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How Much Money Do I Need in My 401k When I Retire?

How Much Money Do I Need in My 401k When I Retire?

If you are the kind of person that must plan ahead to ensure your family will have enough money to live on, AND you are not blessed with the gift of foresight, you’ve likely spent a few sleepless nights wondering if you have saved enough for retirement. To go along with those restless nights are a multitude of “what-ifs” that begin to creep in. With all that in mind, this article will explore a few rules of thumb and techniques used to estimate how much a retiree will need to have saved so that their nest egg lasts their lifetime.

Guest UserDecember 14, 2022Michael Mikonis, 401k and IRA

Are Bonds a Safe Investment?

Are Bonds a Safe Investment?

For most investors at or nearing retirement, bonds have long been a place where you can go to get a secure and predictable stream of income. That experience that many have gone through since the 1980s is now being questioned as to whether it will continue for the years to come. The bond market through the first 3 quarters of 2022 has been historically bad and some would say doesn’t seem to offer much hope for the “bond-like” returns that we’ve grown accustomed to.

InvestingGuest UserOctober 25, 2022Ian Aguilar, bonds

Should I Unretire if the Stock Market Crashes?

Should I Unretire if the Stock Market Crashes?

Alas, the answer to the title question of this article is… it depends. I was tempted to say “yes” and make this a very quick read. However, I didn’t want to shatter anyone’s retirement dreams. As a Certified Financial Planner™ (CFP®) practitioner, my goal is to do the opposite of that. Really, the honest way to assess this question is to examine if a retiree’s financial resources are enough to last them their lifetime. Doing so will go a long way towards determining whether or not they should consider unretiring during a stock market crash.

RetirementGuest UserOctober 6, 2022Scott Snider, market crash vs correction, market correction

Roth Withdrawals – I’m ready to get that tax free money….

Roth Withdrawals – I’m ready to get that tax free money….

You took great advice from a friend years ago to open and start contributing to a Roth IRA. Over time you have employed other strategies like Roth Conversions and Backdoor Roth IRAs to boost your Roth IRA balances. Now it’s time to start drawing from those dollars. In a previous blog post, Roth IRA Owners Beware of the 5-Year Rule we touched on the 5-year Rule that must be adhered to in order to ensure that your distributions from your earnings are TAX FREE when you take them. Because after all, isn’t that the greatest benefit of owning a Roth IRA?

IRAsGuest UserSeptember 29, 2022Roth IRA Series, Jenn King

Asset Location and Roths

Asset Location and Roths

You’ve probably heard so much about “Asset Allocation” that you may have thought I left out “A” in the title by mistake. “Asset Location” is not talked about nearly as often but has the potential to impact the bottom-line of investment account performance. The premise behind this strategy is rather simple; some investments are more tax efficient than others.

IRAsGuest UserSeptember 23, 2022Michael Mikonis, Roth IRA Series

Roth IRA Owners Beware of the 5-Year Rule

Roth IRA Owners Beware of the 5-Year Rule

As you prepare for retirement, a Roth IRA can be a wonderful way to build and grow your nest egg. The tax-free benefits previously discussed in our article, Why Choose a Roth IRA, are a major reason why investors gravitate towards owning a Roth IRA. However, the IRS is not in the habit of letting money just come and go willy-nilly, especially when it comes to tax-favored investment vehicles. Therefore, the Roth IRA has strict rules around contributions and withdrawals. This article focuses on one element of the withdrawal rules – the Roth IRA 5-year rule.

IRAsGuest UserSeptember 8, 2022Scott Snider, Roth IRA Series

Mega Backdoor Roths – What makes them so MEGA?

Mega Backdoor Roths – What makes them so MEGA?

This must be an important topic because why else would the word MEGA be in the title? There’s Megatron - leader of the Decepticons, Mega Man of the video game series and state lotteries title their big jackpots as Mega Millions. So, this must be a BIG DEAL, right?

Well, it is and so much so that you’ll see political parties trying to ax this strategy every so often. But until that happens, it’s important to know what this is, how it works and when you would want to use this strategy.

IRAsGuest UserAugust 25, 2022Jenn King, Roth IRA Series

What are Good Investments in a Recession?

What are Good Investments in a Recession?

Whenever markets start to face some head winds, one of the most common questions to come thereafter becomes, “what to invest in during a recession?”. The easy answer is that there are no recession proof investments out there. The more realistic answer is that not all recessions are built the same way. Some recessions are due to pandemics, while others can be due to rising interest rates, a faulty housing dynamic, over extended stock markets, or a number of things.

Guest UserAugust 18, 2022Ian Aguilar, market crash vs correction

Backdoor Roth IRAs: A Savings Strategy for High-Income Investors

Backdoor Roth IRAs: A Savings Strategy for High-Income Investors

So how does a disqualified Roth investor actually slip past the IRS? Their “backdoor way in” is, in a basic sense, a 2-step process.

Guest UserAugust 16, 2022Scott Snider, 401k and IRA, Roth IRA Series

How to Invest During Inflation

How to Invest During Inflation

As of the most recent consumer price index (CPI) reading on Aug 10, inflation came in at 8.5% annualized. While the rate has come down from the 9.1% reading in June, it remains to be seen if this is a temporary step in the right direction or if inflation has in fact peaked. Any way you slice it, Americans are experiencing the worst level of inflation since the end of 1981.

