Latest news with #Roth
Yahoo
3 hours ago
- Business
- Yahoo
Retirement Fund Management: Understanding RMD Requirements
Once you reach a certain age, you are required to start taking money out of certain retirement accounts. The required minimum distributions, or RMDs, depend on your age and account balance. If you don't need the money, there are some smart moves you can make. The $23,760 Social Security bonus most retirees completely overlook › Once you reach a certain age, you are required to start withdrawing money from certain retirement accounts. This is known as required minimum distributions, or RMDs, and is an important concept for retirees to know, especially those who are approaching their 70s with no immediate plans to take any money out of their retirement savings. With that in mind, here's a primer on RMD rules: what accounts have RMDs, when you need to start withdrawing money, how much to take out, and more. The short explanation is that retirement plans for which you received a tax break for your contributions are subject to RMD requirements. These are also referred to as pre-tax retirement accounts. This includes, but is not limited to: Traditional IRAs SEP-IRAs (non-Roth) SIMPLE IRAs (non-Roth) Most 401(k) plans Most 403(b) plans Most 457 plans Thrift Savings Plans The general idea of RMDs is that these accounts are tax-deferred, not tax-free. The government gave you a tax deduction for your contributions but eventually wants its cut of the money. And that's where RMDs come in. At some point you have to start taking money, which will be taxable income, out of the account. Any Roth accounts, including Roth 401(k) and others, are not subject to RMD rules. Contributions to Roth accounts are not tax-deductible when they're made, but qualifying withdrawals are not taxable, and therefore the IRS doesn't care when you take the money out. Fortunately, the RMD rules are pretty straightforward. There are two different RMD rules that are important to understand: when they start, and how much you'll need to take out each year. First, the age at which you must start taking RMDs has increased in recent years. Now, you need to take your first RMD when you turn 73. You can withdraw your first RMD as late as April 1 of the year after you turn 73, and subsequent RMDs must be taken by Dec. 31 each year thereafter. However, I'd caution you to think twice about waiting until the last minute to take your first RMD. Think of it this way. If you take your 73-year-old RMD on April 1 of the following year, you'd still have to take your 74-year-old RMD by the end of the same calendar year. That's two years' worth of taxable withdrawals taking place within the same year. There could certainly be good reasons for doing this but be aware that the "double RMD" this would create could potentially bump you into a higher marginal tax bracket. You can calculate your RMD easily, if you know what to use. You'll need two pieces of information: Your account balance as of Dec. 31 of the prior year. You can usually use your year-end statement to find this. Your life expectancy factor, as published in IRS tables, which can be found here (in Appendix B). Most people will use the Uniform Lifetime Table, unless your sole beneficiary is your spouse who is more than 10 years younger than you. In that case, you'd use the Joint and Last Survivor Life Expectancy table. To calculate your RMD each year, you'd simply divide your year-end account balance by the appropriate life expectancy factor. For example, if you are turning 75 in 2025 and your 401(k) balance was $700,000 at the end of last year, you'd use a factor of 24.6 from the Uniform Lifetime Table. Dividing the two numbers shows an RMD of $28,455, which must be withdrawn by the end of the year. First, if you don't need the money, you should still take your RMDs each year. The penalties for not taking an RMD are rather harsh. Of course, if you don't need the money to fund your lifestyle in retirement, it's certainly a good problem to have. And there are several things you can consider doing with the money that are more effective strategies that simply not taking your RMD and eating the penalty. For example, you could simply put the money into your regular brokerage account, and you can even buy the same investments you sold to complete your RMD if you want. You may be able to even transfer assets directly from your pre-tax retirement account to a taxable brokerage account to fulfil your RMD requirement. Or, you could donate the money to charity to avoid the tax sting of an unneeded RMD, and there are several strategies retirees could use. A qualified charitable distribution, or QCD, can be especially effective. The bottom line is that you should absolutely take your RMD, even if you don't need the money. There are several ways to put the money to work, either for you or for the causes you care about. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Retirement Fund Management: Understanding RMD Requirements was originally published by The Motley Fool
