How much you can spend in retirement and the savings it takes to get there

Who will go first, you or your money? You’ve doubtless had a nightmarish fever dream playing this out if you’re approaching retirement. Countless articles address it, an industry has developed to solve it (mine), and your friends, family, and neighbors all have their say about it too. But the science behind how to solve this […]

Optimizing Saving and Investing During Retirement

Investing undergoes a few changes when you retire. This of course is expected. You no longer add money to your accounts – you drain them. This paradigm shift requires a new approach to managing money, and its one that runs against the last 30 to 40 years of hard-won habits you’ve established. Your portfolio must […]

The 401k Age 55 Rule for Early Retirement

401k Age 55 Rule man awaiting early retirement

Retirement accounts like IRAs, Roths, and 401(k)s offer incredible tax benefits. But those benefits come with strings attached. You cannot generally take money out of a retirement account prior to age 59½ without incurring a penalty, though there are exceptions. Congress recognized that not everyone would retire in their 60s when they created this legislation […]

The Retirement Readiness Checklist

We periodically like to put together helpful guides and pieces that are easy to share with friends and family. Welcome to our newest piece! The retirement readiness checklist has everything you need to think about, consider, and work through as you approach your last day of work. We hope you find it helpful.   Retirement […]

The Roth Conversion Sweet Spot

Retired man read newspaper

There is a period that acts as something of a Goldilocks zone in in determining when to do Roth conversions: the interval between the point that you retire and your first required minimum distribution at age 72. Income is generally lower than it was during your working years, withdrawals from pre-tax retirement accounts aren’t mandatory, […]

What it Actually Means to Claim Social Security for Early Retirement

Social Security Early Retirement

The decision on when to claim social security is complicated enough when retirement comes at the normal retirement age. You’ll need to think about health conditions, personal preferences, spousal benefits, and of course, your social security benefit amount. But when your goal is to leave the rat race as soon as possible, you add another […]

Making the Right Move: Relocating in Retirement

November 11, 2021 James Stewart   For many retirees, the call of a warmer climate, lower cost of living, and lower taxes is too strong to ignore. Retirees are selling their houses in suburbs on the coasts and moving to retirement-friendly condos or subdivisions in the Southwest or Southeast. For others with kids living in […]

Bridging the Gap to Medicare when Retiring Early

Matt Bacon 9/20/21 Early retirement is a dream for many. But it’s a dream that requires careful planning, particularly when it comes to managing your healthcare options. It can be a mad scramble to find affordable, quality healthcare coverage in the intervening years between retirement and Medicare eligibility. When Medicare does kick in you will […]

Explained: How to Hit the Upgrade Button on Your 401(k)

Your 401(k) savings will be used to create a good portion of your income in retirement, so getting as much money in there as possible while you’re working makes sense. If you’ve been contributing the maximum every year – good job. But there are other moves you can make that can significantly boost the value […]

Retirement Is About Income … and Taxes

Retirement and Taxes

You’ve figured out your budget, your retirement nest egg is substantial, and you’re ready to make the transition to living savings instead of income from work. Have you thought through the tax implications of moving from a W2 to a 1099R? It’s very common for tax planning to be overlooked. After all, the common wisdom […]

The Intentional Approach to Retirement

Intentional Approach for Retirement

Matt Bacon     June 1, 2021 Retirement preparedness is a tricky subject. The Federal Reserve conducted a brief survey on the subject just before the pandemic. 44% of respondents felt that their retirement was not on track while another 20% said they weren’t sure. That’s startlingly high at 2 out of every 3 Americans. We’ve […]

3 Ideas to Steal for Navigating the Biden 401k Changes

Biden 401k Changes

Matt Bacon        March 4, 2021 President Biden made waves during his run for office with a series of progressive legislative changes. One of those is moving closer to fruition. In a recent Senate hearing, Treasury Secretary Janet Yellen announced that she is looking into changes to current retirement plan rules. Yellen didn’t elaborate on what […]

Where should you roll your 401k?

Paint Roller with Dollar Bills and Green Background

Matt Bacon        March 1, 2021 Where should you roll your 401k? This is one of the most asked questions we field. That, and “who is the best”? Like everything it’s a matter of perspective, but regardless of the answer we’re always struck by the knowledge gap on who the players are and what they actually […]

Converting an IRA to a Roth IRA after age 60

Updated June 9, 2022 Most people hit their peak earning years in their 50s and 60s. Consequently, these also tend to be the peak tax years. On the face of it, converting an IRA to a Roth IRA doesn’t look like an obvious choice. The act accelerates deferred income into the current year and stacks […]

Why the Coronavirus Won’t Ruin Your Retirement

Feb 27, 2020 by Matt Bacon Markets are on a downward trajectory. At the time of this writing the S&P 500 has closed down for the last six consecutive days as Coronavirus fears proliferate. Both the Dow and S&P 500 are now negative for the year. Swaths of China have gone into lockdown as have […]

Positioning your portfolio in a rising interest rate environment

The fixed income markets experienced a significant increase in interest rates in the fourth quarter of 2016. On October 1st, the ten-year U.S. Treasury Note stood at 1.60%. The yield had increased to 2.59% on December 16th and currently sits at 2.33% as of this writing. Additionally, in December the Federal Reserve raised its target […]