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Here’s a look at average retirement incomes and how much people spend during their golden years. According to data from the Bureau of Labor Statistics, U.S. households led by someone age 65 or older spent an average of $57,818 in 2022. Key Takeaways: * Sources of retirement income include Social Security, retirement accounts, pensions, dividends and employment wages. * Retirees can expect to spend 70% to 80% of their pre-retirement income in retirement, according to one rule of thumb. * Older Americans spent an average of $57,818 in 2022, but about 40% of households led by someone age 65 or...

One of the great senators of the modern era was William Roth, by whose vision and persistence the Roth IRA was established in 1997, giving average Americans, especially those without a pension, the opportunity to build their financial independence without fear of rising tax rates. The Roth could be funded either with after-tax dollars or by converting money from a conventional IRA. The original law said that: (1) the taxpayer could invest in a wider range of investments than with other tax-advantaged plans, (2) both the growth of and withdrawal from the account would be tax-free and (3) upon death,...

Social Security’s latest report on the status of the trust funds on which it relies to pay benefits has both good and bad news. The good news is that the funds have not been as hard hit by the Covid-19 as was initially feared, due the economic recovery that has taken place. The bad news is that the funds’ depletion dates have moved up sooner, prompting a chorus of calls for Congress to act swiftly to correct the problem. “If this report does not trigger a pretty serious and swift discussion on Capitol Hill among lawmakers about what needs to...

Many Americans don’t save enough for retirement, but it’s entirely possible to save too much — at least according to the IRS. Tax laws limit how much you’re allowed to contribute to retirement accounts, and excess contributions can be penalized. Uncle Sam doesn’t want you to leave the money in the account too long, either. Those who fail to take enough out of their retirement accounts also face heavy penalties. Here’s what you need to know to stay on the right side of the IRS’ rules. Overstuffing your retirement accounts Not everyone is allowed to contribute to retirement accounts. Contributions...

The folks at Fidelity advocate it but author Ric Edelman doesn't. Pay taxes now for none later-especially with the good economic news. As much as possible at 39% tax rate now or a measured amount yearly at a lower(12%?)rate? Trumps lower rate goes up to $90k which means we can all transfer $30-60k yearly. Tough call my friends. Talk to me.

RUSH: It's a story from the website Watchdog.org, and the headline: "Obama's Budget Targets Your Retirement Accounts." I can't recall the number of times that I have mentioned casually, forcefully, predicted directly over the course of the years that, as this government continued to expand and spend money it didn't have and print money it needed, that at some point it was gonna have to go get money. You can't just rely on fake money that's printed. They're gonna have to get more. They're gonna target money, and I warned everybody, "They're gonna they're gonna come after your pensions, and...

No excerpt allowed from Bloomberg, column here.

President Barack Obama plans to ask Congress in early March, as part of his fiscal 2015 budget, to reduce some of the tax advantages for employer-sponsored retirement plans for higher-income earners, according to published reports. Plus, the president wants to limit the value of all tax deductions, defined contribution exclusions and IRA deductions to 28% of income — and include an overall cap on all retirement accounts, including pensions, that could bring in $1 billion a year in new tax revenue, according to a Pensions & Investments report. Read Companies bracing for 1-2 retirement punch . According to the report,...

Don’t put it past our politicians to try it in a financial emergency. The breaking of contracts by the U.S. government, unfortunately, has happened before, and what’s under way in Cyprus shows that feckless politicos will continue to try such things. In 1933–34, amid the depths of the Great Depression, the U.S. government seized the American people’s gold holdings. From that point, until 1975, it was illegal for Americans to own gold, other than in some forms of jewelry or collectors’ coins. In the panic of the Depression years the courts upheld this unconstitutional confiscation. Yes, people received dollars in...

I turned 60 this year. I have a conventional and Roth IRA. The Roth obviously is tax free. I intend to work until the day I die, if God grants me the favor. Should I take the tax hit on the conventional IRA this year before the tax hikes kick in and cash it all out, or some of it? Part of why I want to do this is so that if Ubama decides to nationalize 401(k)s and IRAs, he can't get me. The other is because taxes are going up. Any advice?

