Finally, after years of diligently putting money into your 401(k), the big day has arrived: retirement! But now comes the tricky part: figuring out how to turn all that saved money into real income without running out too soon or paying too much in taxes. I’ve helped many clients navigate this transition, and let me … Read more
Senior Living says that the average monthly cost for a private nursing home room in the U.S. in 2025 will be $1,600. S. is $10,025, that’s $120,304 annually. Families who don’t plan ahead could have to sell their homes or use their savings to pay for care if they don’t. Fortunately, legal tools like trusts … Read more
Generally, pension and annuity payments are subject to Federal income tax withholding. The withholding rules apply to the taxable part of payments or distributions from an employer pension, annuity, profit-sharing, stock bonus, or other deferred compensation plan. You must also follow these rules when getting money from an individual retirement account (IRA), an annuity, an … Read more
Consider the benefits of investing in a Roth IRA, even if you are nearing retirement Part of the Series What 50-Year-Olds Need To Know About Roth IRAs. A Roth IRA is a type of individual retirement account (IRA); contributions to one are made with after-tax dollars, and investment growth is tax-free. Since contributions are made … Read more
Your comfort in retirement depends on your ability to satisfy wants and needs. With more financial resources, you’re better prepared. But you might not need as much as you think. Retirees often leave the workforce with about $300,000 in retirement assets. The median household income for people aged 55 to 64 is about $134,000, according … Read more
Example: Brian is a retired 401(k) participant who turned 76 on March 31. His daughter, Susan, is the beneficiary on his account. On December 31 of last year, the ending balance in his 401(k) was $262,000. To calculate his RMD for this year, he divides $262,000 by his life expectancy factor of 23. 7 years. … Read more
Have you been scratching your head about how much money you can safely withdraw from your retirement savings without running out? You’re not alone! The 4% rule has been a popular guideline for retirees since the 1990s but there’s more to it than meets the eye. Let’s dive into what this rule really means for … Read more
How IRAs are taxed depends on whether the IRA is a traditional or a Roth IRA. Traditional IRAs involve making tax-free contributions, meaning you contribute to your IRA before taxes are taken out. This may reduce your taxable income for the year in which you’ve contributed to your IRA, therefore reducing the amount of tax … Read more
Hey there! You’re not the only one who is wondering if the pension check they are getting (or will soon get) will be taxed. I’ve helped a lot of retirees figure this stuff out, and that’s one of the questions I hear the most. The short answer is that most pension income is taxed, but … Read more
Many Americans dream of retiring with a million-dollar nest egg —Americans in general think you need about $1. 5 million to retire—but the reality is starkly different. Using figures from the U. S. Federal Reserves Survey of Consumer Finances (updated to 2022 but released in 2025), only about 2. 5% of all Americans actually have … Read more