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Retirement Planning Archives | Page 2 of 3 | Wealthspire Advisors | Page: 2

roth ira

What is a Mega Backdoor Roth IRA?

By Blog
Most people have heard of Roth IRAs. Those that qualify typically contribute and those that do not qualify can sometimes find a way to do so, as Zach Gering indicates here. In either case, you can do MORE. Take a step back and understand plan types and limits Depending on your current occupational status and business structure, you may or may not be able to open any of the accounts noted above. For starters, any individual can open an IRA (with certain age/income requirements). All of the other plans must be company sponsored. An optimal retirement plan design permits annual…
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backdoor roth contribution

The Benefits of a Backdoor Roth Contribution

By Blog
It is that time of the year – with tax season comes retirement account contribution season! The most popular retirement account of the current 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, Roth’s are funded with after-tax dollars. There is no tax deduction for contributing. Evaluating whether to contribute to a pre-tax or Roth IRA is a common exercise. A prevalent misconception is choosing a pre-tax account is the best option. This is mostly because the investor expects that his tax rate will decline in retirement.…
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long-term care

How to Plan for Long-Term Care Costs

By Blog
Many of us think it won’t happen to us, but the statistics say otherwise. 52% of Americans turning 65 will need some type of long-term care services during their lifetimes. The costs quickly climb financially, as do the physical and emotional stresses. The questions that often follow are: how to pay for it all, and what, if anything, can be done to prepare ahead of time. The answers are not easy, but remember, failure to plan is a plan itself. Who pays for long-term care costs? The first answer that comes to mind for many is Medicare or associated Medicap…
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long term care

Defining your Objectives for Long-Term Care

By Guides & Whitepapers
Americans are living longer and healthier lives than at any other time in history. Average life expectancy in the US is 78.7 years and continues to rise. For those without chronic illness, it is realistic to plan to live well into the 90’s. Longer lifespans come with a higher likelihood that aging adults will eventually need some sort of help with the daily functions of living. In fact, 7 out of 10 will need help in some form – either from a family member or a paid caregiver – and 9 out of 10 who receive that care will not fully recover their…
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Roth IRA

Converting to a Roth IRA: When Does it Make Sense and What are the Benefits?

By and Blog
When does it make sense to convert a Traditional IRA to a Roth IRA? Most of us are familiar with Traditional IRAs, where money is invested pretax and taxes are due when money is withdrawn. Traditional IRAs also require regular distributions (required minimum distributions or RMDs) in retirement. The newer Roth IRA was introduced just over 20 years ago (followed a little later by the Roth 401k) and allows retirement savers to put away money for retirement without a tax deduction on the contribution up front. Roth IRAs allow tax-free withdrawals and no requirement that RMDs be taken. This can…
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account beneficiaries

Naming Account Beneficiaries

By and Guides & Whitepapers
Don’t Overlook this Important Planning Opportunity Before she passed away, Jade was diligent in making sure her will was in order, which left her entire estate to be equally divided between her two sons, Samuel and Benjamin. However, instead of naming them joint account beneficiaries on her brokerage and bank accounts, she named Samuel as sole beneficiary on her large brokerage account and Benjamin as sole beneficiary on her modest savings account. When Jade passed away, nearly all her assets passed to Samuel and Benjamin outside of her will according to her beneficiary designations. However, Samuel received much more than…
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early 401(k) withdrawals

Early 401(k) Withdrawals: What You Need to Know

By Blog
401(k) plans are designated as tax-efficient retirement savings vehicles, with the idea that funds contributed will be used only to fund retirement. Following the rules of your 401(k) means you can enjoy pre-tax contributions and tax-deferred growth that maximize your assets later in life. That said, instances can come up where you may wonder how easily you could access those funds in a pinch. Individuals thinking about early withdrawals from their 401(k) accounts should know that this process can severely limit the growth of your portfolio and subjects you to penalties. Here we examine what those penalties are and under…
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early 401(k) withdrawals

Thinking About Retiring Early? Pay Attention to These Factors

By Blog
Sixty-six and two months is the age the Social Security Administration considers full retirement age for those born in 1955. This will gradually rise to 67 for those born in 1960 or after. The financial realities of most workers in the U.S. require that they remain part of the workforce until full retirement age. Yet some seek to be the exception to the rule. For a high-income earner who maintains an aggressive savings strategy throughout her career or for a successful business owner who sells his operation at a profit, the option to retire early may be realistic. Those who…
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How Much Do You Need For Retirement?

By Blog
The question of “how much money do I need to save for retirement?” is one of the most common for American workers, and one of the trickier questions to answer. The answer, of course, is “it depends.” But how can you begin to form an estimate? There are plenty of online calculators out there, and using one of these can at least provide a ballpark estimate to help you establish investment strategies and savings targets. However, beyond plugging some numbers into an algorithm, a good estimation factors in some important elements: proper attention to a long-term plan, realistic expectations, and…
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