Key Takeaways When deciding between a CFP and a CPA for retirement planning, it’s essential to understand their distinct roles and expertise. Integrating tax planning and financial strategy with CFPs and CPAs ensures comprehensive retirement planning. CPAs excel in tax planning, while CFPs receive extensive training in investment, estate planning and retirement strategies. Working with…
Key Takeaways Delaying IRA contributions can lead to missed investment growth and result in a procrastination penalty. Automating contributions can prevent procrastination, as can establishing a retirement savings budget. Catch-up contributions for investors aged 50 and older can accelerate retirement savings. Delaying IRA contributions can result in an opportunity cost of over $100,000 in potential…
Key Takeaways Workers age 50 and older can take advantage of 401(k) catch-up contributions, allowing them to contribute up to $7,500 more than younger participants. In 2024, you can put in up to $30,500 if you meet the requirements. You can receive tax benefits through catch-up contributions, especially if you set aside the maximum amount,…
Key Takeaways: Roth IRAs enable retirement savers to generate tax-free earnings. Income limits apply to Roth IRAs. Unlike a traditional IRA, contributions to a Roth IRA are made with after-tax dollars. You must be 59 1/2 or older and meet a five-year holding requirement to withdraw without taxes or penalties. A Roth IRA can be…
Key Takeaways: A $750,000 annuity can generate income without risking the principal. Different annuity types, including guaranteed income annuities, act as a shield against market volatility and an insurance policy against outliving money. Calculating the annual income from a $750,000 annuity involves factors like age and annuity type. In some situations, investors may prefer annuities…
Key Takeaways: The Federal Reserve signaled interest rate cuts, which would likely affect retirees’ income. Strategies such as bond laddering and dividend-stock investing could help increase and maintain income in a low-rate environment. Lower interest rates may prompt investors to shift from bonds to stocks for potentially higher returns. As inflation cools, the Federal Reserve…
