shapecharge / Getty Images Key Takeaways A crisis-ready retirement plan is diversified across income types, taxes, and time horizons. Don’t forget to take into account often-overlooked risks, too, such as long-term care, inflation, and changes in tax policy. To further ensure your strategy is resilient, annual stress testing and flexible income tools can protect your plan when life doesn’t go to script. You might have a retirement plan. But is it built to survive a crisis? According to a May sur ...

jacoblund / Getty Images Understanding how cash balance pensions work can help you boost your long-term wealth. Key Takeaways Cash balance pensions make up almost 50% of all defined benefit plans. They combine features of a traditional pension and 401(k). The employer-funded contributions and interest guarantee growth annually without the investment risk. Cash balance pensions have seen significant growth over the past two decades, with their numbers increasing 15-fold and now accounting for nearl ...

Core Insights - The article discusses the importance of evaluating retirement plans and highlights the use of AI, specifically ChatGPT, to assess a retirement strategy [1][2] Group 1: Positive Aspects of the Retirement Plan - The retirement plan includes several commendable strategies such as taking full advantage of the 401(k) match, which is considered "free money" [5] - A savings rate of 10%-15% of income is viewed as solid, especially for those who started saving early [5] - The investment strategy is low-cost and diversified, which is recognized as a great default approach [5] - The plan includes forward-thinking elements like increasing contributions over time and utilizing windfalls for retirement savings [5] Group 2: Areas for Improvement - The savings targets are deemed too low, with a recommendation to aim for 4-5 times salary by age 45 instead of just three times [4] - A higher savings rate of 15%-20% of income is suggested for those who did not start saving in their 20s or 30s [5] - A more aggressive savings timeline is proposed, with specific targets of 4 times salary by age 45, 6 times by age 50, 8 times by age 55, 10 times by age 60, and 12-15 times by age 67 [6] Group 3: Tax Strategy Recommendations - The article emphasizes the importance of diversifying tax exposure by funding both a Roth IRA and maintaining a regular taxable brokerage account [7] - This diversification is recommended for greater flexibility in withdrawals and tax management during retirement [7]

Group 1 - Divorce can lead to financial devastation and emotional challenges, making the prospect of new relationships daunting for individuals [1] - After processing the emotional impact of separation, many individuals may seek new relationships, which can lead to remarriage, but this decision is often complicated by financial considerations [2][3] - Factors such as children from previous relationships, current wealth status, and existing debt can significantly influence the financial dynamics of a new marriage [3] Group 2 - It is essential for individuals considering a second marriage to have a legacy planning meeting to address financial implications, especially regarding children from previous marriages and future financial goals [5] - Consulting with a financial planning expert can help identify potential financial pitfalls and create a clear financial vision for the new family [6] - Updating retirement plans, insurance policies, and estate documents is crucial to ensure that beneficiaries reflect current intentions and circumstances [7] Group 3 - Special attention should be given to creating an estate plan that considers the needs of children from previous marriages, ensuring that protections are in place for all parties involved [8]