Some people say the rule of thumb to use when planning for retirement is to continue to realize seventy percent of the income you had while you were working. But recent research from Goldman Sachs Asset Management shows that only about 25% of retirees actually generate that kind of income, and more than 50% make due with less than half their pre-retirement income. Inflation, overspending, unexpected investment performance, and lack of savings can all contribute...
Wondering if you're on track to meet your financial goals? A mid-year financial checkup may help you evaluate if your financial situation is in good shape. Here's how to get started. Reassess Your Financial Goals At the beginning of the year, you may have set financial goals geared toward improving your financial situation. Perhaps you wanted to save more, spend less, or reduce your debt. How much progress have you made? If your income, expenses...
We hear about big lottery winners all the time. And many of us have friends who found themselves suddenly wealthy after a business gets big, a company went public, a home was sold, or they received an inheritance. While lottery wins are not a reality for most people, it’s not all that uncommon to suddenly have a lot of extra cash on hand from a large inheritance, a sale, a settlement, or perhaps a stroke...
Many investors are unsure of the benefits and drawbacks of fixed annuities and variable annuities, but it is worth learning the differences. All annuities are contracts with an insurance company in which you make one or more payments in exchange for a future income stream in retirement. The funds in an annuity accumulate tax deferred, regardless of which type you select. Because you do not have to pay taxes on any growth in your annuity...
Many forget to include life insurance when developing a financial plan. But life insurance effectively protects your family and loved ones from a catastrophic loss at any age. When considering life insurance, it's wise to look at various factors, including the number of people you support, debt, ongoing financial obligations, your life stage, and even tax considerations. Term vs. Permanent Life Insurance Life insurance is a financial protection policy. It helps you protect the people...
It used to be complicated and time-intensive to maintain a 401(k) for employees. However, according to a recent report from Capital One, 94% of small business owners who offer a 401(k) plan to employees report that this employee benefit is a factor in recruiting and employee loyalty. Maybe that's why 401(k)s have become a standard offering for many businesses today. If your company hasn’t started offering a 401(k), now might be a great time to...
Financial planning can be complex, and there are no guarantees that investments will grow in a predictable fashion. That's why some people have a hard time figuring out how much to put into stocks and bonds or what to expect from their investment down the road. However, even in an uncertain environment, there is a simple formula that you can use as a planning guide for growth over time that also factors in compound interest...
Investing in equities in other countries may provide an exciting opportunity for investors to diversify their portfolios and gain exposure to international markets. However, while there are many similarities to domestic markets, additional factors must be considered. That's why it is crucial to understand the potential risks and challenges associated with investing in foreign markets. More Choices The U.S. Stock Market dominates the world market, but that doesn't mean it offers everything. Looking for investments...
When a stock splits, a company increases the number of outstanding shares by dividing each existing share into multiple shares. This can make the company's shares more affordable to investors and increase liquidity by creating more shares available for trading. But what else do you need to know about stock splits? Here are six key facts to keep in mind. 1. A Stock Split Can Make Shares More Affordable By increasing the number of shares...
We've all used the new year as an opportunity for a fresh start, but new year's resolutions are famously hard to stick with. Maybe people find winter to be a little demoralizing (especially after the high of the Christmas holidays.) It gets dark early, and these months seem better suited to long naps than fresh starts. The start of daylight savings time, however, feels completely different. Spring is in the air. The days are getting...
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. This Act expanded access to retirement plans for millions of Americans in several important ways. Nearly three years later, Congress passed the Consolidated Appropriations Act of 2023, which included a successor retirement bill, SECURE 2.0 Act of 2022 (SECURE 2.0). This act brings a range of changes to retirement savings. We've included some highlights below. Changes are...
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. This Act expanded access to retirement plans for millions of Americans in several important ways. Nearly three years later, Congress passed the Consolidated Appropriations Act of 2023, which included a successor retirement bill, SECURE 2.0 Act of 2022 (SECURE 2.0). This act brings a range of changes to retirement savings. We've included some highlights below. Changes are...
