Dividend.com: Retirement Center
Retirement is one of the most important — and difficult — issues facing Americans in the 21st century. The articles below will assist you in planning and maintaining a happy, financially secure retirement.
It may seem counterintuitive that a majority of investors hold more money in IRAs than 401(k)s. After all, 401(k)s allow you to contribute about $17,500 per year ($23,000 if you’re 50 or older) while IRAs only allow you to contribute $5,500 per year (or $6,500 for those over 50). There are, however, a variety of reasons for why IRAs are home to more retirement funds for most investors.
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The Employee Benefit Research Institute (EBRI) published its annual Retirement Confidence Survey this month, which showed the level of confidence when it comes to retirement has remained flat since its record low in 2011.
While the number of Americans who are not confident about retiring is less than half, 28% of American workers have no confidence at all about their retirement. Additionally, 21% of workers are “not too confident” about retirement and 38% are “somewhat confident.”
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A growing trend among older Americans is taking shape: the probability of retiring at age 65 has dropped substantially. More Americans are also coming out of retirement than in the past, while many people planning to work past traditional retirement age cite the need for more money and health insurance benefits as the most important reason for doing so. The financial benefits of delaying retirement are obvious, but smarter financial decisions made earlier in life can help prevent the need for a later retirement. If you haven’t had the benefit of doing some serious retirement planning, there are many things that will keep you working well into your golden years. We’ll look at the financial situations that will affect whether you have to delay your retirement.
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Aside from how you'll pay for retirement, where you'll live during retirement will be one of your main considerations. Having worked for so many years to prepare for retirement, you’ll want to make sure where you live during retirement suits your needs and lifestyle. If your home hasn’t lost the value that many housing markets saw during the 2008-2010 recession, then you’re left in a very fortunate position to choose where you wish to live. We’ll look at what information you need to evaluate your prospective retirement destination before making the big step to sell your house and move somewhere else.
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Although millions of Americans regularly set aside a portion of their earnings into retirement savings plans and accounts, the majority of retired workers still depend heavily on Social Security for their primary financial support after they stop working. The Old Age, Survivor and Disability Insurance program has grown to become one of the largest forms of social insurance in human history, but it faces an uncertain future and has become the focal point of heated debate in political circles.
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It can get a bit overwhelming preparing for retirement. Not only do you have set proper course of action and sort out different strategies that best suit your retirement needs, it can also be quite difficult determining what kind of retirement accounts to open. When it comes to individual retirement accounts (IRAs) many wonder whether to open a Traditional or Roth IRA. Though they share a few characteristics and have similar names, the different nuances between the two could affect an individual's retirement goals much differently. Read More »
It's never too early to start saving for your retirement ... and it's never too late. Whether you are ahead of the curve when it comes to your retirement savings goals or perhaps behind the ideal course, there are ways to make sure you have a source of income into your golden years. Depending on an individual's situation, there may be different levels of sacrifice you need to make to get to your ideal financial position in retirement. However, by following some of these simple retirement saving tips, you can be on your way to building the wealth that will make for a prosperous retirement. Read More »
Baby Boomers who have let their retirement savings slip in recent years out of fear of the markets or for other reasons need to take a hard look at where they are going financially. The number of years that they have left to add to their nest eggs is dwindling, and for those in this category it’s time to get their savings plans into high gear. Here is a list of tips that can help them to catch up on their retirement planning and get the most out of their portfolios. Read More »
On the surface it’s a simple idea: work, earn money, save, invest and retire. However, we all know getting from point A to point B can be quite tricky. Utilizing plain old savings and government-provided Social Security just doesn't cut it anymore. A savvy investor knows that taking advantage of retirement accounts, like IRAs, or employer-sponsored plans, like 401(k)s, are the only ways to build substantial wealth for retirement in today’s economic climate. But the problem is that many individuals do not fully understand the potential that these plans have for establishing a comfortable retirement. Here is an simple outline to understand a well known employer-sponsored retirement plan, the 401(k). Read More »
Let's face it, no one knows what life has in store for us. All the preparing in the world cannot stop unforeseen circumstances that may throw a retirement plan off its tracks. Sometimes you may find yourself in a financial pinch and look for a loan--or any type of borrowed money--to help alleviate the monetary problems that have arisen. Even though there are better options out there, you may look to tap into your retirement account, like a 401(k), and borrow from it to solve your short-term financial issues. Though it is not recommended by most, if the situation does arise and you need to borrow from your 401(k), keep in mind the following considerations. Read More »
Mortgage refinancing involves paying off your current mortgage, and replacing that mortgage with another one that more closely meets your financial needs, or that allows you to save money on monthly payments or in the long-term. The reasons to refinance are many
: you may refinance to take advantage of better interest rates, or you may want to switch to or from an adjustable rate mortgage to or from a fixed rate mortgage, or you may want to shorten or lengthen the terms of your mortgage. Each of these options has an upside and a downside, but there will always be some sort of fee attached to paying off your current mortgage before the terms are met.
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Taxes are a sensitive subject in Washington; whatever tax rates the policymakers set ultimately affects investors, corporations, and individuals on Wall Street and Main Street alike. When preparing for retirement, individuals must take into consideration these potential tax rates and what they will be when they withdraw from their retirement accounts down the road. Planning for the future is an effective step in staying ahead of the curve on the path towards retirement. But to get the most bang out of your retirement account's bucks, paying attention to the potential tax rates of retirement account withdrawals is an absolute must. Read More »
If you’re self-employed, retirement planning can take a little more work than if you worked for a company that offers 401(k) matching, pensions or something similar. Pensions are becoming less of an industry standard these days, but missing out on the 401(k) contributions from your company is definitely a downside to being self-employed. The good news is that you have many options for how to invest your money and to find out which retirement plan is best for you.
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Just about everyone wishes to settle into their golden years with enough money to live comfortably; however, the 2008 financial crisis, the subsequent Great Recession and overall market turmoil have made individuals uneasy about their retirement plans and future situation. Though recent history has left a bad taste in the mouth of households, investors and businesses alike, it does not mean that the options for a pleasant retirement are bleak. Investing in healthy dividend-paying stocks within Roth IRAs can be a great strategy to ensure a peaceful retirement. Read More »
With the 2008-2009 recession still weighing heavily in people’s memory—and on some people’s portfolios—retiring early can seem like a fantasy. With the hit to many 401(k)s and IRAs, your investments may have not yet built themselves back up to the point that you can retire and accomplish everything that you had planned on - a place down south, yearly vacations and living the good life in general may still be a ways away. That said, you may still wish to retire early, and you may still be able to afford it. Before you give your retirement notice you should figure out the factors that you need to be aware of before making this huge decision.
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Though the U.S. has come a long way towards gender equality, retirement is one area where there are still very different concerns. Aside from longer life expectancies, women that are in or are approaching retirement, on average, have not worked as much as men, so they don’t have the pensions and retirement savings to count on. Though men and women are almost tied in workforce participation (men still lead by a few percentage points), lower salaries and seniority for women affect the amount that they’ve been able to contribute to retirement plans. As well, women’s involvement in the workforce has been increasing for many years, but the women that are now entering retirement did not live in the same employment conditions.
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When coming up with a retirement plan, many Americans consider how much retirement income they’ll need in order to enjoy their current quality of life. We’ll look at how you can figure out the amount you need for retirement, and then go into how your can stretch those retirement dollars by cutting out extraneous and unnecessary expenses.
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