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Top retirement savings tips for people ages 55 to 64

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If you’re between the ages of 55 and 64, you still have time to increase your retirement savings. Whether you’re planning to retire early, late, or never, saving an adequate amount of money can make all the difference, both financially and psychologically. Your focus should be on building — or catching up, if necessary.

It’s never too early to start saving, of course, but the last decade or so before retirement can be especially crucial. By then, you’ll likely have a pretty good idea of ​​when (or if) you want to retire, and most importantly, still have time to make adjustments if you need to.

If you find you need to save more money, consider these six time-honored retirement savings tips.

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  • If you’re between the ages of 55 and 64, you still have time to increase your retirement savings.
  • Start by increasing your 401(k) or other retirement plan contributions if you haven’t already maxed out.
  • Consider whether a larger pension or a higher Social Security benefit is worth working a little longer.

1. Fund your 401(k) to the max

If your workplace offers a file 401(k)—or a similar plan, such as A 403(b) or 457– and because you are not already funding your contributions to their fullest, now is the time to increase your contributions. Not only are these plans an easy and automatic way to invest, but you’ll be able to defer paying taxes on that income until you withdraw it in retirement.

Since your 50s and early 60s are likely your peak earning years, you may also be in a higher marginal tax bracket now than you will be in retirement, which means you’ll face a smaller tax bill when that time comes.

This applies, of course, to traditional 401(k)s and other tax-advantaged plans. If your employer offers Roth 401(k) As you choose this option, you will pay taxes on the income now but will be able to make tax-free withdrawals later.

The maximum amount you can contribute to your plan is adjusted each year to reflect inflation. In 2023, the amount will be $22,500 for anyone under the age of 50. But if you are 50 or older, you can make an additional compensation contribution of $7,500 for a grand total of $30,000.

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2. Rethink your 401(k) assignments

Conventional financial wisdom says that you should invest more conservatively as you get older, putting more money into bonds and less into stocks. The reason is if your stocks have been crashing for a long time Alcohol marketYou won’t have many years to recover the prices and may have to sell at a loss.

How conservative you are is a matter of personal preference and risk tolerance, but few financial advisors recommend selling all of your stock investments and moving entirely to bonds, no matter your age. Stocks still offer growth potential that bonds don’t. The point is, you have to stay Diversified in both stocks and bondsbut in an age-appropriate way.

A conservative portfolio might consist, for example, of 70% to 75% bonds, 15% to 20% stocks, and 5% to 15% cash or an equivalent, such as money market funds. A moderately conservative person might reduce the bond portion to 55% to 60% and increase the equity portion to 35% to 40%.

If you’re still putting your 401(k) money into the same mutual funds or other investments you chose back in your 20s, 30s, or 40s, now’s the time to take a closer look and decide if you’re comfortable with that allocation as you move toward retirement age.

One useful option that many plans now offer is Target date funds, which automatically adjusts your asset allocations as the year you plan to retire approaches. Target date funds can have higher fees, so choose carefully.

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3. Consider adding an IRA

If you don’t have a 401(k) plan available at work–or if you’re already funding your plan to its fullest–another retirement investment option is an Individual Retirement Account (IRA). The maximum you can contribute to an IRA in 2023 is $6,500, plus another $1,000 if you’re 50 or older.

People who turn 50 at the end of a calendar year can make annual compensation contributions in full for that year, even if their birthday falls at the end of the year.

IRAs come in two types: traditional and Roth. with Traditional IRAThe money you contribute is pre-tax, which means it’s tax-deductible that year. with Roth IRAYou get your tax break at the other end in the form of tax-free withdrawals.

The two types also have different rules regarding contribution limits.

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Traditional IRAs

If you or your spouse don’t have a retirement plan at work, you can deduct your entire contribution from a traditional IRA. If one of you is covered by a retirement plan, your contribution may be at least partially deductible, depending on your income and Deposit status.

Roth IRA

As mentioned, Roth contributions are not tax deductible, regardless of your income or whether you have a retirement plan at work. Taxes will be paid on that money that year.

