Taking an early withdrawal from a 401(k), individual retirement account (IRA) or any other tax-advantaged retirement account before age 59½ could have steep financial penalties. Sometimes those consequences might be worth it—and they may even be entirely avoidable. Here’s how to decide if a 401(k) early withdrawal is right for you.
Figuring out when you and your spouse will each take Social Security retirement benefits can be a complex decision with unintended consequences. It’s important to understand how each spouse’s claiming decisions can affect you both. That’s why it’s important to think through your claiming strategies before either of you are ready to retire.
Joint bank accounts can be a convenient way to share expenses with a significant other. By pooling your finances into a joint checking or savings account, you can simplify your shared finances and work together toward mutual goals. But what happens to your joint accounts if the relationship doesn’t last? It’s not always pretty.
The world of investing has long been an old boys’ club. Just look at the language used by men’s and women’s magazines to frame money issues with their target audiences to get a picture of how entrenched this assumption remains.
But just because women have been largely excluded from the investing profession and financial industry didn’t mean they were not investing. The fact is that women have been part of the investment landscape in America from the very beginning, and they were often savvy wealth-builders with excellent investing skills.
Some term policyholders can convert all or part of their term life insurance to a permanent life insurance policy without having to reapply for coverage. If you have or buy a term policy with a conversion feature, you can take advantage of the lower cost of term insurance when your budget is limited, then convert some or all of it to a permanent life insurance policy later. In this way, you can keep coverage beyond the expiration of the original policy's term, and potentially build a cash value.
In a perfect world, budgeting would be an entirely gender-neutral topic. After all, tracking your expenditures and spending less than you earn are universally good budgeting practices, no matter who you are. But the way we talk about money often conforms to gender expectations, rather than simple dollars and cents.
Financial stereotypes of women as frivolous spenders or men as good investors have a pernicious effect on all of us. When we feel that we need to live up or down to what is expected of us, we are less likely to make the best decisions for our own situations and finances
Life insurance offers a guaranteed benefit to the policyholder if they die while the insurance is in place. This means the beneficiaries you list on a life insurance policy will be protected should you pass away — for example, the payout could cover the loss of your income or any debts or business expenses left behind.
If you follow the common wisdom that life insurance protects your family against the loss of your income, retirement may seem like a natural time to let your policy lapse (or better yet, surrender it for its cash value). But life insurance during retirement requires that you consider more than just income replacement, according to Stephanie McCullough, financial planner and CEO of Sofia Financial.
Despite the economic fallout of Covid-19 and the logistical difficulties of buying a house in the midst of a pandemic, the housing market in 2021 is booming. Between the historically low mortgage rates and the desire for more room to weather the stay-at-home expectations, Americans are buying homes at higher rates now than they were in 2019, when the economy was stronger. And it is millennials who are leading the housing boom.
Exchange Traded Funds (ETFs) are a type of security that offer the ease and flexibility of stock trading with the diversification of mutual funds. This kind of best-of-both-worlds investing has a lot of potential for anyone looking to grow their money, but it’s important to understand exactly what you’re getting into.
Here’s what you need to know about this investment vehicle and how it can fit into your financial plan.
Maximizing your Social Security benefits is one way to build your retirement paycheck. Unlike investment portfolios, annuities or pensions, Social Security is the only retirement income that is guaranteed for life and backed by the full faith and credit of the United States government.
There are a few simple strategies that you can use.
Investing advice often starts with the assumption that women need to be coaxed into understanding finance. The belief that women are risk-averse spendthrifts permeates everything from media that discourages women from excessive shopping to financial advisors who assume their female clients want less control over their investments.
But research doesn’t bear these stereotypes out. In fact, women investors consistently outperform their male counterparts, which could leave them with hundreds of t...
Retiring with debt is often considered a cardinal financial sin: Every dollar you owe reduces your income in retirement, after all. But on the other hand, blindly prioritizing debt reduction before retirement savings, particularly for low-interest debt, could shortchange your nest egg. That's why it's prudent to have a debt-payoff strategy.
Creating a sustainable budget can be a great way to reach your financial goals while avoiding stress over money. Anyone who deals with money — which is most of us — could benefit from budgeting.