Eric Reed
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Articles by Eric Reed
How much money can I give my grandchildren without triggering gift taxes?
Giving money to your grandchildren can help them pay for college, buy a first home, start investing or simply build a stronger financial foundation. However, once gifts become sizable, federal gift tax rules can affect how much you can transfer without additional reporting or using part of your lifetime exemption. In 2026, the annual gift tax exclusion is $19,000 per recipient, while certain direct payments for tuition and medical expenses may qualify for separate exclusions.
What is the S&P 500 average annual return?
While the stock market's performance can vary significantly from year to year, the S&P 500 annual rate of return has averaged around 10% since its inception in 1957. Index funds and exchange-traded funds (ETFs) that track the S&P 500 are among the largest and most popular in the world due to the its size, scope and history of strong average annual returns. To determine how investments in the S&P 500 might work in your portfolio, consider working with a financial advisor What Is the S&P 500?
I'm 52 with $1.4 million in my 401(k). Would catch-up contributions be worth it?
Catch-up contributions are usually worth it, in the sense that it's always a good idea to boost your retirement savings. If you can increase your savings, it's generally wise to do so. The question for many households over the age of 50 is whether catch-up contributions are necessary . If you invest in an employer-sponsored plan like a 401(k), you can make an additional $8,000 in pre-tax contributions per year after age 50 (the limit is adjusted annually for inflation).
Is $7,000 per year too much to pay for long-term care insurance?
At $7,000 per year, or about $583 per month, a long-term care policy like this is priced higher than average for what most people can get. According to market data from the American Association for Long-Term Care Insurance (AALTCI), a single male or female should pay around $2,100 to $3,600 per year (or $175 to $300 per month) for an inflation-protected long term care insurance policy . That said, there's a very large range related to these prices, and a number of important factors at play.
Can you avoid capital gains by buying another home?
No, buying another home does not eliminate capital gains tax on the sale of your primary residence . An older tax rule once allowed homeowners to defer capital gains by purchasing another home, but Congress eliminated that provision in 1997. It was replaced by the Section 121 home sale exclusion, which applies whether you buy another home, rent or invest the sale proceeds elsewhere. Investment properties are different.
How a 67-Year-Old With $870k in a 401(k) and $2,200 in Social Security Could Budget for Retirement
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Deciding how much to withdraw from your retirement accounts means finding a balance between enjoying life and making your money last. Taking too little leaves you with unused savings, while taking too much risks running out of money later. Taxes also affect how much you can actually spend.
Should I Convert 20% of My 401(k) to a Roth IRA Each Year to Lower Taxes and RMDs?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. With retirement planning and taxes, there are often two ways to look at a question: First, can you do something, and then, should you do it? For example, let's say we have a household planning for retirement. Would it be wise for them to convert their 401(k) into a Roth IRA 20% at a time in order to avoid taxes and RMDs? Technically, this is certainly allowed. You can do this.
Should We Move $1.2M in an IRA Plus $750k Into a Target Date Fund or Annuity?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Annuities and target date funds are popular assets for households who are either saving for retirement or already in their golden years. How useful each may be for you depends on your financial goals and where you are on your path to retirement. For example, John and Susan are both 67 and recently retired.
What Happens If You Miss the December 31 RMD Deadline?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. In almost all cases the IRS enforces its rules through fines and penalties. This is the case of Required Minimum Distributions (RMDs). As always, your RMDs are due by the end of the year. In this year, if you don't take out the minimum distributions by December 31, 2024, the IRS will penalize you with a special excise tax.
How Should I Allocate a $1.2 Million Portfolio at Age 60 Before Retirement?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Broadly speaking, there are three stages to retirement planning: accumulation, distribution and estate. The accumulation phase refers to your working life, which is when you build the wealth that you’ll eventually retire on. This stage is about savings, growth and long-term investing. The estate phase of your retirement plan is when you make preparations for after you’re gone.
Can I Retire at 62 With $425k in a Roth IRA and $2,600 Monthly Income?
