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Modernizing the Rules for Retirement Plans

by AAII Staff | July 02, 2019

Modernizing the Rules for Retirement Plans

AAII’s Charles Rotblut discusses two bills currently in Congress that address retirement savings. Among the key changes the legislation proposes is the repeal of the maximum age for making contributions to a traditional individual retirement account (IRA) as well as raising the maximum age for when retirees must begin taking required minimum distributions (RMDs) from 70½ to 72. More »

Retirement Planning Mistakes Investors Often Make

Planning for retirement commonly is focused on the accumulation of wealth. While building up savings prior to retirement is critical, having a plan for transitioning to and living in retirement is also important. It is in this second part where many common mistakes are made. This article highlights some of these mistakes to help you avoid them. More »


Increasing Your Retirement Resources: The Power of Working Longer

Probably the biggest financial challenge for Americans is assuring a satisfactory and sustainable standard of living in retirement. Today, it is not uncommon for a retirement to last 30 years, with people retiring in their early 60s and at least one member of a couple often living into their 90s. However, funding these long retirements is a daunting challenge for individuals and governments alike. Postponing retirement by even just one year can boost a couple’s annual inflation-adjusted retirement income by 6.5% to 8.0%. More »


Limiting Required Minimum Distribution Costs

The IRS requires that funds be withdrawn from nearly all retirement accounts, including traditional IRAs, 401(k) plans and SEPs. These withdrawals are known as required minimum distributions, or simply RMDs. The IRS does not specify how you should free up the cash to take the withdrawal, only that you take the money out. This lack of specificity provides you with some flexibility to limit transaction costs. This post discusses portfolio strategies for handling required minimum distributions. More »

Member Question
How much does the performance of your investments affect your daily mood?

A) A lot
B) A fair amount
C) A little
D) Not at all

Previous Week’s Results
Which of the following is your primary source of retirement income (or is expected to be)?

A 401(k)/403(b), IRA, Keogh or other retirement savings account : 40%

A work-sponsored pension plan : 26%

Individual stock, stock mutual fund or stock ETF investments : 16%

Social Security : 13%

Rent and royalties : 2%

Annuities or insurance plans : 1%

Other savings such as a regular savings account or CDs : 1%

Money from an inheritance : 0%

Part-time work : 0%

Poll results are as of 9 a.m. (Central) on Monday. 1,743 respondents.

AAII e-book: Profitable Retirement Planning

		This e-book, which is available exclusively to AAII members, was written to help our members achieve a financially secure retirement. The book offers an overview of many of the primary considerations for retirement planning, including: how much you need to save; where your retirement income will come from; what asset classes you should invest in; and what you should take advantage of in your company’s defined contribution plan (if available). More »

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