The Motley Fool

APRIL 6, 2024

But while he's been pretty diligent in contributing to his retirement plan , he's been neglecting his near-term savings. See, Bob's not old enough to withdraw from a retirement account without a penalty. Similarly, it's not a good thing to lose 10% of a retirement plan withdrawal due to taking it early.

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The Motley Fool

JANUARY 30, 2024

Most of us probably muse about our retirement from time to time, wishing it would arrive sooner and thinking of all the fun things we'll do and what a happy time it will be. But retirement can also be a difficult time for many people -- if they're in danger of having their nest egg run dry too soon. Go ahead and do that!

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The Motley Fool

MAY 11, 2024

The average American's retirement savings is about $1.37 million short of what they believe they'll need to retire comfortably, according to a recent Northwestern Mutual survey. But with the right strategies, retirees might be able to afford a higher quality of life than they expect. That's a difference of $870,000.

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The Motley Fool

MAY 18, 2024

Many Americans share the goal of retiring as millionaires, but it's not easy to achieve. It's incredibly difficult to build a million-dollar retirement fund through saving alone. If you have a 401(k), you might be able to have a set amount transferred straight from your paycheck to your retirement account.

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The Motley Fool

DECEMBER 8, 2023

In an ideal world, you'll end up kicking off your retirement with a decent chunk of money in savings. If you withdraw randomly from your 401(k) or IRA , you might end up depleting your savings in your lifetime. The rule goes like this: During your first year of retirement, withdraw 4% of your savings balance.

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The Motley Fool

JANUARY 30, 2024

Many people work really hard to amass savings for retirement. Still, the whole purpose of saving in an IRA or 401(k) is to be able to cover your living expenses in retirement without worry -- and perhaps, ideally, have money left over to pay for leisure, travel, and other fun things. After all, you want that money to last.

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The Motley Fool

APRIL 19, 2024

How can you be ready to cover healthcare costs in retirement? And, as long as the funds are used for qualifying care expenses, you can even take tax-free withdrawals. Even tax-advantaged retirement plans like a 401(k) or IRA only give you a tax break either when you contribute or when you withdraw money, but not both.

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The Motley Fool

APRIL 19, 2024

But Fidelity's recent 422,000 millionaire 401(k) accounts do show us how powerful a retirement saving tool 401(k)s can be. Despite that, though, there's an unfortunate truth about 401(k) accounts: They may not be your best path to growing your wealth for retirement. You can save that $25,000 for retirement in different ways.

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The Motley Fool

JANUARY 28, 2024

One of the most important retirement savings decisions you'll have to make in 2024 is where to stash your cash. You'll improve your retirement readiness Arguably, the most obvious benefit of stashing money in a Roth IRA is that you'll improve your preparedness for retirement. This is known as a backdoor Roth IRA.

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The Motley Fool

FEBRUARY 18, 2024

The benefit of saving for retirement in a traditional IRA or 401(k), as opposed to a Roth account, is getting a tax break on your contributions. The problem with traditional retirement plans, though, is that down the line, you're going to be forced to take withdrawals from your account known as required minimum distributions , or RMDs.

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The Motley Fool

JANUARY 24, 2024

It's not an uncommon situation at all: Retirement is getting closer, and you're starting to worry that you haven't saved enough. Retiring without enough income or resources is a frightening prospect, and you're scared. That's clearly not going to get someone very far in retirement, as it's well below what most of us need to retire.

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The Motley Fool

MARCH 2, 2024

Also, a lot of the expenses you incur in retirement are ones you can't control. The IRS isn't going to magically let you off the hook from paying taxes just because you're retired. Use your HSA for medical expenses only If you've been funding a health savings account ( HSA ) and reserving that money for retirement, good for you.

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The Motley Fool

APRIL 27, 2024

The Allianz Life 2024 Annual Retirement Study offered a stark finding: 63% of respondents -- including 64% of millennials (those aged between about 28 and 43) -- reported being more afraid of living than dying! In other words, they're approaching their retirement years. Another major concern for many respondents is Social Security.

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The Motley Fool

DECEMBER 15, 2023

If you ask people what concerns they have about retirement, many will likely point to health issues cropping up. Here are a few worth incorporating into your retirement plan. You might think you'll need your retirement savings to last 20 years if you retire in your mid-60s. Image source: Getty Images.

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The Motley Fool

APRIL 6, 2024

After working hard all your life, you deserve to have financial security in retirement. And, when you get to retirement, you must continue to make smart choices about managing your money so you don't run short of cash toward the end of your life. That's why it's so important to maintain a safe withdrawal rate.

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The Motley Fool

JANUARY 1, 2024

It's also a great time to review your retirement strategy or develop a savings plan if you haven't already started. One of the first things you'll need to do is decide which retirement account(s) you want to use. This is free money your employer gives you for contributing to your retirement account.

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The Motley Fool

MARCH 30, 2024

The Roth 401(k) isn't even 20 years old yet, but it's already become a popular place for workers to stash their retirement savings. The answer depends a lot on you and your retirement plans. Roth accounts are attractive for those who expect that their incomes will either stay about the same or rise in retirement.

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The Motley Fool

FEBRUARY 19, 2024

A million dollars is a lot of money to anyone, but we're long past the days when it could buy you a luxurious retirement. Most workers today will need a lot more to ensure a comfortable future, especially if they expect their retirement to last two or more decades. Then there are the changing dynamics of retirement savings.

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The Motley Fool

MAY 18, 2024

The maximum monthly retirement benefit in 2024 is $4,873. You have to wait until age 70 to get it While you can apply for Social Security retirement benefits starting at age 62, you'll have to wait until age 70 to receive the maximum possible monthly benefit. Full retirement age ranges from 66 to 67, depending on when you were born.

