vanhoosear / Flickr Americans spent $10 billion online on Black Friday 2025. There is no reason to think this year will be different. A look at Amazon’s (NASDAQ: AZMN) earnings report shows the extent to which it dominated the day. Quick Read Amazon Has Black Friday Sales Of $2 Billion Smaller Retailers Can’t Compete If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to lea ...

With a recession looming and costs of essentials like housing and food continuing to rise and stay high, many middle-aged Americans are finding that finances are tight not just for themselves, but for their aging parents, too. According to a 2025 survey from LendingTree, almost 1 in 4 Americans (28%) currently give money or help cover bills for their parents, their partner’s parents or both, while another 23% expect to do so in the future (1). Must Read According to the U.S. census, around 2.4 million A ...

Core Insights - Retirement planning is complex, and small mistakes can have significant long-term consequences [1] Group 1: Common Retirement Mistakes - Not maximizing Social Security benefits can impact overall retirement income; delaying benefits can lead to higher lifetime income and enhance survivor benefits [3] - Completely abandoning work in retirement may lead to a lack of fulfillment; staying engaged through part-time work or volunteering can provide meaning and potential tax advantages [4] - Delaying estate planning can result in government control over assets; essential documents like wills and trusts are necessary to avoid costly probate and protect assets [5] Group 2: Preparing for Longevity and Inflation - Longevity poses a significant risk; planning should account for both spouses potentially living to 100 years old to ensure portfolios can withstand market volatility [5] - Equities can serve as a hedge against inflation, emphasizing the need for a long-term financial strategy [5] - A personalized financial plan is crucial for forecasting costs and protecting assets, with a wealth management team that understands family dynamics being essential [6]

Core Insights - The article highlights the financial concerns of Gen-Xers, particularly those in their 40s and 50s, regarding retirement savings amid rising living costs, with 81% expressing worries about affording their desired retirement lifestyle [1] Group 1: Retirement Savings Strategies - Increasing the savings rate is essential, especially during high living costs, by cutting unnecessary expenses and redirecting those funds into retirement accounts like IRAs or 401(k) plans [3][4] - Downsizing large expenses, such as a big house, can free up significant monthly funds for retirement savings, particularly for those whose children have left home [4] Group 2: Investment Strategies - Investing in assets that can outpace inflation, such as stocks, is recommended to ensure retirement savings grow effectively [5][6] - Utilizing S&P 500 index funds in 401(k) plans or building a diversified portfolio of growth and dividend stocks in IRAs can provide broad market access at low costs [6] - Real estate is suggested as a valuable investment due to its potential for appreciation and as a hedge against stock market volatility, with options like real estate investment trusts (REITs) available for those not interested in direct property ownership [8]

Core Insights - The timing of retirement significantly influences financial planning and investment strategies, with younger individuals advised to invest in higher-risk assets while older individuals may need to adopt a more conservative approach [4][3][2] Investment Strategies - Younger investors, such as those aged 45, can benefit from leaving their 401(k) invested in higher-risk assets like an S&P 500 fund, potentially accumulating around $9.1 million by age 67 at an average market return of 11% [1] - As life expectancy increases, financial advisors may recommend maintaining a stock-heavy portfolio into the mid-60s, allowing time for recovery from market downturns [2][3] - A general rule suggests that the further one is from retirement, the more aggressive the investment strategy can be, shifting to a more conservative approach as retirement approaches [3][4] Retirement Planning - Key elements of retirement planning include income allocation, tax planning, and spending balance, with a focus on generating fixed income from savings and Social Security benefits [5][6] - For example, a 63-year-old earning $100,000 annually and saving $20,000 per year could potentially accumulate $1.75 million by age 70, generating annual income of $70,000 at a 4% withdrawal rate [7] Managing 401(k) Post-Retirement - Upon retirement, individuals have several options for managing their 401(k), including keeping it in place, rolling it into an IRA, converting it to an annuity, or considering Social Security benefits [10][13][15][17] - Rolling over to an IRA allows for greater control over investments and potential elimination of management fees associated with a 401(k) [13][14] - Annuities provide guaranteed monthly payments but may lose value against inflation and lack growth potential [15][16] Social Security Considerations - Social Security benefits are influenced by lifetime earnings and the age at which benefits are collected, with full benefits available at age 67 [18][19] - The average Social Security benefit is currently $1,976 per month, translating to $23,712 annually, with variations based on the age of collection [20][21] Long-Term Financial Planning - Effective retirement planning must account for taxes, inflation, and longevity, with strategies to mitigate the impact of these factors on retirement savings [22][24] - It is essential to plan for potential expenses such as long-term care and to ensure that savings last throughout retirement, potentially into the mid-90s [24][25]

