- NewsCNBC.com•8 hours ago
If you like paying hefty tax bills, stick with your regular 401(k)
If you are looking forward to a retirement spent paying hefty tax bills, a traditional 401(k) plan may be your twisted ticket to happiness. Once you turn age 70½, you are forced to start taking money out of your traditional 401(k) annually — the more polite terminology is "required minimum distribution" — and every penny you withdraw will be taxed as ordinary income. The perverse reality is that the more you have socked away for retirement in traditional accounts, the bigger your RMD tax bills will be, even if you don't need the cash to cover living expenses. And those RMDs just might boost your taxable income to a level that triggers owing more tax on Social Security benefits and being hit with
BusinessYahoo Finance•yesterdayWhy married couples should have separate bank accounts
According to a creditcards.com report, approximately 7.2 million Americans (4.4 million men and 2.8 million women) have hidden a bank or credit card account that their live-in spouse or partner doesn’t know about. Many of us remember the sheepish feeling of having to ask our parents for money growing up.
- BusinessMarketWatch•yesterday
$1 million or $5,000 a month: which would you choose?
These days, investors can track at any moment how the market’s daily ups and downs are affecting their wealth. Even investors with multiple investment accounts spread across different firms can calculate changes in their net worth in real time, thanks to websites and apps that do all of the work for them. One might think that having all of this information would make people more financially savvy, especially when it comes to saving for retirement. New research, however, suggests that for many people, it may be the opposite. That’s in part because many of the digital tools used to track net worth present information in a way that leads some investors to develop mistaken beliefs about how much
