People underestimate what their costs of living in retirement will be in three critical ways: Assuming you’ll spend less in retirement than while working: The majority of people have never really sat down and calculated what they’ll need every month.You need to be comprehensive in listing out all expenses. List everything you might spend in… Continue reading Three Ways You’re Underestimating Retirement Costs
Tag: Retirement
Fear, Greed and the Financial Hazards of Emotional Investing
He was a successful dentist who managed his own money his entire life and prided himself on his financial acumen. When he retired, he saw no reason to change. Instead of kicking back and enjoying a well-earned life of leisure, he became not only financially invested in the markets, but emotionally invested as well, much… Continue reading Fear, Greed and the Financial Hazards of Emotional Investing
3 Factors That Can Keep Retirees Barely Hanging on Financially
They were an active and vibrant couple, determined that retirement wouldn’t slow them down. And it didn’t, at least not initially, as they golfed, participated in activities with their homeowners’ association, and otherwise stayed engaged with the world around them. But a few years into their post-working years the couple grew concerned about whether they,… Continue reading 3 Factors That Can Keep Retirees Barely Hanging on Financially
When Retirement Is Just Around the Corner, These 3 Steps Can Help You Prepare
If looking ahead to retirement makes you a little nervous, you’re not alone. Nearly half of Americans (46 percent) who haven’t reached retirement predict that they won’t be financially comfortable once they get there, according to a Gallup survey. For some, those potentially uncomfortable retirement years are decades away. But for the Baby Boom generation,… Continue reading When Retirement Is Just Around the Corner, These 3 Steps Can Help You Prepare
Four Big Retirement Threats and How to Protect Yourself
Four big expenses can wreak havoc with your retirement. Here are our big expenses to consider and how to best prepare for them. Threat: Premature death of a spouse and resulting loss of Social Security and/or pension income Going from two Social Security checks to one can cause a significant drop in income. So can… Continue reading Four Big Retirement Threats and How to Protect Yourself
4 Life Changes That Warrant An Investment Tune-up
If you’re 45 to 65 and are going through some serious changes in your life, you should be thinking about these steps right now: Life Change #1: New Job The average American worker changes jobs every 4.4 years, and when they start a new job, their 401(k) plans don’t typically come along. In fact, the… Continue reading 4 Life Changes That Warrant An Investment Tune-up
Retirees With a Guaranteed Income Are Happier & Live Longer
Retirees who are surrounded by their family and friends – and who also have a substantial check coming in every month for the rest of their lives – are much happier, according to a study published in The Wall Street Journal several years ago. They also live longer, studies show. That makes sense because the… Continue reading Retirees With a Guaranteed Income Are Happier & Live Longer
Stop Thinking About Retirement
Most people spend decades looking forward to retirement, ostensibly so they can stop working and start living. But if the statistics are to be believed, it seems that retiring may be bad for your health. In fact, one British study found that, after an initial period of greater health and well-being, retirement can increase your… Continue reading Stop Thinking About Retirement
Bear Market Plus Withdrawals in Retirement Can Cause Portfolio Death Spiral
If you’re a retiree with an equity-heavy portfolio and have to make a withdrawal in a bear market during the early years of your retirement, you can dig such a hole that your savings will never recover. Consider a retired couple with a $1 million portfolio. During their first year of retirement, the market drops… Continue reading Bear Market Plus Withdrawals in Retirement Can Cause Portfolio Death Spiral
4 Ways Baby Boomers Can Avoid Going Bust On Their Kids’ Student-Loan Debt
Crushing student loan debt is usually thought to be the younger generation’s problem. But more and more, with graduates unable to handle it on their own, mountains of student loans are becoming mom and dad’s albatross, as well. Many baby boomers are now faced with helping pay off their kids’ college loans, and that added… Continue reading 4 Ways Baby Boomers Can Avoid Going Bust On Their Kids’ Student-Loan Debt
Is Your Retirement Plan Ready for The Longevity Revolution?
Americans are living longer than ever, with the average life expectancy now rising to about 79 years. Some have referred to this trend as the “longevity revolution,” but it’s also creating a revolution in the way people think about retirement. What worked for retirees a generation ago isn’t going to work today. For most people,… Continue reading Is Your Retirement Plan Ready for The Longevity Revolution?
Sleep Gets Better in Retirement
Retirement is proving restful. A new study has found that retirees sleep an average of about 20 minutes longer per night than they did before retirement. And the quality of their sleep also improves. Researchers at the University of Turku, Finland, in collaboration with the Finnish Institution of Occupational Health, University of Helsinki, and University… Continue reading Sleep Gets Better in Retirement
3 Tips to Make The Finances Add Up for the Spouse Left Behind
Traditional wedding vows usually include the phrase “till death do us part,” but it’s not a part of the ritual most couples want to dwell on. Financial professionals, though, say ignoring the eventuality of death is unwise when it comes to a couple’s decisions about retirement and money. “The decisions you make today can affect… Continue reading 3 Tips to Make The Finances Add Up for the Spouse Left Behind
Tax Deferral and Guarantees Make Annuities a Compelling Way to Save for Retirement
If you’re contributing the annual maximum to your IRA and/or 401(k) plan, you’re ahead of most people. But tax-qualified contributions alone will probably not give you what you’ll need for retirement. Tax deferral is a powerful tool in saving enough to meet your retirement goals. And that’s why tax laws encourage people to use both… Continue reading Tax Deferral and Guarantees Make Annuities a Compelling Way to Save for Retirement
The Case Against Retirement That Has Nothing to Do with Finances
Peer Pressure in your 50’s?! Really? My friends and I were sitting around a table at a restaurant in Scottsdale. The table was outside. Because there are no bugs, no wind, no humidity, it was 75 degrees and perfect. People who retire to Florida have simply never been to the west coast. The conversation had… Continue reading The Case Against Retirement That Has Nothing to Do with Finances
3 Tips for Women Worried About Outliving Their Retirement Savings
Few things make retirees more nervous than the possibility their savings could run dry. And the situation can be even more troublesome for women, who are at greater risk of outliving their money because, on average, they live longer than men. In fact, women over the age of 65 are 80 percent more likely than… Continue reading 3 Tips for Women Worried About Outliving Their Retirement Savings
How to Match Your Current Savings to Your Ultimate Retirement Needs
In a nation that debates nearly everything, this topic creates almost no disagreement. Americans aren’t saving anywhere near enough for retirement, setting the stage for a potentially dreary time ahead for many when they reach the closing act of their lives. In fact, a study by the Economic Policy Institute found that almost half of… Continue reading How to Match Your Current Savings to Your Ultimate Retirement Needs
Risky Drinking and Retirement
Every tenth employee increases their alcohol consumption to risky levels at the time of retirement from full-time employment. However, the increase seems to be temporary as risky drinking often decreases during the retirement. For most people, alcohol consumption remains below the risk levels before and after retirement. The results of the new Finnish study were… Continue reading Risky Drinking and Retirement