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The Motley Fool

MAY 12, 2024

Since the mid-1990s, the 4% rule has been a gold standard in retirement planning. Its simplicity is the key to its appeal because it helps answer a challenging and complex question: How much can you spend each year in retirement? Here's how you can tweak the rule to improve it and ensure your retirement goes according to plan.

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The Motley Fool

FEBRUARY 12, 2024

Few resources can help get you as financially prepared for retirement as retirement accounts. Saving money for retirement while simultaneously getting tax breaks is a 2-for-1 benefit that can work wonders for retirees. In a Roth IRA , your tax break comes in retirement. Image source: Getty Images.

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The Motley Fool

DECEMBER 31, 2023

If you're retiring in 2024, it's important to be strategic about taxes and know what the latest rules look like. You can contribute earned income to a traditional IRA for the tax break Just because you're planning to retire in 2024 doesn't mean you won't be working at all. Image source: Getty Images.

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The Motley Fool

SEPTEMBER 30, 2023

If you want to create a solid retirement savings plan, you need an idea of how much you'll actually need to retire. For example, it's often recommended you should be able to replace 80% of your pre-retirement income, or you should have 10 to 12 times your final year's income saved. You may have heard of certain rules.

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The Motley Fool

APRIL 24, 2024

The average adult 65 and older has just $232,710 saved for retirement -- far short of the $1 million or more many workers estimate they'll need for a comfortable future. The idea of running out of money in your final years is scary, but you can reduce this risk by taking key steps now to build your retirement account balances.

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The Motley Fool

FEBRUARY 26, 2024

You may be looking forward to your 65th birthday if it brings you one step closer to retirement. And to do that, you'll need to come up with a withdrawal rate. The classic 4% rule may be a good one to utilize if your retirement portfolio is split pretty evenly between stocks and bonds, and if you want your savings to last for 30 years.

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The Motley Fool

AUGUST 12, 2023

Planning for your retirement is a critical thing to do, and it involves more than just saving sufficiently (if not aggressively) and investing effectively. You also need to plan how you'll withdraw funds over time so that you have the income stream you need without running out of money too soon. Image source: Getty Images.

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The Motley Fool

FEBRUARY 14, 2024

One of the benefits of retirement is the ability to live anywhere you want. There are 13 states that don't tax any of your retirement income -- your Social Security , retirement account withdrawals , or a pension if you have one. And they're arguably the best states for retirees to move to in 2024.

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The Motley Fool

APRIL 28, 2024

Retirement planning involves a long list of important decisions. From where to retire to your retirement savings withdrawal strategy to your desired retirement plans, there's no shortage of decisions. If you can thrive and survive in retirement with Social Security income, delaying may better suit you.

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The Motley Fool

DECEMBER 11, 2023

You could contribute $2,000 to an HSA in your mid-20s and withdraw that money in your late 60s to cover medical expenses. And that, in fact, is something you should plan to do -- reserve your HSA funds for retirement. Investment gains in an HSA are tax-free, and so are withdrawals that are used to cover qualifying healthcare expenses.

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The Motley Fool

MARCH 10, 2024

If you're thinking about retiring soon, you don't want to just jump in with both feet -- especially since it can be hard to rejoin the workforce once you've left it. You need to be personally and financially ready to move forward before taking the plunge into retirement. To do that, consider these four crucial issues.

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The Motley Fool

MAY 1, 2024

But if both you and your spouse are each eligible for a monthly Social Security benefit based on your individual work histories, you have a prime opportunity to maximize your retirement income. Here are three filing strategies you can look at. Simply click here to discover how to learn more about these strategies.

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The Motley Fool

MARCH 27, 2024

Retirement accounts offer great tax benefits, but to earn them, you generally have to leave your money untouched until you turn age 59 1/2. Withdrawing cash sooner generally triggers a 10% early withdrawal penalty on top of the taxes you could already owe if the money came from a tax-deferred account, like a traditional IRA or 401(k).

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The Motley Fool

MARCH 11, 2024

Your 401(k) can be an incredibly powerful tool when it comes to building a comfortable nest egg for retirement. It's so powerful, in fact, that if your goal is to retire with a modest lifestyle at a standard retirement age, it might very well be the only tool you need to use to get there.

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The Motley Fool

JULY 5, 2023

Retirement accounts like the IRA and 401(k) are designed to help you save for retirement. So the IRS imposes penalties on most withdrawals that take place before age 59-1/2. But if you're retiring earlier than that, you'll need to find a way to access all your savings without paying that penalty.

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The Motley Fool

FEBRUARY 28, 2024

This account offers the potential for a tax-free retirement. You'll pay taxes on any amount contributed to a Roth 401(k), but you won't pay any capital gains tax or income tax on withdrawals in retirement. Here are three reasons to avoid a Roth 401(k) for your retirement savings. Image source: Getty Images.

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The Motley Fool

MARCH 30, 2024

The government considers cash you withdraw from your 401(k) to be a distribution, so you'll probably pay taxes on it. And you'll also owe a 10% early withdrawal penalty if you're younger than 59 1/2 at the time. You can get around the taxes and penalties by depositing the withdrawal into a new IRA or 401(k) in your name within 60 days.

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The Motley Fool

DECEMBER 29, 2023

Whether you have medical expenses coming up or you're just looking for a tax-advantaged place to put your retirement savings, a health savings account (HSA) can be a great tool. If it's not high enough, stick to other accounts, like IRAs for retirement savings or high-yield savings accounts for upcoming medical bills.

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