Planning for retirement can be one of the most consequential decisions of your life, especially in the 4-5 years directly preceding your departure from the workforce. On this episode of Decoding Retirement, Robert "Bob" Powell speaks with financial planner Jeremy Keil about how to get the most out of your pre-retirement, and how solid preparation can make the difference between retiring comfortably or scrounging for savings. Jeremy discusses how to consider longevity in your financial planning, the signific ...

Core Insights - The article discusses the benefits and considerations of converting to a Roth IRA, particularly for individuals nearing retirement age, highlighting the tax implications and growth potential of such a strategy [1][5][19] Contribution Methods - There are two primary methods to fund a Roth IRA: conversions from pre-tax accounts like 401(k)s or traditional IRAs, and contributions from earned income. The contribution limit for 2025 is $7,000 annually, or $8,000 for those aged 50 or older [3][4] Tax Implications - Converting funds from a 401(k) to a Roth IRA increases taxable income for the year of conversion. For example, a conversion of $15,000 raises taxable income from $50,000 to $65,000, resulting in an increase of approximately $3,300 in federal taxes [1][8][22] Growth Potential - A $15,000 investment could grow significantly over 40 years, potentially reaching $224,000 at a 7% return or $653,000 at a 10% return. This illustrates the long-term benefits of paying taxes upfront on a smaller balance [8][10] Retirement Planning - For individuals aged 58 with substantial 401(k) balances, the decision to pivot to Roth contributions involves balancing current tax payments against future tax-free withdrawals. This strategy can provide predictable income and may reduce lifetime tax costs [15][19][25] Estate Planning Benefits - Roth IRAs offer advantages for estate planning, as they do not require minimum distributions during the owner's lifetime, allowing funds to grow longer. Beneficiaries can withdraw inherited Roth funds tax-free within 10 years, making it a valuable tool for wealth transfer [14][20] Income Eligibility - In 2025, income limits for Roth IRA contributions phase out for single filers earning between $150,000 and $165,000, and for joint filers between $236,000 and $246,000. However, conversions are not subject to these limits but incur immediate tax liabilities [22][23] Strategic Considerations - Late-life Roth contributions may not replace the primary role of a 401(k) but can create a tax-free reserve. The decision to convert should consider tax brackets, other income sources, and legacy planning goals [23][25]

Retirees often plan to relocate to be closer to one of their children. It makes sense, but the decision can be more complicated than it appears.🔗: https://t.co/ix02SNYMyA https://t.co/xg9AQ3IFnO ...

Core Insights - A 29-year-old with a 401(k) balance of $45,000 can potentially grow it to $4 million by age 65 through consistent contributions and strong investment returns [2][7] - Inflation significantly impacts future purchasing power, meaning that $4 million in 36 years may equate to only $2 million in today's dollars if inflation averages 3% [6][8] - The feasibility of reaching $4 million depends on various factors, including the savings rate and market conditions, making it a possibility but not a certainty [4][7] Summary by Sections - **Current Savings Situation**: At age 29, many individuals have modest 401(k) balances due to entry-level salaries and other financial obligations [1] - **Investment Potential**: Continued contributions of 10% to 12% and strong long-term returns can significantly increase a 401(k) balance over time [2][8] - **Inflation Considerations**: A steady 3% inflation rate could mean that the future value of $4 million will not provide the same lifestyle as it does today, necessitating a reevaluation of retirement goals [5][6] - **Realistic Projections**: While reaching $4 million is possible, it is essential to consider lifestyle expectations and the impact of inflation on retirement savings [7][8]

Retirees often plan to relocate to be closer to one of their children. It makes sense, but the decision can be more complicated than it appears. https://t.co/xD7jSfkDEp ...