Miami Herald
a day ago
- Business
- Miami Herald
Suze Orman sends surprising message on retirement, IRAs, 401(k)s
As Americans look ahead to retirement, one pressing issue often looms large: Will I have enough money to make it all work? Renowned personal finance expert and media figure Suze Orman offers clear, straightforward advice on navigating 401(k)s and Roth IRAs - tools she believes are key to a successful retirement strategy. Don't miss the move: Subscribe to TheStreet's free daily newsletter Orman strongly urges employees to take full advantage of their workplace 401(k) programs, particularly when an employer match is on the table. That match, she notes, is essentially "free money" that shouldn't go untapped. Her guidance: aim to contribute between 10% and 15% of your earnings to a 401(k), adjusting for your age and financial situation. If your plan includes a Roth 401(k), Orman says to seriously consider it, as it provides the potential for tax-free growth over time. She also highlights the power of Roth IRAs, which allow retirees to withdraw funds without facing taxes - making them a valuable piece of the retirement puzzle. Related: Jean Chatzky sends strong message to Americans on Social Security And there's one consistent theme in her messaging: start as early as you can. By doing so, you allow compound interest to work in your favor, helping you not only stay on track but possibly surpass your long-term savings goals. To Orman, retirement planning isn't merely about squirreling money away - it's about making intentional, wise investment choices that protect your wealth and help it grow. Orman calls attention to a recent report that explains a surprising outcome many people discover as they find ways to increase their retirement income beyond Social Security monthly paychecks and income from 401(k)s and IRAs. "I hope each of you does it on your terms, according to your plan," Orman wrote in a June 19 email newsletter. "But I hope your plan also considers the possibility that things don't always go according to plan." The 2025 Employee Benefit Research Institute's annual Retirement Confidence Survey highlights three ways in which well-intentioned retirement planning assumptions often don't pan out as expected. Working for pay in retirement. According to this year's findings, 75% of current workers anticipate continuing to earn income after they retire. Yet the actual numbers tell a different story - only 30% of retirees say they're currently bringing in a paycheck. Early retirement on your own terms. Roughly two out of every three individuals who said they retired sooner than they expected admitted the decision wasn't up to them. Around 30% were let go because of layoffs or company restructuring, while another 30% cited health issues or disabilities as the reason for leaving the workforce. A portion also retired early to provide care for a partner or family member in need. More on retirement: Dave Ramsey offers urgent thoughts about MedicareJean Chatzky shares major statement on Social SecurityTony Robbins has blunt words on IRAs,401(k)s Retirement as a gentle glide. Fifty percent of workers surveyed said they hope to ease into retirement by slowly cutting back on their hours instead of stepping away from full-time work all at once. But the experience of most retirees tells a different story - almost 75% said they had no such gradual shift. Instead, they stopped working suddenly, going from their last day on the job straight into full retirement practically overnight. Related: Tony Robbins sends strong message to Americans on 401(k)s, IRAs Orman encourages people to factor uncertainty into their retirement planning, especially as they calculate income they expect to receive from the 401(k) plans and IRAs they have been contributing to doing their working years. She advises people to clearly outline their expectations - when they hope to retire, how they envision that transition, and how much income they anticipate earning from paid work during retirement. Then, for each assumption, she suggests confronting the possibility that things may not unfold as imagined. She stresses that while future events such as layoffs or health issues can't be predicted or controlled, what people can do is take action now. By increasing savings today, they can create a financial cushion that offers more flexibility if life takes an unexpected turn. "It is fantastic to make plans and to work toward those plans," Orman wrote. "But the best plans are stress-tested to make sure they have a high probability of success, no matter what curveballs come your way." Related: Dave Ramsey sends strong message to Americans on Medicare The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
a day ago
- Business
- Yahoo
How Much Should the Average Middle-Class Gen Zer Have in Savings?
