The threat of creditors taking funds from retirement accounts is a genuine threat, and preretirees should be taking the proper steps to protect their accounts from these debt collectors. Accounts such as IRAs and 401(k)s fortunately have federal protection against creditors, but the regulations surrounding other … [Read more...]

Making major financial decisions, especially after your spouse or a family member passes away can be not only confusing, but difficult to process. In his new blog post, Michael Aloi explains why it is important to create a pros and cons sheet for paying off your mortgage. From reasons such as being able to still live … [Read more...]

It is understandable why many people are eager to retire after paying into the Social Security system for decades, but waiting a bit longer than you originally anticipated could reap some hefty financial benefits. If you wait until you are 66 years and 10 months of age, you can receive the full amount of your … [Read more...]

Our modern idea of retirement began after World War II when companies started offering pensions to employees and Social Security was implemented. In the 1970s, when it became apparent that those sources may not be enough, the individual 401(k) investment option became popular. Today, Social Security is in jeopardy and … [Read more...]

A 401(K) account may be a working person's best friend, but once a person retires, that 401(K) may be anything but a friend to them. There are a number of significant disadvantages to keeping a 401(K) in retirement. Primary among these are the possible adverse tax consequences. 401(K) withdrawals are taxable as … [Read more...]

There were so many California residents without any retirement that the state had to step in. They took matters into their own hands and came up with the CalSavers plan. Workers are automatically enrolled into the plan and get withdrawals sent to their IRA's (Individual Retirement Accounts) for them to manage. … [Read more...]

Often times the time you talk to your parents about their finances is when there is a full blown crisis. Take the time to set a time aside to speak to your parents about what their wishes are and where they sit financially speaking. Do not do this when everyone is gathered for a holiday, but wait until you can have a … [Read more...]

Every decade from the time we hit adulthood we should be investing in ourselves and managing our finances. In your 20's you have time to go to school and attain an education that will land you a great job. Now is the time to invest with a little more risk than when you are much older. Clean up all the mistakes you made … [Read more...]

According to personal finance expert Sallie Krawcheck, the 50-30-20 formula is generally a good way to figure out how to allocate your income. Generally, about 50 percent of your income should go towards necessary expenses such as rent or mortgage payments, food, childcare, and insurance. Another 30 percent should go … [Read more...]

Investing too much in S&P 500 Index funds without proper risk management can be a dangerous prospect. These Indexes are fully exposed to the fickleness of the stock market, making them high risk/high reward. However history makes clear that this is often not how people close to retirement want to run their investments. … [Read more...]