To qualify for Social Security retirement benefits, you must generally have “40 quarters of coverage.” This means that you must have been working for 10 years and earning at least the minimum income (adjusted annually for inflation) required to receive a quarter of coverage.
For example, in 2017, you can receive one quarter of coverage for each $1,300 of earnings, up to the maximum of four quarters of credit per year. Thus, the maximum amount of income needed to earn …
Although most 401(k) plans offer loans of up to half your vested balance, this may not be a good idea. Plan loans usually charge the prime rate plus one or two percentage points. In addition, you lose all future compound interest on the lost earnings on money that was borrowed. If you quit your job or are laid off or fired, your loan may be due immediately at a time when you can least afford to pay it back.
If …
A nonrefundable retirement saver’s tax credit is available for individuals with low incomes. In 2017, a single person making up to $18,500 or a couple making $37,000 or less can qualify for a 50 percent tax credit on the first $2,000 they each save toward retirement. For example, an individual who contributes $2,000 to an IRA could qualify for a $1,000 tax credit. The tax credit phases out as income increases.
A single person earning $18,501 to $20,000 and a …
The Social Security Administration provides a benefit estimate online at http://www.ssa.gov/mystatement/. Users must establish a user name and password when they use this Web site for the first time. This is to assure that their private data is secure.
The benefit estimate includes a record of earnings on which you have paid Social Security taxes. It also includes an estimate of your Social Security disability, survivor, and retirement benefits based on those earnings.Retirement benefit estimates are provided for ages …
In 2017, employees younger than age 50 may contribute up to $18,000 to the following salary reduction retirement savings plans: (401(k), 403(b), 457, and Thrift savings Plan (TSP). Individuals 50 and older may contribute up to $24,000, which includes the maximum annual catch-up contribution of $6,000.
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Wiener, J. & Doescher, T. (2008). A Framework for Promoting Retirement Savings, The Journal of Consumer Affairs, 42 (2), 137-164.
Brief description: This paper identifies the constructs that influence an individual’s intention to save for retirement. It discusses how and when these factors can be changed by an agent trying to induce an individual to enroll in a retirement plan, increase his or her contribution to a plan, or purchase a particular retirement product. A broad array of psychological theories …
Kim, H. & Lyons, A. C. (2008). No Pain, No Strain: Impact of Health on the Financial Security of Older Americans. The Journal of Consumer Affairs; Spring 2008, 42(1), 9-36.
Brief Description: This study investigated the impact that new and existing health problems have on the financial strain of older Americans. Health problems significantly increased the likelihood of financial strain for older individuals, but the effects varied by the measure of financial strain used and how health status is …
Spitzer, J.J. (2009). Managing a retirement portfolio: Do annuities provide more safety? Journal of Financial Counseling and Planning Education, 20(1), 58-69.
Brief Description: One of the biggest concerns of retirees is the risk of outliving their assets. This study used a technique called “bootstrap simulations” to estimate the probability of someone outliving a retirement portfolio as increasing proportions of a tax-deferred account are annuitized. It also examined the sizes of the portfolio balance as the annuity amount increased. Required …
A Roth 401(k) is retirement savings option that became available in 2006. With Roth 401(k)s, companies can add an option to their 401(k) plan that enables employees to make after-tax contributions. The contribution limit for a Roth 401(k) is the same as the contribution limit for a regular 401(k). In 2017, the limit is $18,000 plus an extra $6,000 “catch up” amount for those who will be age 50 or older by the end of the year ($24,000 total).
If …
O’Neill, B., Porter, N. M., Pankow, D., Schuchardt, J. & Johnson, J. (2010). Online investment education: Listening to learners to develop an effective financial literacy program for farm households. Journal of Financial Counseling and Planning Education, 21 (1), pp. 25-42.
Brief Description: Quantitative and qualitative data were collected from farm households to better understand their investment attitudes, practices, and learning preferences in order to adapt an online investment course for their needs. Researchers found that farmers are a distinct audience …