For many people, early retirement means 62. This is the age they can start withdrawing money from their retirement accounts and receive Social Security. For example, let’s assume an individual with $425,000 in a Roth IRA, a $1,000 monthly pension, and expect $1,600 in Social Security. Is it going to be enough? As often in retirement, the answer depends on your spending, goals and other factors. With this profile, you can probably anticipate an income between around $44,000 and $60,000 per year.
Can I Retire at 62 With $425k in a Roth IRA and $2,600 Monthly Income?
For many people, early retirement means 62. This is the age they can start withdrawing money from their retirement accounts and receive Social Security. For example, let’s assume an individual with $425,000 in a Roth IRA, a $1,000 monthly pension, and expect $1,600 in Social Security. Is it going to be enough? As often in retirement, the answer depends on your spending, goals and other factors. With this profile, you can probably anticipate an income between around $44,000 and $60,000 per year.
How Do I Make $1.2 Million in a Roth IRA Last for Life at Age 60?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Planning for a Roth IRA is a little different than with most other retirement assets. This tax-advantaged account generates entirely untaxed income, as long as effectively boosting the value of your withdrawals and your Social Security benefits. That changes your options compared to having a pre-tax 401(k) or other non-Roth account. For example, say that you have $1.2 million in a Roth IRA at age 60.
How Can I Make $950k in an IRA Last for Life at Age 68?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Longevity risk is at the heart of retirement planning. You wind down work and income, counting on savings to carry you through the rest of your life. But with careful saving and money management, it might be possible to make this money last. For example, say that you recently reached retirement age at 68 and have $950,000 in a pre-tax traditional IRA.
Can I Retire at 65 With $500k Cash, $1M in an IRA and Social Security?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Someone with $1.5 million in assets on top of Social Security income may be able to maintain a comfortable retirement starting at 65 with the right circumstances. While this is can be a relatively strong retirement profile depending on your needs, location and risk tolerance, you’ll need to plan carefully and make some critical decisions surrounding Social Security, your investments and spending.
Is It a Mistake to Use a Roth IRA for Home Renovations at 65 as a High Earner?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Should you cash out your retirement fund to upgrade your house? While there are some people for whom this will be a good idea, other households will be better off if they let their retirement fund keep growing. Ultimately, the decision will depend on your net worth, expected retirement expenses and tax strategy.
Should I Convert 10% of My $890k IRA Each Year to Reduce Taxes and RMDs?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. When should you use a Roth IRA to manage your taxes? As you hit your 60s, it's common to shift retirement planning from general wealth accumulation to practical details like taxes and required minimum distributions (RMDs). Getting this right matters, because how you manage these tax requirements will help determine how much spending power you have in your retirement.
Will a $110K 401(k) Withdrawal Increase My Medicare Premiums?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Your 401(k) withdrawals can affect how much you spend on Medicare. While few households pay premiums for Medicare Part A, most households do pay premiums for Medicare Part B and Part D. These premiums are based in significant part on your taxable household income. If your income goes up, such as by making a withdrawal from a taxable retirement account, your premiums can increase too.
Is $7,000 Per Year Too High for Long-Term Care Insurance?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. At $7,000 per year, or about $583 per month, a long-term care policy like this is priced higher than average for what most people can get. According to market data from the American Association for Long-Term Care Insurance (AALTCI), a single male or female should pay around $2,100 to $3,600 per year (or $175 to $300 per month) for an inflation-protected long term care insurance policy.
Microsoft Cares About Your Privacy Can I retire at 59 with $1.4M and $5,000 in monthly expenses?
Eric Reed When thinking about whether you're financially prepared to retire or not, you'll want to think about it in a certain way. You have a lifestyle that you would like to maintain, and a portfolio that can safely generate a specific amount of income each year. Once your costs and means overlap, you can afford to retire. Here, we have $1.4 million in assets and $5,000 in monthly expenses.
