While changes to traditional IRAs, RMDs offer some benefits, there are tradeoffs. Broad proposals are in the works in the retirement savings arena to ease rules on tax-deferred savings vehicles, make it easier for employers to offer 401(k)-type savings plans and also convert balances into annuities for lifetime income. In late May, the House of Representatives overwhelmingly passed the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE). Key provisions within the SECURE Act offer more flexibility for when distributions would have to be taken out of tax-deferred accounts. On the flip side, the Act takes direct aim
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Traditional thinking tends to suggest that those planning for retirement will have to replace less of their current income. Working Americans say they need to replace 67% of their current income for retirement, but only 32% say they’re on course to achieve this goal, according to a study by Transamerica Center for Retirement Studies and Aegon Center for Longevity and Retirement released May 20. In addition, only 21% responded that they are “very confident” they will be able to retire with a lifestyle they consider to be comfortable, while 35% expressed that they were “somewhat confident.” Some retirement specialists disagree
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Are you taking advantage of lower fees? Investors paid less in 2018 to own open-ended mutual funds and exchange-traded funds (ETFs) than ever before, according to recently released research from Morningstar. The Chicago-based provider of independent investment research’s annual fee study found that the asset-weighted average expense ratio was 0.48% in 2018, a 6% decline from the previous year. “This is the second-largest year-over-year percentage decline we have recorded since we began tracking the trend in asset-weighted average fees in 2000,” Morningstar’s Adam McCullough said. The bottom line is that investors saved an estimated $5.5 billion in fund expenses compared
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If you invested in domestic stock funds during the first quarter tied to one of the main U.S. indexes, well done. With price gains of 13.07%, the Standard & Poor’s 500 index had its best first quarter performance since the first quarter of 1998. Other key indexes like the Dow Jones Industrial Average and the Nasdaq climbed 11.15% and 16.49%, respectively. U.S. government notes and bonds also performed relatively well, bucking the trend of when stocks do well, bonds generally don’t follow, and vice versa. The DFA Global Allocation 60/40 Portfolio, a mutual fund which attempts to closely replicate a
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And while time is running out, you can still contribute to an IRA for 2018. Recent data from the Internal Revenue Service (IRS) indicates that the average refund this year is trending downward by as much as 17.0%. Trends, like just about everything, can always change, and it’s still early days for the IRS’ return data since the figure here was last updated before the final week of February. But with March already well underway, time is running out for the April 15 deadline to file your federal returns. One of the deductions you can still take advantage of is
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Consider these steps to help achieve the life you want in retirement. “It’s difficult to make predictions, especially about the future.” Sounds like another famous quote attributed to baseball great Yogi Berra: “The future ain’t what it used to be.”* We can generally agree that predicting, forecasting and even goal-setting require a bit of time traveling into the unknown, something we’re not well-equipped to do, even under the best circumstances. But we can plan. And that’s vital to enjoying and experiencing the life we want in retirement. And while past performance is no guarantee of future results, we can learn
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Three in Four say they’ll be better off financially in 2019. Will you be among them? Yep. It’s that time of year again. Out with the old in with the new…New Year’s resolutions that is. For the tenth year in a row, saving more money (a median of $200 a month) tops the list of the most popular financial resolutions people plan to make in 2019, followed by paying down debt and spending less money, according to the Fidelity Investments’ 10th Annual New Year Financial Resolutions Study. Four in ten (42%) say they’re currently in a better financial situation than
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Longevity The average life expectancy has increased. Chances are that if you’ve reached 65 years old you will live into your mid-80s according to life expectancy calculations. Many are living even longer—one in four people will live into their 90s, while one in ten will live past 95. Make sure that your retirement plan takes longevity into account so that you don’t run out of money—no matter how long you live. Loss of Income Make sure both you and your spouse are protected from the unexpected. Consider the financial impact of the loss of one spouse, running the numbers both
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When you see technicolor Peeps lining the grocery store shelves, you know that Spring is near and families will soon be gathering to celebrate the season. Whether you are gathered around an Easter feast or beaming with pride at a grandchild’s graduation, you may start thinking about the long-term legacy you are leaving for your loved ones. Legacy gifts can take many forms. Mementos, albums and scrapbooks, for instance. Or researching and sharing your genealogy. Or a custom cookbook that includes all the favorite family recipes. Just as important are considering the financial realities your loved ones will face without
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4 Tips to Get Your Financial House in Order In addition to that rewarding tradition of spring cleaning to get your house in order, this is a great time to get your finances in shipshape condition. We offer these tips to help you. 1. TAKE A HARD LOOK AT YOUR CREDIT CARDS Even though new credit cards are equipped with computer chips that make it harder for hackers to hijack your data, it’s a good idea to check your statements to make sure there are no mistaken or duplicate charges. 2. CHECK YOUR CREDIT REPORTS ANNUALLY It’s free to check
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