The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27. It’s a massive relief package designed to help Americans get through these difficult economic and financial times. Yes, this is the legislation that also includes the one-time payments from the government for those below a certain annual salary. While most of the reporting on the CARES Act tends to focus on helping those of working age who find themselves without a job, it does have some advantages for retirees. First off, many retirees will be eligible to receive the highlight of the legislation–those Continue reading Retirement Accounts and Government Coronavirus Relief
If you work in the public sector or for the government, you’ve probably heard of a type of retirement plan called a Deferred Retirement Option Plan (DROP). A DROP plan allows for an employee to work past their retirement-eligibility date while the employer adds annual, lump-sum payments into an interest-bearing account during that period. Once the employee actually retires, they gain access to the account and all the money in it. It benefits the employer as the employer avoids dealing with an increased pension amount that normally would come with added years of service. It should be noted that DROP Continue reading Public Sector Employee? Look for the DROP!
Over the past few months, I’ve occasionally written about the SECURE Act. The legislation, formally known as Setting Every Community Up for Retirement Enhancement (SECURE), could have some big impacts on retirement saving for a wide swath of Americans. These changes include framework that will allow small business to band together to offer retirement benefits and will remove the maximum age for IRA contributions. Yesterday, the legislation passed the House by overwhelming numbers–a rare bipartisan showing of support these days. It will next move on to the Senate. The Senate meanwhile, is voting on it’s own legislation to revamp the Continue reading Getting Closer to Feeling SECURE
It may not be evident, but the gaps between the classes in American society have widened over the past decade. The rich have gotten richer, while the middle class and lower classes have struggled to improve their lots. Meanwhile, costs of living have gone up, and along with that, the amount needed to live a comfortable life in retirement. On top of all this, the Baby Boomer generation–one of the largest segments of our country–has aged and started to retire, placing a strain on the resources that once were considered hallmarks of retirement. Things such as Social Security and pensions Continue reading Retirement Benefits May Become a Requirement in the Future
Over the course of a career, you will probably have multiple retirement accounts. You’ll probably open a 401(k) plan with each employer along with a personal IRA. It can be easy to lose track of those accounts over a career that lasts decades, especially for early-career jobs that may not last that long. While it is suggested that you be diligent with tracking your retirement accounts after you leave a job, it’s not uncommon for accounts to be forgotten about. If you do lose track of your retirement accounts, there are tools available to try to track them down. The Continue reading Don’t Lose Track of Your Retirement Accounts!
Over the next 365 days, policymakers–at both the state and federal levels–have the potential to shape retirement for many for decades to come. Some such policy opportunities may be straightforward in impact while others may be more subtle and long-term. For example, how politicians and regulators go about handling any current economic issues could have affects on how people save currently as well as what future retirement costs may be. Another example might be whether a more liberal-leaning House of Representatives combined with similarly-situated state legislatures may turn their sights on programs such as Social Security and Medicare and look Continue reading Will Policymakers Hurt or Help Your Retirement Plans in 2019?
Social Security isn’t going anywhere anytime soon, but it’s also not what it used to be. Yes, it can still be a part of your retirement plans, but the days of such benefits being a large part of your retirement savings are long gone. Since Social Security won’t pay the bulk of your bills, you have an opportunity to be a bit strategic with what you do with that money. For example, you could earmark it in advance to be put towards particular bills or invest it and help grow your nest egg. What’s important is that you do something Continue reading Will Social Security Be Part of Your Retirement Planning?
Even though I haven’t talked much about them on this blog, Social Security benefits can be an important part of retirement planning. Yes, there always seems to be uncertainty surrounding these benefits–particularly during budget season–but that still doesn’t mean you need to shy away from including Social Security as part of your retirement plans. You should be safe if you look at this government benefit as a way to sustain yourself financially should you either live longer than anticipated or as a way to prolong your savings as you grow older. Regardless of how you intend to use Social Security, Continue reading How Does Social Security Fit In With Your Retirement Plans?
The answer to the question that is the title of this post is one that may vary by generation. For those currently in retirement, the answer might include a combination of themselves and maybe the retirement benefits offered by an employer (with maybe a little bit of government help thrown in). However, for the younger generations either just starting out on the working world or who are a ways away from retirement, the answer is whoever they see when they look in the mirror. With the prevalence of defined contribution plans and the likelihood that Social Security will be a Continue reading Who is Responsible for Your Retirement?
Over the past few weeks, you may have seen the Republican’s proposed tax cuts mentioned in the news. It’s a much talked about topic that and it was recently revealed that it could have a big impact on how you save for retirement. One area of debate–which could have a huge effect on the middle class–is whether or not to impose a limit on the amount of income that can be saved in a 401(k) retirement account. Republicans had been considering a limit as part of their tax plan as a way to help pay for proposed tax cuts. However, Continue reading 401(k) Contribution Limits and Your Retirement