In this episode of Motley Fool Answers , the team shares some of their best tips for automating your financial life. They cover everything from insurance to retirement accounts and bills to budgeting.
Category: Retirement
BofA’s Merrill to Tell Clients How They’re Paying Their Brokers
Bank of America Corp., which has said it will stop offering commission-based retirement accounts as it prepares for new regulations, also plans to more clearly disclose fees that clients pay to the firm’s 14,000 financial advisers. The Merrill Lynch business will break out fees for asset management services and products including mutual funds, alternative investments and commodities when it mails January account statements later this week.
Fidelity vs. TD Ameritrade: Best IRA Companies
Individual retirement accounts can be a great way to save for the future, offering tax efficiency and more choice than employer-sponsored retirement accounts. By opening a self-directed IRA , you’ll be able to choose from thousands of mutual funds, ETFs, stocks and other investments for your portfolio.
Charles Schwab IRA Review: Is It Right for You?
When you’re ready to start saving for retirement, opening an IRA may be a very wise choice. IRAs are one of the most flexible retirement accounts, and they have some particularly attractive tax benefits, too.
Brokers for IRAs: E*Trade vs. Vanguard
One is known as one of the first online brokers, and the other is famous for pioneering index funds, but they both help millions of people save for retirement with IRAs. In this article, we’ll compare E*Trade’s and Vanguard’s IRA accounts , based on factors like commissions, account fees, and investment selection.
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If you’re like most Americans, you’re going to rely on a mix of income sources in retirement, such as savings, pensions, work, and Social Security. In spite of this multi-income strategy, retirement costs, such as healthcare expenses, and inadequate savings, suggests there’s a real risk out living the money you set aside during your career.
2 Terrible Stocks for Retirees
Though it might not seem like it, the wisdom of Shakespeare’s line from Hamlet “to thine own self be true” applies to investing. As we age, our investment needs change.
Ready for Medicare? Not Until You Read This
Accordingto Fidelity Investments, a 65-year-old couple retiring this year will spend, on average, about $260,000 out of pocket on healthcare in retirement. One way to keep your healthcare costs in check is to be smart about Medicare and make savvy decisions.
3 Facts About Baby Boomers’ Finances
Every year, the folks at the Transamerica Institute poll American workers to glean insight into baby boomers’ preparedness for retirement. The most recent survey offers up some interesting facts that anyone in their 50s ought to know.
Do You Have a Financial Plan? Here’s Why You Need One
Some people think financial planning is only for the rich, but in reality, anyone can benefit from a solid financial plan, regardless of age or income level. And apparently, more Americans are coming to agree with this sentiment.
Vanguard vs. TD Ameritrade: Opening an IRA to Save for Retirement
When you’re ready to start saving for retirement, opening an IRA account with a brokerage would be a logical first step. Many brokerage IRAs offer a vast assortment of investment opportunities in stocks, bonds, options, mutual funds, and ETFs, and make it possible to trade from the comfort of your own home.
IRS Form 1099-R: What Every Retirement Saver Should Know
Saving for retirement can take your entire career, but when it comes time to retire, you want to make sure your savings work as hard as they can for you. With tax-favored accounts like IRAs, 401 s, and other employer-sponsored retirement plans, the tax-deferred growth they offer can dramatically boost your savings.
Better Buy: Target Corporation vs. Home Depot Inc.
But the similarities don’t end there: They are also both big-box retailers that many retirees consider investing in given their dividend payments and lengthy operating histories. But which stock is the better buy today? There’s no way to answer that question with 100% certainty, but there are three different approaches you can take, and each will help you make a more informed decision for your own retirement portfolio.
Will Social Security’s $11 Trillion Shortfall Destroy Your Retirement?
Millions of seniors rely on Social Security to pay their living costs in retirement. The average beneficiary today receives $1,360 each month, though many collect much more.
Your 2017 Guide to Retirement Planning
Saving for retirement is a challenge many workers face, but without an amply funded nest egg, you risk running out of money as a senior. Let’s explore your options for saving for retirement so that you can get started as soon as possible.
Saving for College? Consider a Roth IRA
With college costs rising faster than inflation, more and more parents are actively saving to help cover those expenses. And while 529 plans have traditionally been promoted as the go-to college savings vehicle, there’s a lesser-known alternative it might pay to explore: the Roth IRA.
Worrying About Retirement and Social Security? You’re Not Alone
According to a recent survey by Transamerica, most workers think that the financial challenges they’ll face in retirement will be harder to overcome than the challenges that prior generations faced. Do you agree?Read on to find out workers’ top concerns about retirement and Social Security, and why they’re so concerned.
Here Are the 4% Retirement Rule’s Major Flaws
While there’s no magic retirement savings number guaranteed to deliver financial security during your senior years, many near-retirees are advised to use the 4% rule to see if they’re on the right track. Although the 4% rule has a strong history of success, it’s far from perfect.
Personal Finance 101: Understanding the Ins and Outs of a 401
There’s no doubt about it: The employer-sponsored 401 is the most popular retirement tool for working Americans. According to data from StatisticBrain.com, as of 2015, 18% of all retirement assets were being held in 401 s, with the value of those assets totaling $4.5 trillion.
Investment advice? Or sales pitch? New rule will make that clear for investors
Saving small amounts of money can build up enough to invest. There are plenty of ways to get around the minimum investment hurdle at mutual funds.
5 Facts About Stocks Every Retiree Should Know
Many retirees think that they should pull away from the stock market, mistakenly believing that the risks involved with stocks makes them unsuitable investments for a retiree’s portfolio. Yet the fact is that with retirees living longer than ever, having stocks in your investment portfolio is almost a necessity if you want your retirement nest egg to provide enough growth to meet your financial needs for the rest of your life.
