403b vs 457b – Pros and Cons of 403b Retirement Plans and 457b Retirement Plans

running out of money in retirement

Saving for retirement can be a confusing experience whether you’re just getting started in your early twenties or you’re on the verge of retiring within the next decade. There are so many different options to choose from – not all of which may be available to you, depending on what your employer offers – and choosing the best plan possible is critically important for securing your long-term financial sustainability. If you’ve encountered 403b retirement plans and/or 457b retirement plans as potential retirement planning options, then which one would be the ideal fit for your situation? 403b vs 457b Before we take a deep dive into the pros and cons of each type of retirement savings account, let’s start with the … Read more

Best Way to Save for Retirement When You Are in Debt

Escape the Weight of Your Crushing Debt

Getting (and staying) out of debt and saving regularly for retirement are some of the most important personal financial habits that everyone should be doing, but having a finite income with conflicting financial priorities understandably complicates matters. If you have student loans, a running balance on your credit cards, or other outstanding debts in the 4+ figures range, how should you balance your debt repayment plan (short-term goal) with your retirement savings plan (long-term goal)? What is the best way to save for retirement when you are in debt? Best Way to Save for Retirement When You Are in Debt The answer to this ultimately depends on the amount of debt and the interest rate you’re paying. Still, a generally … Read more

How Rising Healthcare Costs Can Frustrate Your Retirement Dreams

unexpected hospital bills

Although older adults (ages 65 and older) only account for 16% of the current U.S. population, data from the Kaiser Family Foundation found this age group accounts for 36% of all healthcare spending in the U.S. each year. When you factor in people 55+ years old, this demographic comprises just 29% of the U.S. population but accounts for 56% of all healthcare spending. Rising healthcare costs can crush your retirement dreams. The fact that older people have more expensive, more frequent healthcare needs than younger people is no surprise. Still, it’s alarming to see just how much money quality geriatric care requires, especially when healthcare costs are rising much more quickly than wage growth and cost-of-living adjustments (COLA) for social … Read more

How I Plan to Maintain My Lifestyle in Retirement

Why You Should Still Make IRA Contributions After Retirement

Note – The following post is the 3rd and final article in a series of retirement education blog posts on Money Q&A and sponsored by USAA. Be sure to check out the 1st and 2nd articles in the series, “Am I Saving Enough for Retirement?” and “How Long Will My Retirement Savings Last?”. Like always, all opinions are my own about every topic, including choosing a lifestyle in retirement. With the cost of living rising at what seems like rapid rates every year, adults of all ages are beginning to wonder how they’ll ever manage to retire and still maintain the same standard of living they enjoyed during their working years. The concern to maintain a consistent standard of living during … Read more

Top 3 Simple and Best Passive Income Ideas for Retirees

Whether you’re 10 years away from retirement or retiring this year, money management and saving don’t stop when your regular job income does. In fact, financial management in retirement can be a stressful experience if you don’t plan carefully beforehand and continue your saving habits during your golden years. To avoid the panic-inducing question of whether your current nest egg will last as long as you do, there are several retirement mistakes to avoid. Don’t increase your spending, pay attention to potential income opportunities, and never borrow money from your retirement account for nonessential purposes. Luckily, there are many ways to financially secure yourself and your spouse during your retirement years. Thankfully, these strategies don’t necessarily involve taking on a part-time job to … Read more

Who Do You Want to Be When You Grow Old? The Path of Purposeful Aging

The following is reprinted from Who Do You Want to Be When You Grow Old?: The Path of Purposeful Aging with permission of Berrett-Koehler Publishers. Copyright © 2021 by Richard J. Leider and David A. Shapiro. This is a book by two old friends who have known each other for more than half of their lives. It is a book about a subject of which no one can claim absolute expertise, but which each of us learns a little bit more about every day. It is a book whose purpose is purpose. It is a book about how to grow old, with the emphasis on “grow.” Our focus is on not just getter older, but on how to grow as … Read more