Spending

Lower Taxes in Retirement?

Like many, you might think, “Why save so much for retirement when my taxes will be much less?” This supposed truth is a myth, a recipe for financial disaster in your golden years.

Maximizing Social Security

As you examine financial risks to your retirement, there is a right away and a wrong way to look at Social Security. The wrong way: I need to get the money as soon as I can because I paid into the system and deserve it. The right way: I need to get the most over the long haul. Here’s how to receive the maximum from Social Security.

Combating Financial Risks

What are the risks you face in living a comfortable retirement? And what can you do to combat them? A single-premium annuity and wisely managed Social Security are two remedies. First, though, you need to scope out the risks that can bring you to grief.

Cheap and Easy Travel via RV

When I ask people what do they plan to do when retired, the answer often is: “See new places.” A good and affordable way to do that is becoming a part-time or full-time RVer.

In my experience, the No. 1 activity most people look forward to when they retire from earning an income is travel. Seeing the world has never been easier. True, air travel is rarely easy or pleasurable, and it can be expensive. With a little planning and work, though, travel can fit easily into many retirees’ budgets.

Taking Out Retirement Money

Staying the course in a rollercoaster stock market challenges both you and your financial advisor – a challenge made even tougher when you take your retirement distributions. Here’s how a withdrawal policy statement (WPS) helps avoid panicked investing moves.

Timing: Retirement Myth

When you retire influences your income in the golden years. Or does it? Here’s an example.

The retirement 4% rule – which says that, if you withdraw roughly 4% of your savings annually for 30 years’ retirement, you stand a good chance of not outliving your money – sometimes works well and sometimes doesn’t, depending on how you time your retirement.

Spousal Benefits: Unequal

Social Security spousal benefits shortchange some couples. Here’s what to know.

Among facts about these benefits:

·         For you to file for spousal benefits, your spouse must file for benefits first. The first filing spouse does not have to begin receiving money at once: He or she can postpone that after filing, allowing you to take spousal benefits.

Lump-Sum Pension Payout?

Fewer employers offer traditional pensions anymore. Many that do are ditching their plans and giving employees lump sums. Here’s what to know about your options.

With traditional plans, called defined benefit, employees don’t contribute and companies put away the money for retirees to draw on. The retired employees’  salaries, length of employment and other factors determine retirement benefits. Companies continue to slash these in many ways.

Calculating Social Security

It pays to know all formulas you use to calculate your ever-changed Social Security benefits. Here’s a look at one of them, which affects how much you get, a seemingly abstruse yet crucial concept called bend points.

The Social Security Administration’s cost of living adjustment (COLA) for 2014 also allows for calculation of the bend points for the new year.

Manage Spending at Any Age

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.

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