Despite the coronavirus pandemic’s impact in 2020, most retirement plan participants did not make trades, loan use fell, and only a small minority took withdrawals. Loan use declined by more than 20% in 2020. Only 13% of participants had an outstanding loan in 2020, compared to 16% in 2015. Due to the CARES Act, participants were allowed to withdraw up to $100,000 from their retirement plan without incurring a penalty through December 30, 2020. Only 5.7% of those with the option made withdrawals through coronavirus related distributions (Source: Vanguard, June 2021)

In a recent study, account balances in defined-contribution plans increased by 30% in 2020. 56% of participants are men and have average and median account balances nearly 50% higher than women’s account balances (Source: Vanguard, June 2021). Approximately 45% of Financial Times Stock Exchange 100 index companies have some form of environmental, social, and governance measures within their executive pay (Source: London Business School, Centre for Corporate Governance, July 2021).

Quick math

Don’t have a calculator, but need a quick answer to a financial question? Here are three shortcuts: -How long will it take to double your money? Divide 72 by your annual investment return. If you are earning 8% annually on your investments, it takes nine years for...

Tax Planning During Retirement

Retirement income typically comes from savings, an IRA, a 401(K) and Social Security benefits. However, enjoying truly rewarding golden years will prove much easier if you minimize your tax burden. Prudent tax strategies minimize the amount of money that is redirected to Uncle Sam, ensuring you keep as much of your hard-earned money as possible. Let’s take a look at some of the tax planning strategies that set the stage for a truly enjoyable retirement.