A Roth IRA provides several advantages in retirement when you start to use your savings for income. And, transferring funds from your traditional individual retirement account to a Roth IRA is often a terrific tax strategy.
Financial goals are never-ending. No matter your age or level of happiness, there’s always something you would like to use your hard-earned money for.
As with many retirement planning decisions, there is no one right way to claim Social Security. The best time for you to file depends on several factors, ranging from your health, the size of your retirement savings, what other income sources you have, and your marital status.
In retirement, one of your primary sources of income will consist of your retirement savings accounts, such as 401(k)s and IRAs. Withdrawing money from those accounts while they’re down can negatively affect the longevity of your portfolio. So, what can you do if you retire in a bear market?
During periods of extreme market declines, a natural emotional reaction can be to “take control” by selling out of the market and seeking safety in cash. This is due to “loss aversion” – or the fact that losses hurt more than gains feel good. The results of this action can be devastating because positive returns are more likely to occur by investing over the long term.
With rising inflation, volatile stock and bond prices, and low interest rates on regular bank accounts, there are few places for investors to store any extra cash.
Let’s be honest: bonds are boring. Their relatively consistent and modest returns lack the daily excitement of erratic stock prices. So, when bonds do make headlines, it may be time to pay attention.
A successful retirement story is a tale of two parts: building a comfortable nest egg and spending an appropriate amount to make it last. Fortunately, your withdrawal rate in retirement is something you control, and you can use it as a crucial lever to avoid outliving your money.
One important factor you can’t control in your financial life is government policy. And, recently, the Federal Reserve raised its policy interest rate by a quarter of a percentage point.
Retirement planning is all about numbers, right? It’s the calculation of turning your financial assets – pension, 401(k)s/IRAs, Social Security, property, sale of a business, etc. – into income to fund your desired retirement lifestyle. Except most retirees will likely tell you that a spreadsheet can’t account for everything that matters in retirement.
