As you approach retirement with a substantial 401(k) or IRA balance, experts advise creating a plan to navigate potential tax implications. With the recent legislation of Secure 2.0, the age for required minimum distributions (RMDs) has been increased to 73, starting in 2023. These RMDs, linked to pre-tax retirement accounts, can push retirees into higher
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The recent surge in inflation rates in 2022 has had a significant impact on retirees and near-retirees, forcing many individuals to reconsider their retirement plans. According to a survey conducted by Prudential Financial, a large number of 65-year-olds have postponed their retirement due to inflation, with 43% stating that they have had to delay their
The ongoing issues surrounding the new Free Application for Federal Student Aid (FAFSA) have had a detrimental impact on high school seniors and their families. Reports indicate that as of June 14, only 45% of high school graduates have successfully completed the FAFSA, a significant drop from the previous year’s 52%. This means that over
401(k) savings rates have reached historic levels as plan designs have evolved to make it easier for workers to save money for retirement. According to Vanguard’s yearly analysis, the average combined savings rate in 2023 was estimated to be 11.7%, matching the record high from the previous year. Similarly, a Fidelity report found a combined
When couples face financial stress, the ideal approach is to have open and honest discussions about their concerns. However, a study conducted by Cornell University reveals that this is often not the case. According to research co-author Emily Garbinsky, individuals under stress tend to believe that initiating conversations about money with their partners will only
TikTok has become a platform filled with tips and trends for building wealth, and one of the latest money-saving crazes is the “no-spend month” challenge. This challenge encourages users to cut out all non-essential purchases for a specified period, whether it be a week, a month, or even a full year. The idea behind this
The U.S. Department of Education is considering extending the eligibility of the Public Service Loan Forgiveness (PSLF) program to include early childhood educators. This move comes as a response to the low wages that many workers in this field face. By broadening the program to encompass early childhood education settings, the Department aims to alleviate
The recent decision by the Supreme Court in the case of Moore v. United States has brought attention to the issue of federal taxes on certain foreign investments. The case involved a Washington state couple who faced a tax challenge on income they received from an investment in an India-based company that did not distribute
As members of Generation X, born between 1965 and 1980, approach retirement age, the pressure to save for their golden years is mounting. A report from Natixis Investment Managers in 2024 revealed that about 48% of Gen Xers are concerned that they won’t have enough money to enjoy their retirement. Additionally, 31% fear that they
Owning a home is often seen as a way to build wealth and pass it on to future generations. However, the issue of heirs’ property poses a significant threat to this wealth transfer. When homeowners die without a will and informally leave property to multiple descendants, it can lead to a complex situation where the
