A retirement calculator is a great tool for most investors. It lets you input a number of variables such as current age, planned retirement age, annual salary, annual savings, current retirement savings balance, and expected annual return and the calculator computes your estimated accumulated retirement account balance at retirement. Some calculators will even translate that lump-sum balance into an annual withdrawal amount. This is a straight-forward way to see if you are on track to meet your retirement goals and compare what you have with what you will need. If you don’t like your results, you can play with the inputs to determine what changes you should make.
It’s a new year and I can’t think of a better time to highlight cost of living adjustments affecting dollar limitations for retirement-related items and social security benefits for 2019.
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the Federal government’s Thrift Savings Plan increased from $18,500 to $19,000. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the Federal government’s Thrift Savings Plan remains unchanged at $6,000.
Earlier this month I had the opportunity to attend the 29th annual SRI Conference in Colorado Springs, Colorado. The SRI Conference is the premier annual gathering of sustainable, responsible, and impact investment professionals working to direct the flow of investment capital toward a truly sustainable future.
Over the past few weeks the focus of our weekly posts has been on the volatility in the global equity market. We have sought to provide some insight into what’s driving global stocks lower and provide perspective on how frequently drawdowns like the one we are currently mired in occur. We hope these insights and perspectives have been valuable for you and helped to give you peace of mind.
Whether you are a first time home buyer or a seasoned mover, there are many intricate details involved with taking out a mortgage. If you are purchasing or refinancing a home, there may be an opportunity to lower the interest through buying mortgage points. Although a lower interest rate sounds appealing, there may be drawbacks depending on your unique situation.
The MSCI Emerging Markets Index looks significantly different today than it did at its inception thirty years ago. For one, the market capitalization of emerging markets companies has increased from $52 billion in 1988 to $5.3 trillion as of May 31, 2018. This underscores the ability of emerging markets countries to contribute to the global economy, especially as global markets have expanded.
Protecting yourself and your family is top priority for most, and households purchase different types of insurance to ensure that they are properly covered from unforeseen events.
A very important form of insurance that people frequently overlook is Excess Personal Liability, which is commonly referred to as Umbrella insurance. Umbrella insurance provides additional liability coverage above the limits established through other basic liability policies like auto and homeowner’s/ renter’s. Umbrella insurance is designed to help guard against large and potentially devastating liability claims or judgments caused from bodily injury, property damage, lawsuits, libel, and slander.
The first two articles in the series, “Understanding Your Federal Student Loans”, provided an introduction to student loans, how to evaluate your loan options, and incentives associated with Federal loans. The final article, Part 3, in this series will explore the alternatives to traditional, federal student loans.
Every couple has its own unique way of divvying up the household’s financial chores. This may mean one spouse is in charge of investments and one spouse is in charge of paying the bills, or one spouse could assume all the financial responsibilities. In the latter case, the responsible spouse effectively assumes the role of the family’s chief financial officer (CFO).
On December 22nd, the Tax Cuts and Jobs Act of 2017 signed into law changed the tax landscape for individuals and corporations. Although there are many modifications to the tax code that will affect all Americans, the mortgage interest itemized deduction directly affects current and future homeowners.
Talk of inflation has heated up in the last few weeks, with fears that higher than expected inflation could cause the Federal Reserve to raise interest rates at a faster pace. This was one of the contributing factors to the recent volatility in the stock market and has driven U.S. Treasury yields higher.
If you are a parent with a child in college or paying off debt yourself, you probably are all too familiar with the astounding costs of a college education. With the average annual cost of a four-year private college at $49,320, it’s important to be realistic about how much of the tuition will be funded by student loans.
Last year I wrote an article titled “The Shortcomings of Income Only Spending in Retirement,” which detailed the shortfalls of the popular strategy of spending only the income generated by a portfolio in retirement. In summary, the main drawback of income only spending is the tendency to increase portfolio risk when yields are low in order to generate more income.