401(k)s – The News Desk

Where the Presidential Candidates Stand on Retirement | Retirement

16Apr

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Where the Presidential Candidates Stand on Retirement | Retirement

Key Takeaways: The Social Security retirement trust fund and Medicare Hospital Insurance trust fund will both be depleted within the next decade if no action is taken. Joe Biden proposed increasing taxes on high earners to shore up the two trust funds. Donald Trump said he supports the programs but has provided no details about how he plans to address the trust fund shortfalls. Independent and third-party candidates have various approaches to retirement topics, but none are expected to win the presidency and implement their policies. This November, voters will head to the polls to decide who should be president for the next four years. And while debates rage over topics such as border security, immigration and abortion, people shouldn’t overlook the importance of retirement issues.The...

What Are the Average Retirement Ages Around the World? | Retirement

2Apr

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What Are the Average Retirement Ages Around the World? | Retirement

Key Takeaways: Global life expectancy is increasing, leading some countries to raise their retirement ages. The retirement age varies significantly around the world, with some countries, such as Iceland, having a retirement age of 67 and others, such as Saudi Arabia, of 47. The shift in the U.S. from company pensions to individual retirement accounts puts more responsibility on workers to save for retirement. Financial considerations like Social Security benefits and health care access play a major role in determining your ideal retirement age. Global life expectancy improved from 46.5 years in 1950 to 66 years in 2000 and is anticipated to increase to 76 by 2050, according to the United Nations Population Division. As a result, some countries are revisiting their retirement ages and ...

Biden’s Crackdown on Junk Fees in Retirement Plans | Retirement

22Dec

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Biden’s Crackdown on Junk Fees in Retirement Plans | Retirement

As part of its initiative to curb junk fees, the Biden administration is setting its sights on retirement plans. In October, the Department of Labor proposed a rule aimed at closing loopholes and requiring financial advisors to provide retirement advice in the best interest of clients. It would expand on the current fiduciary standard that covers advice related to purchasing securities to include types of nonsecurities, affecting recommendations for IRA rollovers and advice to retirement plan sponsors and employers.The initiative also aims to reduce junk fees in retirement products such as individual retirement accounts and 401(k)s. To understand President Joe Biden’s crackdown on junk fees, consider: How much Americans pay in junk fees. What the proposal to crack down on junk fees incl...

How Much Did 401(k)s Gain in 2023? | 401ks

18Dec

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How Much Did 401(k)s Gain in 2023? | 401ks

Heading into the last weeks of 2023, the S&P 500 appears poised for a gain, which should cheer workers saving for retirement in their employer-sponsored 401(k) plans.That said, most investors’ 401(k) accounts consist of more than the S&P 500, including varied asset classes such as bonds, international stocks and small-cap stocks.So how did those 401(k) accounts do this year? Here's what to know about 2023 retirement investment performance.401(k) Account Balances in 2023That average balance was up significantly from the year-earlier quarter, however, as the market rallied in the first seven months of 2023.Additionally, Fidelity, Vanguard and Bank of America reported that a growing number of retirement savers are taking hardship withdrawals. Account owners are eligible for those wit...

How to Turn $500K Into Passive Retirement Income | Retirement

7Dec

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Money

How to Turn $500K Into Passive Retirement Income | Retirement

You’re likely familiar with the phrase "Let your money work for you." That’s the idea behind the concept of passive income, which means earning money with little or no effort.In retirement, it’s certainly possible to generate passive income with your investment portfolio. For example, if you want to invest $500,000 to create passive income, you can go about it in several ways, but give it some thought before jumping in."Investing $500,000 to generate passive retirement income requires careful planning and consideration of various factors, such as risk tolerance, desired income and investment timeline," said Walter Russell, president of Russell and Company in New Albany, Ohio, in an email.Passive or semi-passive income options include: Fixed-income securities. Dividend-paying stocks. Re...