What Is a Good Net Worth at 40 and How Do You Compare?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. The median net worth at age 40 is around $135,300. This is according to the Federal Reserve's most recent (SCF). However, what your net worth should be depends entirely on your personal situation. Your net worth should reflect not only your income and opportunities, but also your financial plans and long-term strategy.
I'm 50 With $650k in a 401(k). Should I Convert to Roth Each Year Up to the 24% Tax Bracket Limit?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Staggering your Roth conversions can save a lot of money. Under the right circumstances, a Roth IRA can be the best retirement account for tax management. On the back end, you simply can't beat the offer of no income taxes or required minimum distributions (RMDs) in retirement. The catch is the front end, when you pay taxes that might otherwise have boosted your portfolio.
Can I Avoid Taxes When Downsizing After Netting $800k From a Home Sale?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. When you sell a primary residence, the IRS allows you to exclude from your capital gains taxes the first $250,000 of profits if you file single or $500,000 of profits if you file jointly. You must include any surplus of those amounts in your taxable capital gains for the year, though. So, what if you sell your house for an $800,000 profit?
Is It Better to Take a $150,000 Lump Sum or $1,200 Monthly Pension Payments?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. When companies offer a pension, it's common to give retirees two options: collect the pension as a lifetime monthly payment or receive it as a lump sum at retirement. Monthly payments over time are the format that most people associate with pensions. However, a lump sum payment can, sometimes, be the better option.
Why Many Americans Can't Maintain Their Standard of Living in Retirement and How to Prepare
Many families plan to adjust their lifestyles in retirement. They swap the family house, say, for a smaller home. Or they move to a less expensive community. When this is a choice, it can be an excellent way to slow down and stretch the value of your portfolio. Unfortunately, for many households, downsizing won’t just be an option. It will be a necessity. That’s the result of a study published by Boston College’s Center for Retirement Research.
Can I Retire at 65 With $640k in an IRA and $1,900 Monthly Social Security?
When it comes to evaluating your retirement options, this might be the single most important question in finance. Your age will determine how close you are to needing this money which, in turn, will change almost everything about how you evaluate your taxes, returns and other options. For example, say that you have $640,000 in an IRA and can expect about $1,900 per month in Social Security benefits. Is this enough to retire on at 65? The answer is… it depends.
I inherited a $615k 401(k) from my husband, how can I manage it to reduce taxes?
Eric Reed Inheriting a retirement account can be complicated. With a retirement account that you opened, you're referred to as the original owner. You can contribute to this portfolio, manage it as you see fit, and leave the money in place subject only to required minimum distributions (RMDs) in some cases. When you inherit a retirement account, the rules change.
Can we afford $70k annual spending at 65 with $1 million saved and $30k in Social Security?
Eric Reed Suppose you and your spouse are both 65 years old, have $1 million in savings and collect $30,000 per year in Social Security . Is that enough to fund a $70,000 per year retirement ? It will depend on your personal circumstances, especially where you live, but $70,000 may be enough for some households. Whether your assets can generate $70,000 per year is a bit more difficult to answer, though. Here are a few important things to consider.
I'm 68 and Paying $600 a Month for Long-Term Care Insurance. Is It Worth It?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Imagine that you’re 68 years old and have a long-term care insurance policy in place that will help you pay for this all-important type of care later in life. You pay $600 per month in premiums and tell yourself it’s a good investment, considering how expensive long-term care can be. The problem? Your premiums are well above the average monthly cost of long-term care coverage.
Should I Choose a $150,000 Lump Sum or $1,200 Monthly Pension Payments?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. When companies offer a pension, it’s common to give retirees two options: collect the pension as a lifetime monthly payment or receive it as a lump sum at retirement. Monthly payments over time are the format that most people associate with pensions. However, a lump sum payment can, sometimes, be the better option.
Can I Retire at 62 With $1.3 Million Saved and $2,800 Monthly Social Security?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Although one could argue that the cultural retirement age is 65, and Social Security retirement age is 67, many households want to cross the finish line a little bit early. But 62 is the earliest you can begin to take Social Security. It's also not that far in advance of the normal retirement age, so even if you don't take benefits this is a good age to start thinking about retirement.
