Posts by Chuck Carrier

What is a Roth Conversion?

September 25, 2020

To understand what a Roth conversion is, you must first understand some of the basics about the different types of retirement accounts, called “qualified accounts.” Pensions Also called defined-benefit plans, pensions are paid for by employers. They have largely gone away for Americans in the private sector starting with the passage of three laws during the Reagan administration, the Tax Equity and Fiscal Responsibility Act passed in 1982, The Retirement Equity Act of 1984, and The Tax Reform Act and Single Employer Pension Plan enacted in 1986. The lack of pensions is one reason why it’s important for people to
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How Rich Do You Have to Be in Order to Retire?

August 18, 2020

Even though perceptions have changed during the pandemic with more Americans now saying they need less money to feel rich1, when it comes to retirement, most people are still unclear about how much they will need to have saved before they can quit their jobs. The answer to that question is different for every person. Here are some of the things you need to think about in order to get a realistic retirement number in mind. What do you want to do during retirement? Where will you live? Different people have different retirement goals and visions. You may not
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7 Money Moves to Consider This July

July 21, 2020

The coronavirus has given us all a lot of stress, as well as a lot of free time to think. If you’re postponing your summer vacation plans, now may be the perfect time to implement some financial planning “to-do’s” that could enhance your personal wealth and financial well-being. Here are seven things to consider: Is there too much risk in your portfolio? If you’re younger, you may have been told to just wait out the volatile stock market, and indeed that may be best for you. But some people—no matter what their age—are more risk-averse than others, and that’s where
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How COVID-19 Has Impacted Retirement Confidence

June 19, 2020

The Transamerica Center for Retirement Studies recently conducted an online survey of more than 6,000 people in the U.S. and found that many are feeling financially vulnerable. Americans are feeling a distinct lack of confidence, particularly when it comes to retirement. Whether employed or unemployed, the survey found that 23% of workers are no longer certain they can retire comfortably following the coronavirus pandemic. Not unsurprisingly, the insecurity was highest for baby boomers, born between 1946 and 1964, who are closest to retirement—32% said their confidence in their ability to retire has gone down due to COVID-19. Meanwhile, 25%
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How a Furlough (or Layoff) Affects Your Finances…and Retirement

May 18, 2020

Here are six things you need to know if you or a family member has been furloughed—or laid off—from their job A furlough is an unpaid leave of absence. You don’t report to work, you don’t get paid, and you may lose some of your benefits. Getting fired or laid off is different because it is permanent; whereas, being furloughed means your employer wants you back as soon as things get back to normal, typically at the same position and income level as before the furlough. Here are six things you should know: Filing for unemployment Whether
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The CARES Act: 10 Things You Should Know

April 16, 2020

The $2 trillion coronavirus economic stimulus bill is the single largest relief legislation in U.S. history, aimed at providing help for individuals and businesses affected by the outbreak. It was signed into law on March 27, 2020. The CARES Act is also known as “Phase III,” because it follows a $104 billion package passed March 18 for workers and families, and a smaller $8 billion bill to increase funding for medical treatments and testing. There is already talk of a fourth and fifth package in development in Congress. Here’s what you should know: Direct Payments to Taxpayers Americans are set
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10 Things To Do With The Kids When They’re Not In School

March 19, 2020

If you’re like millions of Americans whose children are home from school due to the coronavirus, here are some ideas for fun activities you can all enjoy. 1. Get out the family photo albums and movies. Everyone loves to see old pictures of themselves, adults and kids alike. This is a great opportunity to share stories, memories, and teach your children more about your life and your family’s history. 2. Read books together. Reading any book together is an activity that can be meaningful and educational. But stories with cliffhanger chapters, like a Series of Unfortunate Events, can be especially
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Creating a Retirement Strategy

February 21, 2020

Most people just invest for the future, but you have a chance to do more. Across the country, people are saving for that “someday” called retirement. Someday, their careers will end. Someday, they may live off their savings or investments, plus Social Security. They know this, but many of them do not know when, or how, it will happen. What is missing is a strategy – and a good strategy might make a great difference. A retirement strategy directly addresses the “when, why, and how” of retiring. It can even address the “where.” It breaks the whole process
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5 Things You Need to Know About the SECURE Act

January 22, 2020

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE) became effective Jan. 1, 2020, and many people have questions about it. Here are the top five things consumers should know. 72 is the new 70½ The SECURE Act raises the age at which retirees must begin taking Required Minimum Distributions from the awkward age of 70-1/2 to an even age 72, allowing for a couple more years of growth before RMDs kick in. NOTE: Anyone who reached age 70-1/2 in 2019 or before is subject to the old rules. You can keep making contributions to
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The Rules Are Changing For 401(k)s In 2020

December 18, 2019

The Rules Are Changing For Your 401(k) In 2020 If you’re still working and contributing to a 401(k) or similar workplace retirement plan, there is some good news for the upcoming year. If you’re under age 50, the amount you can contribute to your 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is now $19,500 for 2020—a $500 increase over 2019. Additionally, for those who are age 50 or over by December 31, 2020, the catch-up amount is now $6,500, up by $500 (and the first increase since 2015). Keep in mind that you can still
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