PlanningGuest UserAugust 11, 2022Scott Snider

When To Use a ROTH 401K

When To Use a ROTH 401K

Roughly 75% of employers that Fidelity serves as an administrator offer a ROTH option in their 401K plans. If you were amongst the lucky 75%, when you enrolled into your 401K and were customizing contributions, you may have noticed that you had a choice between a Traditional or a ROTH 401K. Most people select the “Traditional 401K” option, and only 13.6% opt to contribute to a ROTH account. It could very well be that majority of plan participants do not take the time to research which choice would serve them better and go with the safe sounding “Traditional” option. So, when does it make cents (HA!) to choose one over the other? The answer depends on your financial priorities now versus the future, let’s take a look.

401KGuest UserAugust 4, 2022Roth IRA Series, Michael Mikonis

Roth Conversions – When It Makes Sense and When It Does Not

Roth Conversions – When It Makes Sense and When It Does Not

On the surface, converting your traditional IRA to an investment vehicle that offers tax-free benefits like a Roth IRA sounds like a great idea. Why is that? It boils down to one thing – the words TAX-FREE. Americans love the word FREE, especially when it is associated with taxes. You might be a Russian communist if (in my Jeff Foxworthy voice) … You enjoy giving the government all your money.

IRAsGuest UserJuly 21, 2022Roth IRA Series, Scott Snider

Why Choose a Roth IRA

Why Choose a Roth IRA

You’ve been told that it is important to save for your retirement, so with your first job you started contributing to your 401k at work. This was a great option as your company had matching dollars for the dollars you contributed AND it helped to lower your income for income tax purposes. You’ve done a great job saving and are looking for other options to save for retirement. Where to save those additional dollars now?

IRAsGuest UserJuly 14, 2022Roth IRA Series, Jenn King

Enrolling in Medicare When You Have a Health Savings Account (HSA)

Enrolling in Medicare When You Have a Health Savings Account (HSA)

Before we dive into the main components of this article, which is Health Savings Accounts (HSA) and Medicare, let’s do a brief primer on how these types of accounts operate. HSAs are tax deferred savings vehicles that allow contributions to go in tax-free, and for withdrawals to be taken out tax-free – as long as the money is used to pay for qualified medical expenses. Therefore, HSAs are truly the only triple tax savings accounts allowed by the IRS.

Health InsuranceGuest UserJuly 7, 2022Scott Snider, medicare series

Important Dates in the World of Medicare

Important Dates in the World of Medicare

You will encounter many important dates and deadlines once you peer into the world of Medicare and you will want to attend to these matters earlier than later – each day 11,000 people turn 65 and “get in line” to sign up for benefits. We hope this article will help you stay on top of things and have a smooth experience signing up for Medicare.

Health InsuranceGuest UserJune 29, 2022Michael Mikonis, medicare series

Medicare Advantage: Thank you for the advice Joe Namath, but is this the right plan for me?

Medicare Advantage: Thank you for the advice Joe Namath, but is this the right plan for me?

While private health insurance plans have been a part of Medicare since the mid 1960’s, they didn’t become what they are today until the Balanced Budget Act of 1997 and the introduction of Medicare+Choice that eventually was named Medicare Advantage in 2003. Medicare Advantage was designed to give recipients an alternative to “Traditional” Medicare. As of 2021, 42% of the Medicare population is enrolled in Medicare Advantage.

Health InsuranceGuest UserJune 23, 2022Jenn King, medicare series

Medigap - Medicare Supplement Insurance

Medigap - Medicare Supplement Insurance

We know that government programs – such as Medicare and all the parts that come with it, including Medigap plans – are as straight-forward as a ball of spaghetti. We hope that you find our insights helpful as you plan out your medical expenses during retirement.

Health InsuranceMichael MikonisJune 16, 2022medicare series, Michael Mikonis

What Can You Do About that Aggravating IRMAA Surcharge?

What Can You Do About that Aggravating IRMAA Surcharge?

IRMAA is an acronym that is otherwise known as the Income-Related Monthly Adjusted Amount. This is a surcharge that gets added to your Medicare Part B and Part D base level premiums. Just what you wanted to hear… You have to pay more for the same level of coverage – only because you make more income. Effectively this is means-testing within the Medicare system.

Health InsuranceGuest UserJune 8, 2022Scott Snider, medicare series

Medicare Part D: Prescription Drug Coverage

Medicare Part D: Prescription Drug Coverage

If you opt to go with Traditional Medicare, you will need to purchase a Part D plan to have coverage for prescription medications. You may not need a Part D plan if you choose to go with Medicare Advantage instead; as most advantage plans include Part D already, but make sure to consider the limitations of Advantage plans before making your choice.

Health InsuranceGuest UserJune 1, 2022Michael Mikonis, medicare series

Medicare Part B: Medical Insurance

Medicare Part B: Medical Insurance

For those who have been covered by group insurance for all their working years, transitioning to Traditional Medicare’s Part B can be a little confusing as there are nuances about Part B enrollments, costs, etc. that should be understood BEFORE you turn 65. We hope to explain some of those nuances here.

Health InsuranceGuest UserMay 25, 2022medicare series, Jenn King