Many retirees are financially illiterate about their retirement funds. In order for retirees to have a happy and healthy retirement, there are three common mistakes they should avoid. The first common mistake is not knowing how taxes affect retirement income, especially from especially from social security, capital … [Read more...]

You can retire early using a 72(t) payment to take early withdrawals but it is tricky and you must be willing to follow the advice of a competent accountant so you do not end up with early withdrawal fees for taking money out of a tax-deferred account sooner than age 59 1/2. There are exceptions to the early penalty … [Read more...]

General Electric's recent announcement that they are freezing worker pensions raises the question of what to do if your employer alters the terms of your retirement plan. One option GE is offering is to take a one-time lump sum payment. This is something that should be discussed with a financial advisor. If a lump-sum … [Read more...]

Originally, Social Security was meant to help aging and disable Americans, but with advances in medical technology and life expectancy increasing drastically, the system of Social Security is in disarray. Millenials for example, who have Social Security taken out of their paychecks, may never get to see a dime of this … [Read more...]

As you approach retirement, you have less time to recover from investment mistakes. Thus, it becomes even more important to avoid common errors. Mistake #1 is paying too much in fees. For someone with hundreds of thousands of dollars invested, fees can easily exceed thousands of dollars a year. A second mistake is … [Read more...]

Parents face a challenging set of competing priorities when deciding whether to save for their children's college or their own retirement. Many would feel guilty if they didn't put their children first, but the reality is, retirement savings should be the priority. If parents don't don't take care of their futures, … [Read more...]

Most people choose to retire close to their family, and to a place that is relatively cost, but there are a few places across the United States that may be worth living that are a little on the pricier side. For those that enjoy mountainous terrain, Denver, Colorado and Reno, Nevada, are two perfect destinations. For … [Read more...]

As an individual who was lucky enough to encounter the concept of an annuity early in her life, understanding what this product is, is essential. In his new blog post, Wade Pfau takes a deeper dive into the types of long-term financial returns annuities offer, how they account for a set amount of spending per year … [Read more...]

Even if one has multiple IRAs, the IRS will treat them all as a single IRA. This is known as the aggregation rule, and this rule can make a significant impact. Yearly minimum distributions must be taken from IRAs, and depending on the specific circumstances, it may or may not be possible to withdraw from specific IRAs … [Read more...]

$1 million in retirement savings may be unnecessarily large for some people and not enough for others, but it is still a useful guide to help develop one's specific retirement strategy. A salary savings ranging from 10% to 15% is a typical recommendation from financial planners, and the specific savings percentage for … [Read more...]