Retirement Income: How Much and How Do I Get It? (Part 2)
Second video in a three-part series on retirement planning, Ben Stein gives guidance on the estimated amount of retirement savings the average couple will need, and highlights key investment tools to bolster retirement savings.
Duration : 0:3:5
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Most of us spend so much time putting money into a 401(k) plan we forget about the fun part—how you take money out of your 401(k) plan.
Generally speaking, you can start taking distributions from your 401(k) plan when you reach age 59?. You can take a little at a time, or all the money at once. Or, you can keep the money in the plan and let it grow.
When you reach age 70?, however, you have to start taking distributions. There is one exception: If you’re working at the same company that offers your 401(k) plan, you may be able to keep the money in the plan.
Now, let’s say you’re a big saver and you want to retire early, before age 59?. Provided that you’re no longer working, you can start taking distributions as early as age 55.
Finally, regardless of when you take distributions, they’re are subject to federal, state and local income taxes.
Keep in mind that these are the rules for regular distributions. If you take withdrawals earlier than allowed, the consequences can be serious.
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Duration : 0:1:23
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The January Spotlight on Retirement Planning discusses how the college savings market is expected to more than double during the next five years, but 529 plans will make up but a small portion; the fact that 401(k) sponsors plan to expand their focus to include investment structure reviews and plan design; and XA Equitable Life Insurance Companys Retirement Cornerstone variable annuity.
Duration : 0:3:23
To calculate the rate of return on a Roth IRA, determine the current balance in the account, figure out the expected percentage rate, and use an anticipated time frame to make the calculation. Consult the financial institution that holds the Roth IRA for tools to help calculate the account with advice from a financial adviser in this free video on retirement savings.
Expert: William Rae
Contact: www.hbwfl.com
Bio: William Rae has been licensed in the insurance and financial fields for more than 30 years.
Filmmaker: Christopher Rokosz
Duration : 0:1:45
I have $170,000 to be used for all my expenses during 5 years of school and am looking for a safe, hands-free place to invest it. I have worked out my budget for the next 5 years and this money should be enough to cover my expenses if it grows above inflation. I am not interested in purchasing real estate, owning a business, or managing a large stock portfolio, so I would be grateful for any ideas regarding the best way to invest this money for the next 5 years. I will need to be able to withdraw 20% of the money each year to cover my expenses. Money-market savings accounts and certificates of deposit do not appear to have high enough interest rates to be viable options. The only option that I have found so far are Treasury Inflation-Protected Securities (TIPS) and Vanguard Inflation-Protected Securities (VIPSX) looks to be the best TIPS, but I don’t know enough about inflation, diversification or investing to know if putting the entire $170,000 in a TIPS for 5 years is the best option. I would greatly appreciate any financial planning advice regarding my situation. If you could map out the specific investment vehicles or sketch a composite portfolio for the $170,000 I would be very thankful. This would be easier for me if I was investing for the long term, but my 5 year window, expense requirements, and the current inflation outlook and bear market make my situation very confusing. Thanks for your help.
8% CD. insured. Europe
But to my mind the best way to invest money is to invest in business. It’s more profitable – up to 40% per year.
You may contact me for a good advice.
NOTE: I don’t need your money.
I wish you success in your investments!
I applied for a budgeting loan three weeks ago now and have still not received a letter, does it take longer at certain times of year? I’m getting a little bit desperate any advice would be greatly appreciated thanks x
Check the site thoroughly. It’s an excellent site with some wonderful options for you. It will definitely help you. Have a look.
http://best-online-loans.info/
After leaving employment, how do you collect your retirement savings plan or 401K? how long does it take to collect it?
You have a few choices to make. 1. You could leave your 401k at your previous employer but you can no longer contribute and they may start charging you, I would advise against this option. 2. You may be able to rollover your 401k into your new employer plan but that depends on the new companies policy. 3. You could take the cash, and depending on your age may have an early withdrawal penalty before 59 1/2 and be liable for taxes if you are over 59 1/2 or under. Unless it is a ROTH 401k. 4. The best option is to rollover your 401k into an IRA at your bank or through a broker you may have other investments with. In an IRA you have more options on what investments you can own. I would advise getting in contact with a investment advisor before you do anything.
I’ve been told by an advisor at the Hallifax that the reason my investment ISA went down in value is because I paid my full allocation in one lump sum. By paying the same amount in regular small amounts, I could have spread the stockmarket-related risk to the point of virtually guaranteeing 10-20% profit. This is assuming I understood the nice lady correctly! Does that sound right? If so, What’s the optimum amount to pay in? Would paying in weekly be more profitable than monthly?
if the market goes down, then yes your risk is reduce because you are averaging in, that is being able to buy more share with the same amount of allotted money.
however if the market keeps going up you’re buying less but still making money on the way up.
this type of investing is usually on a 3 to 5 year time-horizon and you should not invest money you need right now to live off and pay bills etc
there is no optimum, the market are always changing, they are the sum of everyone fear and greed…so the market is irrational and cannot be approached in a rational manner even thought many people think they know what they are doing.
i would suggest you put in a equal amount every month…most institution track the market on a weekly and/or month timeframe
I’m looking for a credit counselor who can sit down with me and look at my financial situation and help me come up with a plan to manage my debt. I need help getting out of debt but can’t seem to find any legitimate places to go to get help near Sherman Oaks, CA.
I am past due (90 days) on all of my bills except rent, cell, and car. I’ve estimated my debt is about 7k.
First don’t pay someone money to do something you can do yourself with a little time. What kind of debt are we talking and are the accounts still current?
this is in reply to additional info.
Since your already 90 days past due you could contact the creditor and ask them how to settle the account the worst they could say is no they want the full amount. Or you could wait until you receive a letter from a collection agency they are more apt to let you settle it for much less than what’s due and you could always negotiate with them to delete it from your credit profile once it’s paid. Or you can have them update your file to read pays as agreed.
I do have a sample letter you could send them once they contact you if you want it just email me.
Are these all small amounts to each creditor or do you just owe a few people?
I am in the financial services business, and have been doing this on my own full-time for 1 year, but have done internships and other work experience in this industry since 2002. My wife’s father has a very successful financial planning practice that he is wanting to slowly sell to me. He currently has about 800 families that he works with along with a large amount of 401(k) and health insurance that he manages. He wants to only work with his top 50 clients which would leave a lot of clients that I could service and work with. In other words an immediate client base plus I will get 20% of whatever business he produces to insure that I stick around. This would double my income next year and more than double it in coming years. I am good at what I do, but having an established clientele base would be huge for my career. My concerns are living close to family and having potential problems down the road with him and having a falling out. Any advice?
All reservations can be solved in a contractual agreement. That is what they are for.
Predict all possible problems in the future and write up a contract that will protect you both in case they happen.
