A question that I get very frequently is “When is the best time to take my Social Security benefits?” The real answer can only be determined if we know a few minor details. So, if you know these things, we can make a precise calculation. Otherwise, we have to make an educated guess. Continue reading “When Should You Take Social Security?”
Cat stories are hard to resist – as evidenced by the media attention last week on the 911 call about an Oregon house cat who attacked a baby, then trapped the family (including the dog) in their bedroom. Mr. Mittens isn’t that ferocious cat, but he does have a “tail” to tell about retirement so take a minute and check out his story, sponsored by the International Foundation of Employee Benefit Plans (IFEBP): Continue reading “A “Tail” of Two Kitties”
Earlier this month, a colleague of mine forwarded me this article by Jeffrey Levine. In the article, he outlines some of the changes President Obama is proposing in his 2015 budget. While it is unlikely that these provisions will be enacted anytime soon, it does raise the specter of possible changes in the future so it’s important to understand the short and long term ramifications for you and your retirement plans if they ever do come to pass. Here are some things to consider, along with my take on each proposed provision: Continue reading “What Obama’s Budget Proposals Could Mean For Your Retirement”
This past weekend, I enjoyed a wonderful visit from my mom. As I was enjoying a morning cup of coffee (and not adequately caffeinated for a serious discussion), she told me about her retirement plans. Actually, she mainly shared how she was financially prepared to leave the workforce within the next year but not quite sure she was ready for full retirement. Continue reading “Retiring Within the Next 10 Years? 10 Things to Do Now”
How did your team do in the Super Bowl? If you are a Seattle Seahawks fan (or at least pretended to be last night) the final scoreboard doesn’t tell a lie and your team was victorious in Super Bowl XLVIII (that’s 48 if you’re a bit rusty on the understanding of Roman numerals). Continue reading “Retirement Saving Benchmarks for All Ages”
One of my philosophies of life is that if you’re going to take the time to do something, you should take pride enough in yourself to go all out and give maximum effort. I took that to a new level recently by not only getting “The Flu” (It’s an actual thing, not just something that people talk about and it’s terrible! Get a flu shot!!!) and to go along with it, I went the extra mile and got pneumonia as well. I don’t get sick very often, but when I do it’s usually a complete wipe out for a few days. Fortunately for me, I was able to go to my doctor, be seen in a timely fashion, get the tests I needed (flu test and chest x-ray) and then hit the pharmacy for the meds I needed. The good news is that like all of my prior minor illnesses, I survived this one and am here to write about it… Continue reading “Lessons From Having the Flu and Pneumonia”
Every year, the Ward family gathers around the table to share a traditional Thanksgiving meal together. Each of us takes turns sharing what we are thankful for and before long, the whole dining room is alive with laughter and joyous conversation. After the kids are excused, the adults sit closer together to talk about more serious issues, and inevitably the subject of money enters the discourse. Fortunately, there is a financial planner among them, so everyone knows who to ask when financial questions arise. Continue reading “How to Avoid a 50% Mistake”
Are you doing enough these days to prepare for retirement? If not, you’re not alone. Nearly four out of five people feel they aren’t on track to meet their retirement income goals. Continue reading “Retirement Saving Strategies: Going Beyond Your 401(k)”
Recently, a judge allowed the City of Detroit to remain in bankruptcy court which will allow the city to try to find a solution for an $18 billion debt problem. As a part of the solution, the pension benefits for a lot of retirees and current workers may be significantly reduced. The city is in serious financial trouble and without some sort of drastic measures, it might never recover. Continue reading “Lessons From Detroit”
I began my career in 1994 as an enroller for a large 401(k) provider. From the moment I started, I was indoctrinated in the virtues of this particular savings vehicle. Things like “tax-deductible savings” and “payroll deduction” became everyday vernacular, and before you knew it, I was out there evangelizing the masses on the greatness of this extremely important part of the tax code. So imagine my chagrin when I learned that my beloved 401(k) has come under attack recently by some who are calling for its demise. Continue reading “In Defense of the 401(k)”
