There has been a lot of talk recently about a recession: whether or not one will come, what it would mean, and how it would affect each of us. A recession is defined by the National Bureau of Economic Research as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.” Usually, this means that the markets decline, businesses tighten up, and employment and wages can be negatively impacted. Call us if you would like to discuss how this might affect your retirement savings. We can speak to you one-on-one
Let’s start by explaining that when you begin receiving Social Security retirement benefits, you are considered officially “retired” by the Social Security Administration (SSA). You can receive Social Security checks and still work at the same time. However, since you are now “retired” there is a limit to how much you can earn and still receive full benefits. If you are younger than full retirement age, and earn more than the yearly earnings limit, the SSA may reduce your benefit amount. If you are under full retirement age for the entire year, they deduct $1 from your benefit payments for
With the downturn in the market these past few months, there is increasing talk about the pros and cons of converting an existing diminished IRA account into a Roth IRA. Both types of IRAs are designed to help you save for retirement while providing a tax advantage, but they do so in different ways. We thought it might help you to understand the difference. With a traditional IRA, you pay the tax due when you withdraw the funds, and with a Roth IRA, you pay the tax due on the funds you contribute. This way, the withdrawal amount later on
We often think of retirement in terms of ‘having enough money.’ However, there are other considerations. This article dives into these other considerations and divides them into three categories: Regret, Health, and Identity. Interestingly, the author tells us that financial worries weren’t among the top three considerations. Over 15,000 retirees, age 60+ were surveyed. What are your thoughts on this?