The 4% rule is one of the most well-known rules of thumb in personal finance. The premise is simple: retirees can withdraw 4% of their starting retirement portfolio annually, plus inflation, for 30 years with a high probability they won’t run out of money. Unfortunately, in practice, this withdrawal strategy
Should You Pay Off Your Mortgage Early or Invest Extra Cash? It’s true: the idea of living without a mortgage payment sounds enticing. On the surface, it may also seem like a no-brainer financially…paying off debts is typically considered a positive thing. Unfortunately, many homeowners get so wrapped up in
Setting your asset allocation is like drafting architectural plans when building a home; it provides a map to guide the construction of your investment portfolio. Developing an asset allocation is a multi-step process, which is challenging for many investors, and for good reason. A Google search for the term “how
How should couples file for Social Security benefits if they have unequal incomes? It isn’t always advantageous to wait until age 70 to file for Social Security benefits. What happens when one spouse is the primary breadwinner and both spouses are eligible for benefits on their own work record? When
Is it always a good idea to max out your 401(k)? For wealthier retirees or individuals with a sizeable pension, you might not want to max out contributions to your 401(k). Here are some situations where maxing out your 401(k) might not make sense.
Moving and wondering whether you should sell or rent your house? It’s common for homeowners to wonder if they should rent or sell their home after buying a new house. Owning a rental property can be a great way to diversify your streams of income, particularly if you have a
Updated for 2021. One of the most common ways Americans save for retirement is through a 401(k) plan offered at work. As 401(k) plan assets typically represent a considerable amount of an individuals’ retirement savings, adequate funding and proper management are key components to a successful strategy.