Kate Stalter – The News Desk

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

18Dec

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Money

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 Millionaires Know About Retirement That You Don’t | Retirement

6Dec

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Money

What Millionaires Know About Retirement That You Don’t | Retirement

Millionaires tend to have a different view of wealth and retirement savings than other Americans do. It may seem surprising, but most millionaires don’t consider themselves wealthy, according to an Ameriprise Financial survey. In fact, 60% consider themselves upper middle class, and 31% say they are part of the middle class.The survey, which included 580 Americans ages 27 to 77 with $1 million or more in investable assets, also found that millionaires’ financial priorities differ from less affluent investors' priorities. Millionaires' priorities were: Protecting accumulated wealth. Saving for retirement. Managing market volatility. Ameriprise also surveyed those with less than $1 million in assets. Their top financial priorities were: Saving for retirement. Managing day-to-day living...

What Is the Outlook for Retirement in 2024? | Retirement

2Dec

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Money

What Is the Outlook for Retirement in 2024? | Retirement

In 2024, factors such as inflation and two years of stagnation in the S&P 500 index, despite short-term rallies, have the potential to affect retirement."We are in a new world of higher interest rates that we haven’t seen for 10-plus years since the Great Financial Crisis," Jeff Rosengarten, a principal at Homrich Berg in Atlanta, said in an email.Rosengarten said in today’s market, a retiree can dial down portfolio risk while earning about 5% per year on assets such as Treasurys that will still deliver a reasonable return.Here's what to know about the retirement outlook for 2024.Factors Shaping the 2024 Retirement LandscapeThe need to plan for long and potentially expensive retirements continues to shape the retirement landscape for 2024. For example, a person who retires at age 62 w...

Is $2 Million Enough to Retire as a Couple? | Retirement

14Nov

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Money

Is $2 Million Enough to Retire as a Couple? | Retirement

A $2 million nest egg is substantial and can provide financial security for many couples, but whether it's enough for you depends on various factors.First, consider when you plan to retire. If you retire at 60, $2 million won’t stretch as far as it would if you retired at 70, as the money needs to cover a longer retirement period. The earlier you retire, the greater the risk of outliving your savings, which makes proper financial planning essential.Another significant factor for a couple is life expectancy. With advances in health care, people live longer, which means retirement savings must last longer.Couples also face challenges if their lifestyle is too lavish. Expensive travel and leisure activities can burn through your $2 million faster than you may realize. Maintaining a frugal li...

How Long Will $1 Million Last Me in Retirement? | Retirement

12Oct

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Money

How Long Will $1 Million Last Me in Retirement? | Retirement

For many people, $1 million may sound like a lot of money to have for retirement. But how far will that amount really go?There’s no one-size-fits-all process when it comes to calculating that answer. Instead, the life expectancy of your retirement money is determined by your lifestyle needs, investment mix and residence, among other factors.That means accounting for essential living costs, health care and the kind of lifestyle you’re planning. Retirees who want to travel should plan to spend more than people who want to stay closer to home and spend more time with family and friends.Additionally, geography plays a role. Some states and countries cost less than others when you factor in taxes and housing costs.Optimizing investment strategies, including diversification and tax-efficient wi...

6 Reasons You’re Getting a Smaller Social Security Check | Social Security

25Sep

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Money

6 Reasons You’re Getting a Smaller Social Security Check | Social Security

Checking your Social Security benefit statement annually is a smart financial move. It allows you to verify the accuracy of your recorded earnings, ensuring that your contributions to the Social Security system are reflected correctly. Reviewing your statement also provides a clear snapshot of your estimated future benefits, helping you to better plan for retirement.Be aware that your actual benefit may be less than what your statement shows. Here are some reasons why that can happen. You claimed your benefit early. Your earnings changed. Medicare Part B premiums withheld. Medicare Part D premium increase. Tax withholding. Working after starting benefits. The Social Security Administration began phasing out mailed benefit statements in 2017. If you haven't started claiming Social Se...