However, your income determines whether you qualify to contribute to a Roth in the first place. Allowable contribution is reduced in steps through the income range, reaching zero at the top of the range. The numbers are revised annually.

For the 2023 tax year, the income phase-out range for taxpayers making contributions to a Roth IRA is between $138,000 and $153,000 for individuals and heads of household. For married couples filing jointly, the range is $218,000 to $228,000. For a married individual filing a separate return, it is $0 to $10,000.

Also note that married couples who file their taxes jointly can often fund two IRAs, even if only one of the spouses has a paying job, using what is known as IRA Doubles. IRS Publication 590-A provides the rules.

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4. Know what you have coming for you

How aggressive you need to save also depends on what other sources of retirement income you can reasonably expect. Once you get into your mid-50s or early 60s, you can get a much closer appreciation than you would have earlier in your career.

traditional annuities

If you have Defined benefit pension If you plan to be a current employer or former employer, you must receive an Individual Benefits Statement at least once every three years. You can also request a copy from your plan administrator once a year. The statement should show what benefits you gained and when you became earned (This is when they completely belong to you.)

It is also useful to know how your pension benefits are calculated. Many plans use formulas based on salary and years of service. So you may earn more benefit by staying in the job longer if you are in a position to do so.

social Security

Once you’ve contributed to Social Security for 10 years or more, you can get a personalized estimate of your future monthly benefits using Social Security retirement estimator. Your benefits will be based on your 35 highest years of earnings, so it could go up if you keep working.

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Your benefits will also vary depending on when you start collecting them. You can get benefits as early as age 62, although it will be permanently reduced from the amount you’ll get if you wait until “full” retirement age (Currently 66 or 67 for those born after 1943). You can delay receiving Social Security until age 70 to get the most benefit.

While these estimates may not be perfect, they are better than blind guessing – or optimism. A 2019 survey conducted by two University of Michigan researchers found that people tend to overestimate the amount of Social Security benefits they are likely to receive.

To put it in some perspective, the average monthly retirement benefit as of October 2022 is $1,630.93, while the highest possible benefit — for someone who paid the maximum every year starting at age 22 and waited until age 70 to start collecting — is $4,194. In 2022 the 2023 maximum is $4,555.

Although you can take penalty-free distributions from your retirement plans as early as age 50 or 55 in some cases, it’s best to leave the money untouched and let it grow.

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5. Leave your retirement savings alone

After age 59½ you can begin making penalty-free withdrawals from traditional retirement plans and IRAs. With a Roth IRA, you can withdraw your contributions — but not any earnings from them — without penalty, at any age.

There is also an IRS exception, known as the IRS Article 55which waives the early withdrawal penalty on retirement plan distributions for workers 55 and over (50 and over for some government employees) who have lost or quit their jobs. It’s complex, so it’s best to speak to a financial or tax advisor if you’re considering using it.

But just because you can make withdrawals doesn’t mean you should – unless you’re desperate for cash. The longer you leave your retirement accounts (until age 72, when you should start). minimum distributions required than some of them), you were likely to be better off.

6. Don’t forget about taxes

Finally, as you increase your retirement savings, remember that not all of that money is yours to keep. When you make withdrawals from a traditional 401(k) or traditional IRA plan, the IRS will tax you at your rate of ordinary income (not the lower rate for capital gains).

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So if you’re in the 22% bracket, for example, for every $1,000 you withdraw you’ll only get $780. You may want to Strategize to hold on to more of your retirement money – for example, by moving to a tax-friendly state.

What is the best thing to put money into retirement?

There is no “best thing” to put money into for retirement. Retirement investments will vary depending on a person’s financial profile and family situation and needs. Some good investments for retirement are defined contribution plans, such as 401(k)s and 403(b)s, traditional IRAs and Roth IRAs, cash-value life insurance plans, and guaranteed-income annuities.

What is the most important thing when it comes to saving for retirement?

The most important retirement strategy is to start saving early. Saving to retire early is smart because of the compound returns you receive over time in your investment accounts. It also ensures that you save throughout your working life rather than rushing into saving near the end of your working life, when it may be too late to build up enough wealth to retire.

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What are the biggest retirement mistakes?

