How Social Security Benefits are Calculated

Calculator

For most American retirees, Social Security is a huge part of the retirement equation. In fact, a recent New York Times article notes that even retirees with a $1 million nest egg rely heavily on Social Security income during retirement. Even though Social Security is so important, most of us still don’t understand exactly how […]

Published or Updated: July 9, 2013

The Required Minimum Distribution

Retirement Calculator

Photo: Tax Credits All tax-advantaged retirement accounts have rules for something known as the Required Minimum Distribution. Basically, these rules are in place to ensure that you take at least a minimal amount of money in withdrawals from your retirement accounts once you reach a certain age. For many people, the Required Minimum Distribution will […]

Published or Updated: June 18, 2013

60 Second Guide to Making IRA Contributions

The other day I received an email from the IRS about IRA contributions. Believe it or not, the IRS has done a lot over the last few years to provide really helpful information about everything tax related. So I signed up for the emails, and they have been extremely helpful. So today I thought I’d […]

Published or Updated: April 21, 2014

Guide to Borrowing from a 401(k) Account

IRA Recharacterization

Photo: StockMonkeys.com About 50 million working Americans contribute to a 401(k) plan. According to a study cited by Time, one in four will tap their 401(k) or similar retirement plans before retirement. In 2010 about $70 billion was taken from retirement accounts, according to the study. Given that, we thought it would be helpful to […]

Published or Updated: April 10, 2013

How to Maximize your Employer’s 401(k) Match

Free money is free money no matter how you look at it. Can you believe that every year millions of employees miss out on their employer’s 401(k) match? This is the best kind of free money because you don’t have to do much to take advantage. So what do you have to do? Simply be […]

Published or Updated: April 21, 2014

How to Max Out Your Retirement Savings

Max Out Retirement Savings

Max out your retirement savings with these 7 tips Photo: mjzitek I‘ve often wondered if the Apostle Paul was bad with his money. Yes, I’m talking about the guy that wrote most of the New Testament. In his letter to the church in Rome, Paul lamented that the things he wanted to do he doesn’t, […]

Published or Updated: November 24, 2013

A Complete Guide to Roth 401k Conversions

Roth 401k

Now anybody can convert an existing 401k into a Roth 401k, so long as your employer offers the Roth alternative. Roger Smith Roth IRAs have been a popular form of retirement savings for some time. And while there are income limitations that prevent higher income workers from opening a Roth IRA, since 2010 these limitations […]

Published or Updated: January 7, 2013

IRAs for Kids are a Great Way to Build Weatlh

Power of Compounding

IRAs for kids are a great way to teach children about investing and the power of compounding. Photo: Gerard Van der Leun The biggest mistake I’ve made investing is a mistake almost all of us have made. The mistake is not picking the wrong investment. It’s not buying or selling at the “wrong” time. And […]

Published or Updated: December 20, 2012

5 Things to Know About an Inherited IRA

As part of my ongoing series on handling the estate of a loved one, today I want to look at inherited IRAs. My step-mother had a couple of IRA accounts. As you may know, with an IRA, you can select the beneficiaries that will inherit the account when you die. As such, the funds do […]

Published or Updated: October 26, 2012