Hedge Fund Shift From Reviled 2-and-20 Fees Spreads to Asia
The hedge fund industry’s shift away from the much-maligned 2-and-20 fee model is gathering steam in Asia. As investors worldwide are balking at hefty fees, Hong Kong hedge funds Myriad Asset Management and Ortus Capital Management are crafting alternatives that mark a radical departure from the industry practice of charging 2 percent of assets in management fees and 20 percent of profits.
Hedge Funds? Shift From Reviled 2-and-20 Fees Spreads to Asia
The hedge fund industry’s shift away from the much-maligned 2-and-20 fee model is gathering steam in Asia. As investors worldwide are balking at hefty fees, Hong Kong hedge funds Myriad Asset Management and Ortus Capital Management are crafting alternatives that mark a radical departure from the industry practice of charging 2 percent of assets in management fees and 20 percent of profits.
Kuwaiti Wealth Fund May Pull Billions From External Managers
Kuwait Investment Authority is planning to manage more of its own assets as the world’s fifth-largest sovereign wealth fund seeks to take more risk to boost returns. The KIA, as the fund is known, wants to increase the allocation of funds managed in-house to as much as 8 percent from 1 or 2 percent at present, Managing Director Bader Al Saad said in an interview with Bloomberg Television on Wednesday at the World Economic Forum in Davos, Switzerland.
The One Thing Millennials Need to Know About Investing
The oldest millennials are now starting to enter their formative years in the workforce and the youngest of the group will soon graduate from high school. Millions of millennials are going to be making decisions about what to do with their finances and how much to spend or save for the future.
Liz Weston: Retirement advice from retired financial experts
So I asked money experts who have quit the 9-to-5 for their best advice on how to prepare for retirement. They still faced curveballs when it was their turn.
Most Americans Are Dead Wrong About IRAs
There’s no such thing as a one-size-fits-all retirement plan. Because we all have specific, individual needs, what might work for one person might cause another to come up short financially when they’re older.
How a Roth IRA Can Help You Make the Most of Social Security
If you’re earning income by working, and also collecting Social Security, you might be missing out on a valuable strategy that can increase the likelihood of maintaining financial security in retirement. Are you making the most of your Social Security income? If you’re not contributing to a Roth IRA, the answer may be no.
Which Is Better: Lump Sum Payment vs. Defined Benefit Pension?
Here, they ponder two alternatives: take a lump sum payment now or the long-term annuity that pays out at a later date. To get to the bottom of this question, they also have to break down the health of the pension plan.
What the Dow Does in 2017 Just Doesn’t Matter. Here’s Why.
It’s natural to look at the New Year as a time to evaluate your investments’ performance, and with the bull market in stocks heading into its ninth year, some investors are worried about what the stock market will do in 2017. However, most investors shouldn’t dwell on what the coming year may bring for stocks.
Traditional IRA vs. Annuity: Which Is Right for You?
It’s estimated that at least one out of every three Americans has no retirement savings in place. If you don’t have access to an employer-sponsored 401 plan, you’ll need to be especially proactive in identifying a retirement savings solution.
A Republican Privatization of Social Security Is a Real Possibility
Social Security was among the most important issues heading into the 2016 election. Yet, interestingly enough, it wasn’t paid very much attention during the debates, which is surprising when you consider that 61% of current retired beneficiaries count on Social Security to provide at least half of their monthly income.
7 Reasons to Use a Roth IRA to Save for Retirement
The Roth IRA is one of the best, but least understood, ways for Americans to save and invest for their retirement. There are several things most people don’t realize about Roth IRAs — for example, did you know that you can withdraw your Roth contributions whenever you want, without penalty? Here’s what you need to know about the benefits of investing with a Roth IRA.
Can Automatic Savings Plans Solve America’s Retirement Woes?
It’s no secret that Americans’ retirement readiness is abysmal. According to a 2013 study , more than half of American households won’t be able to live as comfortably in retirement as they did while working.
5 Smart IRA Moves You Can Make in 2017
Your IRA shouldn’t just be something you toss a little money into every year or two. According to the 2016 Retirement Confidence Survey published by the Employee Benefit Research Institute, about 29% of workers expect their IRAs to be a major source of income in retirement.
Why Tyson Foods, Inc. Stock Gained 16% in 2016
The meat processor benefited from strong profit growth in the first half of the year, though the stock fell in the closing months as commodity prices dropped and CEO Donnie Smith announced his retirement. Tyson Foods kicked off the year with a blowout earnings report in February as the stock jumped 16% in two days.
When Is It Best to Claim Your Social Security Benefits?
Roughly one-third of Americans rely on Social Security for more than 90% of their retirement income, so choosing when to claim Social Security can be one of the most difficult and most important decisions you face in your 50s and 60s. If you’re struggling to decide when to claim your Social Security benefits, you’re not alone.
United Airlines Can’t Get Rid of the Boeing 747 Fast Enough
United Airlines has been flying one version or another of Boeing’s iconic jumbo jet since 1970. However, United’s management recently decided to accelerate the retirement of the carrier’s remaining 747s for the second time in less than a year.
Numbers everyone should know
Some numbers matter more than others. How much you make is important, for example, but your financial health depends far more on how much you keep.
You’ll never be able to save enough for retirement
Have we – those of us trying to get people to save for retirement – become like Freddy Krueger in Wes Craven’s “A Nightmare on Elm Street” movies? Krueger killed people in their dreams. We may be killing people’s dreams of being able to ever have enough money for retirement.