Some workers who are approaching retirement may need to change their plans thanks to President Donald Trump’s “One Big Beautiful Bill” — including when they retire. Due to the introduction of new work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), Americans may need to remain in the workforce longer to maintain much-needed access to health care and food stamps. Must Read The bill’s changes to Medicaid include mandatory work requirements for many individuals aged 19 ...

Planning for your golden years requires equal parts risk management and faith, but as a recent survey revealed, many American adults under 65 are sadly losing faith in their retirement. According to a survey from the Pew Research Center, 40% of respondents were either concerned about not having enough money to last throughout their retirement, or believe they won’t be able to retire at all (1). Adults between the ages of 30 and 39 are the most pessimistic group, with more than half (51%) saying they’re no ...

Core Insights - The article discusses the financial challenges faced by retirees, emphasizing the need for adequate savings and planning for retirement expenses, particularly in light of Social Security benefits and healthcare costs. Group 1: Retirement Savings and Planning - The typical retired worker receives approximately $24,852 annually from Social Security benefits, combined with an additional $16,000 from personal savings, totaling $40,852, which may necessitate lifestyle adjustments for many retirees [1][6] - Financial experts recommend the 4% rule for retirement savings, suggesting that retirees withdraw 4% of their savings in the first year and adjust for inflation thereafter, aiming for a sustainable income over 30 years [3][4] - A study by Northwestern Mutual indicates that many Americans believe they need around $1.26 million saved for a comfortable retirement, highlighting a significant gap for individuals like Sam, who has $400,000 saved [4][5] Group 2: Retirement Expenses - The average annual expenditure for Americans aged 65 and older was reported to be $61,432 in 2024, indicating that relying solely on $40,852 could lead to a financial shortfall unless retirees live frugally [8] - To meet the average expenditure, individuals like Sam would need approximately $914,500 saved by retirement, factoring in Social Security benefits [8] - Healthcare costs are a significant consideration, with typical expenses for a 65-year-old projected to be $172,500 throughout retirement, emphasizing the importance of planning for these costs [9] Group 3: Investment Strategies - The article suggests diversifying retirement savings through various accounts, including gold IRAs, which can provide tax benefits and protect against market volatility [11][12] - Wealthfront offers a Cash Account with a competitive APY of 4.05%, which can help retirees grow their emergency funds while maintaining easy access to cash [19][20] - Automated investment platforms like Acorns can facilitate saving and investing habits, allowing individuals to grow their wealth effortlessly [22][23] Group 4: Seeking Professional Advice - The complexity of retirement planning may necessitate consulting with financial advisors who specialize in retirement strategies, helping individuals navigate budgeting and investment decisions [24][26] - Advisor.com connects users with registered investment advisors, providing a resource for individuals seeking tailored financial guidance [25][26]

Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.This means finding reliable advisors is crucial — and that’s where Advisor.com can help. The platform connects you with an expert near you for free.Of course, hiring an advisor can be a lifelong commitment — one that might make or break your retirement.Don’t fall into the same trap. Consi ...

Quick Read $1M in a 401(k) exceeds 95% of American retirement balances but creates tax traps costing six figures. RMDs starting at age 73 can push income into 24% or 32% tax brackets without early Roth conversions. Income exceeding $106K individual or $212K joint triggers $2K to $5K in annual Medicare IRMAA surcharges. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. A $1 million 401(k) balance puts ...

Financial advisers offer a long list of services, and it’s important that clients are clear about what they’re getting when they choose to work with one. - MarketWatch photo illustration/iStockphoto Dear Help Me Retire, Retirement is around the corner, and I have all of our funds— $1.4 million—at Fidelity through my workplace 401(k). I feel that I’ve found a good adviser at Fidelity and I am considering having her manage my portfolio for a 0.83% assets-under-management fee. I feel confident in her knowle ...

With tax season in full swing, I looked ahead to retirement planning with the IRS on my mind. Unsure how April’s annual burden will change as I age, I asked ChatGPT for insight — and the artificial intelligence (AI) chatbot offered some sage advice. It is called lowering lifetime taxes, the “quiet superpower in retirement.” Just how super? ChatGPT advised that a little bit of tax planning “can easily be worth six figures if done right.” Timing Is Everything ChatGPT wrote that the biggest key is to “c ...

Saving for retirement in a traditional IRA or 401(k), as opposed to a Roth, can seem like a good idea when you're eager to lower your tax bill. But traditional retirement plans come with a huge drawback. Not only are withdrawals subject to taxes, but you may eventually have to take withdrawals even if you don't want to. Those mandatory withdrawals are known as required minimum distributions, or RMDs. And they kick in at age 73 or 75, depending on the year you were born. Will AI create the world's first t ...

Core Insights - The article discusses the varying financial needs for retirement, emphasizing that there is no universal "magic number" for retirement savings, with estimates ranging from $1-2 million for a modest lifestyle to $12 million or more for a luxurious one [1][2][3] Group 1: Retirement Savings and Lifestyle - Different retirement lifestyles require different financial preparations, with some individuals needing significantly more savings to support their desired lifestyle [2] - The article highlights the importance of balancing passive income and withdrawals from retirement savings against expected expenses to determine the right retirement figure [3] Group 2: Case Study of a Reddit Couple - A Reddit couple has saved approximately $3 million in retirement accounts, with a total net worth exceeding $4.5 million, indicating a substantial financial position [5][9] - The couple employs a conservative investment strategy, utilizing CD laddering to maintain flexibility while aiming for a middle-class retirement lifestyle [6][9] - They anticipate an inheritance of $2 million, projecting their net worth to reach between $6-8 million within the next decade, which is deemed sufficient for their retirement needs [7][9]

Group 1 - The individual has a total of approximately $722,000 in retirement assets at age 39, which includes $587,000 in a 401(k)/TSP and $135,000 in a Roth IRA [1][8] - The individual plans to sell a rental property for an expected net gain of about $250,000 after fees and taxes, which will further contribute to retirement savings [2][8] - The individual anticipates retiring around age 59 ½, allowing for about 20 years of compounding on the total retirement assets [8] Group 2 - If the investments earn a long-term return of approximately 7%, the total retirement assets could grow to about $3.8 million by the retirement age, which would be approximately $2.13 million in today's dollars when adjusted for 3% annual inflation [9]