SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Should you make 401(k) or Roth IRA contributions? In a perfect world, the answer would be both. If you have the means, maximizing your traditional 401(k) and Roth contributions is a great way to build a diversified set of retirement savings. But, of course, your paycheck gets a vote. So, if you have to choose, should you switch from contributing to a 401(k) to Roth 401(k) or Roth IRA contributions? The an ...

With clear goals, focused saving, and smart strategies, freelancers can take control of their retirement planning and build a secure financial future. https://t.co/8L5Fu6os1v ...

First, as Dever noted, inflation is a hidden risk. Most investors learn the common wisdom of investing in growth-oriented assets during their working life and more conservative, income-oriented assets once they retire. This is a strategy built around protecting your nest egg in your retirement years.There are two big risks despite this well-funded retirement account, but a financial advisor can help you prepare for both of them.“The 4% withdrawal rule can be a useful starting point,” said Bryan Cannon, auth ...

Core Insights - Portfolio rebalancing is essential as 2025 ends, especially for those with capital gains and taxable losses, and consulting with financial advisors is highly recommended [1][6] - Investors heavily exposed to AI and growth stocks should consider diversifying their portfolios with fixed income ETFs, cash, gold, or alternative assets for better risk-adjusted returns [2][5] - The market dynamics in 2026 will significantly influence potential returns, emphasizing the importance of focusing on controllable factors [3] Investment Strategies - Investors should reassess their sector exposures and consider how their portfolios should be structured for the next five to ten years [9][8] - Reviewing insurance policies and fixed costs can lead to significant savings, making it a valuable year-end task [11] - Creating a budget for 2026 is crucial for managing income and expenses effectively, which is vital for long-term wealth growth [13] Long-Term Planning - The end of the year is an opportune time for updating estate planning documents, especially for those with dependents or health concerns [15] - Exploring additional income streams, such as side hustles, can have a substantial impact on financial goals [17] - Staying informed about macroeconomic developments can enhance long-term investment strategies [20] Goal Setting - Setting realistic and measurable goals for the new year can help investors achieve their financial objectives without overwhelming themselves [21]

Core Insights - Most Canadian DIY investors adopt a hybrid approach, combining individual stocks with ETFs for diversification, which simplifies portfolio management and rebalancing [1][5] - Canadian blue chip stocks have historically outperformed the market, with a strategy focusing on the 100 largest stocks yielding an annual outperformance of nearly 2.5% compared to the TSX [2][4] - A low volatility portfolio in Canada typically includes sectors like banks, insurance, utilities, and consumer staples, which are considered safer investments [5][6] Rebalancing Strategies - Regular rebalancing is crucial for maintaining portfolio performance, with studies indicating that monthly rebalancing can lead to an average annual return of 14.2%, compared to 13.84% for quarterly and 11.59% for annual rebalancing [13][10] - The process of rebalancing involves selling high-performing stocks and reallocating funds to underperformers to maintain consistent portfolio weightings [10][16] - Transaction costs are a consideration in rebalancing, but many discount brokerages now offer free trades, which can mitigate these costs [11] Retirement Considerations - In retirement, rebalancing strategies shift to generating income, often involving selling high-performing stocks to fund living expenses [16][22] - Managing geographic allocations is also important, with recommendations for annual rebalancing to maintain desired exposure across Canadian, U.S., and international markets [27] - Tax implications play a significant role in rebalancing taxable accounts, necessitating careful management of capital gains and losses [24][25]

COLA Disappointments and Social Security Risks: Millions of Americans rely mostly on Social Security in retirement. But this can create serious financial risks. The average Social Security benefit in 2025 is only $2,015 per month, roughly $24,000 per year. For most retirees, that replaces just 40% of their pre-retirement income. And there’s more risk ahead. in the next decade. As baby boomers retire, the program may run out of funds. If Congress doesn’t act, benefits could shrink. Relying solely on Social S ...

Core Insights - The article discusses the financial stress experienced by a high-earning individual, highlighting that a substantial income does not guarantee peace of mind due to the unpredictability of earnings in a volatile industry [1][2]. Financial Overview - The individual earns approximately $425,000 annually, yet feels constant stress due to fluctuating income and high expenses [1][2]. - Monthly overhead costs are around $13,000, with an additional $4,000 allocated for family support [3]. - The individual saves about $30,000 each year and owns five rental properties that generate approximately $4,000 monthly in profit [3][4]. Financial Management Strategies - The individual has a conservative approach to spending, maintaining $10,000 in a checking account and $15,000 in a business account [4]. - Despite a solid financial foundation, the individual does not track spending closely, contributing to ongoing stress [5]. - Suggestions from the Reddit community included building an emergency fund of $100,000 and using last year's income to budget for this year's expenses [6]. Real Estate Considerations - There are concerns regarding the reliance on real estate as a primary investment strategy, particularly in boom-or-bust industries where liquidity is crucial [7].

“I have a retirement fund through work, which is in fairly good shape, but had to reduce contributions this past year because of increasing costs.” (Photo subject is a model.) - Getty Images/iStockPhoto Dear Quentin, My mom just gifted me $10,000 and I’m stumped about my next move. I’m 55, female, single, make $78,000 a year and live in Oklahoma. I have no kids. I have $60,000 left on my mortgage (with a 3% rate) and $15,000 on a car loan (8% rate). I also have $1,000 on a credit card, which will be pai ...

Core Insights - There are over 24 million millionaires in the U.S., with $1.26 million considered the "magic number" for retirement according to Northwestern Mutual's study [1] Group 1: Retirement Considerations - Many millionaires choose to continue working even after achieving financial milestones, with examples like Warren Buffett working into his 90s [2] - Retiring by age 62 is suggested for those who have met their financial goals, providing three reasons to consider this option [2] Group 2: Financial Planning - The 4% rule, established by William Bengen, has been a standard guideline for retirement planning, allowing retirees to withdraw 4% of their savings annually [3] - With a portfolio of $1.5 million, a 4% withdrawal would yield $60,000 annually, potentially supplemented by Social Security benefits for a comfortable lifestyle [4] - Retiring at 62 with a $1.5 million nest egg allows for strategic tax maneuvers, including delaying Social Security benefits for greater long-term financial advantage [5]

Canva | studioroman and joshblake from Getty Images Signature Planning for retirement is something everyone, regardless of income, needs to take seriously, but for high-income individuals, it really is a case of "mo' money, mo' problems." The reason is the wealthy have more options available to them to shield their income and position themselves for a more comfortable retirement. This issue was brought to light by a Redditor on the r/chubbyFIRE subreddit who is 30 years old and is looking for early ret ...