The biggest retirement mistakes include not saving early, not considering health care costs, taking Social Security benefits early, and spending too much money in your early retirement years.

bottom line

Retirement should be an enjoyable period in life, yet it can be stressful for those who have to worry about money. Planning for your retirement early and understanding the retirement plans and strategies available can help make retirement a fulfilling time in your life.

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Big ETH addresses redistributed 880,000 ETH this month by CoinEdition

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© Reuters Big ETH addresses redistributed 880,000 ETH this month
  • Ethereum price movement has been flat over the past 24 hours.
  • ETH whales have redistributed 880,000 ETH since December 2022.
  • The altcoin price is holding at the support level at the time of publication.

The largest cryptocurrency by market cap (ETH), has seen flat price movement over the past 24 hours, according to cryptocurrency CoinMarketCap. At press time, the price of ETH is up slightly by 0.02% over the past 24 hours. However, the altcoin leader’s price is still down 1.41% over the past 7 days. As a result, ETH is currently changing hands at $1,194.49.

ETH has strengthened against the market leader, (BTC), by 0.28% over the past 24 hours as well. ETH is worth around 0.07206 BTC at the time of publication.

Twitter user Ali (@ali_charts) shared a chart from blockchain analysis firm Santiment today, which shows how ETH addresses with large holdings of ETH have been offloaded and redistributed this month.

According to the tweet, ETH whales holding between 10,000 and 100,000 ETH have “sold or redistributed around 880,000 ETH since December 2022.”

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Large ETH addresses have been redistributed after 880,000 ETH this month appeared for the first time in Coin Edition.

See the original on CoinEdition

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Tesla sales decline puts $157 million worth of Korean structured products at risk

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(Bloomberg) — This year’s unprecedented decline in Tesla Inc. It puts $157 million worth of Korean-related structured products at risk of a capital loss unless shares of the electric car giant experience a significant recovery.

Most Read from Bloomberg

That’s the amount of capital that will be lost if Tesla shares fail to climb back to at least $134.5 a share, about 20% above its current level, before these auto-dial items mature, according to Bloomberg calculations based on securities filing data. in Korea.

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The products were sold to Korean retail investors, who have remained fiercely loyal to Tesla even amid its nearly 70% decline this year. Some were issued when Tesla was trading above $300 per share, which means a recovery of 60% or more is needed before auto-callables reach their maturity date, usually in a year or two, or the principal will be forfeited.

Auto-orderables became popular with Korean individuals during the era of low interest by promising higher returns on savings, unless the underlying asset declined sharply. Many are built on equity benchmarks such as the Kospi 200 Index, although products linked to Tesla and other large stocks including Nvidia Corp. and Amazon.com Inc. It also became popular.

A prospectus for structured products linked to shares of Tesla and Advanced Micro Devices Inc. Issued by Kiwoom Securities, the company said investors could lose their capital if any of the shares fell more than 50% before maturity in one year. The auto callables were sold in January when Tesla was trading at $343.85 per share.

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Explosions rock Ukrainian cities as Russia launches ‘more than 100 missiles’ in waves By Reuters

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© Reuters. A local woman speaks on her mobile phone in the window of an apartment building damaged by a Russian military strike amid Russia’s ongoing offensive against Ukraine, in Kherson, Ukraine on December 1, 2022. REUTERS/Anna Voytenko

Written by Dan Belichuk and Herbert Villarraga

KYIV/BAKHMUT, Ukraine (Reuters) – Air raid sirens sounded across Ukraine as Russia unleashed more than 100 missiles Thursday morning, according to a Ukrainian presidential adviser, and explosions were heard in several cities, including the capital Kyiv. Raid More than 100 missiles in several waves, the adviser to the presidential office Oleksiy Aristovich wrote on Facebook (NASDAQ:), and the head of Ukraine’s Mykolaiv region also reported the presence of Russian missiles in the air.

Explosions were heard in Kyiv, Zhitomir and Odessa, according to a Reuters correspondent and local media reports.

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Blackouts have been announced in the Odessa and Dnipropetrovsk regions, with the aim of minimizing potential damage to the power infrastructure.

