Here’s a paradox: In countries with large social safety nets, a survey shows that people have less retirement confidence than do those in developed nations with little or no such government old-age support.
Why do baby boomers face such dispiriting retirement prospects? The enormous size of this age cohort, born between 1946 and 1964, led to a ratcheting back of old-age benefits. Statisticians figured society simply couldn’t afford to be as generous.
You saved your entire life for the day you can retire. You brought up your children and you hope that they enjoy productive lives. Unfortunately, one of your children never seems to grow up: dropped out of school, continually got into trouble. You feel you must keep helping this kid – but can you afford to?
We often hear the term rollover in connection with retirement accounts. One frequent type of rollovers occurs when you leave a job and roll your 401(k) over to an individual retirement account or a Roth IRA. But beware: The rules just got more restrictive.
Some retirement guides scares the daylights out of you. They contend you should have much more saved by now than you do. Sometimes, though, they miss crucial factors, so you shouldn’t be so alarmed.
We’ve all been there: scratching our heads wondering what to do with all the retirement savings accounts. Too many choices can be overwhelming, until you step back and realize that there are actually only three questions. Once you know this, starting to make decisions becomes much easier.
Your financial life, like climbing a mountain, does not end when you reach the summit, your retirement. Getting down safely, or making your retirement income last, requires a set of different strategies. How can you withdraw your money without depleting it?
Many people are reluctant to invest because they don’t want to be on the losing side. They forget that the purpose of investing is to meet a need: financial security in retirement. You win as long as you achieve this personal goal.
Who can save for retirement these days? You can, if you know where to look and honestly assess what you can live without.
Great financial planning requires you to employ two contrasting skills: Focus intently on your end objective, whether a comfortable retirement or a certain net worth; yet remain flexible for the inevitable bumps in the road. How can you balance the two? What financial tools can help you most?