Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Showing posts with label 401K. Show all posts
Showing posts with label 401K. Show all posts
Monday, September 12, 2016
Top 7 hacks for saving more for retirement
Worrying about having enough retirement savings can keep you up at night. If you've barely put anything away, it's easy to panic or give up on saving altogether. But there's a third option: You can find ways to funnel a few extra bucks into your 401(k) account or your IRA. If you're ready to put more effort into saving, here are seven easy ways to fill your retirement accounts.
Wednesday, May 11, 2016
Meet the "feel free" retirement spending plan
How much can you safely spend each year from your retirement savings without worrying about running out of money? Do you really have enough money saved for retirement? These are critical questions for older workers and retirees to answer, particularly those who don't have substantial pension benefits and are relying on Social Security, 401(k) balances and IRAs for retirement income.
There's evidence that many people are struggling with these questions. For example, a recent survey showed that more than half of all respondents were too optimistic about a safe withdrawal rate. Almost one-third of were wildly overoptimistic and would spend their savings at a rate that would ensure they would almost surely deplete it during their lifetime.
There's evidence that many people are struggling with these questions. For example, a recent survey showed that more than half of all respondents were too optimistic about a safe withdrawal rate. Almost one-third of were wildly overoptimistic and would spend their savings at a rate that would ensure they would almost surely deplete it during their lifetime.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, April 13, 2016
One in Three Americans Have Nothing Saved for Retirement
Nothing was more important to Winnie than her young children. The married mother of three took care of their needs but seldom took care of her own. As Winnie neared retirement, she divorced her spouse without a pension, 401-k or any significant savings. Because of an illness, she was forced to retire early and take reduced Social Security benefits. Her story is not uncommon.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, March 18, 2016
Retirement Plans Take Different Tack on Money Funds
People saving for retirement in workplace 401(k) plans may soon see changes to the lowest-risk choices on their investment menus.
The adjustments—which have occurred already at some plans but are under consideration at many more, consultants said—are in response to new rules for money-market mutual funds that will take effect in October. “Prime” money funds that buy both corporate and government debt will be required to charge redemption fees if they are swamped by withdrawals amid market turmoil. They also will be required to set up procedures to suspend redemptions in some cases.
The adjustments—which have occurred already at some plans but are under consideration at many more, consultants said—are in response to new rules for money-market mutual funds that will take effect in October. “Prime” money funds that buy both corporate and government debt will be required to charge redemption fees if they are swamped by withdrawals amid market turmoil. They also will be required to set up procedures to suspend redemptions in some cases.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
3 steps to avoid running out of money in retirement
The majority of Americans don't think they are saving enough and are worried their savings won't last as long as they do.
Only 31 percent of workers who participate in an employer-sponsored retirement plan, such as a 401(k), 403(b) or 457, are "extremely confident" or "very confident" that they will not outlive their money — and the rest aren't so sure, according to a new survey by BlackRock.
Only 31 percent of workers who participate in an employer-sponsored retirement plan, such as a 401(k), 403(b) or 457, are "extremely confident" or "very confident" that they will not outlive their money — and the rest aren't so sure, according to a new survey by BlackRock.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, February 26, 2016
Debunking the Myths of How Millennials Save for Retirement
“First of all, Millennials are just so important, from a retirement and a savings perspective… all they know really is DC (defined contribution) plans like 401(K)s, and that means that they own the outcomes, so we have to get it right, we have to help them make retirement work and that is why we dedicated this survey to them,” Fredrik Axsater, State Street Head of Defined Contribution explained to the FOX Business Network’s Maria Bartiromo.
Damian J. Sylvia
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, February 24, 2016
How 1% of Pay Can Save Your Retirement
It works best when you start early.
One in four 401(k) savers increased their contributions last year. This additional saving will translate into hundreds or even thousands of extra dollars of monthly income in retirement, according to calculations from Fidelity Investments. All of which highlights the value of the automatic savings increases that are offered by many, but not most, retirement plans.
