IRA vs 401k

Retirement Options

Retirement

How long will my 401k last?

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RETIREMENT savers putting cash into a 401k will be wondering how long the money will last in their older years. We explain what you need to know and tools that help you check. 1We explain how to know how long your 401k will lastCredit: Getty What is a 401k? A 401k allows you to dedicate a percentage of your pre-tax salary to a retirement account. Employers can also choose to … [Read more...] about How long will my 401k last?

8 Essential Home Features for Aging in Place

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Rido / Shutterstock.comAmericans are getting older. (I feel it — don’t you?) In fact, the Population Reference Bureau estimates that the number of Americans age 65 and older will nearly double from 52 million in 2018 to 95 million by 2060. Our aging population means that more solutions are needed to help seniors live well. Enter universal design, a concept that strives to make … [Read more...] about 8 Essential Home Features for Aging in Place

3 Drawbacks of Only Using a 401(k) for Retirement

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401(k)s are widely considered to be one of the best retirement savings accounts for a lot of good reasons. They have high contribution limits, you can automate your contributions, and if you're lucky, your employer will chip in too. But despite all of its advantages, a 401(k) isn't always the best place to stash your retirement savings. Weigh the following three drawbacks … [Read more...] about 3 Drawbacks of Only Using a 401(k) for Retirement

How to Manage Your 401(k) Without Lifting a Finger

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One of the most intimidating parts about planning for retirement is deciding which investments you're going to place your precious dollars into. You want your money to grow quickly, but you also want to shield yourself from risk. If you're new to investing, you might not be able to tell the difference between one investment and the next.  Fortunately, there's a simple solution … [Read more...] about How to Manage Your 401(k) Without Lifting a Finger

RMDs Are Back: Here Is How To Soften The Tax Blow – Tax

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To provide some relief during the COVID-19 pandemic, the CARES Act suspended required minimum distributions (RMDs) from traditional IRAs and employer-sponsored retirement plans for 2020. No such relief is available in 2021. Therefore, many retirees will need to take taxable RMDs by the end of this year. Fortunately, a couple of strategies are available … [Read more...] about RMDs Are Back: Here Is How To Soften The Tax Blow – Tax

Want to Build Wealth? Here’s How to Get Started

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Millennials have been struggling to generate wealth when compared to previous generations, with the average Baby Boomer holding up to 7x the wealth of Millennials at the same age. Add in the pandemic, and financial futures of “the unluckiest generation in U.S. history” are grim. According to a recent survey from Deloitte, two-thirds of Millennials “often worry or get stressed” … [Read more...] about Want to Build Wealth? Here’s How to Get Started

Why Your Car’s Gas Gauge Might Be Lying

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ArtmannWitte / Shutterstock.com The next time your car’s gas display indicates you will run out of gas in 20 miles, take the warning with a grain of salt. It turns out that relying on such indicators can get you in a heap of trouble. According to a AAA study, the accuracy of such systems varies widely. Drivers who rely on such warnings before filling up are taking an … [Read more...] about Why Your Car’s Gas Gauge Might Be Lying

‘Who knows if I’ll live until retirement?’ I have $10K in credit-card debt and $4.5K in student loans. Should I tap my $24K 401(k)?

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Dear Quentin, I’m 41 years old, father to two lovely teenage daughters, and married to my second wife for a little over a year. I’m sitting on about $10,000 of credit-card debt, and I’ve still got about $4,500 to pay off for my student loan. Our combined income is just about $100,000 a year.   I’ve got an arguably small amount of money invested in a 401(k), … [Read more...] about ‘Who knows if I’ll live until retirement?’ I have $10K in credit-card debt and $4.5K in student loans. Should I tap my $24K 401(k)?

Research Scientist in Bay Area, CA — Money Diary

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Occupation: Research ScientistIndustry: BiotechAge: 30Location: Bay Area, CASalary: $99,000Net Worth: ~$85,000 ($45,000 savings + $30,000 Roth IRA + $19,000 Roth 401k + $4,000 brokerage account - debt) I don't know the value of my car so that's not included. I also have stock options but none have vested.Debt: ~$13,000 (car loan)Paycheck Amount (2x/month): $2,068.33 (after … [Read more...] about Research Scientist in Bay Area, CA — Money Diary