Retirement Planning

The ‘safest’ places to put your money are in low-risk investments and savings vehicles that provide guaranteed growth. These low-risk options include fixed annuities, CDs, Treasury securities, corporate bonds, savings accounts, and money market accounts.

You usually get the highest interest rates with fixed-type annuities of this bunch. There are other fixed-type annuities that can give higher growth potential than guaranteed-rate annuities, if that is something that appeals to you.

Retirement can be an uncertain stage in life. Markets go up and down, inflation rises and falls, and no one knows how long their retirement might last. You can explore options to grow your retirement savings with guaranteed interest earnings and then turn those funds into predictable income streams for retirement.

In this article, we will look at some of the more popular low-risk places to put your retirement money – and what each of those options can involve.

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As a small business owner or an entrepreneur, you are used to taking the lead. But there is one frontier you may still need to master… the future of your retirement. That is a matter of doing what you can to ensure all your hard work leads to your ideal retirement lifestyle.

While a 401(k) plan is the dominant retirement bedrock for employed Americans, small business owners are in a different boat. You are your own employer.

So whether you have zero or 100 employees, you must make the choice to act toward building a strong financial future for yourself. Depending on the workplace benefits of your organization, you may also impact those aiding you in your entrepreneurial dream.   

And Social Security benefits can help, but only to a point. A motivating factor for building up retirement savings is the fact that, as an entrepreneur, you bring home a certain level of income. Portfolio holdings, personal assets, and savings most likely will play into your needs as a high-income household, as Social Security can only go so far.    

Not only that, chances are you make more than the income limit placed by Social Security. For 2024, the maximum amount of taxable earnings is $168,600, up from $160,200 in 2023.

And what is another focal point for small business owners? Over-relying on their business as their retirement safety net. But time and again, historical data has shown this to be true: It’s risky to put all of your eggs – namely, your retirement and financial comfort – into one basket. Read More

Many of us consider retiring at 62 for many different reasons. Sometimes, it’s your health or maybe your spouse’s. You may have reached all your retirement savings goals and want to take advantage of the opportunity. You may just no longer enjoy working.

Whatever your reasons for considering retirement at 62, you should consider several different issues before taking any irrevocable steps. This guide will look at some of those issues and help you get to the point where you can retire at age 62 with a comfortable lifestyle. Remember, these are starting points, and it’s not a bad idea to consult with a financial professional before finalizing your plans.

In the end, the biggest problem you will face retiring at 62 is the gap between 62 and 65 when the most significant retirement benefits – like Medicare – kick in. Cover the gap and make sure you won’t run out of funds, and retirement can be fun!

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Did you know that you could face a hefty 10% penalty for withdrawing money from your retirement account before you reach age 59.5? It’s true, but there’s a way to avoid this financial setback. The 72t rule is a little-known IRS provision that allows for early withdrawals without penalties, under certain conditions.

If you’re over 50 and want to explore this option, we’ll explain the 72t rule so you can make the best decision for your retirement.

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Do you want to retire at age 55? Early retirement isn’t for everyone, but it can be a great fit for those wanting a change of pace. The reality is, the many financial products and services that are now available in the marketplace are allowing more people to do this.

In this article, we will go over steps to take when you are retiring at age 55. Let’s look at how much money you might need for retirement at 55, what some optimal retirement options are, what you should know about your accounts at 55, and much more. Read on for some practical tips on how to retire efficiently at 55 or in that time bracket.

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Many people choose to continue working after retirement. For some, it’s to help with monthly income and budgeting. As for others, it’s partially to enjoy staying productive in their chosen fields.

However, earning income from work after you have retired and started receiving benefits can significantly impact your Social Security, tax liabilities, Medicare coverage, and other areas of financial concern.

Due to these critical implications, it’s wise to understand the basics of how extra income earned after retirement can affect your financial planning.

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If protection and growth are important for you in retirement, you may want to look at your options for a “secure guaranteed retirement account.” Fueled by retirement annuities, this sort of financial strategy can give you a guaranteed income that lasts for the rest of your life. As the defined benefit pension has disappeared, we have all been forced to think more about alternatives for guaranteed retirement income.

A secure guaranteed retirement account can be an important part of your overall retirement strategy. It can counterbalance certain kinds of risk in other retirement investments. An annuity’s stream of income can cover periods when you need extra income, such as the period between your retirement and your eligibility for Social Security or Medicare.

The predictable nature of an annuity’s income stream can allow you to take a bit more risk or creativity in your other retirement investments. In other words, a retirement annuity can give you security and flexibility.

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You might have heard of a backdoor Roth conversion before, but what exactly is it? In short, a backdoor Roth IRA is a way for those with high incomes to take advantage of a Roth account despite IRS contribution limits.

To start with, you have to have an IRA to convert to a Roth. So, if you don’t meet the qualifications for opening a Roth IRA below, you can only open a traditional IRA.
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The Rule of 120 is a long-standing rule of thumb for financial asset diversification. Retirement planning is complicated, and some people find this rule useful as a starting point to evaluate the amount of risk that they have in their financial plan.

According to the Rule of 120, you subtract your current age from 120, then put the difference in stocks and other equities. The rest goes into ‘safe’ financial products, known as fixed-income assets such as fixed-type annuities, bonds, Treasury securities, and CDs.

In other words, if you are 20 years old, 100 percent of your money should be in stocks. On the other hand, if 70 is your age, then you would be at 50 percent in ‘risky’ assets, such as equities.

To be clear, the Rule of 120 is helpful when you are just beginning things. But it’s not the best rule of thumb for everyone and in every situation. Let’s go more over how this rule can be used – and what some limits may be.

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With growing government debt and the prospect of increasing taxes, you may wonder if a Roth conversion is right for you. But there are many nuances to deciding on a Roth conversion and then following through on the conversion process.

You will pay taxes on the converted amount. In some cases, a Roth conversion can move you into a higher tax bracket, depending on your other taxable income. If you will need the money in five years or less, this tax planning strategy might not be a good fit for your situation.

Understanding your options can help in making a confident decision. That being said, here are a few quick factors to keep in mind as you explore whether a Roth conversion might make sense for your financial situation. You will also want to speak with your tax advisor and any other experienced professionals as needed for further guidance on your personal situation.

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