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Fact checked by Vikki Velasquez Investopedia / Eliot Wyatt Understanding the specific tax rules for each retirement account can help you withdraw funds efficiently. Taxes can significantly diminish your hard-earned retirement savings, but a strategic approach called tax-efficient drawdowns can help you keep more of your money. Each retirement account has its own tax rules,…
Fact checked by Vikki Velasquez Eliot Wyatt / Investopedia Annuities can reduce market risk by providing guaranteed income, though some may not keep pace with inflation. Annuities offer another income stream to help fund your golden years and may reduce the risk of running out of retirement savings. However, it’s important to recognize that purchasing…
How to decide if Medicare Supplement Insurance is worth it for you Reviewed by Ebony HowardFact checked by Jared Ecker If you are covered by Medicare you may be wondering if you need a Medicare Supplement Insurance policy, also known as Medigap. Read on to see what a Medigap plan is and how it works….
An income cap limits the tax on your income Reviewed by Andy SmithFact checked by Suzanne Kvilhaug Douglas Sacha / Getty Images The Old Age, Survivors, and Disability Insurance (OASDI) tax, more commonly referred to as the Social Security tax, is calculated as a percentage of a worker’s income. The tax is deducted from employee…
Fact checked by Stella Osoba Eleganza/Getty Images Americans might check their bank balance multiple times a week but review their 401(k) rarely—an approach that could cost tens of thousands in retirement. Many people believe in having a “set it and forget it” approach to their 401(k)s, but market fluctuations and life events can quickly disrupt…
Fact checked by Suzanne Kvilhaug Fizkes / Getty Images Most millennials are more afraid of running out of money than death. Here’s how to minimize that fear. Sixty-six percent of millennials fear running out of money more than death, according to a study from the Allianz Center for the Future of Retirement. And millennials are…
Fact checked by Vikki Velasquez Eliot Wyatt / Investopedia Diversifying income sources helps manage risk and support your overall financial needs in retirement. According to a recent survey by Northwestern Mutual, people believe they’ll need around $1.26 million in order to retire comfortably. The million-dollar question (so to speak) is where, exactly, will all that…
Fact checked by Vikki Velasquez Bruce Yuanyue Bi / Getty Images Arlington, Virginia, is one of the most expensive places to retire in the U.S. right now due to its high housing costs, expensive healthcare, and steep tax rates. While often mistaken for a city, Arlington is actually the smallest self-governing county in the country,…
Fact checked by Vikki VelasquezReviewed by Ebony Howard Eliot Wyatt / Investopedia Income-producing investments can supplement Social Security and retirement plan withdrawals while keeping risk in check. Around 1 in 5 adults aged 30 or more have no retirement savings at all, according to AARP’s annual Financial Security Trends Survey. Those who have savings aren’t…
