Retirement Planning

Mechanics of 401(k)s (Pt. 2)

How do you take money out of a retirement plan? This is tricky, because one wrong move can cost you in taxes and penalties. The process is complicated, to say the least.

5 Questions About Annuities

Annuities, like any other investment, make perfect sense in the right situation. In the wrong situation, they can cost you money – and even be dangerous.

Here’s what you need to know.

1. How long is the term? The term depends on the type of annuity you choose and the payout period you require.

Nothing in Your Nest Egg?

Afraid you don’t save enough for retirement? You’re far from alone. But what does such a future look like for you? Is it possible to play catch up?

The latest Country Financial retirement Financial Security Index shows that one in four Americans across all age groups saves nothing at all for retirement. A slim majority of respondents (55%) either don’t participate in a workplace-sponsored retirement plan like a 401(k) or don’t even know if they are in a plan.

Biz Owners’ Money Planning

Your life as a business owner is a long and crowded road. Developing customer relationships, managing employee issues and paying bills consume a lot of your time.

Unfortunately, if you’re like most business owners you often neglect your personal financial goals.

Owners like you commonly put off planning for their own financial future. This delay can cost you dearly, just as an undeveloped business plan may harm business growth. Lack of time often causes you to fall prey to two outcomes:

Getting Obamacare Subsidies

The Affordable Care Act (ACA), aka Obamacare, provides subsidies to Americans making up to 400% of the poverty level, about $94,200 for a family of four. Can you juggle finances to best cash in on subsidies?

Rather than limiting subsidies to only those with a small net worth, the ACA provides aid to all persons with low incomes, including those early or partial retirees.

7 Retirement Considerations

When helping people get ready for retirement, I find the same issues come up over and over. Thinking ahead can spell the difference between a successful retirement with enough money and a stressful one with difficult decisions that you don’t want to make.

1. Understand Social Security. The goal with Social Security is not to get the most you can from the government in your lifetime. It is to optimize the amount you receive per month when you finally retire.

Enough Money to Retire?

You don’t want to run out of money before you run out of life.  How much money do you need?

Great question. Here are others you want to answer along the way to saving for retirement:

How long will I live? Probably the hardest question in all of life – you have to think about your mortality and foresee advances in medical science. A life insurance company might tell you that at 65 you can expect to live about 20 more years. If you’re in good health that number is higher.

New Life Expectancy Estimates

Life expectancy has consistently increased through the years. Most of today’s retirees will live longer than their parents did. Understanding the length of retirement that you are likely to face will better prepare you to make investment choices.

The Society of Actuaries, an organization that tracks how long people live to assist companies understand the risk of their pensions, recently updated its mortality tables for the first time since 2000.

5 Boomer Retirement Issues

Baby boomers, one of the largest generations in U.S. history and some 76 million strong, remain demographically in charge. If you’re one of this generation, born from 1946 to 1964, you help influence just about every aspect of American life, enjoy more discretionary income than any other age group and control your share of some 70% of the total net worth of all American households.

Figuring How Long You’ll Live

How long do you think you will live? How long does your money need to last? If you’re like most people, you get this age wrong.

The consequence? Faulty retirement planning, overspending now and running out of money before you actually reach your true longevity. Or spending too little now, depriving yourself of a comfortable retirement before your death.

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