From: www.morningstar.com
Is a more dynamic approach to retirement spending right for you?
In our recent annual study on safe withdrawal rates, my colleagues Christine Benz, John Rekenthaler, and I found that retirees who want to maintain a consistent spending amount adjusted for inflation will need to keep their starting withdrawals at 4.0% or lower if they want to lock in a 90% probability of success…
From: www.kiplinger.com
Many employees will be able to contribute more money to tax-advantaged workplace plans.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, enacted in late 2022, contained a long list of provisions that are scheduled to roll out over several years. Here’s a look at how the legislation could affect your retirement savings in 2025.
From: www.morningstar.com
Our analysis reveals how the landmark law has affected workers’ retirement income.
In 1974, Congress transformed the American retirement system.
By a unanimous vote in the Senate and a margin of 407-2 in the House, it passed the Employee Retirement Income Security Act.
The goal was to protect workers who had lost their pension, like those of the bankrupted Studebaker-Packard corporation. It was intended to…
From: Jackson
What is an annuity?
Annuities are long-term, tax-deferred vehicles designed for retirement. Variable annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met. Optional living and death benefits, if available, involve additional cost and may be subject to limitations…
From: www.nstp.org
The law provided for a longer starting age for required minimum distributions (RMDs) to age 73, effective January 1, 2023. The starting age will jump to 75 effective January 1, 2033. A delay in the RMD provides for an opportunity to fine tune the combination of Social Security benefits and distributions by retirement plans and traditional IRAs. The downside is…
From: www.morningstar.com
Our annual study suggests that new retirees can spend more from their portfolios.
Recent retirees haven’t had an easy time of it lately. When stock and bond prices both plummeted in 2022, many retirees saw big dents in their portfolio values; a typical portfolio made up of 50% stocks and 50% bonds would have lost about 16% for the year. While market conditions…
From: Jackson National Life Insurance Company
An RMD is an amount you must begin withdrawing from a pre-tax, tax-deferred retirement savings account, such as your qualified variable annuity, by April 1 of the calendar year after you turn age 73 or the calendar year you stop working for the employer sponsoring an employer-sponsored plan if over 73.* † Subsequent RMDs are due annually by December 31. You can…
From: medium.com
And other key insights from a new T. Rowe Price study, including what makes retirees most content living in retirement.
In just a few years, I expect to reach work-optional status.
It’s been a long, hard slog, financially speaking, and things can certainly still go wrong.
That’s why I keep reading and writing about “retirement planning” (though, as I’ve written before, I…
From: www.financial-planning.com
Rules of thumb are popular for a reason. They’re simple, familiar and can set a good starting point for grappling with complicated questions. But in retirement planning, there’s one guideline that experts say is badly in need of an update: the 4% rule.
The idea is straightforward: Over the course of your first year of retirement, withdraw about…
From: www.gobankingrates.com
For some people in their 20s, when they land that first great job and have some disposable income to spare, their attention — and money — turn to spending on a fun car or a stellar downtown apartment. But the experts say it’s actually time to start saving for something…
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