Submitted by Larry Frank Sr. on Thu, 11/07/2013 - 12:00pm
You save and save and save for retirement, trying to tune out those escalating estimates of what you need to never run out of money. Conventional wisdom blathers that in retirement you spend only 75% of your current expenses, anyway. Think again, and here’s why.
Retirees often spend too much early in retirement and – the retiree’s nightmare – outlive their cash.
Submitted by Rick Kahler on Fri, 09/06/2013 - 3:00pm
Yes, there are good things about being old, such as increased happiness, less stress, better marriages and deeper friendships. You seldom hear that: People tend to focus on the negatives of aging.
How old is “old”? I don't know exactly, but after my recent birthday I can say that it's much older than 58. My 12-year-old son told me, “Dad, I’ve always thought of people who are over 60 as being really old. I don’t think of you as really old, so guess I will need to redefine what is old.”
Submitted by Jonathan DeYoe on Wed, 06/19/2013 - 12:00pm
Getting ready for retirement involves more than just calculating how much you will need and the rate you can draw down your savings. The year before you retire is a crucial time to prepare both financially and psychologically.
Often, I feel that many retirees underestimate their expenses, get bored without a daily grind and panic over market corrections.
Here are a few exercises that you can take during that last year of working life to get ready for the reality of retirement.
Submitted by Sterling Raskie on Thu, 02/21/2013 - 9:00am
As an advisor, I sometimes need to play marriage counselor. Money differences are one of the biggest sources of marital discord. Recently, I resolved a key disagreement that divided a couple. The answer: Let each spouse have his and her own bank account.
The couple – let’s call them John and Jane Bickerson – is nearing retirement, and sat down with me to look at their cash flow needs, possible dates to quit working and the ever-present question, “Do we have enough?”
Submitted by Jonathan DeYoe on Fri, 02/15/2013 - 12:00pm
The most important retirement planning task for your last working year is calculating where your income comes from when you retire. This probably seems completely obvious, but it usually isn’t. Your portfolio needs to yield more every year to keep up with inflation.
Submitted by Larry Frank Sr. on Tue, 02/05/2013 - 9:00am
When you save for retirement, the ugly truth is that you also need to keep your spending at a sustainable rate. Decreasing your standard of living is hard, in retirement or when working. But it’s easier if you control your consumption now.
Submitted by Matthew Illian on Fri, 01/11/2013 - 3:00pm
Longevity is a blessing and many of us are living longer. Unfortunately, this makes retirement planning much more complicated. In retirement, you may be wiser to take out less money from your savings than you planned.
Submitted by David John Marotta on Fri, 09/28/2012 - 9:00am
Knowing how much you should save for retirement is critical. But what if you are late getting started? The longer you delay, the shorter the time that compound interest can do its magic on your savings.
Submitted by David John Marotta on Thu, 09/27/2012 - 12:00pm
A good piece of advice: Save almost all of any sudden windfall. Surprisingly, studies show that such windfalls can actually impoverish you. They make you feel rich, which inevitably leads to overspending. But wealth is what you save, not what you spend.
With large windfalls, people tend to spend about 40% of the money. So if you get $20,000, you might spend $8,000. But if the amount is small, you will squander a greater percentage, often more than you received. Thus if you win $75, you may actually spend an additional $125 before you stop celebrating.