Key Takeaway: Withdrawing your TSP balance after military retirement involves choosing between lump-sum and installment payments. Weigh the pros and cons of each option before making a decision that fits your financial needs and goals. One option is to keep your balance in TSP to take advantage of the low expense ratios and the flexibility…
Key Takeaway: Diversifying your retirement portfolio is crucial to mitigate risk and maximize returns. By investing in different types of accounts and asset classes, you can minimize the impact of market fluctuations and inflationary pressures. Some common retirement accounts to diversify are Roth IRA, Traditional IRA, 401k plan, and pension plans. Each account has its…
Key Takeaway: Retirement thank you cards are an important gesture: Sending a thank you card to a retiring colleague or loved one is a great way to show your appreciation for their contribution and wish them well in their future endeavors. Choose the right tone and language: Make sure to choose a tone and language…
Key Takeaway: Supreme Court Justices must meet age and years of service requirements to receive full retirement benefits. They must be at least 65 years old and have served for at least 10 years. In addition to meeting the age and years of service requirements, Supreme Court Justices must also have demonstrated good conduct during…
Key Takeaway: To secure a retirement account, it’s critical to understand the basics of retirement accounts and the types of secure retirement accounts. Employer-sponsored retirement accounts, individual retirement accounts (IRAs), and Roth IRAs are three types of secure retirement accounts that can help you achieve your retirement goals. Benefits of a secure retirement account include…
Key Takeaway: Marriage affects Social Security retirement benefits in various ways, including spousal benefits, divorced spousal benefits, surviving spousal benefits, and same-sex couple benefits. Understanding this is essential to maximize Social Security benefits in retirement. Spousal benefits can be up to 50% of the primary earner’s benefit amount and can be claimed as early as…
Key Takeaway: Conduct a financial evaluation of retirement plans two years before retirement to ensure that you have enough savings and income to support your lifestyle after retiring. This evaluation should take into account your expected retirement expenses and income, including Social Security benefits, pension payments, and withdrawals from savings. Adjust your current budget to…
Key Takeaway: Social Security benefits can be taxed after retirement depending on the individual’s income and filing status. This can come as a surprise to some retirees who thought they wouldn’t owe taxes on their benefits. The taxable amount of Social Security benefits is determined by a formula that takes into account the taxpayer’s modified…
Key Takeaways: The length of VRS retirement is determined by the number of service credits earned and the retirement option chosen. Service credits can be earned through years of service, unused sick leave, and purchasing additional credits. Factors that affect VRS retirement length include your retirement age, years of service, and final average salary. Delaying…
Key Takeaway: 403(b) retirement plans are tax-advantaged retirement savings plans designed for employees of public schools, colleges, universities, churches, and certain non-profit organizations. These plans offer similar benefits as 401(k) plans, but with some differences in eligibility and contribution limits. To be eligible for a 403(b) retirement plan, employees must work for a qualified employer…
Key Takeaway: Full Retirement Age (FRA) is the age at which an individual can receive full Social Security benefits. For individuals born in 1960 or later, the full retirement age in 2022 is 67 years old. Factors such as early or delayed retirement can affect the amount of Social Security benefits an individual receives at…
Key Takeaways: Pre-tax contributions to retirement accounts, such as 401(k), traditional IRA, and SEP IRA, are tax-deductible, meaning they lower your taxable income for the year and reduce your tax bill. After-tax contributions to retirement accounts, such as Roth 401(k) and Roth IRA, are not tax-deductible, but withdrawals in retirement are tax-free. Contributions to non-qualifying…