Social Security is not based on one’s highest three years of salary like some pensions but rather Social Security looks at the last 35 years of earnings and does a calculation based on that. If you worked less than 35 years, they credit you with zero earnings until they get to 35 years.
Some of you know that my son, Kendall, graduated from Natick High School on June 3rd. He’s our #3 child by birth order but each one is, of course, special to us in their own way.
So, why use the Roth 401k option? Well, there is no tax benefit today BUT it allows this money to grow tax free (assuming certain rules are met) and there are no Required Minimum Distributions to worry about (See Rick’s Tip #1). You can leave this money in as long as you live. And, if you are married, you can leave this account to your spouse, and they can leave the money in to continue to grow over their life.
Alternative investments are usually off-beat assets such as real estate, commodities (including oil, gold, lumber, crops, pork bellies, etc.), currencies (including cryptocurrencies), private equity, and specialized investment products that may involve leverage (borrowing in hopes of magnifying returns) or futures and options strategies.
Women are more likely to be caretakers for others, which means less time in the labor force or fewer hours of paid employment each week. Many women are not saving for retirement. On average, women earn less than men 2 On average, women can expect to live longer than men.
There are several things one can do to lower their tax burden. I’m listing the five most common (If these don’t apply to you, feel free to reach out to me and we can discuss some alternatives).