Illustrating the Value of Retirement Accounts
November 2018 by Aaron Brask, Ph.D.
Two examples show the considerations to be taken into account when deciding between a taxable account, a traditional IRA and a Roth IRA.
Quantifying the Value of Retirement Accounts
June 2018 by Aaron Brask, Ph.D.
The golden goose of retirement accounts is the return boost attributable to avoiding taxes on capital gains, dividends and bond interest.
The Impact of Expense Ratios on Retirement Income
September 2017 by Craig Israelsen
Simply lowering investment expenses on a $1 million portfolio by 0.01% boosts annual portfolio income by more than $200 per year.
Solving the Problem of Retirement
July 2017 by Paul Merriman
Retirement places potentially unlimited demands on finite savings, but there are three actions investors can take to mitigate the problem.
When You Haven’t Saved Enough for Retirement
May 2017 by Charles Rotblut, CFA
Saving more, working longer, delaying the claiming of Social Security benefits and tapping home equity can all help fund retirement.
IRA Rollover Chart: Rules Regarding Rollovers and Conversions
July 2016 by Charles Rotblut, CFA
A helpful chart showing what types of retirement accounts can be rolled over or converted into another type of retirement account.
The Mathematics of Retirement Portfolios
January 2016 by Craig Israelsen
The amount saved, the allocation followed and the withdrawal rate chosen all determine how much retirement income a portfolio can safely provide.
The Sequence in Which Returns Occur Affects Your Wealth
May 2015 by Charles Rotblut, CFA
The timing of positive and negative returns significantly impacts wealth, particularly if withdrawals are taken or other changes are made.
The Importance of Diversification in Retirement Portfolios
April 2015 by Craig Israelsen
Diversifying a portfolio among four primary asset classes allows for large withdrawals to be taken throughout retirement.
Converting to a Roth IRA Can Minimize RMDs
March 2015 by Judith Ward
Gradually converting traditional IRA assets into a Roth IRA can both increase lifetime wealth and reduce the total amount of taxes paid.
Retirement Planning: Focus First on Covering Fixed Expenses
September 2014 by Michael Falk
Once all fixed costs have been immunized, withdrawal rates no longer matter as any additional retirement assets can be used for discretionary spending.
Required Retirement Savings Rate Depends on Age and Income
September 2014 by AAII Staff
Saving 15% of income for retirement is a common rule of a thumb. The actual number depends on the amount of replacement income needed, when the worker starts saving for retirement and when he or she plans to retire, according to the Center for Retirement Research at Boston College.
Which IRA Should You Contribute to and When?
July 2014 by AAII Staff
Roth IRAs offer better wealth incomes than traditional IRAs do on a dollar-for-dollar basis.
From Saver to Spender: Managing Your Money in Retirement
May 2014 by Carrie Schwab-Pomerantz
Following these nine guidelines can help reduce your financial stress and increase the odds of enjoying a successful retirement.
Be Aware of IRA Rollover Rules
April 2014 by AAII Staff
A tax court case cast a light on the rules governing and the prudence needed for individual retirement account (IRA) rollovers.
Social Security Basics
October 2013 by William Meyer , William Reichenstein
In this first article of a new three-part series, the impact of a worker’s retirement age on Social Security benefits is explained.
Using the Bucket Approach With Your Retirement Portfolio
October 2013 by Christine Benz
By segmenting their portfolios based on when they will need the money, retirees can fulfill both short-term cash and long-term growth requirements.
A Key to a Lasting Retirement Portfolio
April 2013 by John Sweeney
Staying within or below a 4% to 5% withdrawal rate (adjusted annually for inflation) will decrease your risk of outliving your retirement savings.
Delaying Retirement, But Not Your Retirement Dreams
July 2011 by Christine S. Fahlund
Investors can practice retirement by continuing to work but diverting dollars meant for new retirement savings to pursuing retirement dreams now.
Determining Your Allocation at Retirement
July 2010 by Charles Rotblut, CFA
There is no strategy for retirement allocation that universally applies to all investors. The best place to start is to determine your needs.
How Much Should You Have in Equities Until Retirement?
July 2010 by Jerome Clark
A more conservative investment strategy might not do as well as a more aggressive strategy.
Optimizing Your Retirement Income: What Works Best and Why
August 2008 by Christine S. Fahlund
Only a small minority of Baby Boomers are accumulating enough savings to provide for their income needs. But those approaching retirement can improve their financial security in retirement, depending on their flexibility and their approach to four big decisions that are under their control.
Withdrawing From Your IRA: A Guide to the Basic Distribution Rules
August 2002 by Clark M. Blackman
Since IRAs are vehicles to encourage saving for retirement, penalty-free regular distributions cannot start until after the account owner turns age 59 1/2. But there are exceptions that allow you to avoid the 10% penalty.
What You Need to Know to Protect Your Pension Benefits
June 2002 by Lynn O'Shaughnessy
Pension administrators do make mistakes, although most aren't intentional. One culprit is federal laws, which are difficult to understand and constantly changing. The other culprit is plain old human error.