What Is the $1K Per Month in Retirement Rule? | Retirement

22Nov

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What Is the $1K Per Month in Retirement Rule? | Retirement

As you look toward retirement, you'll want to evaluate your options to create a steady income stream. This could come from Social Security benefits, retirement account distributions or a pension. Another popular income strategy involves using the $1,000 per month retirement rule. It means that for every $240,000 you have set aside, you can receive $1,000 a month if you withdraw 5% each year.If you’re interested in learning about the $1,000 per month rule, consider the following: Understanding the $1,000 per month in retirement rule. Why $1,000 per month? Advantages of the $1,000 per month rule. Limitations of the $1,000 per month in retirement rule. How to effectively implement the $1,000 per month rule. Alternatives to the $1,000 per month in retirement rule. Is the $1,000 per mon...

Companies With Great Retirement Plans | 401ks

13Nov

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Companies With Great Retirement Plans | 401ks

A 401(k) plan is one of the most convenient ways to stash away dollars for retirement. Funds contributed to the account can be deducted from your taxable income that year, and you can grow your savings over time with savvy investments. But perhaps the biggest motivator to contribute to a 401(k) plan is an employer's 401(k) match.Many firms offer to match employee contributions to the 401(k) plan. Typically, the employer contributes a certain amount to the employee’s 401(k) plan based on formulas and policies set by the company.The Typical 401(k) MatchWhen an employer decides to offer a 401(k) plan for its workers, it may provide different types of plans from which to choose. The arrangement provided in these plans can vary by company. Common forms of matching include partial matches or do...

Is a 401(k) Worth It in 2023? Pros, Cons and Costs | 401ks

24Sep

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Is a 401(k) Worth It in 2023? Pros, Cons and Costs | 401ks

If your employer offers a 401(k) plan, contributing to it is an easy way to set aside funds for retirement. These accounts are designed for long-term saving and include some key advantages. However, you’ll want to be aware of the potential downsides attached to a 401(k). Once you understand the pros, cons and costs, you’ll be better equipped to make decisions for your financial future.Some of the considerations to keep in mind with a 401(k) include: Pro: You can place funds into the plan every year. Con: You might not be able to save enough. Pro: Employers might add to the account. Con: Contributions from employers might be minimal. Pro: Maintaining the account can be simple. Con: Some 401(k)s include higher fees. Pro: 401(k)s can help you budget for retirement. Con: It can be dif...

How to Take Required Minimum Distributions | Retirement

15Aug

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How to Take Required Minimum Distributions | Retirement

A main benefit of 401(k) plans and individual retirement accounts is the ability to delay taxes on contributions and investment gains. However, you can’t avoid the tax man forever.“Once you reach a certain age, the IRS wants to be able to begin collecting taxes,” explains Megan Slatter, a wealth advisor with Crewe Advisors in Salt Lake City.“It’s the minimum amount you have to withdraw without incurring a penalty,” says Mark Van Drunen, regional president of Northeast Ohio for MAI Capital Management.RMDs begin at age 73, and the amount to be withdrawn is determined by a government formula. However, you can minimize your payments – and the taxes you owe – by following these tips for taking required minimum distributions. Begin planning years in advance. Convert to a Roth account. Start ...

How to Get a 401(k) Match for Your Student Loan Payment | 401ks

11Aug

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How to Get a 401(k) Match for Your Student Loan Payment | 401ks

Those who have an overwhelming amount of student loan debt are often unable to contribute to a 401(k) plan and qualify for a valuable 401(k) match. The SECURE 2.0 Act, which was signed into law by President Joe Biden on Dec. 29, 2022, allows eligible employees to receive a 401(k) match if they are making qualified student loan payments.Here's how a student loan 401(k) match works: An employee must be making qualified student loan payments due to higher education expenses. The employer must offer a qualifying retirement account and a student loan matching contribution program. Student loan matching contributions can be made to a 401(k), 403(b), SIMPLE IRA or 457(b) plan. What is a Student Loan 401(k) Match? A student loan 401(k) match allows companies to pair student loan repayment with...