As Thanksgiving approaches, what are some things you have to be thankful for? Your health? Your family? Your friends? How about a new job? According to the most recent data released by the Bureau of Labor Statistics, over 200,000 people entered the workforce in October. Whether they are entering the workforce for the first time or found a new job after previous employment, many will be automatically enrolled in their new employer’s 401(k) plan. Continue reading “Automatic Enrollment Does NOT Mean Automatic Retirement”
Back in October, I took a fun little road trip with my dad and my son to Atlanta to see some postseason baseball action. I love baseball and have been a Braves fan since childhood, enduring many peaks and valleys. Although I try to see at least a couple of games in person each year, this game was special since it was the first playoff game my father and my 4-year old son had ever seen. (My father had also overcome some serious health issues over the past year so it was a blast doing the tomahawk chop together and trying to catch batting practice home runs.) Continue reading “Millennials’ Retirement: Create a Sense of Urgency Today”
Will Social Security be around when we need it the most…and if so when should we take it and how will it be taxed? These days, those are some of the biggest retirement planning concerns among anyone that’s not currently retired. It’s no secret that Social Security is in need of some significant changes to strengthen the ability of future generations to receive Social Security benefits. The reality is that without any changes to the system only 75-80% of projected benefits would be able to be paid. Continue reading “How Much Will You Really Get From Social Security?”
Have you ever compared your current retirement savings balance to where it should be, according to the advice of a financial adviser or online calculator? Most Americans haven’t. According to the Employee Benefits Research Institute, roughly 60% of Americans have less than $25,000 set aside for retirement and about 30% have less than $1,000. If you haven’t already done so, check on your retirement accounts and see where you stand. If you’re behind and want to catch up, consider the following five strategies. Continue reading “Short on Retirement Savings? Here’s How to Save More”
One of the more interesting conversations I get to have with people who are close to retirement is about where they plan to live. Often, inertia (or a paid off mortgage) leads people to stay exactly where they are today. People are often attached to their homes and moving is rarely if ever a smooth and easy process. Continue reading “Which States Are Really Tax-Friendly?”
As the early and late baby boomers get closer and closer to retirement (and in some cases are already there), we receive more and more inquiries about retirement planning, and in particular, distribution planning. Just recently, I spoke with a gentleman who is within a few years of his retirement date, and he’s done a pretty good job of saving for retirement, but what he is most concerned with now is how to make sure he invests properly throughout retirement so that he generates the cash flow he is expecting to get from his nest egg. There are a number of investment options that may achieve the goal, and each one comes with its own pros and cons. Here is a look at several different investment options that may be suitable for a retirement investment portfolio: Continue reading “Investment Options For the Soon-to-Be-Retired”
One of the things that I’ve grown to believe in more and more as I talk to people who are nearing retirement and hitting the panic button about their ability to fund their retirement lifestyle is that retiring debt-free is the only way I want to retire. I’ve always been debt-averse, but as I help people look at their financial lives and their ability to live the lives they want in retirement, the more clear the vision I have for myself is becoming. I have seen people with near identical incomes, 401(k) balances, pensions, and Social Security estimates have completely different views on retirement. The #1 reason for those views is their mortgage payment. Continue reading “4 Easy Ways to Pay Your Mortgage Off Early”
Updated February, 2018
A while ago, I wrote about some reasons to consider contributing to a Roth IRA. But if you earn too much to contribute to one, these arguments may seem like a moot point. However, there are a few things to keep in mind before completely writing off the Roth IRA. Continue reading “How to Get Around Roth IRA Income Limits”
A few weeks ago, I wrote about the importance of completing a mid-year financial checkup. One of the activities that I completed as part our family’s recent financial checkup was the activity of running a basic retirement planning calculator (yes I do occasionally try to actually follow my own advice). I used both a basic retirement plan estimator and ESPLannerBASIC. Continue reading “Will Social Security Be Around For Your Retirement?”
In his blog post this week, Scott Spann wrote about some reasons not to contribute to a Roth IRA. But there are also lots of reasons a Roth IRA can make sense. Let’s take a look at each of his arguments: Continue reading “Reasons to Contribute to a Roth IRA”
