There are several major differences between 401(k)s and IRAs. Some of them are rather well-known. One major difference is investment flexibility. With an employer’s 401(k), you’re generally limited to a small “menu” of investment funds. This can be fine if you want to keep your retirement investing on autopilot, but an IRA lets you invest […]
Say that, as a married couple, you have $1.4 million in your IRAs and, at age 66, expect about $4,100 per month in Social Security. Based on some typical rules of thumb, you might be able to plan on about $108,000 per year of retirement income, but how much you actually need and will be […]
A $350,000 account could be exhausted in just a few years if both members of a couple required semi-private rooms in skilled nursing facilities. However, that’s not necessarily what would happen. For one thing, most people don’t run up nursing home bills of that magnitude. Also, you may be able to get government assistance to […]
Roll Over a Roth 401(k) to a Roth IRA Saving through a Roth 401(k) can help you grow a nest egg that you can then tap into in retirement without having to pay taxes. If you leave your job or you’re ready to retire, you may be wondering what to do with the funds in […]
Financial advisor and columnist Brandon Renfro I am 64 ½ and have been retired for just over a year. I am receiving Social Security benefits, a bit early, but have not touched my nest egg except to withdraw $10,000, which I placed in a high-interest savings account as an emergency fund. Would it be wise […]
Financial advisor and columnist Brandon Renfro I am 70 and I have $1.4 million in traditional IRAs. Is it best to do $160,000 in Roth conversions for the next 1-3 years to reduce my high RMDs in about 5-10 years? That would put me in the 24% tax bracket and $330 Medicare premium rate. Please give […]
“My wife and I aren’t sure what we should do with our money. We don’t need the money so our IRA and Roth accounts sit and keep growing.” – MarketWatch photo illustration/iStockphoto Dear MarketWatch, Most Read from MarketWatch I’m 72 and married to my spouse, 71. We have one son, 45, who lives in California. […]
As you make your retirement budget, it’s important to keep two issues in mind. First, understand your needs — what budget will you need to pay your bills, and what budget will you want to afford your lifestyle? And second, understand your capacity — what income can your portfolio comfortably and reliably generate for you? […]
A senior couple reviewing paperwork for RMDs. Inheriting an IRA as a beneficiary can increase your financial security. But, because an inherited IRA usually imposes a 10-year distribution schedule, the account may also create larger tax implications than expected. However, exceptions to this timeline are available. Here’s how distributions work and how to prepare yourself […]
‘The biggest crash in history’: Robert Kiyosaki warns that millions of 401(k)s and IRAs will be ‘toast’ — says there’s ‘no time to play Russian Roulette.’ Here’s what he likes for protection The U.S. stock market has made a strong recovery in 2023, with the S&P 500 surging 23% year to date. However, “Rich Dad […]