Retirement Planning
A Social Security Solution?
We’ve heard that the Social Security trust fund could run out of money by 2034. But what does that mean? The recent Trustees’ Report provides some clues.
The estimate (based on the number of workers paying into the system, their wages, and those receiving benefits) is that in 2034 payroll taxes will […]
Reducing the Donut Hole
You may never have heard of the “Donut Hole”. It has to do the Medicare Part D prescription drug plans. The donut hole is an unusual coverage gap that is triggered after you have paid $3,750 of drug costs in a year. After reaching the donut hole, you would suddenly be paying for […]
How Does Your Employer’s Retirement Plan Compare?
Each year, the Plan Sponsor Council of America (PSCA) surveys employers to gauge trends in retirement plan features and participation. Results are used by employers and plan participants to benchmark their plans against overall averages. How does your plan compare to the most recent survey results, released at the end of 2018?1
Participation and savings rates
Plan […]
Quiz: Social Security Survivor Benefits
Did you know that Social Security may pay benefits to your eligible family members when you die, helping to make their financial life easier? Take this quiz to learn more.
Questions
1. What percentage of Social Security beneficiaries receive survivor benefits?
a. 5%
b. 10%
c. 15%
2. Your child may be able to receive survivor benefits based on your Social […]
Inflation: Costs and Benefits
For someone saving for the cost of future retirement, inflation erodes your future purchasing power. One of your investment objectives is likely to have a return greater than the drag of inflation.
Believe it or not, the government (specifically the IRS) will periodically increase certain thresholds for the impacts of inflation. For […]
IRA Contributions During Retirement
Here are a couple of common questions those over 65 ask about IRA’s. Can I contribute to an IRA or a Roth IRA? When I start taking required minimum distributions (RMD) can I reinvest some or all of it back to IRA or Roth IRA?
If you have earned income you can contribute the lower […]
New Benefit and Investment Thresholds
Each year, the U.S. government changes a variety of thresholds impacting benefits and investment contributions. These increases are usually tied to the inflation rate. For the past ten years, since inflation has been pretty low, most of the increases have been modest.
Below is a summary of the 2019 levels.
The contribution […]
Alzheimer’s Disease Myths and Facts Quiz
The probability of needing long-term care is growing. According to the U.S. Department of Health and Human Services, Americans turning age 65 today have nearly a 70% chance of needing some type of long-term care services in their remaining years.1 There are many reasons why you may need long-term care, but one of the growing […]
What Are the New Rules for 401(k) Hardship Withdrawals?
The Bipartisan Budget Act passed in early 2018 relaxed some of the rules governing hardship withdrawals from 401(k) s and similar plans. Not all plans offer hardship withdrawals, but the ones that do will be required to comply for plan years beginning in 2019.
In order to take a hardship withdrawal from a 401(k) or similar […]
Sustainability of Medicare and Social Security
Many were rightfully concerned when the Trustees’ of the Medicare and Social Security Trust Funds released their report indicating that Medicare would go bankrupt in 2026 (three years earlier than the prior projection). Social Security goes bankrupt in 2034 – although it is unchanged from prior estimates.
These challenges are not new. […]
