Watching your bank account balance increase is a good feeling. You’re growing your wealth and probably getting closer to your financial goals. But there comes a point when you can have too much money in your account, according to personal finance influencer Humphrey Yang. Check Out: Here’s How To Build an Emergency Fund Without Blowing Your Budget Read Next: 6 Things You Must Do When Your Savings Reach $50,000 In a new YouTube video, Yang shared how keeping excess cash in your bank account can cost you. L ...

I am a 60-year-old male and I want to retire when I turn 63 and move to Colombia. My house will be paid off in one year and I plan on transferring the deed to my son. When I retire, I will have a $400-per-month pension, an estimated Social Security benefit of $2,700 per month, and as of now, my 401(k) balance is a little over $1 million. I am averaging a 7% return on my 401(k), but next year, I have plans on moving all of that money into more conservative choices, so my return will no longer be 7%. I also h ...

The nice thing about Roth IRA accounts is that withdrawals are not taxed in retirement, so you don't have to reserve a portion of each distribution to satisfy an IRS bill at that time.Until you retire, you can also help yourself by contributing to a Roth IRA or 401(k) or doing a Roth conversion if you don't currently have funds in one of these accounts. Doing so often depends on your taxable income now and anticipated taxable income in the future.If you won’t have a high income in retirement, it’s that much ...

Morsa Images / Getty Images Key Takeaways Having extra savings in retirement is a good goal to have. Start by saving and investing early, investing aggressively, and maximizing tax-advantaged retirement accounts. Automating your investments is a good strategy to use. If you are uncertain how to invest for your retirement, reach out to a fiduciary financial planner for advice. It’s a good problem to have: having too much money saved for retirement and having additional money to leave to your heirs. ...

Investopedia / Photo Illustration by Alice Morgan / Getty Images KEY TAKEAWAYS The percentage of employees in 2024 who took out a hardship withdrawal from the retirement account more than doubled compared to 2018. The costs of emergencies also continue to rise, from unexpected car repairs and hospital stays to an increased number and severity of natural disasters. It is becoming increasingly difficult for many Americans to accumulate sufficient savings, and many struggle to afford emergency expenses ...

Core Insights - The article discusses the financial struggles of a 27-year-old retail manager, Presley, who cashed out her $60,000 401(k) to pay off debt and indulge in personal expenses, ultimately leading to significant financial loss [1][2]. Financial Behavior - Presley earns approximately $67,000 annually, translating to about $4,300 monthly after taxes, yet her spending habits exceed her income [2]. - She spends between $5,000 and $7,000 each month, with minimum debt payments exceeding $2,000 monthly [5]. Debt Situation - After cashing out her retirement fund, Presley accumulated over $70,000 in debt, including more than $20,000 in high-interest credit card debt, a $31,000 car loan, and about $8,600 in student loans [3][4]. - Despite multiple debt consolidations, she continues to find herself in a similar financial position [3]. Spending Justifications - Presley attributes her spending to stress and convenience, often justifying her emotional spending as "deserved" rewards [4]. - She has sold $7,000 in stocks to cover bills and attend concerts, indicating a pattern of using investments to fund lifestyle choices [4].

If you’re planning on making tax-deferred retirement accounts the last pot of money you tap after retirement, you’ve got a lot of company. And why not? The idea that your 401(k) or traditional IRA can keep growing and churning out more tax-deferred money seems like a sound strategy. But you may want to rethink this conventional wisdom. Instead of focusing on deferring taxes, Morningstar’s Mark Miller suggests looking at how to minimize your overall total taxes during retirement – which can mean tapping ta ...

Having your children move out is an emotional time with many decisions to make — it’s also the perfect time to start taking retirement more seriously. If you’re recently an empty nester, experts recommend you quit investing in certain things to prioritize your future. For You: Here’s How Much You Need To Retire With a $100K Lifestyle Learn About: How To Get Guaranteed Growth On Your Money — Without Risking Your Principal “At this stage of life, retirement savings should be the top priority since college i ...

Fact checked by Betsy Petrick PeopleImages / Getty Images Although it’s harder to catch up late, you can still take meaningful steps to improve your retirement readiness. Key Takeaways Compared to other generations, baby boomers are the least prepared for retirement. Only 40% of boomers are on track to maintain their current lifestyle in retirement. This lack of retirement readiness is due to limited early access to retirement plans, like 401(k)s and less time to recover from under-saving. When y ...

Robert Kiyosaki hasn't gone quiet — he's gone louder. "The Rich Dad, Poor Dad" author is still sounding the same alarm he issued nearly two years ago, only now the countdown feels closer, and the language more severe. Back in March 2024, Kiyosaki took to X with a blunt warning: "BABY BOOMERS BUST. Tragically biggest bubble in history will wipe out baby boomers because Boomers are the first generation with flimsy 401ks. Stock market set to crash. Time to get real is now. Buy real assets: gold, silver, Bitc ...