SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I’m turning 68 shortly and plan to wait to claim my Social Security at age 70 to maximize the monthly benefit. I also plan to retire at the end of the year, if not sooner (so in three months or less). Does withdrawing from my traditional IRAs (current balance is $215,000) to reduce the income tax on my RMDs outweigh the benefit of keeping those withdrawals invested and growing tax-deferred? My understanding ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. The retirement income planning platform IncomeConductor announced a platform update that enables advisors to integrate existing annuity assets seamlessly into holistic retirement plans, simulate future annuity purchases and compare multiple product options within client income strategies. The new features connect annuity modeling directly to tax planning, RMD tracking and client reporting and a ...

For instance, $100,000 might get you $600 per month as a joint and survivor policy, covering a married couple. You might get less per month if you want a cash refund option, which means your heirs get back money if you die before you have used up your principal, or period certain, which means you get payments for a designated time. Other options might include an inflation rider, which raises the monthly benefit, akin to a Social Security cost-of-living adjustment.A widget helps walk through the options and ...

Here's where claiming Social Security at 62 becomes a game-changer for active retirees. While the monthly benefit will be permanently reduced compared to delaying your claim, the guaranteed income it provides creates a crucial financial foundation. While you cannot rely solely on Social Security, especially for an active retirement, knowing you're guaranteed to get something each month allows you more flexibility with other income sources.Retiring early also gives you time to spend with your family, especia ...

As any amateur photographer knows, framing matters. The way advisors present retirement income plans to their clients can radically alter clients’ perceptions, according to a Janus Henderson survey. Respondents were more satisfied when their income came from dividends as opposed to selling stock shares, and they were more likely to prefer delaying Social Security payments when timing-related variations in amounts were framed as a loss versus a gain. The findings point to the power behavioral finance can h ...

Join the Insights from Fidelity Wealth Management team for the second of a 3-part series on retirement planning. We will focus on helping you manage many of the questions you may face during your retirement, such as “How do I make my money last?” and “How do I get comfortable actually spending the money I have saved?” Specific topics we'll cover include: - Retirement income planning and the different sources that can help create your cash flow - Optimizing your withdrawals, including drawdown strategies for ...

Company Information - Fidelity Brokerage Services LLC is a member of NYSE and SIPC [1] Contact Information - The company's address is 900 Salem Street, Smithfield, RI 02917 [1]

Core Insights - The individual has accumulated $500,000 in savings and plans to retire at age 65, expressing concerns about retirement income sources [2][4] - The 4% rule suggests that the individual can withdraw 4% of their retirement portfolio annually, potentially leading to a sustainable income stream [5][7] - Projections indicate that with current savings and contributions, the individual could have approximately $1,409,757 by retirement, translating to an annual income of $56,390 [7] Financial Projections - The individual earns a $50,000 annual salary and contributes 5% to their 401(k), with a 3% employer match, and assumes a 6% annual investment return [6] - After accounting for 2.1% annual inflation, the inflation-adjusted balance at retirement could be around $1,008,439, yielding an annual income of $40,337 in today's dollars [7] - This projected income is close to the individual's current salary and may adequately replace it, considering their low living expenses [8]

Core Insights - The couple has enjoyed a fulfilling life but faces financial challenges in retirement due to past financial decisions [1][2] - They rely solely on Social Security for income, which limits their savings capacity to approximately $1,000 per month [2] - The couple has $120,000 in a regular savings account, indicating a need for better financial planning [2] Financial Planning Considerations - The couple's monthly savings of $1,000 represents about 28% of their gross monthly income if both receive the average Social Security benefit of $1,800 [7][8] - Even if they were to receive the maximum Social Security benefit, their savings would still exceed 10% of their gross income, suggesting a potential overemphasis on saving [8] - The emotional aspect of saving may be influencing their financial decisions, indicating a need to reassess their savings strategy for better financial relief [8]

Group 1 - The article discusses the considerations for individuals deciding whether to use a financial advisor or opt for less expensive alternatives like Vanguard, especially in the context of changing market conditions [1][2] - It emphasizes the importance of assessing the type of service needed, whether it is solely investment management or broader financial planning, which can influence the choice of advisor [3][4] - Financial planners offer a range of services beyond just investment management, including retirement income planning and tax planning, which can help clients achieve their financial goals [5][6][7] Group 2 - Retirement income planning involves strategies for managing withdrawals from various accounts to ensure reliable income streams during retirement [6] - Tax planning is highlighted as a critical service, where financial planners can assist clients in understanding tax implications and optimizing tax liabilities throughout their lives [7]