Gen Z hasn't had the smoothest entry into adulthood, especially with the COVID-19 pandemic, inflation, rising homeownership costs and political uncertainty. And with so much going on in the world, you'll want to have a financial cushion to fall back on just in case. But exactly how much should you have in savings? Read More: Consider This: Here's what's realistic for a middle-class Gen Zer when it comes to savings, and how to build a solid financial foundation without feeling overwhelmed. When people talk about savings, they usually mean more than just a standard bank account. It can include: Emergency funds Retirement savings, like a Roth IRA or 401(k) Short-term savings for things like travel, moving, or a new laptop Brokerage accounts Depending on your income, lifestyle, and goals, the right mix will look different for everyone. But if you're a middle-class Gen Zer who's earning somewhere in the $40,000 to $60,000 range, here's what to aim for. Check Out: Your savings should ideally cover a few different areas of your life: emergencies, long-term goals like retirement and short-term plans you're working toward right now. Ideally, you'll want to have three to six months' worth of expenses in a high-yield savings account. In other words, if your monthly costs add up to $2,000, you'd be aiming for somewhere between $6,000 and $12,000. Note that your emergency savings are intended for emergencies only, like car repairs, medical bills, or sudden job loss. Avoid dipping into it for things that aren't urgent. Financial planners often suggest saving around 15% of your income for retirement, but if you're just starting out in your career and don't have much to save, even 5% is a great start. A common benchmark is to have your annual salary saved for retirement by the time you turn 30. So if you make $100,000 a year, the goal is to have at least that amount saved up. That includes investment growth too, not just your personal contributions. This is for things you know are coming up soon (like moving into your own place, buying a car, or taking a trip). You don't need a specific number here, but it helps to set goals and work backward. If you want to take a $1,500 trip in six months, saving $250 a month gets you there. The median net worth of people under 35 (including Gen Z and some millennials) is around $39,000, according to the 2023 Survey of Consumer Finances. That number doesn't tell the whole story, though, since many Gen Zers have barely started their career, and some are still in school. For example, if you're under 27 and still trying to figure out what you want to do, you may not have $39,000 lying around. Though it's helpful to have an idea of what the average is, it's not healthy to compare yourself to someone else who's on a different journey than you. Focus on creating a savings plan that makes sense for where you are right now. If you don't have much saved, you're actually in the same boat as a lot of people your age. Don't panic. The most important thing is to start now, even if it's small. Putting away $25 a week adds up to $1,300 a year. That's enough to build your first emergency cushion or start a Roth IRA. Also, take advantage of anything that gives you a head start. If your job offers a 401(k) match, try to contribute enough to get the full match because it's essentially free money. You don't have to make big sacrifices to build savings on a middle-class income. A few simple habits go a long way: Automate transfers to savings Use a budgeting app to spot areas where you're overspending Negotiate down your high-interest debt Cancel unnecessary subscriptions Dine in instead of eating out There's no one magic number for how much a Gen Zer should have saved. But if you're aiming for a few thousand in emergency savings, contributing regularly to retirement, and setting aside money for things you care about, you're doing just fine. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on How Much Should the Average Middle-Class Gen Zer Have in Savings? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
3 days ago
- Business
- Time of India
Smart City housing project 1st phase nears completion
Thiruvananthapuram: The first phase of the redevelopment of Rajaji Nagar, under the Smart City Mission, is on track for completion by Sept 30 this year—well ahead of its original June 2025 deadline. Officials said construction was accelerated, with 40% of the work already complete. This phase includes a four-storey residential building costing Rs 9 crore, designed to accommodate 32 families in 2BHK apartments, each measuring 600 sq ft. The building has been structurally prepared to support two additional floors in the future, allowing capacity for up to 48 families. "This is a major milestone in our efforts to improve living conditions in Rajaji Nagar," said a senior official of Smart City Thiruvananthapuram Ltd (SCTL). "We're pleased with the pace of construction. The building will be ready by Sept 30 and families will be moved in soon after. This state-of-the-art structure will serve as a model for future redevelopment," he added. SCTL said that the new building will meet high safety and quality standards and include all essential infrastructure. So far, 20 families who were residing at the construction site have been moved to temporary accommodations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ask A Pro: "I'm 70 with $1.4M in IRAs. Should I convert $120K/Year to a Roth?" SmartAsset Undo Once the building is complete, they will be among the first to move into the new apartments. An additional 12 families will also be accommodated in the first phase. The broader redevelopment of Rajaji Nagar aims to rehabilitate families living in substandard housing. Currently, around 2,000 families live in 1,100 units spread over 12.6 acres. The full plan includes 248 new housing units, stormwater drainage, access roads, parking, and community and recreational spaces. While the initial plan involved relocating 189 families to facilitate the project, only a few have been moved so far due to resistance from residents. Authorities say they are working on engaging with the community to build trust and ensure minimal disruption during future phases of redevelopment.
