Answer: Although most of us recognize the importance of sound retirement planning, few of us embrace the nitty-gritty work involved. With thousands of investment possibilities, complex rules governing retirement plans, and so on, most people don’t even know where to begin. Here are some suggestions to help you get started. First, set lifestyle goals for
Answer: Your first step is to take advantage of tax-favored retirement savings tools. If you have access to a 401(k) or other employer-sponsored plan at work, participate and take full advantage of the opportunity. Open an IRA account and contribute as much as you can. Ideally, you’d be able to invest in both an employer
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans, thresholds for deductions and credits, and standard deduction and personal exemption amounts. Here are a few of the key adjustments for 2017. Retirement plans Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $18,000
The Centers for Medicare & Medicaid Services (CMS) has announced that in 2017, most Medicare beneficiaries (about 70%) will pay $109 per month on average for Medicare Part B. This is up from the $104.90 monthly Part B premium that has been in effect since 2013. If you fall into this group, you face only
Yes. Anyone with earned income who is under age 70½ can open and contribute to a traditional IRA. The contribution limit is $5,500 for 2017 (unchanged from 2016), plus an additional “catch-up” contribution of $1,000 in 2016 and 2017 if you’re 50 or older. However, you may not be able to deduct your IRA contributions
Maybe. It depends on your particular circumstances. You must have earned income during the year (typically, wages or self-employment income). Beyond that, your eligibility for a Roth IRA will hinge on two primary considerations: your adjusted gross income for the year and your income tax filing status. In a given tax year, it’s possible you
If you are the adult child of aging parents, you may find yourself in the position of someday having to assist them with handling their finances. Whether that time is in the near future or sometime further down the road, there are some steps you can take now to make the process a bit easier.
Is 62 your lucky number? If you’re eligible, that’s the earliest age you can start receiving Social Security retirement benefits. If you decide to start collecting benefits before your full retirement age, you’ll have company. According to the Social Security Administration (SSA), approximately 73% of Americans elect to receive their Social Security benefits early. (Source:
There’s no denying the benefits of a college education: the ability to compete in today’s job market, increased earning power, and expanded horizons. But these advantages come at a price. And yet, year after year, thousands of students graduate from college. So, how do they do it? Many families finance a college education with help
What is Medigap? Because original Medicare coverage has limitations, many people purchase supplemental insurance policies that are specifically designed to cover some of the gaps. These supplemental insurance policies, called “Medigap” policies, are sold by private health insurance companies, not the federal government. In general, you will not need a Medigap policy if your Medicare
