Articles Posted in Retirement

money-2180338_640-300x200“Most of us vastly underestimate the percentage of income we’ll need (for retirement). Here’s how to make sure you get that number right.”

This is the question everyone wants to have answered as they save, work and plan for their retirement: How much money will I need, when I finally stop working and retire? Continue reading

image-1-300x146“In March 2018, the U.S. Census Bureau reported that by 2030, all baby boomers will be over the age of 65, leading to a unique situation in demographics: 20% of U.S. residents will be at retirement age.”

Part of the increase in the number of people who live long enough to be of retirement age, is because life expectancies have increased. The average U.S. life expectancy has increased from 68 years in 1950 to 79 years in 2013, according to the Population Reference Bureau cited in an article from U.S. News & World Report titled “How Should I Finance Assisted Living?”

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old-age-164760_640-300x200“The federal government ushered in a slew of progressive programs during the Great Depression with the aim of helping the most downtrodden Americans. Few of these programs have held the progressive banner higher than Social Security.”

Social Security was created to ensure that Americans with low lifetime incomes would have an adequate retirement income, so aging Americans would not live in dire poverty. Continue reading

bigstock-Senior-Couple-8161132-1-300x208“Women who retire when their husbands do, may be giving up more wealth than they realize.”

Women in their 50s and 60s are in their peak earnings years, while their male counterparts are usually on the decline, according to an associate professor of health care policy at Harvard Medical School. The associate professor is the author of a recent study about couple’s incomes and retirement patterns. As a result, reports The Berkshire Eagle in the article “Women who retire with their husbands can lose out,” women sacrifice more Social Security wealth than married men, when they retire early. Continue reading

stock-exchange-642896_640-1-300x212“For each year in which a bull market persists, workers become likelier to retire. However, those who leave the workforce now—the ninth year of the longest U.S. bull market—are potentially setting themselves up for a tough stretch that could test their portfolio’s long-term resilience.”

Live long enough and you’ll get to experience the ups and downs of the market. If you’re about to retire, or newly-retired, you may be concerned about how long this bull market can maintain its pace. There is a way to deal with this, says The Wall Street Journal in its article “Retiring Soon? Plan for Market Downturns,” with steps that you can take to minimize the damage from losses in early retirement. Continue reading

bankrupt-2922154_640-1-300x225“According to U.S. Bankruptcy Court data, 819,159 people filed for bankruptcy in 2016. Although that is down 6.9 percent from 2015, Debt.org reports that people 55 and older account for 20% of those filings, a number that has doubled among seniors since 1994.”

Overall, personal bankruptcies are on the decline.  However, the number of seniors filing for bankruptcy has reached record numbers. That is a terrible thing to have to face in your later years. According to the article “Planning key to avoid becoming a bankruptcy statistic in retirement” from nwi.com, this unpleasant fate can be avoided. However, it takes early planning. Continue reading

pexels-photo-164474-300x200“If you are looking to pull cash from your 401(k) plan or traditional IRA without getting hit with a penalty, the IRS will allow you to do it.”

This is a move of last resort. You’ll need to do all the research to be sure this will not do more damage to your retirement savings than absolutely necessary. You are allowed to take a series of equal payments from your IRA or a 401(k) account, without being subject to a 10% penalty—but only under certain circumstances, advises CNBC in the article “How to tap your retirement savings without getting hit with a stiff penalty—but only if you absolutely have to.”

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