What is the retirement age for Social Security, 401(k), and IRA withdrawals?
The retirement age in the U.S. — the age at which you become eligible for retirement benefits — is 62 for Social Security and 59½ for penalty-free withdrawals from 401(k) and IRA accounts.
That was easy, right? Well, not so fast.
Like many things related to retirement, understanding your eligibility for benefits and deciding when it makes sense to start claiming them isn’t quite that simple. But don’t worry; in this article, we’ll help you figure out your retirement age and how to maximize your benefits to ensure as comfortable a retirement as possible.
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Do I have to pay taxes on my savings account?
A savings account is a critical component of most people’s financial plans. Having extra funds in your savings account can provide a safety net in case of a financial emergency or help you reach a larger goal like homeownership.
Savings accounts are interest-bearing accounts that can help your balance grow faster thanks to the magic of compound interest. However, the interest you earn in a savings account is usually subject to income taxes, which you’ll need to address at tax time.
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What is a good interest rate on a credit card?
No matter their credit history or spending habits, nearly every credit card holder today must come to terms with one universal fact: Credit card interest is expensive.
With annual percentage rates (APRs) soaring past record highs, carrying a balance on any card is going to cost a significant sum.
If finding a lower interest rate is an important part of your search for a new credit card, you do have some options — even in the current interest rate environment. Here’s what you need to know about securing a good credit card APR.
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High-yield savings account vs. Treasury bill: Which is right for you?
It was not too long ago that low-risk investments like Treasury bills were the underdogs of the financial world. While T-bills provide a safe place to store your savings while earning a fixed interest rate, they were simply not worth the low returns they offered — especially when compared to the flexibility of savings accounts.
Then, in 2022, something unusual happened: Interest rates started increasing, and they just kept on shooting upward, until the rates on some T-bills, and even savings accounts, passed 5%.
In 2024, anyone who wants to earn a competitive rate on their short-to-mid-term savings would be wise to consider both as options. Which one is best for you: A high-yield savings account or Treasury bill? The answer mainly depends on when you need your money back.
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