The coronavirus pandemic is forcing many older workers to rethink their retirement plans, as some are being forced out of their jobs by budget cuts, others are wondering if they should cut careers short to avoid the health risks of returning to work and those with limited incomes are postponing retirement because of the pandemic's financial impact. Adults considering retirement during the pandemic should investigate the effects of early retirement on their savings, social insurance and health insurance costs before making a decision.
The so-called mega backdoor Roth strategy could allow high earners to put significantly more money into Roth IRA accounts. However, it's important to remember that only some 401(k) plans allow for the kinds of contributions necessary for this strategy to work.
A new study suggests that savers who take withdrawals from their retirement accounts to weather the effects of the pandemic could end up in a worse financial position in the long run. However, savers can mitigate the effect by paying back the withdrawals, the research suggests.
Workers in 401(k) and 403(b) retirement plans who save only enough to get the company match could end up with a great deal less in savings than they will need when they retire, according to financial planner James Brewer. "Then your choices become to delay retirement or to save an even higher percentage of your income in the final years of employment," he writes.
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The S&P 500 achieved the best quarterly performance since the fourth quarter of 1998 during Q2. However, the rally started faltering in June, adding to investor concern that a second coronavirus wave might derail US economic recovery, along with the realization that much of the momentum stemmed from Federal Reserve stimulus.
T. Rowe Price has received Securities and Exchange Commission approval to introduce four nontransparent exchange-traded funds that disclose portfolios quarterly, rather than daily. The Blue Chip Growth ETF, the Dividend Growth ETF, the Equity Income ETF and the Growth Stock ETF pursue the same investing strategies as those of corresponding mutual funds.
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Goldman Sachs analysts estimate that coronavirus spread will significantly decrease and that GDP loss will decline 5% if the government mandates that Americans wear a mask in public. "We argue that a national face mask mandate could partially substitute for renewed lockdowns," the analysts state.
The Congressional Budget Office expects the unemployment rate to stay in double digits through year-end, ending at 10.5%. The CBO also projects economic output in the fourth quarter to be 5.9% less than output in Q4 of 2019.
Companies that say they want to increase diversity in their ranks need to be held accountable for meaningful change to occur, says diversity consultant Al Vivian. To do that, they must admit that white privilege exists, take action and then build accountability into their efforts.