When Your RMD Is Bigger Than Your Retirement Budget
The IRS requires you to take your full required minimum distribution, or RMD, whether you need to spend the money or not. When that withdrawal exceeds what your budget calls for, you still must account for the income and decide how to use the amount left after taxes. You can keep saving, although there are […]
The Overlooked Role of a Taxable Account in Retirement
By the time you retire, you may have spent thirty or forty years arranging your financial life around getting money into retirement accounts. You increased contributions when you got a raise, weighed traditional versus Roth contributions, and watched your balances grow. A brokerage account, if you had one, was where you invested whatever was left […]
Why Your Next Withdrawal May Cost More Than You Expect
After years of saving, it can feel reassuring to know you have enough set aside for a major purchase or an unexpected expense. You can look at your account balances, decide what you can comfortably afford, and begin making plans. Choosing where to take the money from deserves a little more thought. You may have […]
What Does a 95% Success Rate Really Mean?
Most of us have spent our lives being evaluated on a scale of 0 to 100. From elementary school through college, we learned that higher scores meant better results. A 95 was an A, a 75 was a C, and anything below 60 usually meant we had some work to do. That way of thinking […]
A Zero-Dollar Tax Bill Can Be a Missed Opportunity
Paying no federal income tax can feel like an obvious win, especially after decades of watching taxes come out of every paycheck. Once work ends, income often drops, deductions may cover much of what remains, and it can be satisfying to see little or nothing owed when your tax return is finished. The problem is […]
Filling Tax Brackets May Be the Wrong Roth Conversion Strategy
Paying $0 in federal income tax during retirement might sound like the ultimate tax-planning victory. After decades of paying taxes on your earnings, investments, and retirement savings, reaching a point where you owe nothing can feel like evidence that you planned exceptionally well. But a $0 tax bill can also represent a missed opportunity. Each […]
The Safest Investment May Not Create the Safest Retirement
Most of the decisions we make in retirement planning become easier once you understand why you are making them, but that does not mean they always feel intuitive. Investing is a good example. You spend your working years accumulating savings, often with the understanding that accepting some market risk is necessary to grow your money. […]
The Tradeoffs of Protecting Your Purchasing Power
Every generation has stories about how inexpensive things used to be. A gallon of milk, a tank of gas, a movie ticket, or the first home someone bought decades ago all seem impossibly cheap by today’s standards. A dollar simply does not buy what it used to. That may seem like little more than an […]
Your Age Is an Imperfect Guide to Investment Risk
A restaurant can be packed every night and still struggle financially. Knowing how much revenue comes through the door tells you something, but not nearly enough. You also need to know what it costs to operate and what obligations must be paid. Retirement portfolios deserve the same treatment. An account balance, or the age of […]
What Investors Should Know About IPOs
A successful restaurant rarely opens its doors on the first day with every table filled and every reservation booked for the next six months. Even the best restaurants spend years refining their menu, building a reputation, and proving they deserve a loyal customer base. Investors, however, often expect newly public companies to justify valuations that […]