I'm 60 With $1.5 Million in an IRA. How Can I Make It Last Through Retirement?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Making your savings last through retirement can be complex in practice, but it really all comes down to your income vs. spending. In other words, it means understanding how much your portfolio can generate in a more risk-averse time in your life, against how much it costs each year to maintain your lifestyle.
I'm Near 60 With $1 Million in an IRA. Should I Move to Roth Contributions?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Should you switch from pre-tax IRA contributions to Roth contributions? Imagine that you’re steadily contributing to a traditional IRA. This provides you with an annual tax deduction. However, contributing to a tax-deferred account comes at the cost of having to pay taxes on all of the money you withdraw in retirement.
Why Healthcare Costs in Retirement Can Exceed Savings and What Medicare Doesn't Cover
For the average American, healthcare in retirement will cost more than they have in their entire savings account. And unfortunately, Medicare won’t help. Healthcare, of course, is the single biggest line item that most retirees need to prepare for. Recently, a study released by the EBRI (the Employee Benefit Research Institute) emphasized how important that is.
I'm 54 and Near Retirement. How Should I Allocate My $1.6 Million Portfolio?
A portfolio that emphasizes capital gains has two main disadvantages. First, it tends to be higher volatility and higher risk compared to income investing. Second, selling assets draws down on your portfolio's principal. While you can reinvest some of your money, this still reduces your portfolio's overall value. In most cases, capital gains and income have different profiles. When you emphasize capital gains, your main advantage is the opportunity for growth.
I Want to Convert $900k to a Roth Before RMDs Start. Do I Have to Wait 5 Years to Access It?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. People with Roth IRAs generally have to wait five years before withdrawing earnings from their account. But the devil is in the details, and for this particular rule, getting those details can be surprisingly difficult. For starters, the IRS has three different five-year rules that apply to Roth IRAs. One of them, the conversion rule, appears self-contradictory.
We're 62 With $950k in IRAs. Should We Still Consider a Roth Conversion?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Fortunately, there's no age restriction on converting a pre-tax retirement account to a Roth IRA. You can roll funds from a qualifying pre-tax account to a Roth IRA at any time. The more important, and difficult, question to answer is whether it's wise to convert your savings to a Roth IRA later in life.
I Have $850k in My 401(k). What Are My Best Options When I Retire?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. For households with very little saved, there is a rulebook. A tight retirement requires you to restructure your spending, maximize Social Security and delay withdrawals as late as possible. For households with significant savings, there's another set of rules. You want to manage your wealth, plan for your estate and minimize taxes.
A highly resolved integrated single-cell atlas of HPV-negative head and neck cancer
Abstract Head and Neck Squamous Cell Carcinomas (HNSCC) are the seventh most prevalent form of cancer and are associated with human papilloma virus infection (HPV-positive) or with tobacco and alcohol use (HPV-negative). HPV-negative HNSCCs have a high recurrence rate, and individual patients’ responses to treatment vary greatly due to the high level of cellular heterogeneity of the tumor and its microenvironment.
I'm 50 With $875k in My 401(k) and $5,000 in Monthly Expenses. When's the Soonest I Can Retire?
Whether you're making a budget or planning your retirement date, it typically comes down to the same basic math: how much money you can reliably generate and how does that compares to your budget. To help you estimate how much you will need for retirement, let’s work through an example of a 50 year old with $875,000 in a 401(k) and an all-in budget of $5,000 per month ($60,000 per year).
I'm 50 With $875k in My 401(k) and $5,000 in Monthly Expenses. When's the Soonest I Can Retire? Original
Whether you’re making a budget or planning your retirement date, it typically comes down to the same basic math: how much money you can reliably generate and how does that compares to your budget. To help you estimate how much you will need for retirement, let’s work through an example of a 50 year old with $875,000 in a 401(k) and an all-in budget of $5,000 per month ($60,000 per year).
