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5 Smart Money Moves to Make With Your RMDs
Yahoo Finance· 2025-10-09 11:47
You can also transfer assets in kind from your retirement plan to a taxable account instead of selling them. This means you move the same investments, such as mutual funds, ETFs, or individual stocks, and the value of that transfer counts toward your RMD. The IRS only requires that you take the withdrawal and pay the tax on it. You are not required to sell or spend the money.After paying the taxes owed on your RMD, you can move the remaining funds from your traditional IRA, SEP IRA, SIMPLE IRA, 401(k), or 4 ...
Can I Retire at 65 With $940k in an IRA and $2,200 in Social Security?
Yahoo Finance· 2025-10-06 13:00
Here, you have $940,000 in your pre-tax IRA. Setting aside additional contributions, the main question will be what your portfolio might look like by age 65 and what kind of returns it can maintain during retirement. This will depend significantly on your IRA's returns and your capacity to manage risk and potential losses.Now, calculate your potential portfolio income. This is typically the largest segment of your retirement planning. It's less certain than Social Security, but for most people generates mor ...
What investors need to know about financial advisor fees
CNBC· 2025-09-26 11:46
Anciens Huang | Moment | Getty ImagesWhen you're hiring a financial advisor, it's crucial to understand how that professional gets paid.To consumers, it may seem like a simple question to ask — but the answer isn't necessarily straightforward.About 36% of consumers don't know how they pay for a savings or investing relationship with a financial firm, according to a 2023 Hearts & Wallets survey. Another 20% said they think their financial service is free.Many of those clients are likely mistaken, although so ...
Can We Retire at 65 With $750k in a Roth IRA and $1,800 Monthly Social Security?
Yahoo Finance· 2025-09-24 14:00
Core Insights - The article discusses whether a $750,000 Roth IRA combined with $1,800 in monthly Social Security benefits is sufficient for retirement, suggesting that it may be adequate for many individuals based on median income and the 10x rule [1][2] Group 1: Retirement Planning - The adequacy of a $750,000 Roth IRA and $1,800 in Social Security benefits depends on individual financial management and retirement expectations [2] - Continuous investment is highlighted as a critical factor often overlooked in retirement planning, with a warning against relying solely on savings [3] Group 2: Income Generation - Investing in income-producing assets, such as real estate, is recommended to enhance retirement quality and provide additional income streams [3] - A "bucket" approach is suggested for managing risk, where a portion of the portfolio is allocated to safe assets like annuities or bonds to ensure reliable income [5][6] Group 3: Financial Advisory - Engaging with a financial advisor is encouraged for building a retirement income plan and identifying new income streams [3][5]
3 Tricky Decisions for Every Retirement Plan
Yahoo Finance· 2025-09-23 17:28
Core Insights - Retirement planning is increasingly complex due to the decline of pension reliance, necessitating alternative income sources and careful management of withdrawals and taxes [1] Group 1: Withdrawal Strategies - A commonly cited "safe" withdrawal rate is 4%, but recent research suggests a starting rate of 3.3% in 2021 and 3.7% by the end of 2024 for balanced portfolios over a 30-year horizon [2] - Retirees should adjust their withdrawal rates based on their age and expected spending horizon, with older retirees able to take higher withdrawals [2][3] - Flexibility in withdrawal rates is crucial, particularly reducing withdrawals during market downturns [3] Group 2: Long-Term Care Insurance - The cost of long-term care is significant, with Genworth estimating an annual cost of $111,325 in 2025, reflecting a 7% increase from the previous year [3][4] - The likelihood of needing long-term care is approximately 50%, indicating a substantial risk that many retirees may face [4] - Historically, long-term care insurance was the standard approach for middle and upper-middle-income individuals to cover potential long-term care costs [5]
Do 401(k) Withdrawals Before Age 73 Apply to My RMD Requirements?
Yahoo Finance· 2025-09-12 20:00
RMD Essentials - The taxes on funds in tax-deferred accounts like 401(k) are delayed, not avoided, and income taxes are due upon withdrawal [4] - Required Minimum Distributions (RMDs) start at age 73, preventing indefinite tax-free growth of retirement savings [4] RMD Rules - RMD rules are strict, and withdrawals before RMDs do not reduce future RMD amounts [5] - Excess withdrawals after RMDs have begun also do not directly affect future RMD calculations [5] Impact of Withdrawals - Taking withdrawals now or later in excess of RMD amounts can lower the account balance, which in turn reduces future RMDs [6] - Withdrawals are taxed as normal income regardless of when they are taken, making early withdrawals potentially beneficial if a higher tax bracket is anticipated post-retirement [6] Additional RMD Strategies - Working after retirement may allow for the delay of RMDs, applicable only to current employer's 401(k) plans [7] - RMDs must still be taken from 401(k) plans from previous employers, and stopping work triggers the need to start RMDs [7]
Most Wouldn’t Survive If There Are Social Security Cuts — 6 Ways To Make Sure You Do
Yahoo Finance· 2025-09-12 10:59
Group 1 - Approximately 50% of adults aged 65 or older depend on Social Security for at least 50% of their income, with about 25% relying on it for over 90% [1] - Concerns have been raised regarding the future of Social Security benefits due to funding cuts and field office closures by the Trump Administration, alongside acknowledged insolvency issues by the House of Representatives [2] Group 2 - To reduce reliance on Social Security in retirement, individuals are advised to maximize contributions to tax-advantaged accounts, thereby increasing savings and minimizing tax liabilities [3] - Opening and funding an IRA and maximizing employer matching contributions for workplace retirement accounts are recommended as initial steps [4] - Tax experts suggest various strategies for optimizing retirement savings, including brokerage accounts, real estate investments, and Roth conversions [5] Group 3 - Annuities can serve as an alternative to Social Security, providing customizable monthly payments [6] - Annuities can be structured to include a spouse and may offer guaranteed payment periods or refunds, ensuring beneficiaries receive remaining payments if both individuals pass away prematurely [7] - Engaging in flexible, low-stress work during retirement can enhance savings and lessen dependence on Social Security [8]
Ask an Advisor: Should We Move Our Assets Into a Target Date Fund or Choose an Annuity Instead?