The lightning attack came sharply in the wake of the Kremlin’s rejection of the Ukrainian peace plan, and they insisted that Kyiv accept Russia’s annexation of four regions.

Moscow has repeatedly denied targeting civilians, but Ukraine says its daily bombardment is destroying cities, towns and the country’s infrastructure from power to medical.

On Wednesday, Russian shelling hit the maternity ward of a hospital in the city of Kherson, said Kirillo Tymoshenko, deputy chief of staff to President Volodymyr Zelensky, although no one was hurt. Tymoshenko said in a post on Telegram that staff and patients have been taken to a shelter.

“It was scary,” said Olha Prysedko, a new mother. “When we got downstairs, the bombing wasn’t over. Not for a minute.”

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The recently liberated city of Kherson in southern Ukraine has been under constant bombardment from Russian forces, who retreated to the eastern bank of the river when the city was recaptured in a major victory for Ukraine last month.

Zelensky, in a video address, urged Ukrainians to hug their loved ones, tell friends they appreciate them, support their colleagues, thank their parents and have fun with their children more often.

“We have not lost our humanity, though we have suffered terrible months,” he said. “And we will not lose it, although there is a difficult year ahead.”

Russia invaded Ukraine on February 24. Kyiv and its Western allies have denounced Russia’s actions as an imperial-style land grab. Russian President Vladimir Putin called it a “special military operation” to disarm its neighbor.

Comprehensive sanctions were imposed on Russia because of the war that has claimed tens of thousands of lives, displaced millions from their homes, destroyed cities and shook the global economy, driving up energy and food prices.

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Gazprom data and Reuters calculations showed that Russian gas exports to Europe via pipelines collapsed to their lowest levels after the collapse of the Soviet Union in 2022 as its largest customers cut imports due to the conflict in Ukraine and a major pipeline was damaged by mysterious explosions.

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There is still no prospect of talks to end the war.

Zelensky is aggressively pushing a 10-point peace plan that envisages Russia respecting Ukraine’s territorial integrity and withdrawing all its forces.

But Moscow rejected it on Wednesday, stressing that Kyiv must accept Russia’s annexation of the four regions – Luhansk and Donetsk in the east, and Kherson and Zaporizhia in the south.

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Kremlin spokesman Dmitry Peskov said there could be no peace plan that “does not take into account today’s realities on Russian territory with four regions entering Russia”.

Russian Foreign Minister Sergei Lavrov said that Zelensky’s idea of ​​removing Russia from eastern Ukraine and Crimea with the help of the West and getting Moscow to pay compensation to Kyiv is an “illusion,” RIA reported.

Tass quoted Lavrov as saying that Russia will continue to enhance its combat power and technological capabilities in Ukraine. He said the forces mobilized in Moscow had undergone “serious training” and while many were on the ground now, the majority were not yet at the front.

Zelensky told parliament to stay united and praised Ukrainians for helping the West “find itself again”.

“Our national colors are today an international symbol of courage and toughness in the entire world,” he said in an annual speech held behind closed doors.

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Kherson attacks

The General Staff of Ukraine’s Armed Forces said on Wednesday that Russia has bombed more than 25 settlements around Kherson and Zaporizhia on the battlefront. The Kherson region, at the mouth of the Dnipro River, serves as a gateway to Russia-annexed Crimea.

Heavy fighting has continued around the Ukrainian-held city of Bakhmut, in the eastern province of Donetsk, and to its north, around the cities of Svatov and Krymina in Luhansk, as Ukrainian forces attempt to break Russian defensive lines.

Britain’s Ministry of Defense said Russia had likely reinforced the front-line Kremina section because it was logistically important and relatively vulnerable in the wake of the Ukrainian advance westward.

The military analyst in Kyiv, Oleh Zhdanov, said that the city of Kharkiv and the region were subjected to severe attacks, which damaged a regional gas pipeline.

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Kharkiv Mayor Ihor Terekhov said in a Telegram message that the city was attacked twice, “most likely” from Iranian Shahed drones, five of which were reported shot down separately by Ukraine’s Eastern Air Command over the city of Dnipro.

Reuters could not verify the battlefield reports.

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