retirement savings

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Does the language you speak affect how much you save?

Feb 15, 2013
An economics professor at Yale has found the way a speaker uses the future tense can affect their likelihood of saving.
Posted In: retirement savings, Economics, behavioral economics

You can't share an IRA

Jun 20, 2012
Can my wife and I share one Roth IRA and contribute as much as $10,000 a year to it, or must we each have separate IRAs with the normal $5,000-a-year contribution cap? Jake, Madison, WI
Posted In: IRA, Roth-IRA, retirement savings

Global turmoil and retirement planning

Jun 13, 2012
What should investors -- especially those in their 50s and 60s -- do with their already diminished retirement savings?
Posted In: retirement savings, Investing, Savings, inflation, Economy

Americans concerned over Fed's low interest rates

Jun 7, 2012
Fed Chairman Ben Bernanke may announce a new plan for interest rates today on Capitol Hill. Six in 10 Americans want the Federal Reserve to consider the negative impact of low interest rates on retirees and savings.
Posted In: interest rates, Federal Reserve, retirement savings

Why I wouldn't tap retirement savings to retire student loans

May 30, 2012
I returned to graduate school and accrued about $45,000 in federal student loans. The interest rate on these 10-year loans is 6 percent, with repayment beginning in 2013. I also have a 401(k) worth about $100,000 (roughly $60,000 of my contributions and $40,000 of employer contributions). I realize that an early 401(k) withdrawal would result in a 10 percent early-withdrawal penalty and that any withdrawal would be considered taxable income. This would effectively reduce the amount the 401(k) would need to earn in order to be the better investment. Still, it can't be much less than 6 percent, can it? Is there anything about my assumptions that are wrong, or is there anything I am overlooking? Derek, Chicago, IL
Posted In: student loans, retirement savings, debt

Judging how well you're doing with retirement savings

May 25, 2012
I am very lost and uncertain of our financial road to retirement. Our company doesn't offer defined payment retirement; it is all up to individual and 401(k). The company does match 3 percent. I am married and we have been working for 14 years now and have combined liquid assets (401(k), outside investment account, savings) of about $400,000, plus home equity of $100,000 on a good day. What shape are we in on our road to retirement? Thanks much. Martin, Chicago, IL
Posted In: retirement savings, Retirement, equity, Investing

Yes, take advantage of a rollover IRA

May 24, 2012
My wife and I have taught in Alabama public schools for the past 2 years and have made (forced) contributions to the state retirement system in that time frame. Together, we've got around $8,000 invested in the state retirement system. Realizing the limited income prospects for career teachers, we both applied and were accepted to a top 25 law school on full-tuition scholarship. My question to you is this: For my retirement account, I have the option of either a) taking a lump-sum payment of the $8,000, minus 20 percent in federal income tax, or b) rolling it over into a 401(k), IRA, or similar long-term savings plan. Should I take the money and run, or should I start building a retirement nest egg while I'm financing the rest of my life with borrowed money? Alex, Montgomery, AL
Posted In: Graduate school, law school, retirement savings, rollover IRA, IRA, student loans

Cash flow liberated by refinancing

May 18, 2012
My wife and I recently refinanced our home. We paid off the home equity line and the existing mortgage, and now our monthly payments are $500 less than they were previously. What should we do with these savings? Thank you. Jeff, Amherst, MA
Posted In: Savings, refinancing, retirement savings, student loans

No retirement savings plan for now

May 16, 2012
I just graduated from law school and found the perfect job for me. Unfortunately, it does not offer a 401(k). I have a number of old 401(k)s from previous jobs, including a few that have been rolled over into Roth IRAs. Because I was in school for 3 years, I haven't been adding to my retirement saving for that period, thinking I could "make it up." To top it all off, my husband and I now make in excess of the maximum for IRA contributions. How should I be saving for retirement at this point? Jane, Los Angeles, CA
Posted In: retirement savings, 401(k), Roth-IRA, traditional ira, taxable accounts

Savings strategies after locking in a low rate

May 11, 2012
My husband and I just refinanced our house at a great rate (15-year fixed mortgage at 2.875 percent). Our house payment is low and we can afford to pay more each month. Would the best use of our money be to pay down the principal on this low-interest loan or put extra away for retirement or for our children's college fund? We have two young children and are in our late 20s/early 30s. Thanks for your help! Katie, Helena, MT
Posted In: Savings, college savings, mortgage, retirement savings

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