Expert insight
Let’s talk about HSAs, retirement income strategies, and more
November 21, 2023
In a two-part interview with personal finance influencer Jill Schlesinger on the podcast and national syndicated radio show Jill on Money, Vanguard’s global head of enterprise advice methodology, Joel Dickson, Ph.D., gives his take on a number of top-of-mind questions for investors about saving and retirement.
In the first podcast installment, Personal Finance with Vanguard Part One, Dickson covers:
- Health savings accounts: They have attractive features that people can use not just as way to save for health care expenses, but also potentially as a long-term retirement savings vehicle.
- Roth retirement accounts: They are underused, with only about 10% of eligible retirement plan participants adopting them.
- Social Security: When thinking about retirement, you can’t think of your Social Security benefits as separate from your investment portfolio, pension at work, or even any home equity you may have. These all have a potential role in contributing to retirement income.
In the second podcast installment, Personal Finance with Vanguard Part Two, Dickson discusses:
- The origins of the 4% spending rule and why it may no longer be a good spending rule of thumb for retirees.
- An alternative spending approach: Focus on the amount of income needed in retirement, not a percentage of your financial assets, and then figure out how to tap your assets at the right time and in the in the right way to generate that income.
- The importance of taxes when planning retirement income withdrawals.
Related links:
- Retirement readiness: Seeking solutions that benefit all Americans (article, issued October 2023)
- Increasing retirement readiness through higher savings rates and TDFs (article, issued October 2023)
- The state of retirement in five figures (infographic, issued October 2023)
Notes:
All investing is subject to risk, including possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Past performance is no guarantee of future results.
Withdrawals from a Roth IRA are tax free if you are over age 59½ and have held the account for at least five years; withdrawals taken prior to age 59½ or five years may be subject to ordinary income tax or a 10% federal penalty tax, or both. (A separate five-year period applies for each conversion and begins on the first day of the year in which the conversion contribution is made).
We recommend that you consult a tax or financial advisor about your individual situation.
