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Retirement Planning Archives - Wealthspire

May 16 2022
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retirement

Retirement Checklist: Planning Today for the Tomorrow You Deserve

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 “Planning is bringing the future into the present so that you can do something about it now.”  - Alan Lakein If that sounds like a downer, that is not the intention! Everything in life is about balance, so perhaps taking on a mindset of making the most of today while planning for a longer tomorrow is more helpful in ensuring a happy and healthy long life. Whether an outcome of living through the past few years or a shift in overall mindset, popular culture today encourages us to focus on the now, live for today, and seize the moment. While…
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Apr 19 2022
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The Securing a Strong Retirement Act of 2022: What You Need to Know

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The Securing a Strong Retirement Act of 2022 (aka SECURE Act 2.0) recently passed the House (by a 414-5 margin, so, believe it or not, on a bipartisan basis), and looks to have enough support to pass the Senate sometime this year. Introduced by Reps. Kevin Brady (R-Texas) and Richard Neal (D-Massachusetts), who led the original SECURE Act of 2019, the bill looks to encourage Americans to save for retirement. Below are the current highlights: The original SECURE Act raised the age at which you must start taking required minimum distributions (RMDs) from traditional IRAs and 401(k)s to age 72 from age…
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Jan 03 2022
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Living Will

Financial Dictionary
What is a Living Will? A living will provides instructions to your healthcare provider in the event that you are unable to communicate. A living will dictates whether or not you wish to receive medical treatment to prolong your life if you suffer irreversible or terminal injury. Why is it Important to Have a Living Will? Having a living will cuts down on the uncertainty of your wishes by spelling out how you would like to proceed with the use of life-saving measures if the situation arises. A living will should always be a part of your estate plan. If…
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Jan 03 2022
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Asset Allocation

Financial Dictionary
What is Asset Allocation? Asset allocation is the process of dividing investments among cash, equities (ex. U.S. Large Cap, International), fixed income (ex. Taxable, Municipal) and cash equivalents to optimize the balance between risk and reward based on investment needs. What Should my Asset Allocation be by Age? As a general rule, your target asset allocation can be determined by subtracting your age from either 100 or 110. The resulting number is the approximate percentage of assets you should allocate to stocks. For example, at age 50, this would leave you with 50 to 60 percent in equities, depending on…
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Dec 14 2021
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inherited IRA

What to Do If You Inherit an IRA Post SECURE-Act

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Introduction If you inherited all or part of an individual retirement account (IRA) or a qualified retirement plan, you may be wondering what you should do with the assets or the account. But the first question might be, what can you do. The rules governing inherited IRAs are complex – all the more so since the passage of the SECURE Act of 2019. The options available to you will depend on several factors, including the type of account you inherited, when you inherited it, your relationship to the deceased, and at what age the death occurred. In the following paper,…
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Oct 14 2021
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Money Market Fund

Financial Dictionary
What is a Money Market Fund? A money market fund is a mutual fund with investments in high-yield money market instruments such as federal securities, CDs, and commercial paper. The intent is to make such instruments (normally purchased in large denominations by institutions) available indirectly to individuals. Are Money Market Funds a Safe Investment? Money markets are relatively safe because money in these accounts is invested in low-risk, short-term securities. Money market funds are still susceptible to volatility and although it may be lower than other vehicles, there is still some risk involved. How Does a Money Market Fund Work?…
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Sep 01 2021
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backdoor roth contribution

The Benefits of a Backdoor Roth Contribution

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The most popular retirement account of the past decade is the Roth IRA. It offers tax-free growth, tax-free withdrawals after age 59.5, and no minimum distribution requirements. Unlike traditional IRAs, Roths are funded with after-tax dollars, which means there is no deduction for a contribution. Evaluating whether to contribute to a pre-tax or Roth IRA is a common exercise. Many are drawn to the upfront benefit because of the tax savings and/or they expect their rate will decline in retirement. However, if your time horizon is decades, Roth savers are much more likely to end up with more after-tax money.…
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Aug 24 2021
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Solo 401k

Why the Self-Employed Should Consider a Solo 401k

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Self-employed individuals have multiple options to save for retirement and invest in a tax-efficient manner. One of those options, the Solo 401(k), can be particularly attractive to entrepreneurs running their own business, including those with both a 9-to-5 corporate employer and a “side-hustle” that earns them additional income. What is a Solo 401(k)? A Solo 401(k) plan, also commonly referred to as a solo-k or uni-k, is just like any other 401(k) plan, but is designed to cover a self-employed person with no employees other than his or her spouse. Because it covers only one employee, there is no burdensome…
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Aug 20 2021
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roth ira

What is a Mega Backdoor Roth IRA?

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Most people have heard of Roth IRAs. Those who qualify typically contribute and those who do not qualify can sometimes find a way to do so, as we explain here. In either case, you can do MORE. Take a Step Back and Understand Plan Types and Limits 2021 Retirement Plan Limits Account Type 2021 Limits IRA $6,000 50+ Catch-Up Limit $1,000 Simple IRA $13,500 50+ Catch-Up Limit $3,000 SEP IRA $58,000 401(k) $19,500 50+ Catch-Up Limit $6,500 Profit Sharing Plan $58,000 Defined Benefit Plan (Annual Limit) $230,000 Depending on your current occupational status and business structure, you may or may…
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