
How to Maximize Your Social Security Benefits Without Breaking the Rules
Our Social Security expert answers some of the trickiest questions posed by real benefits recipients.
Our Social Security expert answers some of the trickiest questions posed by real benefits recipients.
As many readers are aware, IRAs can offer many benefits including the ability to defer…
Americans are massively underestimating how much they need to save to have the retirements they want.
Just 28% of Americans are financially “healthy,” despite statistics that indicate a strong economy. Here’s what you can do to make sure you are not just “coping” or “vulnerable.”
Robo advisors were supposed to make it easier to invest for the long-term, but several have already closed. Here’s how to deal with the dangers.
When the market’s going up, many investors don’t notice that their brokers are churning their accounts—don’t get ripped off this way.
Mistakes are common on taking required minimum distributions (RMDs) from retirement accounts, and the penalties are steep. Here’s how to avoid them.
Shifting trends have made it harder for young people to own homes and have put generations of Americans at enormous risk for financial insecurity.
Whether you want extra spending money or to bulk up your nest egg, there are plenty of ways for retirees to make $10,000, $25,000, or $50,000+.
More people are embracing aging, but most are not ready for retirement and, in many cases, they don’t even know what ready means.
It’s conventional wisdom to roll over your retirement assets from a 401(k) into an IRA when you leave a job. But that’s not always the right move.
Working an additional year beyond 66 provides 8% more annual income for 30 years. And the longer you delay retirement, the greater the effect.
The pattern that Americans show in saving money provides encouragement for people who don’t save enough.
Retirees are turning to deferred income annuities in droves to address concerns about market volatility and outliving their nest eggs.
Many Americans are reluctant to tap into their retirement funds even when they can afford to, making their lives more miserly than they need to be.
Making these financial mistakes could undermine your retirement.
What’s the right age for getting a car…buying a home…getting a credit card?
If you’ve been divorced or are going through one now, your retirement may be a victim. Take these steps to protect your future.
Couples who live together while delaying or opting out of marriage are more likely to have lower net worth and fewer assets.
Americans feel pretty darn good about their money knowledge—too bad they don’t actually know much.
According to researchers who study such things, there’s a direct connection between financial literacy—that is, an understanding of the basics of personal finance—and financial health. People who are well informed about money are far more likely to be successful savers and investors, including having healthy emergency funds and strong financial plans. You might think that would be good news for a large percentage of Americans who, according to a new study from research firm Raddon, consider themselves to have a good working knowledge of the world of money.
Wrong. The problem is that people’s confidence about their money knowledge often does not reflect their actual knowledge when put to the test. In fact, the study demonstrates a huge gap between what people think they know about money and what they’re able to demonstrate in the real world.
That’s bad news if you’re one of these people (find out below)…but the good news is, the level of your money knowledge isn’t set by your genes or your history—you can easily increase your financial literacy, and therefore give yourself a better shot at financial security and success, by taking a course or two or reading some books. The first step, though, is to determine whether you’re one of those who actually know their stuff…or one of the multitudes who only think they do…
Study finding: 44% of us think we’re “extremely” or “very” financially literate—and in most age groups, an even higher percentage. The only age group displaying notable modesty about financial acumen in the study turned out to be Generation-Xers, currently age 39 to 52, with only 37% of them calling themselves extremely or very financially literate. Our high regard for our financial knowledge only got higher from there: 44% of millennials (under age 39) called themselves extremely or very financially literate and 45% of baby boomers (age 53 to 72)…and 52% of “traditionalists,” meaning people age 73 or older.
Study finding: Testing reveals that every generation has an inflated sense of financial literacy. When given a test of basic financial competence on a wide range of subjects, vast numbers of respondents were proven to be overconfident. Fewer than half, overall, earned a passing grade, and a miniscule 6% performed well enough to earn an A grade.
What does this mean for you? The more you know about your own financial situation and the world of finance in general, the more likely you are to maintain a financially sound household. Consider taking a free online quiz to get a realistic feel for your true level of financial literacy. If you do as well as you’d like to, great. If not, look for financial courses given in your area…or online…or at least head for the library or a bookstore to pick up some reading on the subject. Be sure you include, at a minimum, the topics of saving…investing…credit and borrowing…and retirement planning.