Retirement savings Archives - DR News - News, Retirement, Finance

Discover the Surprising Financial Priorities of American Millionaires

A recent survey conducted by Ameriprise Financial has shed light on American millionaires’ financial priorities and mindset. Despite popular belief, most millionaires do not consider themselves wealthy, according to the survey. In fact, 60% of the respondents identified as upper middle class, while 31% considered themselves part of the middle class. The survey included 580 Americans between the ages of 27 and 77 with investable assets of $1 million or more. The survey revealed that …

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) …

Social Security: Older Workers in Physically Demanding Jobs at Risk

The Social Security retirement age, currently set at 67, is facing calls for further increase. However, according to a recent task force report from the National Academy of Social Insurance, this proposal may pose a challenge for older workers in physically demanding jobs. The report highlights the potential harm this could cause to economically vulnerable individuals who already struggle due to the existing retirement age increase. Rebecca Vallas, a task force member and senior fellow …

Securing Your Future: Essential Strategies For Retirement

“Failing to plan is planning to fail,” which couldn’t be truer when preparing for retirement. With life expectancies on the rise and the future of social safety nets uncertain, taking the reins on your retirement planning is more important than ever. Here’s what you should do to ensure your golden years are secure and enjoyable. Start Early and Save Consistently You should begin saving for retirement as soon as possible. Thanks to the power of …

1 in 5 Skip Emergency Funds for Retirement – Should You?

Current statistics from GOBankingRates show that roughly one in five people focus more on saving for retirement rather than accumulating an emergency reserve. This financial preference highlights the need for deeper understanding; which one is more important? Experts in the field of finance have come forward to provide a detailed analysis of the pros and cons inherent in this financial planning tactic, underscoring the importance of a well-informed strategy when it comes to personal finance. …

How Secure 2.0 Act is Changing Your Retirement NOW

The landscape of retirement planning is witnessing significant changes as the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act comes into force. The goal of the act is to enhance retirement savings for Americans, introducing new rules and opportunities for individuals and employers. Here are some key changes taking place now: Age for RMDs One of the key modifications under the SECURE 2.0 Act is the adjustment to the age at which retirement …

Is Your Investment Strategy Setting You Up for Failure?

The fear of running out of money during retirement is a common concern, leading many to save more in anticipation of financial instability. The desire for financial security is universal, regardless of one’s current savings. Recent market volatility further exacerbates these concerns, underscoring the need for a well-thought-out retirement income plan. What constitutes a good retirement plan or one that could potentially fail you? The following are some things to consider: Understanding Market Volatility: Market …

How Roth IRA Conversion Ladders Can Boost Your Retirement Savings

A Roth IRA is a special tool for retirement savings that offers enticing tax benefits. When you contribute to a Roth IRA, you’re using post-tax dollars, meaning you’ve already paid taxes on the money. The beauty of this is that as your investments grow, you can withdraw them tax-free during retirement. This appeals to those who believe they’ll be in a higher tax bracket upon retirement. Additionally, Roth IRAs don’t force you to take minimum …

Here Are the Best and Worst States to Retire This Year

Choosing the perfect retirement destination is a critical life decision that varies from person to person. Whether you’re drawn to beachfront serenity, mountainous tranquility, or proximity to family, it’s easy to feel overwhelmed by the array of options. Retirees have historically flocked to states with warmer climates and lower living expenses, such as Florida and Arizona. However, the results of Bankrate’s latest study suggest other options worth considering than conventional retirement hotspots. Bankrate’s study includes …

Understanding Non-Deductible IRAs and Their Distinctions from Roth or Traditional IRAs

Is it logical to finance an individual retirement account (IRA) when it doesn’t offer a tax deduction? Many individuals who aren’t eligible to fully finance a deductible IRA or Roth IRA miss out on this straightforward opportunity to set aside additional retirement funds that can mature without tax implications. Unlike a 401(k) or similar salary reduction plan, you can contribute to a non-deductible IRA until the tax filing deadline. Understanding Non-deductible IRAs During a tax …