One in four 401(k) savers increased their contributions last year. This additional saving will translate into hundreds or even thousands of extra dollars of monthly income in retirement, according to calculations from Fidelity Investments. All of which highlights the value of the automatic savings increases that are offered by many, but not most, retirement plans.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, February 12, 2016
Is The Self-Driving Car In Your 401(k) Setting Your Portfolio Up For A Crash?
By Maggie McGrath and Janet Novack
Some day you may buy an autonomous vehicle. But first you’re likely to spend a good bit of time considering its cost, its safety and whether it fits your lifestyle and even the way you like to drive. Maybe you tend to speed, but the car is programmed to obey the law.
Target date funds are the self-driving cars of the retirement industry. If you’ve got one in your 401(k), do you know how much it’s costing you? How much risk it takes? How it synchs with your own investing preferences and life plans? If you can’t answer (or haven’t asked) those questions, you’ve got lots of company.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, January 27, 2016
Can I Trust Retirement Savings Calculators?
Q: All the online calculators say I’m saving enough for retirement, but how accurate are they? I am 30, contribute 8% of my $75,000 salary to my Roth 401(k). My employer matches 4% and throws in a bonus of another 2% on top. — Dave from Philadelphia
A: Retirement calculators — such as those offered by Bankrate.com,Charles Schwab, or T. Rowe Price— are great for getting a handle on how much you need to save for retirement. But they are only as accurate as the information you supply and the assumptions you make about your future income and savings, when you’ll retire, and the type of retirement you’re hoping for.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, January 22, 2016
4 New Year's resolutions for retirement savers
Resolution no. 1: Don't cash out, or leave behind, your 401(k) — Roll it into your current plan
Lifetime participation in your employer-sponsored plan is the best way to save enough money for a comfortable retirement, which is why savers who cash out their 401(k) accounts at the point of job change are making a very costly mistake.
Our firm's proprietary research has found that a hypothetical 30-year-old who cashes out a $5,000 401(k) balance today will forfeit as much as $52,000 in lost earnings that he/she would have received by age 65 (assuming the account would grow 7% per year).
Lifetime participation in your employer-sponsored plan is the best way to save enough money for a comfortable retirement, which is why savers who cash out their 401(k) accounts at the point of job change are making a very costly mistake.
Our firm's proprietary research has found that a hypothetical 30-year-old who cashes out a $5,000 401(k) balance today will forfeit as much as $52,000 in lost earnings that he/she would have received by age 65 (assuming the account would grow 7% per year).
Damian J. Sylvia
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, December 30, 2015
How to Maximize Your Retirement Accounts in 2016
Contributing to a retirement account qualifies you for tax breaks and employer contributions, both of which will grow your nest egg faster. Here's how to take full advantage of the 401(k) and individual retirement account perks you're eligible for in 2016.
Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal income tax bill. Retirement savers in the 35 percent tax bracket will save $6,300 on the same contribution. Income tax won't be due on this money until it is withdrawn from the account. And if you drop into a lower tax bracket in retirement, you will pay that lower rate on the distributions. If you withdraw that $18,000 while in the 15 percent tax bracket, you will only ultimately pay $2,700 on that contribution.
Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal income tax bill. Retirement savers in the 35 percent tax bracket will save $6,300 on the same contribution. Income tax won't be due on this money until it is withdrawn from the account. And if you drop into a lower tax bracket in retirement, you will pay that lower rate on the distributions. If you withdraw that $18,000 while in the 15 percent tax bracket, you will only ultimately pay $2,700 on that contribution.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, November 13, 2015
Retirement options dwindle, and states step in. But should they?
Whether it's the reality of living paycheck-to-paycheck, or just plain procrastination, more than a third of all Americans say they have nothing saved for retirement.
