Retirement Income USA

01/06/2023

Financial Fact Friday: Robinhood wants to be your retirement fund, offering a 1% match

Robinhood, a stock-trading app that became a favorite of the "meme-stock" crowd during the pandemic, has a new proposition: Open an Individual Retirement Account with the service and it will match 1% of the funds customers contribute.
The company, which rolled out its new retirement savings program in December 2022, said it is the only IRA provider to offer a match on investments — a feature that is typical in many employer-based 401(k) programs. In such plans, an employer will typically match a worker's 401(k) contributions up to a limit, often between 3% to 6% of their annual salary.
According to Census data, such matches are typically only available as an employer-sponsored benefit, and only 1 in 3 Americans has access to a corporate retirement plan.

(Source: CNCB News)

01/05/2023

FACT or FICTION: New survey results suggest that investors grappling with today's economic environment are feeling increased pressure on their retirement plans and are facing more uncertainty about when they will be able to retire.

FACT: According to the Nationwide Retirement Institute’s eighth annual Advisor Authority survey, inflation has led both women (38%) and men (26%) to rethink when they can retire. The number of men and women with near-term retirement plans is extremely low. Just 2% of men and 1% of women plan to retire within the next five years. Women (44%) are more likely than men (28%) to agree that signs of inflation and recession have made them rethink where they can retire.

(Source: ASPA)

01/04/2023

If You Delay Retirement, You Should Also Delay This

Americans are delaying their retirement for many reasons, including rising costs of living and longevity. Workers now typically plan to work into their 70s, as opposed to the past when they would try to hang it up around age 62.
If you're one of those people considering delaying your retirement, there's another thing you should make sure you do: Delay taking Social Security.
For more help figuring out your personal retirement plans, consider matching with a vetted financial advisor for free.

(Source: Yahoo Finance)

01/04/2023

Wealth Wednesday Tip 730: Should You Make a Retirement Contribution Now or Save It for 2023?

Making a retirement contribution on Dec. 31, 2022 vs. Jan. 1, 2023 probably doesn't seem like a big deal to you, but it makes an enormous difference to the government. And since no one wants to give the IRS a reason to knock at their door, it's important to understand the implications of your decision.
In a perfect world, you'd be able to make a 2022 contribution now and set aside money in 2023. But when spare cash is in short supply, you have to weigh your options. Consider the information above and time your contributions based on what you think is best for you.

(Source: Buffalo News)

01/02/2023

Inflation and other economic woes are forcing people to save less money and rack up credit card balances.

Now, another worrying sign the finance trackers are noticing is that an unusually large share of retirement savers are taking money from their 401(k) plans to cover a hardship.

Nearly 0.5% of workers in a 401(k) plan took a “hardship distribution” in October, according to CNBC. It is the largest share since Vanguard started tracking the issue in 2004.

(Source: Washington Times)

01/02/2023

It’s only the 1st Down. Let’s talk about the remaining moves for your retirement plans.

01/01/2023

12/23/2022

For most Americans, Social Security doesn't just provide "some check" they'll receive after they retire. According to national pollster Gallup, Social Security supplies a source of income retirees deem necessary to make ends meet. Since 2002, 80% to 90% of retirees who are surveyed yearly rely on their monthly payout to some extent to cover their expenses.

Although Social Security is the U.S.'s most successful retirement program, having provided retired workers with benefits for 82 years (and counting), it's on shaky ground. And as the sustainability of Social Security payouts comes into question, it's lawmakers who come into focus.

(Source: The Motley Fool)

12/22/2022

FACT or FICTION: From Disney to Target to Boeing, is retirement a thing of the past for CEOs?

FACT: Lots of eyebrows, and questions, were raised in November when Disney surprisingly rehired Bob Iger as its CEO, just 11 months after he turned the reins over to Bob Chapek, who in June had signed a three-year contract extension. Yet shoulders mostly shrugged regarding Iger’s age, 71, an indication that at the Magic Kingdom and beyond, there is no magic number when it comes to retirement — or unretirement — and that succession planning for key executives is increasingly crucial.

(Source: CNBC)

12/21/2022

To lead a long and stress-free retirement, you must stop letting Mr Market and politicians dictate your retirement planning. Our income method aims to transform your portfolio into a paycheck generator so you will never run out of money in retirement and can better sustain unexpected expenses. We have two picks with up to 7% yields to help you take control of your financial posture to beat the long-term effects of inflation.

(Source: Seeking Alpha)

12/21/2022

Wealth Wednesday Tip 901: 3 Big Social Security Changes Are Coming in 2023 (Social Security benefits are adjusted annually to account for inflation and rising wages.)

1. Large cost-of-living adjustment (COLA) for Social Security benefits
2. Higher earnings limits for beneficiaries under FRA (Full Retirement Age)
3. Bigger maximum benefit for retired workers

(Source: The Motley Fool)

12/19/2022

Choosing how much to invest and save in order to maintain the desired lifestyle is a part of retirement planning. Setting your savings target by age can be a good way to organize your strategy and gauge how to track progress with your goals. You might also be interested in how much the typical retiree has saved at age 65, 70 and beyond. Focus on how much the average person has saved and possibly should have saved at the age of 70. Keep in mind, though, that your situation is still unique to what your goals are. You may want to work with a financial advisor to ensure that your savings goals are in-line with where you need to be later on.

(Source: Yahoo Finance)