When approaching the latter part of life, it is easy to get caught up in achieving every goal on your bucket list. Individual lists vary widely, but often are filled with wild adventures like skydiving and scuba diving in the Great Barrier Reef. Bucket list items are the things one plans to do their entire life once they have the time and money to do it.
After decades of adding to your retirement accounts, making the mental switch to withdrawal mode can be a challenge. It may be tempting to try to time the market to mitigate the risk of any sudden drops or ongoing turbulence. However, market timing is almost unequivocally a bad idea, especially when you no longer have the ability to financially recover from major mistakes.
With more and more seniors aging in place, the rise in caregivers who are not health professionals has begun to increase as well. Informal caregivers may find that their work is rewarding, since they ensure that their loved one is getting the care they need and able to live their twilight years how they want; but it typically is stressful.
The 401(k) allows (most) account owners to stash away $19,500 per year (or $26,000 for those age 50 and over), without paying any federal income tax on contributions.1 And with 2017's Tax Cuts and Jobs Act reducing the top marginal tax rate for just about all tax filers through 2026, this could be a good time to reduce your pre-tax income.
The death of a spouse is one of the most traumatic experiences a person can endure.1 Adding financial stresses at such a delicate time can only make matters worse—and your emotional recovery harder. Learn more about what to keep in mind while navigating your financial future as a widow or widower.
Don't Make Major Changes Right Away
Ask everyone who has barely even heard of investing this most basic of investment questions, “Should you buy low and sell high?” and the answer, almost without exception will be: “YES!” (Okay, short-sellers believe it too, but they do it in the mirror). In reality, that’s not how most investors behave.
If you get caught in a corporate downsizing and you are not immediately moving to a new employer, you generally have three options for your retirement plan assets. This article spells them out.
The advantages of a direct rollover include simplicity and continued tax deferral on the full amount of your plan savings.