6 Smart Ways to Avoid Costly RMD Mistakes

If you’re age 70½ or older, you must take required minimum distributions (RMDs) from your IRA. Similarly, you must take RMDs from qualified retirement plans at this age (although there are some exceptions that your plan administrator can explain). And if you inherit an IRA or retirement plan benefits, RMDs must also begin within certain … Continued

Using a Target Date Fund for Retirement

Target date funds (TDFs) are typically mutual funds (sometimes exchange traded funds, or ETFs) reallocated over time to achieve age-based growth and security for your assets. The goal is to create a retirement fund that systematically takes appropriate risks throughout your lifetime. Target date funds are often an investment option in 401(k) plans. They are … Continued

Traditional IRAs and Taxes: What You Need to Know

An individual retirement account (IRA) is one way to grow wealth for your later years. IRAs come in two basic flavors—Traditional and Roth—and both come with certain tax advantages. If you’ve opted for a Traditional IRA, it pays to understand how these accounts are treated for tax purposes. Here are the most important tax rules to … Continued

Savings Advice for 20-Somethings

It’s never too soon to develop the savings habit. The money choices you make in your 20s can benefit you well into your 30s, 40s and beyond. Unfortunately, many 20-somethings fall short when it comes to building an emergency fund or socking away money for retirement. According to a GOBankingRates survey, 67 percent of young … Continued

Reviving Your 401(k) in Your 50s

During our 30s and 40s many of us shortchange our 401(k) plans, contributing less than the maximum we’re allowed to each year and maybe even nothing at all. Being out of work for a time can be one reason. Competing financial demands, such as paying the mortgage, the kids’ orthodontist bills or you name it, can … Continued

Top Items That Are Cutting Your Retirement Savings

If your ability to save for retirement isn’t exactly on track, you’re not alone. Financial planners often say you should set aside 10 to 15 percent of each paycheck for long-term investments, although few of us hit that benchmark. Consider the fact that Americans in the 56 to 61 age bracket have a mean savings of just $163,577, according to … Continued

Backdoor Roth: Using a Traditional IRA to Fund a Roth IRA

Roth IRAs have some distinct perks for the long-term investor. Among them is the ability to take out tax-free withdrawals in retirement while never having to worry about required minimum distributions (RMDs). Still, if you’re relatively affluent, you may look at the income limits on this version of the individual retirement account (IRA) and decide that you have to … Continued

How to Get the Most Out of Saving Cash

Most regular bank checking and savings accounts offer security—and not much else. Interest rates on FDIC-insured instruments remain at all-time lows. Still, for those who want quick and easy access to funds for a major purchase, vacation or an emergency, bank-based accounts can be invaluable. With diligence and a little research, reasonably acceptable interest rates … Continued

Are HSAs Better than Traditional IRAs for Retirement Saving?

Alongside the well-established 401(k), individual retirement accounts (IRAs) help form the backbone of modern retirement planning. When you look at their favorable tax treatment, it’s not hard to see why they enjoy such popularity. Unlike other investment accounts, contributions to Traditional IRAs can be deducted from your income taxes, allowing you to put away a bigger share of … Continued

What is FIRE and How Does It Work?

Many of us fantasize about quitting the workforce while we’re still relatively young, before our children grow into adults and we lose the energy to do the things we love. Then, most of us wake up and get back to work. The amazing thing is, there’s a group of people for whom this is clearly … Continued