Sentences with phrase «than retirement income»

In fact, arguably when thinking about a retirement portfolio, it's better to think in terms of «retirement cash flows» than retirement income, as what constitutes «income» for investment purposes (interest and dividends, but not principal) is different than what constitutes «income» for tax purposes (as interest and dividends might be tax - free coming from a Roth, while principal may be fully taxable if withdrawn from a pre-tax retirement account).

Carol Bezaire, the vice-president of tax, estate and strategic philanthropy at Mackenzie Investments, says the No. 1 blunder is dipping into an RRSP for expenses other than retirement income.

Not exact matches

Because a few extra years of work will boost your retirement income more than higher investment returns will, once you take the risk into account.

It's too late to tell him that working longer can deliver higher retirement income far more reliably than riskier investing.

The proportion of people who say they are saving less than last year to retirement savings is down, but the retirement income deficit for the coming generation of retirees is estimated to be $ 4.3 trillion.

But a Wharton - professor - turned - mortgage - consultant is now putting a more upbeat spin on that idea: If you play your cards right, your house could produce a bigger retirement income than a lot of other investment alternatives, with a federal guarantee behind it, to boot.

If retirement is a few years away and you're expecting retirement income from more than one source, you may want to switch from a traditional IRA to a Roth IRA.

I like to see retirees attempt to smooth their income, paying as little tax over their entire retirement, rather than just in the first few years.

A pension sharing application may be beneficial if your income will be higher than your spouse's income in retirement and if your CPP is also likely to be higher.

Many women that age didn't work when they were younger, so they have fewer sources of retirement income than men their age.

According to the survey, of employed parents currently contributing to retirement funds, 38 percent of millennials contribute more than 15 percent of their annual income, compared with 24 percent of Gen X and 23 percent of Boomers.

Here's why: Many people don't realize that they may get socked with a 15 % excise tax as well as income - tax liability if their retirement accounts build so high that they, or their beneficiaries, eventually have to take any distribution that the IRS deems excessively large — more than $ 155,000 in 1996.

Although Sanders and his wife's joint tax return showed income of only a little more than $ 200,000 for 2014 — including his $ 174,000 salary, his mayoral pension, and their Social Security payments — the senator's expected retirement benefits make his situation much more comparable to those in the millionaire class he faults.

Both studies found that until Americans hit the latter retirement years, when health care expenses tend to scale up, they're spending far less than 85 % of their pre-retirement income, on average.

That has been part of the appeal of the so - called «4 percent rule» — an investment - income strategy that says as long as you withdraw no more than 4 percent of your initial portfolio, adjusted for inflation, on an annual basis during your retirement years, you shouldn't run out of money.

The Task Force concluded that, in 1992, the population included in their analysis had a savings rate of 10.1 per cent, which is greater than the 8.9 per cent target rate that would allow two earner families to meet their retirement income target.

However, one survey found that about half of retirees said they retired earlier than planned due to health problems, changes at their workplace, or other factors, suggesting that many workers may be overestimating their future retirement income and savings.

• 56 % of workers expect to be able to manage in retirement with no more than 70 % of their pre-retirement income; 23 % expect to be able to manage with 70 % -85 %.

Although it is not a point specifically about replacement rates, it is worth noting that the StatCan analysts found that there was an equalizing tendency in retirement incomes as the incomes of the top quintile fell more than that of the lowest quintile.

This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including, without limitation, certain former citizens or long - term residents of the United States, partnerships or other pass - through entities, real estate investment trusts, regulated investment companies, «controlled foreign corporations,» «passive foreign investment companies,» corporations that accumulate earnings to avoid U.S. federal income tax, banks, financial institutions, investment funds, insurance companies, brokers, dealers or traders in securities, commodities or currencies, tax - exempt organizations, tax - qualified retirement plans, persons subject to the alternative minimum tax, persons that own, or have owned, actually or constructively, more than 5 % of our common stock and persons holding our common stock as part of a hedging or conversion transaction or straddle, or a constructive sale, or other risk reduction strategy.

The survey of 903 adults aged 50 or older, who are either already retired or plan to retire in the next ten years, revealed those who began receiving Social Security income early report a lower average monthly payment ($ 1,190) than those who started at their full retirement age ($ 1,506) and those who delayed benefits until age 70 ($ 1,924).

Half of the consultants surveyed recommended an income focused multi-sector strategy given that income during retirement, rather than just the size of the portfolio, becomes relatively more important for participants.

