Retirement

Annuities Explained: Immediate, Deferred, Fixed, Variable, and Indexed

An annuity is a contract with an insurer that can provide guaranteed income or tax-deferred growth. The types differ enormously in risk, fees, and complexity. Here is how each works and the costs to understand before buying.

Annuity Surrender Charges and Free Withdrawals: What It Costs to Get Your Money Early

Most deferred annuities charge a surrender fee for withdrawals above a free amount in early contract years. Here's how the schedule, free withdrawal provision, and market value adjustments work, with an example.

Guide, 2 min read

How Much Do You Need to Retire? Working From Spending, Not Rules of Thumb

Retirement savings targets start with what you'll spend, minus guaranteed income, divided by a sustainable withdrawal rate. Here is the calculation step by step, and how sensitive the answer is.

IRA Rules: Contributions, Rollovers, Conversions, and Withdrawals

Individual retirement accounts have rules on who can contribute, how money moves between accounts, and when it can come out without penalties. Here are the rules that matter most, and the mistakes that cost people money.

Guide, 4 min read

Pension Lump Sum vs. Monthly Annuity: How to Compare the Offer

A pension offering $250,000 now or $1,500 a month for life is really asking how long you'll live and what return you could earn. Here is how to calculate the implied return and what else belongs in the decision.

Required Minimum Distributions Explained: When They Start, How They're Calculated, and Penalties

Traditional retirement accounts eventually require yearly withdrawals. Here is how RMDs are calculated from the IRS life expectancy table, how they grow as a share of the account, and the mistakes that trigger penalties.

Guide, 4 min read

Safe Withdrawal Rates and Their Limits: What the 4% Rule Does and Doesn't Tell You

The 4% rule is a starting point for retirement spending, not a guarantee. We ran 10,000 simulated 30-year retirements to show how withdrawal rates affect the odds of running out, and what flexible spending changes.

Guide, 3 min read

Sequence-of-Returns Risk: Why the Order of Returns Matters Once You Start Withdrawing

Two retirees can earn exactly the same returns over 25 years and end up with wildly different balances. The difference is when the bad years arrive. Here is the math and the ways people plan around it.

When to Claim Social Security: The Break-Even Math Between 62, 67, and 70

Claiming early means smaller checks for longer. Waiting means bigger checks for fewer years. Here is how the reductions and credits work and the ages at which waiting starts to pay.

Traditional vs. Roth: The Tax Bet You Are Actually Making

Traditional accounts give you a tax break now; Roth accounts give it later. If your tax rate is the same both times, the results are identical. Here is the math, and the factors that tip it one way or the other.

Guide, 6 min read

401(k) Loans: How They Work, What They Really Cost, and the Job-Loss Risk

Borrowing from your 401(k) means paying interest to yourself, which sounds free. The real costs are lost growth, after-tax repayment, and what happens if you leave your job. Here is how the rules work.

Bucket Strategies for Retirement Income: Organizing Savings by When You'll Spend It

A bucket strategy divides retirement savings into short-, medium-, and long-term pools so you don't have to sell stocks in a downturn to pay this year's bills. Here is how it works and what it doesn't change.

Catch-Up Contributions Explained: Extra Retirement Savings After 50

Savers 50 and older can contribute more to 401(k)s, IRAs, and similar accounts. Recent law changes added higher limits for some ages and Roth rules for higher earners. Here is how catch-up contributions work and what they add up to.

Early Withdrawal Penalties and Exceptions: What Taking Retirement Money Before 59½ Really Costs

Withdrawals from retirement accounts before 59½ generally face income tax plus a 10% additional tax. A long list of exceptions exists, and some apply only to IRAs or only to employer plans. Here is the math and the main exceptions.

Medicare Premium Surcharges (IRMAA): How Income Raises Part B and Part D Premiums

Higher-income Medicare beneficiaries pay more for Part B and Part D, based on income from two years earlier. Here is how the surcharge is calculated, why small income changes can matter, and how to appeal after a life change.

Article, 3 min read

Rollovers: Direct vs. Indirect, and the 20% Withholding Trap

Moving money from an employer plan to an IRA should be simple. Taking the check yourself instead of a direct rollover can trigger mandatory withholding, a 60-day deadline, and taxes. Here is the math.

Roth Conversions: The Basic Math

Converting pre-tax retirement money to a Roth means paying tax now to avoid tax later. Whether it pays depends on your tax rate now vs. later and where the tax money comes from. Here is a worked example.

Can I Contribute to Both a 401(k) and an IRA?

Yes. The limits are separate. Being covered by a workplace plan can affect whether a traditional IRA contribution is deductible, and income affects Roth IRA eligibility. Here's how it works.

How Much Should I Have Saved for Retirement by 40?

Rules of thumb vary. Working backward from a retirement target shows one way to estimate it. In our example, an $80,000 earner needs about three times salary saved by 40.

What Happens to My 401(k) When I Quit?

Your contributions stay yours. Unvested employer money may be forfeited, outstanding loans may come due, and small balances may be moved out automatically. Here's a checklist for the last day.

What Should I Do With an Old 401(k)?

Leave it, roll it to your new employer's plan, roll it to an IRA, or cash it out. Here's how the four options compare on fees, choices, taxes, and convenience.