Latest news with #IndividualRetirement
Associated Press
2 days ago
- Business
- Associated Press
Corebridge Financial Announces Transformative Individual Retirement Variable Annuity Transaction with Venerable
HOUSTON--(BUSINESS WIRE)--Jun 26, 2025-- Corebridge Financial, Inc. ('Corebridge' or the 'Company') (NYSE: CRBG) today announced that it has entered into an agreement with CS Life Re, a subsidiary of Venerable Holdings, Inc. ('Venerable') to reinsure all the variable annuities of its Individual Retirement business, with account value totaling $51 billion as of March 31, 2025. The transaction is valued at $2.8 billion, consisting of both ceding commission and capital release, and will generate approximately $2.1 billion of net distributable proceeds after-tax for Corebridge 1. Kevin Hogan, President and Chief Executive Officer of Corebridge, said, 'This is a transformative transaction that repositions the company by exiting Individual Retirement variable annuities. This transaction delivers significant value for Corebridge and its shareholders. We are reaffirming our financial targets while reducing risk and maintaining our diversified business model. 'We expect to use the proceeds to accelerate our capital management objectives, including a substantial majority returned via share repurchases, with the remainder to support organic growth. Our Board of Directors approved a $2 billion increase to our share repurchase authorization in connection with this transaction. 'We are pleased to partner with Venerable on this transaction given their deep expertise and leadership in the variable annuity reinsurance business.' Transaction Overview Financial Overview Broad Individual Retirement Product Platform Conference Call Corebridge will host a conference call at 8:30 a.m. EDT on Thursday, June 26, 2025, to review the details of this announcement. The call is open to the public and can be accessed via a live, listen-only webcast in the Investors section of A replay will be available after the call at the same location. Morgan Stanley & Co. LLC acted as financial advisor, Oliver Wyman as actuarial advisors, and Willkie Farr & Gallagher LLP acted as legal counsel to Corebridge. About Corebridge Financial Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $400 billion in assets under management and administration as of March 31, 2025, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit and follow us on LinkedIn, YouTube and Instagram. In the discussion below, 'we,' 'us' and 'our' refer to Corebridge and its consolidated subsidiaries, unless the context refers solely to Corebridge as a corporate entity. Cautionary statement regarding forward-looking information Certain statements in this press release and other publicly available documents may include statements of historical or present fact, which, to the extent they are not statements of historical or present fact, constitute 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as 'expects,' 'believes,' 'anticipates,' 'intends,' 'seeks,' 'aims,' 'plans,' 'assumes,' 'estimates,' 'projects,' 'is optimistic,' 'targets,' 'should,' 'would,' 'could,' 'may,' 'will,' 'shall' or variations of such words are generally part of forward-looking statements. Also, forward-looking statements include, without limitation, all matters that are not historical facts. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Corebridge. There can be no assurance that future developments affecting Corebridge will be those anticipated by management. Any forward-looking statements included herein are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected or implied in such forward-looking statements, including, among others, risks related to: Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission ('SEC'). Unless specifically noted otherwise, forward-looking projections are based on our financial statements as filed with the SEC in our quarterly report on Form 10-Q for the quarter ended March 31, 2025. Use of Non-GAAP Financial Measures This release includes a reference to Adjusted after-tax operating income ('AATOI'), a non-GAAP financial measure. AATOI is derived by excluding the tax effected adjusted pre-tax operating ('APTOI') adjustments described below, as well as the following tax items from net income attributable to us: APTOI is derived by excluding the items set forth below from income (loss) before income tax expense (benefit). These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and recording adjustments to APTOI that we believe to be common in our industry. We believe the adjustments to pre-tax income are useful for gaining an understanding of our overall results of operations. APTOI excludes the impact of the following items: FORTITUDE RE RELATED ADJUSTMENTS: The modified coinsurance ('modco') reinsurance agreements with Fortitude Re transfer the economics of the invested assets supporting the reinsurance agreements to Fortitude Re. Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI. The ongoing results associated with the reinsurance agreement with Fortitude Re have been excluded from APTOI as these are not indicative of our ongoing business operations. INVESTMENT RELATED ADJUSTMENTS: APTOI excludes 'Net realized gains (losses)', except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities, or those recognized as embedded derivatives at fair value, are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances). MARKET RISK BENEFIT ADJUSTMENTS ('MRBs'): Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain guaranteed minimum withdrawal benefits ('GMWBs') and/or guaranteed minimum death benefits ('GMDBs') which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through 'Change in the fair value of MRBs, net' and are excluded from APTOI. Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI. OTHER ADJUSTMENTS: Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities. The excluded adjustments include, as applicable: Key Operating Metrics and Key Terms This release includes a reference to Life Fleet RBC Ratio. Life Fleet means American General Life Insurance Company ('AGL'), The United States Life Insurance Company in the City of New York ('USL') and The Variable Annuity Life Insurance Company ('VALIC'). Life Fleet RBC Ratio is the risk-based capital ('RBC') ratio for the Life Fleet. RBC ratios are quoted using the Company Action Level. View source version on CONTACT: Işıl Müderrisoğlu (Investors):[email protected] Matt Ward (Media):[email protected] KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE SOURCE: Corebridge Financial Copyright Business Wire 2025. PUB: 06/26/2025 06:45 AM/DISC: 06/26/2025 06:44 AM
Business Wire
2 days ago
- Business
- Business Wire
Corebridge Financial Announces Transformative Individual Retirement Variable Annuity Transaction with Venerable
HOUSTON--(BUSINESS WIRE)--Corebridge Financial, Inc. ('Corebridge' or the 'Company') (NYSE: CRBG) today announced that it has entered into an agreement with CS Life Re, a subsidiary of Venerable Holdings, Inc. ('Venerable') to reinsure all the variable annuities of its Individual Retirement business, with account value totaling $51 billion as of March 31, 2025. The transaction is valued at $2.8 billion, consisting of both ceding commission and capital release, and will generate approximately $2.1 billion of net distributable proceeds after-tax for Corebridge 1. Kevin Hogan, President and Chief Executive Officer of Corebridge, said, 'This is a transformative transaction that repositions the company by exiting Individual Retirement variable annuities. This transaction delivers significant value for Corebridge and its shareholders. We are reaffirming our financial targets while reducing risk and maintaining our diversified business model. 'We expect to use the proceeds to accelerate our capital management objectives, including a substantial majority returned via share repurchases, with the remainder to support organic growth. Our Board of Directors approved a $2 billion increase to our share repurchase authorization in connection with this transaction. 'We are pleased to partner with Venerable on this transaction given their deep expertise and leadership in the variable annuity reinsurance business.' Transaction Overview Corebridge will reinsure its entire Individual Retirement variable annuity in-force book, amounting to $51 billion of total account value as of March 31, 2025, through reinsurance transactions with the Company's insurance subsidiaries American General Life Insurance Company ('AGL') and The United States Life Insurance Company in the City of New York ('USL') The $51 billion of total account value ('AV') includes $5 billion of General Account AV (reinsured 100% on a coinsurance basis) and $46 billion of Separate Account AV (reinsured on a modified coinsurance basis) New variable annuity contracts written through the Individual Retirement business and issued by AGL will be reinsured through an ongoing flow reinsurance agreement that will begin once the transaction is closed The transaction includes the sale of a related investment adviser and manager for portfolios offered in Corebridge variable annuity products (SAAMCo) The transaction also includes extensive counterparty protections, including comfort trusts with defined investment guidelines, over-collateralization requirements, and a protective hedging arrangement The AGL transaction is expected to close in the third quarter while the USL transaction and the sale of SAAMCo are expected to close in the fourth quarter, subject to customary closing conditions including regulatory approvals Financial Overview Attractive earnings multiple of approximately 9–10x 2026E and 2027E operating earnings 2 Exits a portfolio with historically volatile GAAP earnings and tail risk exposure AATOI expected to decrease by approximately $300 million in 2026 and the impact is expected to decrease materially over the next few years Increases the Life Fleet RBC ratio by over 50 points before any share repurchases Broad Individual Retirement Product Platform Corebridge will continue to offer one of the broadest annuity product platforms in the industry, including fixed, index and registered index-linked annuity (RILA) products, maintaining its commitment to help financial professionals meet the diverse retirement needs of their clients The Individual Retirement business will continue to manufacture and distribute variable annuity products outside New York state supported by a flow arrangement with Venerable Prior to the close of the transaction, USL will cease manufacturing and distributing new Individual Retirement variable annuities in New York state Corebridge will