Do you own a traditional IRA but think a Roth may be a better option? You’re not alone. The Roth IRA has become an increasingly popular savings vehicle. That popularity is driven largely by its unique tax treatment, which allows you to take tax-free distributions in retirement and leave a tax-free asset for your loved ones.
Not everyone can contribute to a Roth IRA, however. Roth contributions are governed by income limits. If you’re a high earner, you likely haven’t been able to put money in a Roth. The traditional IRA doesn’t have income limits for contributions. Your traditional IRA contributions may not be deductible if you have high income, but that doesn’t mean you can’t contribute.
If you’re approaching retirement, you’re probably aware of the risk posed by long-term care, which is extended assistance with daily living activities such as eating, mobility and bathing. Long-term care is usually provided either in a facility or in the home. Either way, it can be costly and can drain your retirement assets.
AARP recently published a report on the state of long-term care in the United States. Specifically, it ranks each state by the quality and affordability of care available to seniors. While the scores and information vary by state, there is some information that’s applicable to all retirees, regardless of where they live.
For example, AARP estimates that more than half of all people turning 65 today will require long-term care at some point in the future. The report also estimates that care provided in a nursing home can cost more than $90,000 per year, while in-home care costs north of $30,000 annually.1
Filing for Social Security benefits is a big milestone for many retirees. As you enter retirement, you’ll likely face a decision on when and how to file for benefits. It’s an important decision, as Social Security may play a large role in your retirement income plans.
Your decision on when and how to file is also important because it’s permanent. In most cases, your Social Security benefits cannot be altered or adjusted after you file and begin receiving benefits. Your payment may increase because of cost-of-living adjustments, but you can’t change your filing after the fact to increase your benefits.
Retirement is supposed to be about enjoying the good things in life. It’s a time to travel, pursue a favorite hobby, and spend time with family. After all, you’ve worked hard for decades to accumulate assets. Retirement is your time to enjoy the fruits of your labor.
Of course, saving money and getting to retirement is only half the battle. After you leave the working world, you will still face risks that could threaten your financial stability. Without a plan to manage those risks, your retirement may not be as comfortable as you would like.
Are you one of the 59 percent of Americans worried about not having enough money in retirement? According to a recent Gallup survey, nearly half of Americans said they were concerned about their ability to maintain their standards of living or even to pay normal bills when they retire.1
What’s the worst financial crisis you could experience as you approach retirement? There are a wide range of potential threats. You could get laid off or experience business troubles. Your investments could decline in value. You could face a series of unplanned emergency costs. Any number of issues could derail your retirement plans just as you wind down your career.
Here’s one scenario you may not have considered, though. As you approach retirement, you start to experience medical issues. Your nagging knee injury might develop into a more serious issue. Or your chronic high blood pressure develops into heart issues, and as a result, you have to cut down on stress and work. Maybe you are diagnosed with a serious illness like cancer.
There are many things people regret over their lives. Some people wish they’d traveled more, some wish they had taken more risks with their careers, and still others regret not following their dreams. In fact, according to a recent study from Allianz, nearly 30 percent of individuals regret major choices they’ve made in their lives.1
More and more, retirement is becoming a time when people can go back and do some of the things they regret not doing. Before you make the most of your retirement, you should think about planning for it. Effective planning can be one of the best ways for you to live a regret-free retirement.
In the past couple of decades divorce rates have held steady. For one segment of the population, however, these rates have exploded. Couples over 50 years of age are actually seeing an increase in divorce rates; from 1990 to 2010 the divorce rate for people over 50 nearly doubled.1 The increasing frequency of divorce among older couples has even led to a new nickname: “gray divorce.”
SCOTTSDALE August 25, 2016 -- Coventry Financial Group has been selected for the 2016 Best of Scottsdale Award in the Financial Planner category by the Scottsdale Award Program.
Each year, the Scottsdale Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Scottsdale area a great place to live, work and play.
You’ve worked hard your entire life to build a legacy, accumulate assets and grow your estate. Your intention may be to pass that legacy on to your children after you and your spouse pass away. However, if you’re like many retirees, you may be considering a challenging question: Why not give your kids their inheritance now?
At first glance, an early inheritance may seem like a no-brainer. After all, your kids and grandchildren may need that money. They could use it to pay for education, get out of debt, buy a home or even expand their business. By the time you pass away, your kids may be more financially established and the inheritance could have less impact.