Key milestones on the road to retirement
Planning for retirement means considering multiple variables, but one factor is especially important (if a bit obvious) – age. Age determines both how much money retirees will receive from their accounts and government programs, as well as how many, if any, early withdrawal penalties they will incur by virtue of different types of retirement accounts. This makes it vital to bear in mind several age-related milestones when developing a retirement plan.
Investing early means more time to enjoy potential benefits. The earlier employees begin saving, the better chance of maximizing investment returns through compound interest. Roth and 401(k) accounts, with $6,000 and $19,000 limits as of 2019, respectively, are both strong, popular choices, with the tax structure of Roth accounts offering special benefits to younger investors, who pay taxes on lower-earning years of their working life while reaping the rewards of tax-free investment.
Workers 50 and up who invest in a Roth or 401(k) plan can make additional contributions from that time until retirement – $6,000 per year for 401(k)s in 2019; $1,000 per year for Roth IRAs – that allow for larger tax deductions as retirement approaches, as well as a chance to further grow their accounts. Investors in their 50s have two additional milestones to keep in mind: starting at age 55, employees can withdraw from their most recent 401(k) account without penalties if they leave that job, while age 59-and-a-half means rollovers from 401(k) to IRA can now be withdrawn without adverse effect (though they do require income tax payments with each withdrawal).
Employees entering their 60s are reaching the period traditionally associated with retirement. This means the introduction of Social Security benefits, which are available to people beginning at age 62. But, while potentially enticing, receiving payments any time before full retirement age means receiving a reduced amount, especially for those who remain in the workforce and exceed the $17,640-per-year earnings limit. Full retirement age is 67 years old for workers born during or after 1960, which means younger generations must reach this age to enjoy full Social Security benefits – they can also increase their payments by 8 percent per year by waiting until age 70 to receive them.
Eclipsing the age 70-and-a-half threshold means an end to tax deductions if contributing to an IRA account. Instead, forced annual withdrawals from 401(k) and traditional IRA accounts for retirees come into play on April 1 of the following year after that birthday, not to mention serious penalties – up to 50 percent of the required amount – for non-withdrawal. Subsequent years require withdrawal of funds by December 31. It is advisable to stay on top of these important deadlines, as missing or postponing the initial withdrawal means potentially having to do so twice, with negative tax ramifications. 401(k) withdrawal provisions can be postponed if a worker decides to continue working for a company as a non-owner, while Roth IRAs avoid these requirements entirely.
Knowledge is power when planning for retirement. This means taking available information and using it to develop a coherent, thoughtful plan. These age thresholds should be considered by anyone creating a retirement strategy to avoid penalties and maximize benefits.
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Momentum Indicator for SPY turns positive, indicating new upward trend
SPY saw its Momentum Indicator move above the 0 level on November 26, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 66 similar instances where the indicator turned positive. In of the 66 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for SPY just turned positive on November 25, 2024. Looking at past instances where SPY's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 366 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 448 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SPY moved out of overbought territory on November 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SPY broke above its upper Bollinger Band on November 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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