Yahoo Finance· 2025-09-09 20:00
Core Insights - The article discusses the financial strategy of an individual with a substantial investment portfolio, focusing on the decision between purchasing an annuity or relying on an investment portfolio for retirement income [3][4][5][6]. - It highlights the advantages of using a target date fund versus a robo-advisor for managing investments, emphasizing the importance of aligning investment choices with personal financial goals and risk tolerance [7]. Group 1: Annuity vs. Investment Portfolio - An annuity serves as a form of insurance that protects against the risk of outliving one's savings, but it may not be necessary for individuals with a robust investment portfolio [3][4][5]. - The individual has a combined pension and Social Security income of $8,400 per month, which would decrease to $6,730 if one partner passes away, providing a reliable income stream [2]. - The investment portfolio includes $1.6 million in a 401(k), $350,000 in Roth accounts, and $300,000 in a taxable brokerage account, offering flexibility in managing income needs [2][5]. Group 2: Target Date Fund vs. Robo-Advisor - A target date fund adjusts its asset allocation to become more conservative as the retirement date approaches, making it a suitable option for retirement accounts [7]. - The article suggests that within tax-advantaged accounts, there is little difference between using a robo-advisor and a target date fund, as both provide diversified portfolio management [7]. - The choice between a target date fund and a robo-advisor should be based on individual goals, risk tolerance, and fee preferences [7].
Brighthouse Financial Trades Below 50-Day SMA: How to Play the Stock?
ZACKS· 2025-08-21 18:55
Core Viewpoint - Brighthouse Financial, Inc. (BHF) is experiencing a short-term bearish trend as it trades below its 50-day simple moving average (SMA), which is a key indicator for identifying support and resistance levels [1] Price Performance - BHF shares have declined by 2.8% year-to-date, while the industry has seen a decline of 1.6%. In contrast, the Finance sector and the Zacks S&P 500 Composite have increased by 10.6% and 8.9%, respectively [2] - The market capitalization of Brighthouse Financial is $2.7 billion, with an average trading volume of 0.8 million shares over the last three months [2] Valuation Metrics - BHF shares are trading at a price-to-book value of 0.47X, significantly lower than the industry average of 1.87X, indicating that the shares are affordable compared to peers [4] Sales Performance - Life insurance sales grew by 17.8% in Q2 2025, reaching $33 million, while annuity sales rose by 8.4% year-over-year to $2.6 billion, driven by strong demand for fixed annuities [7][14] - Total expenses surged by 68% to $3.5 billion in the first half of 2025, with long-term debt reaching $3.2 billion [7] Revenue and Earnings Projections - The Zacks Consensus Estimate for 2025 revenues is $8.9 billion, reflecting a year-over-year improvement of 1.5%. The current-year earnings estimate is $18.24 per share, down 7.1% from the previous year [8] - For 2026, earnings per share and revenues are projected to increase by 19.4% and 3%, respectively [8] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings has decreased by 0.8% over the past week, while the estimate for 2026 has increased by 0.2% [9] Target Price and Upside Potential - The average price target for BHF, based on short-term projections from 10 analysts, is $56.90 per share, suggesting a potential upside of 23.4% from the last closing price [10] Strategic Initiatives - Brighthouse Financial is focused on expanding life insurance sales, enhancing annuity products, and extending its distribution reach to capture growth in the individual insurance market [13] - The company is reshaping its product lineup to meet changing client demands, including the introduction of SecureKey fixed indexed annuities and SmartGuard Plus, its first universal life product tied to market indexes [16] Financial Challenges - Despite solid fundamentals, Brighthouse Financial faces challenges from rising expenses, higher policyholder claims, and weakening margins, with total expenses increasing significantly [18] - The company's long-term debt has risen to $3.2 billion, resulting in a debt-to-equity ratio of 55%, which is considerably higher than the industry average of 16.7% [19] Conclusion - Brighthouse Financial is gaining traction through strong annuity sales and improving life insurance momentum, but rising expenses and high debt levels present notable challenges that could impact long-term performance [20]
WTW's ICT appoints Nicholas Carbo as Senior Director in North America
Globenewswire· 2025-08-11 12:00
Carbo most recently served as Individual Annuity Chief Financial Actuary at Corebridge Financial. In this role, he led annuity assumption governance, experience studies, forecasting, reinsurance analysis, and oversight responsibilities of valuation and pricing. Prior to this, Carbo was Senior Principal at Oliver Wyman, where he provided consulting services to (re)insurance companies focusing on annuities, M&A-related projects and Bermuda reporting. He is also a fellow of the Society of Actuaries and member ...