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what is a vested balance piggy bank

What is a Vested Balance?

Your vested balance is the amount of money in your retirement account that belongs to you. If you quit your job or leave your employer, your vested balance is the portion of the money that you can take with you. What Does Vested Mean? According to Webster’s, vested means: Fully and unconditionally guaranteed as a legal …

Brandon Renfro and Harry Markowitz

Meeting Harry Markowitz

Fair warning, this post is a departure from my normal articles on retirement planning. I had an opportunity to meet one of the founding fathers of modern finance, Harry Markowitz, in June of 2019 and I simply want to share the experience with you here. Harry Markowitz isn’t a household name, but the work he …

woman wondering Can I Contribute to an IRA if I am Retired

Can I Contribute to an IRA if I am Retired?

The simple fact that you are retired doesn’t mean you can’t contribute to an IRA. You can still contribute to an IRA if you are retired, but you need to have earned income. This is the same condition you had to satisfy before you retired. Be careful though. Not all income is considered earned income …

can I retire on 500k nest egg

Can I Retire on 500k?

It is possible to retire on 500k in retirement savings, but you’ll need to do some careful planning. There aren’t many universal answers to retirement questions like this one. You need an individualized answer. I’m going to show you a simple process for answering this question. Whether you can or not depends largely on how …

Does Employer Match Count Towards 401k Limit

Does Employer Match Count Towards 401k Limit?

There are two different annual limits on 401k contributions. The elective deferrals limit, and the annual additions limit. Your employer match counts toward one, but not the other. Elective Deferrals Limit The money that you have withheld from your pay to go into your retirement account is an elective deferral. You might see this called …

what is an in-kind distribution

What is an In-Kind Distribution?

In-kind distributions can sometimes provide tax or other benefits that a cash distribution doesn’t. So what is an in-kind distribution? Any distribution NOT made in cash. For a retirement account, that would typically be a distribution of stocks, bonds, mutual funds, or ETFs. In the case of an inheritance that would mean you would receive …

Is $600,000 Enough to Retire?

Is $600,000 Enough to Retire?

If you have $600,000 saved toward retirement can you retire? It may be possible. It really all depends on what is important to you in retirement and how much income you need for a comfortable retirement. To figure out if $600,000, or any amount, is enough for you to retire on you’ll need to consider …

Retired couple relying on dividends for retirement income

What are the Risks of Relying on Dividends for Retirement Income?

What are the risks of relying on  dividends for retirement income? Like most things used in moderation there isn’t anything wrong with dividends, or the stocks that pay them.  In fact, higher-dividend paying stocks are usually older, established, and strong companies. They can be good components of retirement income plans and help provide some diversification …

Man Checking Asset Location

Asset Location is Important Too

That’s not a typo. Asset location is an often overlooked aspect of retirement planning. That is unfortunate because asset location can significantly affect the after-tax value of your retirement income. I’ll explain what asset location means and how you can use that information to increase your retirement income.

Is a Solo 401(k) Right for You?

As a self-employed solo entrepreneur, you need to save for retirement just like everyone else. However, you don’t have the benefit of a 401(k) retirement savings plan offered by an employer. It’s all on you to research, establish, and contribute to your own plan for retirement savings. Fortunately, the Internal Revenue Service (IRS) offers several …

Planning for a Dynamic, Non-Traditional, Retirement

There are several key points to consider if you’re interested in a non-traditional retirement or one involving a second career. With the booming innovation economy and rapidly expanding communication technology, people are no longer restricted to one career or even location. Traditional methods of financial planning focus on wealth and capital accumulation during the working …