Retirement Plan Limits on the Rise in 2022

Retirement savers have some reasons to celebrate in 2022.

Many IRA and retirement plan limits are indexed for inflation each year. Although the amount you can contribute to IRAs remains the same in 2022, other key numbers will increase, including how much you can contribute to a work-based retirement plan and the phaseout thresholds for IRA deductibility and Roth contributions.  Continue reading “Retirement Plan Limits on the Rise in 2022”

401(k) and IRA: A Combined Savings Strategy

Contributing to an employer-sponsored retirement plan or an IRA is a big step on the road to retirement, but contributing to both can significantly boost your retirement assets. A recent study found that, on average, individuals who owned both a 401(k) and an IRA at some point during the six-year period of the study had combined balances about 2.5 times higher than those who owned only a 401(k) or an IRA. And people who owned both types of accounts consistently over the period had even higher balances.1

Continue reading “401(k) and IRA: A Combined Savings Strategy”

Tax Filing Information for Coronavirus Distributions

In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation included a provision that allowed qualified retirement plan participants and IRA account holders to take penalty-free early distributions totaling no more than $100,000 between January 1 and December 31, 2020. If you took advantage of this measure, here’s what you need to know for tax filing. Continue reading “Tax Filing Information for Coronavirus Distributions”

Sequence Risk: Preparing to Retire in a Down Market

“You can’t time the market” is an old maxim, but you also might say, “You can’t always time retirement.”

Market losses on the front end of retirement could have an outsize effect on the income you receive from your portfolio by reducing the assets available to pursue growth when the market recovers. The risk of experiencing poor investment performance at the wrong time is called sequence risk or sequence-of-returns risk. Continue reading “Sequence Risk: Preparing to Retire in a Down Market”

Five Tips to Regain Your Retirement Savings Focus in 2021

In early 2020, 61% of U.S. workers surveyed said that retirement planning makes them feel stressed.1 Investor confidence was continually tested as the year wore on, and it’s likely that this percentage rose — perhaps even substantially. If you find yourself among those feeling stressed heading into the new year, these tips may help you focus and enhance your retirement savings strategy in 2021.  Continue reading “Five Tips to Regain Your Retirement Savings Focus in 2021”

How Women Are Different from Men, Financially Speaking

Women today have never been in a better position to achieve financial security for themselves and their families. What financial course will you chart?

We all know men and women are different in some fundamental ways. But is this true when it comes to financial planning? In a word, yes.

Everyone wants financial security. But women often face unique obstacles that can affect their ability to achieve it. Let’s look at some of these potential headwinds. Continue reading “How Women Are Different from Men, Financially Speaking”

Coping with Market Volatility: Continuing to Invest May Help You Stay on Course

Coping with Market Volatility: Continuing to Invest May Help You Stay on Course

https://www.finra.org/investors/insights/cares-act-2020-retirement-fund-access-and-student-loan-relief

In the current market environment, the value of your holdings may be fluctuating widely — and it’s natural to feel tentative about further investment. But regularly adding to an account that’s designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, the bottom-line number on your statement might not be quite so discouraging. And a basic principle of investing is that buying during a down market may help your portfolio grow when the market turns upward again.  Continue reading “Coping with Market Volatility: Continuing to Invest May Help You Stay on Course”