Retirement Planning Mistakes to Avoid
Most of us spend decades dreaming about and preparing for that magical day when we will retire. When we walk out the door from our job for the last time and enter a new phase of our lives. One filled with freedom, fun and adventure. We dream of things like sleeping in, socializing with friends, focusing on a hobby, and perhaps traveling or spending more time with the grandkids. We have sacrificed, saved and invested for that day, and are excited to finally enjoy the fruits of our labor.
Retirement Rules and Tax Changes You Need to Know
It’s been said that the only constant in life is change. Some changes are fixed, like the change of seasons, while other changes are evolutionary and progressive, tossing new circumstances our way as time goes on. It was ancient Greek philosopher Heraclitus observed that the natural world was in a constant state of movement. People age, develop habits and move environments.
The Widow Penalty – It’s a Real Thing
Being a finance guy, I see firsthand the effects of today’s longer life expectancies. In the 1950’s, the average American could expect to live to about 69 years old, but thanks to significant developments in medicine, today the average retiree can expect to live to almost 80 years old – and that’s just the average₁. These days it’s not uncommon for any retirees to live well into their 80’s and 90’s, or even beyond. And while living longer is a good thing, it also means you need more money to get you through a longer retirement. If your retirement system was designed to support you for twenty years in retirement but you end up living for thirty years, you’ll find yourself in a real pickle for those last ten years.
Planning for Retirement in an Uncertain (Post Election) World
With the presidential election now behind us, many folks are feeling a little anxious and uncertain about the future. Of course, there was plenty of uncertainty leading up the election as well. Both sides of the political aisle were worried about what might happen if the other side wins, and there was even the possibility that the results could be delayed or challenged. Luckily that didn’t happen, and we are entering the end of the year with a clear winner, President-elect Donald Trump.
The Great Wealth Transfer is Coming – Right?
It’s no secret that Americans today are facing some tremendous hurdles reaching a comfortable retirement in ways that previous generations didn’t. Disappearing pensions mean that many have to create steady income streams of their own in retirement. Longer lifespans coupled with rising inflation and healthcare costs make that task even more challenging. Add in an […]
I Want to Retire. Don’t I?
The decision to continue working in retirement is both personal and multifaceted. Various studies highlight the range of reasons behind such choices. Get this, a 2023 survey from Transamerica Center for Retirement Studies₁ found that 55% of people said they plan to continue working after retiring, citing both financial reasons and a desire for healthy aging, including staying active.
Why it’s important to start a retirement plan in your 20’s
Folks, one of the most common excuses I hear younger people make to justify not saving for retirement is that they are still young. Anyone who is nearing retirement will tell you that the years suddenly go by and building a retirement nest egg is much harder the longer you delay saving.
What Does the Fed’s Interest Rate Cut Mean for Retirees?
The federal funds rate has a number of possible implications on the markets, and how or if they will affect you personally will depend on your unique financial circumstances. And if you’re like many retirees, there could be both positive and negative effects on your finances.
Too Late for A Roth? Think Again…
Unlike a traditional IRA or regular 401(k) plan, you pay the taxes up front when you put money in a Roth account. If you follow the rules of the plan, all the interest you subsequently earn on the investment is tax-free in retirement. By design, the Roth works best for those who contribute early and withdraw late.
Financial Lesson to my 23 Year Old
Saving for retirement in your 20’s, or even your 30’s can be relatively painless as opposed to starting in your 40’s or later. While retirement may seem a long way off, putting a plan in place now is a smart move.
While it may not seem like an important task to do now, I told her that saving for retirement is probably the biggest financial goal of her life and starting earlier gives her a number of significant advantages.