In the last few days, a number of readers have written to The Simple Dollar regarding the recent downturn in the stock market. Here are a few of those notes, starting with one from Dave: 45 years old, aiming to retire at 62. I have been in the aggressive portfolio in my 401(k) since signing … Read moreWorried About the Stock Market and Your Retirement Savings? Read This.
My estate planning lawyer said something interesting before I decided to hire her. “People who aren’t rich might need estate planning more than rich people because they might not be able to afford to pay probate fees in the case of an untimely death.” Leave it to the US court system to make the distribution … Read moreThree Things I Learned From My Estate Planning Lawyer Everyone Should Do
Here’s a simple way to check on your progress toward retirement. Take the total amount you have saved up for retirement. Calculate 3% of that (the easy way is to just multiply your total savings by 0.03). Can you live for a year on that resulting number? So, let’s say you have $600,000 saved up … Read moreThe Two Way Street of Retiring Early
Many retirees who turned 70½ years old prior to the start of 2018 are up against a potentially costly tax deadline. Folks this age who own certain types of retirement accounts generally must withdraw what the IRS calls “required minimum distributions” — or “RMDs” — by Dec. 31. If they miss this deadline, they face … Read moreRetirees Who Miss This Tax Deadline Could Owe the IRS Thousands
My dad is in his 70s and he mentioned he wish he’d started a Roth IRA when he was young. When you’re in your 70s, you must take required minimum distributions from your pre-tax retirement savings accounts and pay taxes. Given nobody likes to pay taxes, I empathized with his regret. But I don’t have … Read moreWhy I Never Contributed To A Roth IRA But Why You Probably Should
The recent federal tax overhaul changed a lot of rules, but one thing remains the same: It is exceedingly difficult to evade the long reach of the tax man. That’s even true of Social Security benefits. Most people know that working before their full retirement age can result in a reduced benefit. But earn too … Read more5 Ways to Avoid Paying Taxes on Your Social Security Benefits
My name is Zach, and I write at Four Pillar Freedom, where I tend to tackle financial topics through data visualization. While J.D. is on vacation, I offered to explore one of his favorite topics: the effects of saving rate versus investment returns. Albert Einstein supposedly once said that compound interest is the eighth wonder … Read moreWhich matters more for building wealth: your saving rate or your investment returns?
When I first started writing about achieving financial independence early in 2009, I never thought the FIRE movement would reach such a huge level of interest a decade later. After all, only misfits decide to aggressively forgo material pleasures, save 50% or more of their incomes, and retire from well-paying jobs in their 30s. Back … Read moreMove Over FIRE, Welcome DIRE: Delay, Inherit, Retire, Expire
Boosting your retirement savings could be as simple as closing your eyes and imagining your golden years. Folks who picture their retirement say they should sock away 31 percent more money compared with people who do not think about what their retirement will be like, according to a recent survey from investment management firm Capital … Read moreThis Mind Trick Boosts Retirement Savings Rates by 31 Percent
Welcome to “Social Security Q&A.” You ask a Social Security question, and our guest expert provides the answer. You can learn how to ask a question of your own below. And if you would like a personalized report detailing your optimal Social Security claiming strategy, click here. Check it out: It could result in you … Read moreSocial Security Q&A: How Do Survivor Benefits Work?