IRA Archives - DR News - News, Retirement, Finance

Retirement Dilemma: 69-Year-Old with $34,000 in Roth IRA Seeks Financial Guidance

Miami, FL – A 69-year-old individual who has diligently contributed $500 per month to a Roth IRA is dismayed to find out they have only saved $34,000. They express frustration, feeling that they should be in a much better financial position at their age. Seeking guidance on how to improve their retirement savings, they are looking for assistance from experts in financial planning and wealth management. The individual’s situation raises questions about the effectiveness of …

Social Security Might Be Revived with Sacrifices to Your 401(k) and IRA, Experts Say

New York, NY – A controversial proposal has emerged that suggests adjusting Social Security in a way that could potentially save the program but at the expense of 401(k) and IRA accounts. This idea has sparked debate and divided opinions among experts and stakeholders. The proposed strategy involves redirecting a portion of workers’ payroll taxes from funding 401(k) and IRA accounts to support Social Security. Advocates of this plan argue that it could help ensure …

Discover the Non-financial Aspects of Retirement Planning

After working five days a week for most of your life, entering retirement can be a shock. Suddenly, you go from a set schedule to days free to do whatever you want. This transition may be difficult for many people who are dedicated and defined by their jobs. For some, retirement can last decades, and no matter where you are in preparing for your golden years, it’s never too early to start planning for the …

The truth about American retirement savings

A new report reveals a stark divide in American retirement savings, highlighting the struggle of lower-income households to adequately prepare for their golden years. While overall retirement assets have grown to $36 trillion, a significant portion of the increase is concentrated among higher-income workers, leaving tens of millions ill-prepared for the financial challenges of retirement. According to Anqi Chen and Alicia Munnell of the Center for Retirement Research at Boston College, the median combined 401(k) …

Three Key Components To Maximize Your Retirement Savings

If your working years were spent as an employee, your taxes on wages were pretty straightforward. You worked and contributed to employer-based benefits, and the net was reported to you on a W-2 form, which you used to plug into your 1040 tax form. There is not much wiggle room for reporting that income and paying the associated taxes. The good and the bad of retirement income planning is that you have all the control. …

Are you making this common retirement mistake

Planning for retirement often involves making contributions to tax-advantaged accounts like 401(k)s and IRAs. These accounts offer attractive tax benefits, but staying within the IRS-imposed limits is essential. Exceeding these limits can result in unwanted tax consequences. Here’s what you need to know about excess contributions and how to rectify them before the tax deadline. For the 2024 tax year, the contribution limits for retirement accounts vary based on age and the type of account …

RMDs: What You Need to Know and How to Minimize Their Impact

As you approach retirement, it’s essential to understand how required minimum distributions (RMDs) can influence your financial landscape. Recent changes in legislation have adjusted the age for mandatory RMDs from retirement accounts like 401(k)s and IRAs to 73, with plans to raise it to 75 by 2033. To illustrate, if you’re 73 with a $2 million balance in your 401(k), the IRS’s life expectancy table for 2024 indicates a factor of 26.5. This means your …

Use These Simple Hacks To Watch Your Savings Grow

Your retirement might seem far away, but your current decisions can significantly shape your future. By making a few strategic changes to your savings and investment approach, you can substantially grow your retirement funds. Here are three straightforward retirement strategies that demand little effort now but promise significant rewards later: 1. Automate Your Savings: The principle here is simple: you won’t feel the pinch of money you never see. This is the logic behind automatically …

Avoid Financial Ruin: The Top 3 IRA Mistakes That Could Cost You Thousands

The devil is in the details regarding Individual Retirement Accounts (IRAs). A seemingly small oversight can result in hefty penalties that could have been easily avoided. As a financial advisor, I’ve repeatedly seen clients stumble over these pitfalls. Let’s delve into the three most common yet costly IRA mistakes. The Perils of Incorrect Beneficiary Designation One of the most overlooked aspects of IRA management is the beneficiary designation. Remember, your IRA doesn’t pass through your …

Shocking IRA Blunders: Are You Making These Costly Errors?

An Individual Retirement Account (IRA) can be a powerful tool for securing your financial future, but navigating its rules and regulations can be tricky. Making mistakes with your IRA can lead to significant financial consequences, so it’s essential to be well-informed. To help you avoid potential pitfalls, here are three common and costly IRA mistakes that can easily be prevented: #1 Beneficiary Mistakes An IRA passes on to beneficiaries, not through a will. Therefore, it’s …