With fewer companies offering pension plans, and the number of companies offering employees 401(K) programs decline, more and more workers could find themselves on their own in their golden years. Less than half of private sector workers have access to retirement plans at their workplace, a state of affairs that is making state governments step in.
With fewer companies offering pension plans, and the number of companies offering employees 401(K) programs decline, more and more workers could find themselves on their own in their golden years. Less than half of private sector workers have access to retirement plans at their workplace, a state of affairs that is making state governments step in.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Monday, August 17, 2015
A 3-step plan to getting the retirement income you need
My wife & I have substantial 401(k) balances & hope to retire in five years. But we're not sure about how to turn our savings into income. We're considering buying an annuity, but don't know whether that's a good move or whether we should be doing something else. What do you think? -Ken R.
I think that you and your wife need a retirement income plan, a detailed strategy for figuring out how much income you'll need to live the retirement lifestyle you envision and coming up with a realistic way to generate that income.
I think that you and your wife need a retirement income plan, a detailed strategy for figuring out how much income you'll need to live the retirement lifestyle you envision and coming up with a realistic way to generate that income.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, August 7, 2015
Three retirement savings tactics that may disappear
Maxing out contributions to retirement plans to avoid taxes has become a common strategy, but three popular techniques could be cut under proposals afloat in Washington. Here’s a look at the proposed changes, and who would be affected by them.
Capping retirement plan tax benefits
Current law encourages taxpayers to save for retirement by deferring income taxes on money they contribute to retirement plans — and on the earnings on those contributions — until they withdraw the money later in life. However, since higher earners are taxed at higher rates, the biggest rewards from retirement incentives also go to high earners. Someone in the highest personal tax bracket, the 39.6% bracket, saves 39.6 cents on the dollar by participating in a 401(k) plan. For a low earner in the 15% bracket, it’s 15 cents on the dollar.
Capping retirement plan tax benefits
Current law encourages taxpayers to save for retirement by deferring income taxes on money they contribute to retirement plans — and on the earnings on those contributions — until they withdraw the money later in life. However, since higher earners are taxed at higher rates, the biggest rewards from retirement incentives also go to high earners. Someone in the highest personal tax bracket, the 39.6% bracket, saves 39.6 cents on the dollar by participating in a 401(k) plan. For a low earner in the 15% bracket, it’s 15 cents on the dollar.
Damian Sylvia
Retirement Income Solutions
Monday, August 3, 2015
More American savers skimp on retirement plans
Americans are saving more, just not in their employer-sponsored retirement plans, according to a new analysis by retirement market researcher Hearts & Wallets.
Average annual household savings increased almost a full percentage point to 5.5 percent last year, up from 4.6 percent in 2013, based on Hearts & Wallets' annual survey of 5,500 U.S. households. (The personal savings rate this May was 5.1 percent, according to the latest release from the Federal Reserve Bank in St. Louis.) But the percentage of household savings that went into employer-sponsored retirements plans like 401(k)s fell 7 percentage points to 22 percent in 2014, and households participating in employer-sponsored plans declined to 56 percent last year from 60 percent in 2013.
Average annual household savings increased almost a full percentage point to 5.5 percent last year, up from 4.6 percent in 2013, based on Hearts & Wallets' annual survey of 5,500 U.S. households. (The personal savings rate this May was 5.1 percent, according to the latest release from the Federal Reserve Bank in St. Louis.) But the percentage of household savings that went into employer-sponsored retirements plans like 401(k)s fell 7 percentage points to 22 percent in 2014, and households participating in employer-sponsored plans declined to 56 percent last year from 60 percent in 2013.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Sunday, August 2, 2015
Saving for Retirement
To the Editor:
“Paving the Way to Better Retirements” (editorial, July 23) drew crucial attention to retirement insecurity and states leading the way in expanding workplace savings opportunities.
Fifty-five million Americans lack workplace retirement savings plans. Yet we know that access to payroll deduction makes people 15 times more likely to save for retirement. States have recognized this and are stepping up — red and blue states, urban and rural. Since 2012, roughly half the states have considered the effect of retirement insecurity.
