits is crucial. Retirement planning goes beyond monthly checks.
Pension retirements are rare these days. How will you ensure stability, flexibility, and financial freedom? We’ll cover what most people don’t know about retiring with a pension.
Most people spend decades preparing financially for retirement, but very few consider the emotional and mental changes that come with it. Retirement isn’t only about money in the bank. It’s also about identity, purpose, relationships, and planning for the future. Retirement often feels more uncertain and overwhelming than it needs to. The transition out of work is a whole new stage of life with hidden retirement traps that can catch you off guard.
Life will look and feel different when the structure of work is no longer there. Let’s take a look at four challenges that often surprise people after they retire and how to navigate them.