What's a Realistic Retirement Budget? I'm 55 With $620k Saved and $68k Income
There are two common ways to think about a retirement budget: you can start with the lifestyle you want or the assets you have. By focusing on a lifestyle, you can identify your target retirement income and then build savings to support that goal. For example, using the 4% rule, if your goal is to withdraw $100,000 annually in retirement income your savings target would be roughly $2.5 million ($100,000 ÷ 0.04).
I'm 65, collecting Social Security and have $830K in a 401(k). Can I still do a Roth conversion?
There is no age limit on Roth conversions, so you can transfer pre-tax savings into a Roth IRA regardless of your age or retirement status. As long as you have qualifying funds in a pre-tax portfolio, you can move them to an after-tax Roth account. A financial advisor can help you make important decision surrounding your retirement accounts, like whether to do a Roth conversion. Connect with a fiduciary advisor today. That doesnt mean a conversion is always wise.
I'm 65 With $950k in an IRA. Is It Worth It to Convert $150k per Year to a Roth IRA to Avoid RMDs and Retirement Taxes?
A Roth IRA conversion is available any time you have money in a qualifying pre-tax account. People choose to make a conversion to reduce future required minimum distributions (RMDs), spread taxes over several years and create a source of tax-free retirement income. But the success of this strategy will depend on your timing.
I’m 65 With $950k in an IRA. Is It Worth It to Convert $150k per Year to a Roth IRA to Avoid RMDs and Retirement Taxes?
A Roth IRA conversion is available any time you have money in a qualifying pre-tax account. People choose to make a conversion to reduce future required minimum distributions (RMDs), spread taxes over several years and create a source of tax-free retirement income. But the success of this strategy will depend on your timing.
I’m 65 With $950k in an IRA. Is It Worth It to Convert $150k per Year to a Roth IRA to Avoid RMDs and Retirement Taxes?
A Roth IRA conversion is available any time you have money in a qualifying pre-tax account. People choose to make a conversion to reduce future required minimum distributions (RMDs), spread taxes over several years and create a source of tax-free retirement income. But the success of this strategy will depend on your timing.
I’m 65 With $950k in an IRA. Is It Worth It to Convert $150k per Year to a Roth IRA to Avoid RMDs and Retirement Taxes?
A Roth IRA conversion is available any time you have money in a qualifying pre-tax account. People choose to make a conversion to reduce future required minimum distributions (RMDs), spread taxes over several years and create a source of tax-free retirement income. But the success of this strategy will depend on your timing.
I'm 63 with $700k in an IRA. Should I convert $70k per year to avoid RMDs and taxes in retirement?
You can make a Roth IRA conversion at any time, as long as you have money in a qualifying pre-tax account. But the real question is whether it benefits you. Converting in your 60s, for example, can help you avoid required minimum distributions (RMDs) and future taxes on qualified withdrawals. However, doing so later in life can also mean paying a large tax bill without giving funds much time to grow tax-free.
I’m 63 With $700k in an IRA. Should I Convert $70k per Year to Avoid RMDs and Taxes in Retirement?
You can make a Roth IRA conversion at any time, as long as you have money in a qualifying pre-tax account. But the real question is whether it benefits you. Converting in your 60s, for example, can help you avoid required minimum distributions (RMDs) and future taxes on qualified withdrawals. However, doing so later in life can also mean paying a large tax bill without giving funds much time to grow tax-free.
When I Claim My $3,200 Social Security, Will My Wife Automatically Get a Spousal Benefit?
Spousal benefits are Social Security payments based on a spouse’s lifetime earnings record, and a spouse may receive up to half of the working spouse’s benefit. Eligibility is automatic, but payments do not begin until the spouse files an application with the Social Security Administration. To help explain this, let’s break down an example with a monthly benefit of $3,200, which could allow a spouse to receive up to $1,600 after filing with the Social Security Administration.
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