The chance that a person is going to need the retirement fund to last longer than expected is high for someone of good health, which makes Roth IRA's lack of RMD desirable, especially if you have other available sources of income.

From what I can tell if you are paying less taxes on the income you are depositing than the extra you would be able to deposit into a pre-tax retirement account it makes sense to utilize a roth ira as long as you plan to hold the ira until retirement and your retirement is more tha 5 years in the future.

Baby boomers seem more likely to have fallen prey to these behavioral factors than other generations, driven in part by their desire for an enhanced retirement income stream in the historically low yield environment.

The dividend yield is very important for those investors that need income rather than growth (for example when investing for income in retirement).

It will harm retirement savers who now, more than ever, need access to the guaranteed lifetime income products — personal pensions — offered by ACLI and NAIFA members.»

For most people with less than $ 1 million at retirement, Social Security will represent 66 percent to 80 percent of retirement income, and, again, that is a guaranteed, predictable monthly amount.

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If total retirement income is less than $ 12,000, it is essentially tax - free.

Seniors who rely solely on Social Security and other retirement income totaling less than $ 12,000 do not have to pay state taxes on retirement income in Virginia.

Given the above assumptions for retirement age, planning age, wage growth and income replacement targets, the results were successful in 9 out of 10 hypothetical market conditions where the average equity allocation over the investment horizon was more than 50 % for the hypothetical portfolio.

That's significantly lower than ordinary income tax rates, which in 2018 range from 10 % to 37 %, for withdrawals from traditional retirement accounts.

It has been a challenge for me to find a retirement calculator that takes into account that we have a high savings rate, live on a lot less than our income, will have significant expenses drop off next year, and we have a large passive income investment in rental real estate.

The NUA tax strategy allows certain clients whose qualified retirement plans contain these appreciated employer securities to eventually pay taxes on the appreciated value of those securities at the lower long - term capital gains tax rate, rather than at the ordinary income tax rate that would otherwise apply to retirement plan distributions.

According to a 2011 Pew Research Center poll, more than 40 percent of people aged 18 to 30 believe they will receive no retirement income from Social Security, even though Social Security receipts are estimated to equal about 75 percent of benefits on a sustainable basis under the current regime.5

Only a small minority (roughly 15 to 20 per cent) of middle - income Canadians retiring without an employer pension plan have saved anywhere near enough for retirement and the vast majority of these families with annual incomes of $ 50,000 or more will be hard pressed to save enough in their remaining period to retirement (less than 10 years) to avoid significant fall in income.

The success of the 4 % rule in the U.S. may be an historical anomaly, and clients may wish to consider their retirement income strategies more broadly than relying solely on systematic withdrawals from a volatile portfolio.

That's much larger than alternatives such as SIMPLE IRAs and ordinary individual retirement accounts, and for high - income individuals, it makes it hard to match what SEP IRAs can allow.

From my (inexpert) perspective, a Roth 401 (k) only makes sense if you believe your income and taxes might be higher in retirement than they are now.

These depletions are most prevalent among those earning between $ 25,000 and $ 75,000 a year, with more than 10 percent of this income cohort borrowing against their retirement savings and nearly 8 percent taking hardship withdrawals.

It enhances savings, because in this case I find my overall income is falling and therefore to preserve that income in order to meet my end of life retirement goals — I actually save more rather than save less.

So, I assume my retirement income will be lower than our family income is now.

Eric admits that his retirement goal is more than what he earns today, but he's still aiming for that goal because he knows that income level will protect him from inflation.

For instance, if you're under age 30, it's likely that your income and spending during retirement will be significantly higher than it is at the beginning of your career.

More than one third of the future Social Security beneficiaries (ages 45 - 64) questioned in a recent AARP ® / Financial Planning Association ® (FPA ®) survey * expect their benefit to make up more than half of their retirement income.

If you are fortunate enough to have more than sufficient retirement income and assets, here's a strategy that can be a great way to transfer wealth to the next generation.Traditional IRA balances can be converted to Roth IRAs in part or in whole and there is no limit on how often this can occur.

My net worth will be higher than my magic number, because I plan to own real estate, and online ventures that will provide additional income for retirement.

More than 20 years ago, I recognized that the one blind spot for many investors was high - quality sources of income both before and during retirement.

The average retirement income is probably a lot less than you think.