A 64-year-old man is gearing up for retirement with $1.5 million in his 401(k), a $2,000 monthly Social Security check and no debt beyond a $1,700 mortgage. His diabetes is under control, but the reality of aging — and the possibility of needing help down the road — has him asking a big question: Should he buy long-term insurance? Must Read It's a common question — and a good one. Long-term care insurance (LTC) helps cover the high costs of in-home care, nursing facilities or assisted living if you need ...

Core Viewpoint - The termination of Kodak's pension plan will further reduce the number of employers offering pensions, impacting approximately 35,000 participants who relied on it for retirement funding [1] Group 1: Impact on Employees - Employees who are mid-career will face significant savings shortfalls due to the pension termination, while retirees and near-retirees may not feel much immediate effect [2][3] - The accrual of pensions follows a "hockey stick" curve, meaning that if the pension is terminated early, employees miss out on substantial long-term increases in their pension benefits, potentially receiving only 10% to 15% of what they would have accrued [4] Group 2: Strategies for Retirement Planning - To mitigate the impact of pension terminations, retirees and near-retirees should focus on growing their savings at a rate higher than their withdrawals to build a nest egg that can cover inflation and long-term healthcare costs [5] - For those still years away from retirement, it is advisable to enroll in a 401(k) or other retirement plans as soon as possible and to create a retirement plan to determine annual savings and investment strategies [6] Group 3: Importance of Investment Growth - An example illustrates the importance of investment growth: saving $10,000 annually for 30 years in a savings account at 2% interest results in $405,500, while investing in a high-quality portfolio earning 7% yields $944,600 [7]

Core Insights - Retirement planning for older adults often focuses on income stability rather than growth, addressing concerns about financial security and the fear of outliving savings [3][4] Group 1: Financial Situation of Older Adults - Many older adults, like Jake, may appear financially secure with multiple income streams but still feel uneasy about their future [2] - Monthly expenses for older adults can be significant, with Jake facing $7,000 in expenses, including mortgages and maintenance [2] Group 2: Strategies for Financial Security - Evaluating rental properties is crucial; determining cash flow after expenses can inform whether to keep or sell properties [4] - Reassessing annuities can lead to better financial products; transferring to lower-fee or higher-earning options may be beneficial, especially after the surrender period [5] - Leveraging real estate income by paying off mortgages can reduce monthly costs, allowing for a more stable income stream [6]

Paying for retirement expenses can add up quickly. Many American retirees plan on using their Social Security income to cover the onslaught of expenses. A survey by the Nationwide Retirement Institute found that 21% of adults age 50 or older say their Social Security income will be their only income in retirement. For You: I Asked ChatGPT Where To Retire on $2,000 a Month: Here’s What It Said Try This: 4 Affordable Car Brands You Won't Regret Buying in 2025 Although many rely on Social Security in retirem ...

Core Insights - Celebrity investor Suze Orman suggests that utilizing only Roth retirement accounts is the best strategy to avoid high taxation on Social Security benefits, which she refers to as a 'tax torpedo' [1] - The taxation of Social Security benefits can affect a significant portion of beneficiaries, with up to 85% of benefits taxable for single filers earning above $34,000 and married couples above $44,000 [2] - The Committee for a Responsible Federal Budget (CRFB) warns that proposed changes under Trump's administration could lead to a 33% cut in Social Security benefits by 2035, impacting the financial security of retirees [4][13] Taxation and Social Security - For individuals with provisional incomes between $25,000–$34,000 (single) or $32,000–$44,000 (couple), 50% of Social Security benefits may be taxed, affecting 40% of beneficiaries [2] - The average monthly Social Security Administration (SSA) payout is currently $1,862, highlighting the importance of planning for potential benefit cuts [4] Financial Advisory Services - Platforms like Advisor.com and RothIRA.org offer services to connect individuals with financial advisors to help navigate retirement planning and investment strategies [3][12] - These platforms provide free consultations and allow users to review advisor profiles and past client feedback, facilitating informed decision-making [3][12] Investment Strategies - The article discusses the potential benefits of investing in gold IRAs as a hedge against market volatility, especially given the rising gold prices, which are currently around $2,870 per ounce [8] - Acorns offers an automated savings and investment solution, allowing users to invest spare change from everyday purchases, which can be beneficial for retirement savings [15][16] Long-term Financial Planning - The CRFB indicates that Trump's policy proposals could accelerate the insolvency of Social Security by three years, emphasizing the need for individuals to research long-term impacts on their financial plans [14] - To reduce reliance on Social Security, individuals are encouraged to consider secure savings vehicles like Certificates of Deposit (CDs) [14]

Core Insights - The article emphasizes the importance of rethinking financial strategies for retirement, moving away from traditional saving milestones to a more holistic approach to wealth building over time [2][4][5] Group 1: Budgeting and Expense Tracking - Monarch Money's expense tracking system simplifies budgeting, allowing users to monitor multiple accounts and daily expenses effectively [1][6] - Creating a budget is essential for understanding spending habits and determining how much can be allocated for retirement investments [1] Group 2: Retirement Savings Strategies - Many Americans believe they need approximately $1.46 million for a comfortable retirement, but this figure is challenged by financial experts who suggest alternative strategies [4] - Investing small amounts consistently can significantly enhance retirement savings; for example, investing $30 weekly can accumulate to $76,965 in 20 years at an 8% annual return [8] - The concept of compound interest is highlighted as a crucial factor in growing retirement savings over time [6][7] Group 3: Diversification and Alternative Investments - Diversifying investment portfolios is critical for securing retirement savings, especially during economic volatility [9] - Gold IRAs are presented as an attractive option for retirement investment, combining tax advantages with the protective benefits of gold [11] Group 4: Financial Advisory Services - Consulting a financial advisor can potentially increase net returns by an average of 3%, aiding in quicker attainment of financial stability [13] - Online platforms are available to connect individuals with vetted financial advisors, facilitating the development of personalized financial plans [14][15]

We are a dual-income couple in our mid-50s with over $2 million in our 401(k)s. Should we “sacrifice” the pre-tax benefit and switch to Roth contributions at work? -Wendy Like most tax-related questions, the answer is “it depends.” Based on your situation, switching contributions to a Roth 401(k) could make sense for a few key reasons, including tax diversity and tax-free growth. However, there may be additional factors that make sticking with a traditional 401(k) and opening a Roth IRA on the side more de ...

Older Americans are ramping up their IRA contributions, according to Fidelity's latest retirement analysis study. Advisors say growing anxiety about the possibility of running out of money in retirement is likely driving the surge in contributions. The study, which looked at 17.8 million IRA accounts in the second quarter of 2025, found that IRA contributions have remained flat year over year. But, among Generation X and baby boomer account holders specifically, the contribution rate has increased 25% and ...

Many Americans retire earlier than planned, making it crucial to start saving and planning in midlife rather than banking on working longer. https://t.co/QcW7ViKBGr ...

Starting at age 73, the IRS requires you to make annual withdrawals from your tax-deferred retirement accounts. But how much should you withdraw? Should you make a large withdrawal in January or smaller ones throughout the year? Are there tax implications? Should you reinvest the money? This episode of 5 Questions with Fidelity has answers to all these questions and is full of strategies to help you manage your RMDs. prepared for retirement. 00:00: Welcome to 5 Questions with Fidelity 00:31: What are requir ...