For decades, retirees have been guided by a simple principle for managing their retirement savings: the 4% rule. Created in 1994 by financial planner William Bengen, this rule suggests that retirees can sustain their savings for 30 years by withdrawing 4% of their retirement fund and adjusting this amount annually for inflation. Bingen’s research, which … Read more
The concept of “safe harbor” is a crucial aspect in the world of retirement planning, especially when it comes to 401(k) and Individual Retirement Accounts (IRAs). It’s a term that encompasses a variety of protections and benefits aimed at enhancing the effectiveness and fairness of retirement savings for both employers and employees. Here is what … Read more
In light of the challenges facing Americans in saving for retirement, recent findings suggest a concerning trend in financial preparedness. According to a survey by FinanceBuzz, a mere 23% of participants initiated their retirement savings in their 20s. The reliability of Social Security as a single source of income has become a significant topic of … Read more
In an effort to safeguard the retirement savings of Americans, a new regulation known as the Retirement Security Rule has been proposed. This initiative ensures that financial professionals prioritize your best interests when offering advice. The rule aims to eliminate “junk fees” and enhance returns on retirement savings. Addressing the Loopholes The Department of Labor … Read more
The Internal Revenue Service (IRS) has made an announcement that the contribution limits for retirement accounts, such as 401(k) plans, will be raised in 2024. There will be an increase to the annual contribution limits for most 457 plans, 401(ks), and 403(bs) by $500 to $23,000. Individuals aged 50 and older will be able to … Read more
The Biden administration is set to introduce new regulations aimed at tightening the oversight of retirement plan providers to eliminate practices that prioritize their profits over the well-being of customers. This move represents the administration’s ongoing efforts to curb what it deems “junk fees” in the financial industry. Under the proposed rules from the Labor … Read more
The financial landscape is ever-evolving, and as of Thursday, October 26, 2024, we find ourselves in a period of rising interest rates, with the average 30-year fixed mortgage rate at a staggering 8.09%. This marks a nine basis point increase from the previous week, and the trend shows no signs of slowing down. Understanding how … Read more
Employer-sponsored 401(k) plans are a cornerstone of retirement savings, but not all plans are created equal. As retirees or soon-to-be retirees, it’s crucial to understand the intricacies of your 401(k) plan to ensure you’re making the most out of your retirement savings. While employers have a fiduciary duty to offer sound investment options and minimize … Read more
Retirement is a significant milestone, and managing your finances effectively during this phase is crucial. As you navigate through your golden years, it’s essential to understand the best strategies for withdrawing from your retirement accounts to ensure a stable and comfortable lifestyle. Here, we’ll delve into common mistakes retirees make and provide expert advice on … Read more
When faced with financial challenges, many individuals often consider various sources of funds. Your 401(k) retirement account can be a valuable source of funds. While borrowing from your 401(k) can provide quick access to cash, it’s essential to understand the mechanics, benefits, and potential pitfalls of such a decision. Navigating the world of 401(k) loans … Read more