Retirement Archives

Retired but Not Tired: How to Earn Money While You Sleep

Earning a consistent, passive income during retirement is more than just a luxury; it’s often a financial imperative. Given the rising costs of healthcare, longer life expectancies, and the need for a better quality of life in retirement, relying solely on traditional means like Social Security, pensions, and retirement funds can be risky. These fixed income sources may not adequately cover all expenses, especially when unexpected costs or economic downturns arise. Passive income provides additional …

Is Real Estate Still the Golden Goose of Retirement?

The perception of real estate as a “golden goose” for retirement is deeply entrenched in our financial culture. It’s an asset class that provides a physical structure and has the potential for significant monetary gains and income. But as we navigate through fluctuating markets, technology shifts, and evolving investment landscapes, one question remains: Is real estate still the golden goose of retirement? Historical Returns Historically, real estate has been a stalwart of consistent returns. Private …

Financial Meltdown Alert: Why Most Americans Wish They’d Done Things Differently

A recent survey by Bankrate reveals that 74% of Americans are burdened with financial regrets. The focus on savings, especially for retirement, has intensified as the nation grapples with economic challenges, including looming recession threats and inflation. Top Financial Concerns The Bankrate study highlighted several key areas of concern: When categorized, the regrets predominantly revolved around insufficient savings (41%)—encompassing retirement, emergencies, and education. In contrast, 24% were related to overwhelming debt, including credit cards, student …

IRS Shifts Gear on New Roth 401(k) Rule Implementation – What You Need to Know

Higher-income earners affected by updated catch-up contribution regulations for Roth 401(k) accounts can now breathe a sigh of relief thanks to the new measure introduced by the IRS. Here is what you should be aware of regarding this development. There has been recent attention on the proposed changes to regulations regarding catch-up contributions in 401(k) retirement plans. Originally scheduled to take effect in 2024, these revisions require individuals with higher incomes to make catch-up contributions …

Avoid IRS Nightmares: How to Dodge Excess Contribution Blunders

Stay on Top of Deadlines and Remember Your Required Minimum Distributions. Retirement plans and IRAs offer tax advantages for saving. In the case of Roth IRAs and Roth 401(k)s, earnings from contributions grow on a tax-deferred or tax-free basis. As tax season approaches, ensure you know all the necessary obligations. Keep an Eye on Contribution Deadlines The cutoff date for making contributions to an IRA or Roth IRA is the same as the tax filing …

Are You Falling into These Costly Investment Traps?

Investors and their financial advisors commonly assume that adopting a consistent investment approach involving regular contributions and dollar-cost averaging will result in better long-term outcomes. Similarly, they often believe that opting for the lowest-cost funds will yield similar benefits. However, recent research released by Morningstar challenges these widely accepted investment practices, revealing that they don’t necessarily lead to superior returns. Although these approaches may be somewhat helpful, they can lead to classic investment mistakes that …

Discover How to Create an Income-Generating Portfolio

For many people, portfolio income is the path to achieving financial independence. Funds accumulated during one’s working years can be used to construct an investment portfolio that generates revenue during retirement. Here is a guide to creating a portfolio that focuses on generating a steady income. Definition of Portfolio Income Income can be conveniently categorized into three primary types: Portfolio Income vs. Passive Income Passive income denotes regular earnings that do not necessitate active engagement. …

Why Everyone’s Rushing to Convert to Roth IRAs

You’ve dedicated years to your career, diligently saving for retirement. As you approach this new chapter, it’s tempting to think the hard work is over. However, transitioning from employment to retirement is the beginning of a new wealth management journey. Here is why you will not regret early Roth IRA conversions in retirement. The Long-Term Tax Perspective While focusing on annual tax obligations is natural, adopting a multi-year tax strategy is crucial. This approach isn’t …