TL;DR Retirees have up to three types of accounts to draw from in retirement: traditional retirement accounts, Roth retirement accounts, and taxable accounts. Each account type is taxed differently. By choosing which accounts to draw from each year, retirees have the flexibility to manage when they’ll pay taxes and how much they’ll pay. The traditional…
Many in retirement seek investments with high income. Whether interest, dividends, or both, retirees value the ability to spend income from a portfolio without the need to sell shares of the investment that generates the income. This sentiment was reflected in an email I received from a viewer of my YouTube channel: “How about a…
Series I Savings Bonds rates increased this month. The unadjusted CPI-U rose from 301.836 in March 2023 to 307.789 in September 2023. As a result, the Inflation Rate on I Bonds increased to 3.97% in November 2023. At the same time, the fixed rate jumped from 0.90% to 1.30%. This represents the highest fixed rate…
Congratulations on your retirement! Now, have you considered how you’ll handle your finances? The shift from a steady paycheck to drawing income from investments, social security, and perhaps other sources requires a different approach to cash management. This article was inspired by an email from a reader named Irving who asked the following question: “I’m…
In 2017, the Stanford Center on Longevity analyzed 292 retirement withdrawal strategies. The study used eight metrics to measure how each strategy would satisfy various retirement income goals. From this analysis, the study identified what it described as the Spend Safely in Retirement Strategy (SSiRS). As described in a paper titled How to “Pensionize” Any IRA…
Robo-Advisors promise to make investing easy at a very low cost. Investors have taken notice. According to one estimate, automated investing platforms will manage nearly $1.5 trillion by the end of the year. With dozens of options, however, picking the best robo-advisor can be overwhelming. To help, I examined about two dozen robos and narrowed…