For most of those nearing retirement, Social Security is expected to be the main source of income. Nearly nine out of ten people aged 65 and older were receiving a Social Security benefit as of December 31, 2022, and Social Security benefits represent about 30% of the income of the elderly, according to the Social Read more
Retirement
Here’s That Rainy Day: How Your 401(K) Works When You Retire
Duringyour working years, you contributed to your 401(k)—or, if you worked at a public school or charity, your 403(b)—to help fund your retirement. But what happens when you get to the finish line and retire? Surveys show nearly half of older participants in 401(k) or 403(b) plans have no idea how they will get cash Read more
Retirement Enhancement: How the SECURE Act 2.0 Changes May Affect You
The $1.7 trillion omnibus appropriations bill passed by the 117th Congress and signed into law before the end of 2022 included dozens of retirement-related provisions collectively known as the SECURE 2.0 Act. (The acronym stands for Setting Every Community Up for Retirement Enhancement.) The SECURE 2.0 legislation provides a slate of changes that could help Read more
Target-Date Funds: Does One Size Fit All?
So, you start a job and set up a 401(k). You’re asked to estimate a retirement date, so you do. This date seems far off in the future, so you don’t think too much more about it. But you should think about this: You are now likely in a target-date fund. Ready, aim Target-date funds, whose mix Read more
Side Effects: How the CARES Act Changes Access to Retirement Funds
The CARES Act, a $2 trillion economic stimulus package signed into law on March 27, provides unique access to retirement savings that typically would be subject to early withdrawal penalties. This access applies to qualified individuals affected by the COVID-19 virus either directly (through contracting the illness or having an ill spouse or dependent) or Read more
What’s in Your 401(k)?
With every bull and bear, each uptick or downturn in the market, you’re sure to hear someone say something about the fortunes of their 401(k). (Pro tip: the only time this can matter is when you are closing out your 401(k); otherwise, the current state of your 401(k) is just a snapshot of a moment Read more