continue to administer and service all of its contracts, including those covered by the reinsurance transactions Conference Call Corebridge will host a conference call at 8:30 a.m. EDT on Thursday, June 26, 2025, to review the details of this announcement. The call is open to the public and can be accessed via a live, listen-only webcast in the Investors section of A replay will be available after the call at the same location. Morgan Stanley & Co. LLC acted as financial advisor, Oliver Wyman as actuarial advisors, and Willkie Farr & Gallagher LLP acted as legal counsel to Corebridge. About Corebridge Financial Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $400 billion in assets under management and administration as of March 31, 2025, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit and follow us on LinkedIn, YouTube and Instagram. In the discussion below, 'we,' 'us' and 'our' refer to Corebridge and its consolidated subsidiaries, unless the context refers solely to Corebridge as a corporate entity. Cautionary statement regarding forward-looking information Certain statements in this press release and other publicly available documents may include statements of historical or present fact, which, to the extent they are not statements of historical or present fact, constitute 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as 'expects,' 'believes,' 'anticipates,' 'intends,' 'seeks,' 'aims,' 'plans,' 'assumes,' 'estimates,' 'projects,' 'is optimistic,' 'targets," 'should,' 'would,' 'could,' 'may,' 'will,' 'shall' or variations of such words are generally part of forward-looking statements. Also, forward-looking statements include, without limitation, all matters that are not historical facts. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Corebridge. There can be no assurance that future developments affecting Corebridge will be those anticipated by management. Any forward-looking statements included herein are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected or implied in such forward-looking statements, including, among others, risks related to: changes in interest rates and changes to credit spreads; the deterioration of economic conditions, including an increase in the likelihood of an economic slowdown or recession, changes in market conditions, trade disputes with other countries, including the effect of sanctions and trade restrictions, such as tariffs and trade barriers imposed by the U.S. government and any countermeasures by other governments in response to such tariffs, weakening in capital markets in the U.S and globally, volatility in equity markets, inflationary pressures, the rise of pressures on the commercial real estate market, and geopolitical tensions, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East; the unpredictability of the amount and timing of insurance liability claims; unavailable, uneconomical or inadequate reinsurance or recaptures of reinsured liabilities; uncertainty and unpredictability related to our reinsurance agreements with Fortitude Reinsurance Company Ltd. ('Fortitude Re') and its performance of its obligations under these agreements; our limited ability to access funds from our subsidiaries; our ability to incur indebtedness, our potential inability to refinance all or a portion of our indebtedness or our ability to obtain additional financing on favorable terms or at all; our ability to maintain sufficient eligible collateral to support business and funding strategies requiring collateralization; our inability to generate cash to meet our needs due to the illiquidity of some of our investments; the inaccuracy of the methodologies, estimations and assumptions underlying our valuation of investments and derivatives; a downgrade in our Insurer Financial Strength ('IFS') ratings or credit ratings; exposure to credit risk due to non-performance or defaults by our counterparties or our use of derivative instruments to hedge market risks associated with our liabilities; our ability to adequately assess risks and estimate losses related to the pricing of our products; the failure of third parties that we rely upon to provide and adequately perform certain business, operations, investment advisory, functional support and administrative services on our behalf; the impact of risks associated with our arrangement with Blackstone ISG-I Advisors LLC ('Blackstone IM'), BlackRock Financial Management, Inc. ('BlackRock') or any other asset manager we retain, including their historical performance not being indicative of the future results of our investment portfolio and the exclusivity of certain arrangements with Blackstone IM; our inability to maintain the availability of critical technology systems and the confidentiality of our data, including challenges associated with a variety of privacy and information security laws; the ineffectiveness of our risk management policies and procedures; significant legal, governmental or regulatory proceedings; the intense competition we face in each of our business lines and the technological changes, including the use of artificial intelligence ('AI'), that may present new and intensified challenges to our business; catastrophes, including those associated with climate change and pandemics; business or asset acquisitions and dispositions that may expose us to