Retirement Income Archives - The Financial Quarterback™

Why and How to Retire Early

January 11, 2021 by Richard E. Reyes, CFP®

Are you faced with (or hoping for) an early retirement?

Then you’ll want to do your homework to learn how to retire early without hurting your finances.

According to a study from the Employee Benefit Research Institute, nearly 50% of workers plan on retiring after the age of 65 to collect maximum social security benefits. However, only 19% end up staying that long.

Most of the time, early retirement can be attributed to unexpected events such as poor health, economic downturn, loss of employment, or family issues. However, with the right planning and budgeting, you can retire early on your own terms. [Read more…]

Are Annuities Worth It?

December 21, 2020 by Richard E. Reyes, CFP®

Most financial advisors either love them or hate them.

Are annuities the right retirement option for you?

Are you planning for retirement?

If so, you may be thinking, “How do I convert that money I set aside during my years of work into ongoing income?” The financial industry does not suffer from a lack of choices when it comes to investments and, quite often, annuities can be an appropriate option in retirement.

Yet probably no product in existence generates so many reactions as annuities.

Before you invest in them, however, there are many different things to consider. Keep reading to learn more about what annuities are, the types of annuities, and how to determine if it’s a good investment for your future. [Read more…]

Traditional vs. Roth IRA: The Pros, Cons, and Everything in Between

December 1, 2020 by Richard E. Reyes, CFP®

Read on to learn the advantages and disadvantages of traditional vs. Roth IRA to make the right decision for your retirement.

Planning for one’s retirement is one of the best ways to make sure that you’ll have the means to support yourself and your family when you no longer have a paycheck. And the earlier you start planning, the more prepared you’re going to be.

One of the most important things to know about retirement planning is the difference between traditional vs Roth IRAs. By choosing the right kind of IRA, you could potentially end up saving yourself thousands of dollars.

If you’re interested in learning more about IRAs, then continue reading and we’ll take you through everything you’ll want to know! [Read more…]

What Is a 403b and Is It the Right Option For You?

November 27, 2020 by Richard E. Reyes, CFP®

A 401k retirement plan has been a standard part of employee benefits packages since the late 1970s. This type of retirement plan involves withholding contributions from each worker’s paycheck and holding those monies tax-deferred in an investment account until that worker retires.

Nonprofit, tax-exempt organizations were not able to offer 401k plans to their workers until 1996. Before that year, the only employer-sponsored option for nonprofits and their employees was known as a 403b plan.

The 403b plan is still an option for nonprofit workers and exists alongside traditional 401k offerings. But what is a 403b, exactly, and is it a good investment? Read on to find out.

[Read more…]

What Is a Roth IRA? Everything You Need to Know

November 13, 2020 by Richard E. Reyes, CFP®

Apparently, most Americans are not prepared for retirement. While these people may not be terribly concerned about their future at this point in their lives, many are in for a rude awakening when their income suddenly drops dramatically.

By having an individual retirement account (IRA), you can diversify your portfolio and prepare your finances for your future. You might not know this, but there are actually two different kinds of IRAs: the traditional IRA and the Roth IRA.

[Read more…]

Retirement Planning: Why There’s No Such Thing as a One-Size-Fits-All Retirement

September 18, 2020 by Richard E. Reyes, CFP®

If your household earns over $30,000 per year, you are going to need more than social security to keep up your lifestyle in retirement. This is why many financial advisors recommend saving enough to replace 80% or more of your pre-retirement income.

When it comes to retirement planning, most people think a one-size investment strategy fits all. Here are three reasons why retirement planning does—and should—work differently for different people. [Read more…]

Tax Diversification: Less Taxes, More Retirement Income

September 4, 2020 by Richard E. Reyes, CFP®

Do you want to reduce your taxes and increase your savings and income for retirement? Of course you do!

One such method is tax diversification. You may not be familiar with what this entails, which is why we’re here. If you want to find out everything from what tax diversification is to different tax diversification strategies, keep reading below for everything you need to know. [Read more…]

New RMD Rules and COVID

May 12, 2020 by Richard E. Reyes, CFP®

On March 27, 2020, the CARES Act was passed and signed into law.

This massive piece of legislation was passed as a result of the COVID-19 pandemic. The legislation made significant changes that impact retirees, retirement income strategies, IRAs, income taxes, and qualified retirement plans like 401(k)s, 403(b)s, etc.

One major impact it made was in reference to Required Minimum Distributions (RMD). [Read more…]

Dollar Cost Averaging and Retirement Don’t Mix!

March 26, 2020 by Richard E. Reyes, CFP®

You’ve probably heard the term dollar cost averaging over your years of making contributions into your retirement accounts. Dollar cost averaging is when you make a regular, fixed-dollar contribution into your investments regardless of what occurs in the market. [Read more…]

Don’t Let Coronavirus Derail Your Retirement Plans!

March 23, 2020 by Richard E. Reyes, CFP®

I don’t know!

That’s the only answer I have to some of the questions swarming around the coronavirus (COVID-19) outbreak. There have been so many aggressive actions implemented in the dealing with the possible outbreak, but information is changing so fast that no one has any real certainty. [Read more…]