IRAs – The News Desk

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

22Dec

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Money

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 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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Money

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...

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

24Sep

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Money

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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Money

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 Save $1 Million by Retirement | Retirement

5Jul

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Money

How to Save $1 Million by Retirement | Retirement

How much will you need for retirement? For many people, the magic number seems to be $1 million.“I think a million dollars is a good goal to have in mind, but it depends on a person’s unique circumstances,” says Mindy Yu, director of investing for Betterment, a 401(k) retirement plan provider. Your specific retirement savings needs will depend on factors such lifestyle choices and the cost of living in your area.While saving $1 million for retirement may seem daunting, it can be a doable goal, especially if you follow these tips:Start Saving at an Early AgeWhen it comes to amassing a large nest egg, nothing may be more important than time in the market. By opening and funding a retirement account early, workers can maximize the power of compounding gains.“It can be a 16-year-old putting $...