certain risks; our ability to protect our intellectual property; our ability to operate efficiently and compete effectively in a heavily regulated industry in light of new domestic or international laws and regulations or new interpretations of current laws and regulations; impact on sales of our products and taxation of our operations due to changes in U.S. federal income or other tax laws or the interpretation of tax laws; the ineffectiveness of our productivity improvement initiatives in yielding our expected expense reductions and improvements in operational and organizational efficiency; differences between actual experience and the estimates used in the preparation of financial statements and modeled results used in various areas of our business; our inability to attract and retain key employees and highly skilled people needed to support our business; our relationships with AIG, Nippon and Blackstone and conflicts of interests arising due to such relationships the indemnification obligations we have to AIG; potentially higher U.S. federal income taxes due to our inability to file a single U.S. consolidated federal income tax return for five years following our initial public offering ('IPO') and our separation from AIG causing an 'ownership change' for U.S. federal income tax purposes caused by our separation from AIG; risks associated with the Tax Matters Agreement with AIG and our potential liability for U.S. income taxes of the entire AIG Consolidated Tax Group for all taxable years or portions thereof in which we (or our subsidiaries) were members of such group; the risk that anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders; challenges related to compliance with applicable laws incident to being a public company, which is expensive and time-consuming; and other factors discussed in 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our Annual Report on Form 10-K for the year ended December 31, 2024, as well as our Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission ("SEC"). Unless specifically noted otherwise, forward-looking projections are based on our financial statements as filed with the SEC in our quarterly report on Form 10-Q for the quarter ended March 31, 2025. Use of Non-GAAP Financial Measures This release includes a reference to Adjusted after-tax operating income ('AATOI'), a non-GAAP financial measure. AATOI is derived by excluding the tax effected adjusted pre-tax operating ('APTOI') adjustments described below, as well as the following tax items from net income attributable to us: reclassifications of disproportionate tax effects from AOCI, changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and deferred income tax valuation allowance releases and charges. APTOI is derived by excluding the items set forth below from income (loss) before income tax expense (benefit). These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and recording adjustments to APTOI that we believe to be common in our industry. We believe the adjustments to pre-tax income are useful for gaining an understanding of our overall results of operations. APTOI excludes the impact of the following items: FORTITUDE RE RELATED ADJUSTMENTS: The modified coinsurance ('modco') reinsurance agreements with Fortitude Re transfer the economics of the invested assets supporting the reinsurance agreements to Fortitude Re. Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI. The ongoing results associated with the reinsurance agreement with Fortitude Re have been excluded from APTOI as these are not indicative of our ongoing business operations. INVESTMENT RELATED ADJUSTMENTS: APTOI excludes 'Net realized gains (losses)', except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities, or those recognized as embedded derivatives at fair value, are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances). MARKET RISK BENEFIT ADJUSTMENTS ('MRBs'): Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain guaranteed minimum withdrawal benefits ('GMWBs') and/or guaranteed minimum death benefits ('GMDBs') which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through 'Change in the fair value of MRBs, net' and are excluded from APTOI. Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI. OTHER ADJUSTMENTS: Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities. The excluded adjustments include, as applicable: restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization; non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes to changes to accounting principles; separation costs; non-operating litigation reserves and settlements; loss (gain) on extinguishment of debt, if any; losses from the impairment of goodwill, if any; and income and loss from divested or run-off business, if any. Key Operating Metrics and Key Terms This release includes a reference to Life Fleet RBC Ratio. Life Fleet means American General Life Insurance Company ('AGL'), The United States Life Insurance Company in the City of New York ('USL') and The Variable Annuity Life Insurance Company ('VALIC'). Life Fleet RBC Ratio is the risk-based capital ('RBC') ratio for the Life Fleet. RBC ratios are quoted using the Company Action Level.
Yahoo
25-03-2025
- Business
- Yahoo
I'm 60, single, and I'm scared I'm going to blow the money in my IRA and ruin my retirement. What should I do?
