What are different type of retirement account? It includes cash balance pension plans, profit sharing plans, 401(k) plans, 403(b) plans, employee stock ownership (ESOP) plans, simplified employee pension (SEP) plans, and SIMPLE IRA/401(k) plans. Pros: Withdrawals from Roth IRAs are tax free, provided the owner is at least 59½ years old and has owned the… Continue reading Pros and cons about Retirement account
Month: September 2016
Employer cutbacks are leaving more retirees with Medicare
Employer cutbacks are leaving more retirees with Medicare as their sole source of health insurance once they reach age 65. Unfortunately, Medicare Part A, which covers inpatient hospital care, and Part B, which helps pay for doctors’ services and other outpatient care, typically do not cover all of a retiree’s health care expenses. Because of… Continue reading Employer cutbacks are leaving more retirees with Medicare
A chronic illness that requires long-term care
A chronic illness that requires long-term care is perhaps the biggest event many retirees worry about facing—and paying for. For many people, this concern is a key motivator in building as large a retirement nest egg as possible, given that a year’s stay in a private nursing home room currently costs around $91,000, on average.… Continue reading A chronic illness that requires long-term care
Diversification of wealth
While diversification cannot assure a profit or protect against loss in a declining market, it can help guard against unfavorable fluctuations so that declines in interest income will be offset by growth in other investments—namely, stocks. It can also help ensure that assets will grow at a rate that keeps up with or exceeds inflation.