Yahoo
3 days ago
- Business
- Yahoo
VENU CEO Talks Disruptive Fan-First Crowdfunding Model on Schwab Network's Next Gen Investing
Roth Breaks Down the Value of Broadening Retail Investor Access as Live Entertainment Evolves COLORADO SPRINGS, Colo., June 17, 2025--(BUSINESS WIRE)--A Reg A+ crowdfunding investment offer by Venu Holding Corporation ("VENU" or the "Company") (NYSE American: VENU), a developer, owner, and operator of upscale live music venues and premium hospitality destinations, took center stage during the June 13th broadcast of Nex Gen Investing. In a discussion with Founder, Chairman, and CEO J.W. Roth, Schwab Network hosts Alex Coffey and Jenny Horne explored the impact of the Company's retail-friendly approach to ownership amid seismic changes in the live music industry. "Congratulations on all your success, it's very rare we get to discuss a name that's up 18% on the year and up 2% today despite all of the overall market pressure. Really great conversation on what is now making me want to attend one of these concerts," said Schwab Network Host Jenny Horne, who further noted: "J.W. Roth CEO and Chairman of Venu Holding Corporation, a name that has been a nice out performer since its public offering." Catch the full conversation here. The interview covered VENU's roadmap towards $5 billion in new premium venues by year's end noting it's to-date achievement of $1 billion in new development projects amid surging demand for fan-centric live music experiences. Roth discussed the disruptive financing model for funding the ambitious growth which leverages "fractional ownership" to bring investors and stakeholders into the development process in a unique way. Beyond entertainment and infrastructure, Roth emphasized VENU's powerful role in driving economic impact in communities, creating jobs, boosting tourism, and generating significant economic activity. Increasing its appeal for municipal public-private partnerships- a key driver behind its disruptive and rapid growth VENU introduced an online investment platform for its Reg A+ Preferred Offering on June 10, 2025, as a fan-forward pathway to fractional ownership in an industry with rapidly growing opportunities. The offering of 8% convertible Preferred Stock enables accredited and non-accredited investors to take active ownership role in shaping the future of live entertainment. Take advantage of VENU's Reg A+ Offering here: Source: Venu Holding Corporation ABOUT VENU HOLDING CORPORATION: Venu Holding Corporation ("VENU") (NYSE American: VENU), founded by Colorado Springs entrepreneur and 2023 VenuesNow All-star, J.W. Roth, is a premier hospitality and live music venue developer dedicated to crafting luxury, artist-centric, experience-driven entertainment destinations. VENU's campuses in Colorado Springs, Colorado, and Gainesville, Georgia, each feature Bourbon Brothers Smokehouse and Tavern, The Hall at Bourbon Brothers, and unique to Colorado Springs, Notes Eatery and the 9,570-seat Ford Amphitheater. Expanding with new multi-season Sunset Amphitheaters in Oklahoma and Texas, VENU's upcoming large-scale venues will host between 12,500 and 20,000 guests, continuing VENU's vision of redefining the premium live entertainment experience. Click here to view our company overview. VENU has been recognized nationally by The Wall Street Journal, The New York Times, Denver Post, Billboard, VenuesNow, and Variety for its innovative and disruptive approach to live entertainment. Through strategic partnerships with industry leaders such as AEG Presents and NFL Hall of Famer and Founder of EIGHT Elite Light Beer, Troy Aikman, VENU continues to shape the future of the entertainment landscape. For more information, visit VENU's website, Instagram, LinkedIn, or X. Forward Looking Statements Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law. VENU is offering securities through the use of an Offering Statement that has been qualified by the Securities and Exchange Commission under Tier II of Regulation A. Before making any investment, you are urged to read the Final Offering Circular carefully for a more complete understanding of the issuer and the offering. The securities offered by VENU are highly speculative. Investing in these securities involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Investors must understand that such investment could be illiquid for an indefinite period of time. VENU intends to apply to have our Series A Preferred Stock listed on the NYSE American under the symbol "VENUP" following the NYSE American's certification of the Form 8-A of the Company to be filed after the final closing of this offering. The listing of the Company's Series A Preferred Stock on the NYSE American is not a condition of the Company's proceeding with this offering, and no assurance can be given that our application to list on the NYSE American will be approved or that an active trading market for our Series A Preferred Stock will develop. Our Series A Preferred Stock is not currently listed or quoted on any exchange. For additional information on VENU, the offering and any other related topics, please review the Form 1-A offering circular that can be found by searching for VENU under Filings/Company filings search on Additional information concerning Risk Factors related to the offering, including those related to the business, government regulations, intellectual property and the offering in general, can be found in the risk factor section of the Form 1-A offering circular. View source version on Contacts Media Relations - Venu Holding Corporation ("VENU") venu@ Investor Relations - Venu Holding Corporation ("VENU") Chloe Hoeft, choeft@