Continue reading source article here.
“Paving the Way to Better Retirements” (editorial, July 23) drew crucial attention to retirement insecurity and states leading the way in expanding workplace savings opportunities.
Fifty-five million Americans lack workplace retirement savings plans. Yet we know that access to payroll deduction makes people 15 times more likely to save for retirement. States have recognized this and are stepping up — red and blue states, urban and rural. Since 2012, roughly half the states have considered the effect of retirement insecurity.
Continue reading source article here.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 0775
Saturday, August 1, 2015
How To Calculate Your Retirement Liability
Financial advisors and planners know the issue all too well, as do retirement experts: There is a pressing need for Americans to contribute to a 401(k), individual retirement account or some sort of structured, tax-deferred account to take them through their post-employment years.
Yet recent government statistics reveal quite the shocker: Just 53 percent of the civilian workforce participates in or contributes to a retirement plan, according to the U.S. Bureau of Labor Statistics. In the private industry subset, it’s even lower: 48 percent. Among the two major civilian categories surveyed by the BLS, only one, state and local government workers, shows healthy participation rates at 81 percent.
Yet recent government statistics reveal quite the shocker: Just 53 percent of the civilian workforce participates in or contributes to a retirement plan, according to the U.S. Bureau of Labor Statistics. In the private industry subset, it’s even lower: 48 percent. Among the two major civilian categories surveyed by the BLS, only one, state and local government workers, shows healthy participation rates at 81 percent.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, July 31, 2015
Americans Left $24 Billion in Retirement Money on the Table Last Year
The average worker is missing out on more than $1,300 a year. Make sure to get your share.
Personal savings rose last year, as conscientious workers reined in their spending. But a smaller portion of those savings were stashed in employer-sponsored retirement plans, new research shows. This and other recent findings suggest that the much-vaunted 401(k) match may not be the silver bullet for retirement savings that is widely presumed.
Personal savings rose last year, as conscientious workers reined in their spending. But a smaller portion of those savings were stashed in employer-sponsored retirement plans, new research shows. This and other recent findings suggest that the much-vaunted 401(k) match may not be the silver bullet for retirement savings that is widely presumed.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Tuesday, July 21, 2015
Pensions Are Taking the Long, Lonely Road to Retirement
Pensions were once just as much a given in the full-time working world as rock-solid health insurance and gold watches on retirement day. Remember that time? Touch-tone phones were still all the rage, too.
But in the 21st century, many employers have already made the call to eliminate pensions, with more joining their ranks every day. Thus that once-secure source of retirement income could quickly become a relic, although other instruments – such as 401(k) accounts and certain annuities – have since replaced pieces of the pension puzzle.
But in the 21st century, many employers have already made the call to eliminate pensions, with more joining their ranks every day. Thus that once-secure source of retirement income could quickly become a relic, although other instruments – such as 401(k) accounts and certain annuities – have since replaced pieces of the pension puzzle.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Tuesday, April 21, 2015
Tips for joining rising number of 401(k) millionaires
Retirement savers achieved record balances in their 401(k) balances in 2014—thanks in part to the stock market's gains—but the biggest winners were the thousands of workers who became newly minted millionaires.
The average 401(k) balance hit a record high of $91,300 at the end of last year, according to new data from Fidelity Investments, the largest provider of 401(k) plans. Only a tiny fraction of the company's 13 million plan participants ever reach the million-dollar mark, but that number has grown sharply in the past two years.
The average 401(k) balance hit a record high of $91,300 at the end of last year, according to new data from Fidelity Investments, the largest provider of 401(k) plans. Only a tiny fraction of the company's 13 million plan participants ever reach the million-dollar mark, but that number has grown sharply in the past two years.
Damian Sylvia
Managing Partner
Retirement Income Solutions
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