Make sure you max out your 401(k). Fund your Roth IRA before the April 15th deadline. Remember that contributions to Health Savings Accounts (HSAs) are deductible. Withdrawals from 529 plans are tax-free when used for qualified expenses. With all the emphasis on tax advantaged accounts, you may have overlooked the
Planning a tax-efficient retirement income is easier when you understand the R/D Factor and how to use it to minimize taxes. The R/D Factor (R/D = retirement distribution) is a measure of the New Three-Legged Stool strategy for retirement. This strategy is based on balancing your savings between tax-deferred, after-tax,
If you ask anyone about money for retirement, you’ll probably get guestimates all across the board for how much you need. Some financial experts use a rule of thumb, like 70 percent of your working income or even as much as 100 percent of your working income. But this can
Social Security maximization is a hot topic among retirement planners and the financial press. Maximization strategies focus on the age to draw benefits and the sequence of who draws first when dealing with married couples. The objective is to get the most dollars from Social Security during your retirement. The age
Where did the idea of retirement come from? It was not that long ago that most people were fully employed in their teens and worked until they died in their mid-30s. The concept of retirement began in the Revolutionary War when pensions were offered to those who suffered battle injuries.
Bob and Carolyn have been retired for ten years. When Bob retired, he had accumulated a comfortable nest egg of $1.8 million. His employer had an employee stock purchase program allowing him to invest through payroll deduction. The stock had done well over the years, paying cash and stock dividends
You are probably aware of the IRA penalty for taking money out of an IRA or Roth IRA too early. Distributions prior to age 59½ are subject to tax and a 10% penalty (see exceptions). You may also be aware of the penalty for taking distributions too late. Required minimum
You may be wondering what happened to the annual Social Security benefits statement you used to receive in the mail. The handy four-page statement usually came three months before your birthday with an estimate of your benefit amount at retirement. Back in 2011, the Social Security Trustees’ report revealed that
Retirement is now just one year away. Let’s assume you have already addressed the big financial issue—you have enough money to retire. It is time to create a final checklist for the next twelve months. The goal should be to retire only once. No one wants to miscalculate and be
Forbes recently reported that we are at the brink of the largest intergenerational wealth transfer in history1. Over the next 30 to 40 years, $30 trillion in assets will pass from one generation to the next in the United States. The Center for Rural Pennsylvania estimates2 that in Lancaster County, Pennsylvania
