It is highly likely that you have considered saving (or converting existing savings) into a Roth IRA or 401k. Someone, a friend, family member, advisor, your bank, or colleague may have recommended it to you. And, you have most certainly seen, if not read, an article about the benefits of Roth. All retirement savings accounts are designed to help you save money on taxes. And, Roths can be a particularly great way to reduce your tax burden. What’s a Roth?: A Roth is a retirement savings account. With a Roth, you pay taxes on the money you contribute to the account. The trade offs (and reasons ..read more

Life can pass quickly when you are occupied with work, family matters, and the never-ending to-do list. Before you know it, your retirement years have arrived sooner than expected. No matter your age, you should take time to reflect on what a fulfilling retired life means to you?  Many people simply say “I want $1 million or $2 million by retirement.” However, unless you envision your life without work and what that entails, the dollar amount you cite likely has little rationale and meaning behind it. As you approach retirement, consider asking yourself these seven  questions so you ..read more

Setting long-term financial goals is really important. However, the most important long- and short-term financial goal actually has nothing to do with money. Before determining when you can retire and how much you need, you really ought to know exactly what you want to do with your life. What is your vision for your future, starting right now? Why a Vision for Your Life is So Important to Your Long-Term Financial Goals What is the point of saving a certain amount or retiring on a specific date? And, how do you even know how much you need to save or when you should retire if you don’t have a vi ..read more

Spring is here! Or if you’re in a city like Pittsburgh, where I am, you may also have some Winter and Summer sprinkled in throughout the week as well. Anyway, it’s likely you’ve begun tackling spring cleaning tasks, such as organizing the closets, washing the windows, and detailing your car, among other “enjoyable” household chores.  It’s also the perfect time to give your finances a thorough review and refresh as well. As the seasons change, taking the time to revisit and reassess your financial goals, opportunities, and strategies can give you confidence in your financial future.  ..read more

Early retirement – retiring at 62 or before – seems like a wonderful dream to a lot of people. You’ve been in the workforce for decades. You have focused on work with the goal of enjoying the rest of your life on your own terms. But is it too early to get out of the rat race?  Retiring at age 62 is quite a bit different (good and bad) from retiring later. If you’re wondering whether it’s the right thing for you to do, this article is not intended to slow you down. Is it time to walk away from work and into retirement? Below are 12 reasons why you really should go ahead and retire at 62 o ..read more

As you prepare for retirement, it’s essential to understand what your taxes will be. You may think your Social Security benefits are tax-free. After all, why would the government pay you money with one hand and take it back with the other? But the truth is, you may pay taxes on your Social Security benefits if you have other sources of income in retirement.  At a certain level of overall income – that includes your Social Security benefits, paid work, withdrawals from investments, passive income or other sources – your Social Security benefits are taxed. And, if you work before full reti ..read more

Many of us would like to leave behind something to our heirs. But first, we need to fund our own lives in retirement, and that can sometimes seem nearly impossible. This article explores average inheritance numbers. Do you expect to be above or below average? Key Takeaways… Averages aren’t that meaningful Sharing while you are still alive can be impactful and more efficient Be realistic and don’t forget about your own needs See how you much you’ll be able to leave to heirs with the NewRetirement Planner Average Inheritance in the United States Different studies suggest different levels of a ..read more

In this episode of the NewRetirement Podcast, Steve Chen and guest Mikelann Valterra, a master money coach, explore the concept of “money fog” and its impact on financial decision-making. They discuss strategies for gaining clarity and control over finances, the importance of understanding money personality types, and the unique financial challenges faced by women. Listen Now Listen to the NewRetirement Podcast on Simplecast. Call Outs from the Conversation Rise Above the Money Fog: The Key to Confidence, Clarity, and Control Over Your Life by Mikelann Valterra Seattle Money Coach Related ar ..read more

When it comes to managing investments, there are two main philosophies: active investing and passive investing. You may be thinking, “Why opt for a passive investment strategy? Wouldn’t I want to stay actively involved and ‘on top’ of my investments?!” Of course you do. But it doesn’t have to be done through a time-consuming, costly and tax-inefficient strategy (Hint: these are common qualities of active management).  Below, we’ll outline the concepts of active and passive management as well as 6 reasons why adopting a passive investment philosophy would be the preferred choice.  A ..read more

In his excellent newsletter, Atomic Habits author James Clear describes two kinds of problems: those that are like muddy puddles and others that are like leaky ceilings. Are your financial problems (and we all have them) leaks or puddles? Let’s explore how can you reduce financial stress and make better financial decisions by categorizing your issues accurately. Two Types of Financial Problems: Muddy Puddles and Leaky Ceilings Clear wrote: “I split problems into two groups: muddy puddles and leaky ceilings. Some problems are like muddy puddles. The way to clear a muddy puddle is to leave it al ..read more