President Obama proposed tax hike contains a lot to dislike, but what hasn't gotten much attention is the tax hike on savings and investments. While the marginal income tax rate will rise from 35% to 39.6% for top income-earners and small business owners, the proposed tax hike on capital gains and dividends could cause the most long-term economic damage. That's not to downplay the rise in marginal rates. It could cost hundreds of thousands of jobs over the next few years. More universally acknowledged by economists, however, is the economic harm that savings and investment taxes do. In the Tax...

In this video I give you a rundown of a portfolio that I think will hold up in any adverse market collapse. The premise boils down to 3 major equity/asset categories: 1)Energy %25 2)Precious Metals %25 3)Defensive (ie Walmart, JNJ, McD,etc) %50 This is a simple, straight-forward approach to protect your capital and wealth in this tulmultuous time. Part 1: Just a recap, here are the companies I give a green thumb to: Energy: 25% of Portfolio 1) Royal Dutch Shell (RDS.A) 5.5% yield 2) Calumet (CLMT) 10% yield 3) Uranium Participation Corp (URPTF) 0% yield or Cameco Corp (CCJ)...

Dear Carrie: I'm 27 and finally in a situation where I can save some money. Last year, I was even able to put $5,000 in a Roth IRA. But now what? Everyone tells me to start investing, but I have to confess I'm kind of scared. I think what's been happening in the last few years has really shaken me up. How can I invest and not lose money? --A Reader Dear Reader: First, major kudos for getting an early start on retirement saving. By starting in your twenties, you give yourself a huge advantage; in fact, if you continue...

The day after Congress passed the new healthcare law, an opponent called it "a fiscal Frankenstein." In fact, those are fitting words for Roth individual retirement accounts, or IRAs. Roths drive up the federal deficit and cause other pain. They're great for holders but grim for America. It's time to retire them. In a Roth, taxes are treated the other way around. There's no tax break on contributions. But from that point on, taxes simply vanish. As long as the account is at least 5 years old, there is no tax on any withdrawals made after age 59 1/2. There's...

A bill filed by U.S. senators Jeff Bingaman (D-New Mexico) and John Kerry (D-Mass.) would automatically enroll most U.S. workers in individual retirement accounts if their employers don't sponsor a retirement plan. All automatic IRAs would offer the same three standardized investment options, each to be developed with regulations and fee guidelines issued by the Treasury and Department of Labor. The options would include a "principal preservation fund" (which would include a special Treasury Retirement Bond , the R-Bond, designed for use within an automatic IRA), a "life-cycle" option and an "alternative investment option" that can include a higher concentration...

Congress wouldn't tax Roth IRAs, would it? It is a burning question for thousands of taxpayers now deciding whether to pay taxes to convert their regular individual retirement accounts to Roth accounts. All taxpayers are eligible to make the switch, because this year the income limit of $100,000 was permanently repealed. Many have done so already: Fidelity Investments says that as of May 31, the firm had handled 87,000 Roth conversions this year, about four times the number for the same period last year. But dozens of less-convinced readers have asked Tax Report about Congress's intentions, and well-known IRA expert...

It has been reported by Business Week that the US Labor Department and Treasury Department are asking for public comment on a plan to convert individuals' retirement accounts (IRAs and 401(k)s) into government sponsored annuities featuring US Government bonds. The scheme would start off as voluntary, but only makes sense -- like socialized health care -- if it becomes mandatory and universal. In essence the government is asking if we would mind if they nationalized our money in return for a promise of more money in the future . . . like a Ponzi scheme called Social Security, but even...

You’ll be hearing a lot in the next six months about Roth Individual Retirement Accounts — but not as much as you should about a long-term threat that hangs over them. ... Why would you want to [swap a regular for a Roth IRA]? Because you think you or your heirs could end up with more money over the long haul by investing in a Roth instead of a regular I.R.A. ... It all seems pretty simple, until you consider this: The tax laws might change substantially, throwing all of your careful planning into utter disarray. We’re currently staring down...

A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans. Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans. This was suggested by the chairman of the House Committee on Education and Labor. “With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said.

A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans. Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans. This was suggested by the chairman of the House Committee on Education and Labor. “With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said. “We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks...