Obama Proposes Middle-Class Tax Breaks

In his penultimate State of the Union address, President Barack Obama on Tuesday night announced wide-ranging proposals he said would improve the economic prospects of the middle class, including helping families pay for college and child care, while giving more workers access to retirement plans. To help pay for these expanded benefits, the president also wants to increase the taxes paid on inherited assets of higher-income households. Many agree that it’s a long shot the president will get his wish list — …

What to Do With That Old 401(k) Retirement Account

Bloomberg News recently wrote about brokers profiting by advising retirees to roll their 401(k) accounts into IRAs. Many of the retirees interviewed said they lost a lot of their savings from investments subsequently recommended to them. But this doesn’t mean you shouldn’t consider transferring your 401(k) money into an individual retirement account (IRA). Here’s how to decide: First, a little background. A 401(k) account is an employer-sponsored plan that allows the employee to save and invest, typically receiving a tax benefit when the contribution is …

11 Things We Didn’t Know Last Week

News, discoveries and … fun     1. Naked mole-rats may hold the secret to conquering aging in humans. (Learn more at Vox.com) 2. A man in deep thought has been lurking beneath one of Pablo Picasso’s first masterpieces. (Learn more at AARP)   3. A new “smart cup” can recognize and track everything you drink – and even tell the difference between Coke and Pepsi. (Learn more at The Verge)   >> Get travel discounts with your AARP Member Advantages. 4. The stereotype of …

Estate Benefits of Roth IRAs Curtailed in Obama Budget

Buried in the details of President Barack Obama’s 2015 budget are tax changes that could upend many people’s estate and retirement planning. The president is proposing significant changes to the Roth IRA, which has become a popular way for higher-income investors to leave money to heirs tax-free. “The Obama team put this out in an effort to simplify tax law when it comes to retirement accounts,” says Matt Curfman, a financial planner with Richmond Brothers Inc. in Jackson, Mich. “Thank …

La planeación para el retiro desafí­a a los hispanos

¿Qué piensas hacer cuando te jubiles? ¿Dónde están los ahorros para tu retiro? ¿De qué vas a vivir? Ojalá seas una de las personas que puede contestar satisfactoriamente, porque para muchos hispanos estas preguntas no tienen respuestas. La falta de planeación y el bajo nivel de ahorro para la jubilación es uno de los grandes retos financieros que afronta este segmento de la población, en comparación con el resto de los estadounidenses, de acuerdo con un nuevo estudio publicado por …

Stock Gains Push 401(k)s to Record Highs

Last year’s gangbuster stock market pushed 401(k) savings account balances to record highs, according to two major retirement account providers. Fidelity Investments says the average account balance at the end of last year reached $89,300, a 15.5 percent increase over the year before. For workers age 55 and older, balances averaged $165,200. Many workers roll over their 401(k) into an individual retirement account when they leave a job.  Adding up the balances of those who have both a 401(k) and …