Sentences with phrase «turn on your retirement savings»

Not exact matches

Earning even a small amount of income in your retirement years means you don't have to rely 100 percent on your savings to fund your lifestyle, and that in turn means you may be able to retire with a little less in the bank.

Or to put it another way: Does it make sense for you or anyone else to rely on this regimen when turning savings in 401 (k) s, IRAs and other retirement accounts into spending cash?

It turns out the impact on retirement savings is the same as an unexpected healthcare cost or if the social security retirement age was raised, the Center for Retirement Research at Boston College concluded.

When it comes to turning retirement savings into lifetime retirement income, many retirees and advisers rely on the 4 % rule — that is, withdraw 4 % of savings the first year of retirement and increase that amount by inflation each year to maintain purchasing power (although in a concession to today's low yields and expected returns, some are reducing that initial draw to 3 % or even lower to assure they don't deplete their savings too soon).

The example on the next page shows how a 2 % increase can potentially turn into substantial retirement savings over 10, 20, and 30 years.

Clearly, we all have to make our own decisions based on our particular circumstances about the best way to turn savings into income we can count on throughout retirement, while also assuring we have a stash of assets we can tap for emergencies and unexpected expenses.

The advantages of following Mort's approach are: It more quickly provides the security of debt - free home ownership, which will better enable you to weather any economic storms; in case of an emergency, the wealth in your home is more accessible than assets tied up in a retirement plan; and while Rob's return in the 401 (k) could fall or (even turn negative), Mort's interest savings on his mortgage is guaranteed.

How your other retirement income will be taxed Knowing the basic retirement income tax rules can help you work with your tax advisor on a tax - efficient plan for turning your savings into income.

As investors discover how much more they have to pay on the actively managed mutual funds that many plans use as their only investment options, companies will feel pressure to turn to lower - cost alternatives that better preserve their workers» retirement savings.

As the 401 (k) developed, many in the industry turned to research on behavioral finance and designed plans to help workers build retirement savings.

«This study shows that for financial firms who want to improve retirement savings outcomes must evolve their role from just account providers to trusted partners that people can turn to for help on holistic financial wellness,» NARPP says.

But when it comes to something as important as turning a lifetime of savings into income you can depend on throughout retirement, you don't want to wing it.

Your gas money will be replaced with train or bus fare, true — but the money you save on car insurance can turn into retirement savings.