An Individual Retirement Account (IRA) is a standard retirement savings tool that is quite popular in America. According to the Investment Company Institute, 55.5 million U.S. households — roughly 42% of households throughout the country — reported having an IRA in 2023. IRAs undoubtedly play a crucial role for millions of Americans preparing for retirement, but what many people don't realize is that IRAs are not a set-it-and-forget-it type of investment. In fact, if you have an IRA and you don't know how to properly manage it, you could be setting yourself up for financial losses in the long term. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Americans with upside-down car loans owe more money than ever before — and drivers can't keep up. Here are 3 ways to cut your monthly costs ASAP Unlike 401(k) accounts, IRAs give you a great deal of flexibility. You can invest in virtually anything you like, and you can open an account with a vast number of different brokerage firms and financial institutions. This flexibility can be both a blessing and a curse: if you manage the IRA well, you can grow your savings into a sizable nest egg — but if you mismanage the account, you could end up jeopardizing your future financial stability. So, let's say you're in your 60s and you're wondering what to do with your IRA. Your late spouse, who's passed away, used to take care of your collective investments but managing the IRA is now your responsibility. Your bank recently sent you an email asking how you'd like to invest the funds in your IRA, and you have no idea what to do. The good news is there are a few proven strategies you can use — as well as some mistakes you should try to avoid — to get the most out of your IRA. One of the biggest mistakes to avoid is withdrawing money early. If you take money out of your IRA before the age of 59 ½ — and you don't fall within a limited number of exceptions — you will be charged a 10% penalty on the withdrawn funds. Furthermore, you'll also miss out on all the gains the invested funds could have made from the time of the withdrawal until the time that you retire, which could be a large amount of money. For example, if you withdraw $5,000 from your IRA at age 50, that money would have turned into $18,500.09 by age 67 — assuming an 8% average annual return on investment (ROI) — if you had left the $5K in the IRA. On the flip side, once you reach age 73 you must start taking Required Minimum Distributions (RMDs), which are the minimum amounts of money that you have to withdraw from your account every year. Failure to take out your RMD could lead to a penalty equal to 25% of the amount you should have withdrawn (although this can be reduced to a 10% penalty if the error is corrected within two years). With this in mind, you're going to want to be sure to comply with the IRS' guidelines for RMDs. Finally, investing in the wrong assets is also a big error you should try to avoid. This could happen if you throw money at investments with high fees, which can significantly eat into your returns, or if you simply have the wrong mix of assets in your portfolio. For example, if you have too much stock market exposure when you're nearing retirement and begin making withdrawals from your IRA, you could end up having to sell stock at a bad time and locking in losses. One tried and true method to calculate the percentage of your portfolio that should be invested in stocks is to follow the Rule of 110, where you simply take 110 and subtract your age. The remainder then represents the percentage of your portfolio that should be invested in stocks. Since you are 60, you'd take 110 and subtract your age — which gives you a value of 50, meaning you should have roughly 50% of your portfolio invested in stocks. By avoiding these errors, you can make sure your retirement doesn't take a hit that puts you at risk of financial insecurity. Read more: Gold just hit a historic high of $3,000/ounce on Trump's tariff moves — while US stocks got slaughtered. Here's 1 simple way to prevent more pain within minutes Just as there are mistakes to avoid, there are also moves you can make with your IRA that will increase the chances of you having enough money to see you through retirement. For one thing, you should try to max out your contributions each year. In 2025, you're allowed to contribute $7,000 to your IRA if you are 50 or under — older Americans can also make an additional $1,000 catch-up contribution for a total of $8,000. The closer you can get to maxing out your annual contributions, the more money you'll have to grow so you can benefit from compound interest — and the more you'll have to live on as a retiree. You'll also want to make sure you invest in the right kind of IRA. A traditional IRA allows contributions with pre-tax dollars — which can potentially reduce your tax liability — but withdrawals are subject to tax, and RMD rules apply. If you invest in a Roth IRA, you won't be able to deduct your contributions, but you also aren't subjected to RMDs and can make tax-free withdrawals. If you think your tax bracket is going to be higher as a retiree, a Roth IRA may be a great option for you. If you already have a traditional IRA but are concerned about having to take out money when you don't need it — and pay taxes when you do — you may also want to consider a Roth conversion. A Roth conversion is a taxable event in which you transfer funds from a pre-tax retirement account, such as a traditional IRA, into a Roth IRA. There is, however, a five-year holding period on withdrawals that include money that was part of a Roth conversion — which means you might want to reconsider this option if you are near retirement and are expecting to need the converted money within that five-year time frame. Finally, regularly rebalancing your portfolio to ensure you have a diverse mix of assets — and an age-appropriate level of exposure to risk — is very important as well. If you aren't sure how to do that, or are debating whether a Roth conversion is right for you, a financial adviser can offer invaluable help in making those choices and ensuring financial stability for your retirement. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
