“Memories of the Internet bubble bursting 16 years ago this week have begun to fade. And that’s a shame, since it still has much to teach us.” Today’s article argues that, while the stock market is not as overvalued today as it was back then, “certain stocks appear to be, and they could easily incur the losses investors suffered 16 years ago when that era’s bubble deflated.” The author uses the examples of Cisco in March of 2000 and Amazon earlier this year to outline two critical lessons from the Internet bubble that should not be forgotten (Lesson #1: Valuations Matter!). To read more and find out the second important lesson, CLICK HERE.
“Working after retirement may be an oxymoron, but it’s a trend that continues to gain steam… While financial concerns are often the motivator, for many retirees the decision to pursue an encore career is more about passion than paycheck.” Today’s article outlines several dos and don’ts for those looking to pursue an “encore career” in retirement. Do? Focus on certain skill sets. Don’t? Make it about money (“If your primary objective is income…you’re better off going back [to the job] where you were”). To read all the author’s encore career dos and don’ts, CLICK HERE.
“Retirement is a major milestone that brings many life changes. One thing that doesn’t change for most people: the fear of running out of money.” In fact, today’s article cites a recent survey finding that “the most frequently reported retirement worry is outliving savings and investments.” As such, the author examines 12 ways in which one could, in fact, go broke in retirement and, more importantly, how to avoid them. While some of these situations are largely outside of one’s control (e.g. you get sick), the author shows how proper financial preparation can still mitigate their impact. To see all 12 ways to go broke in retirement and what steps can be taken to avoid them, CLICK HERE.
“Retirees have special concerns when evaluating state tax policies: Are Social Security benefits taxed? Does the state impose its own estate tax? Are there property tax breaks for seniors? The answers can greatly affect the financial well-being of fixed-income retirees.” Today’s article identifies the 15 states that impose the highest taxes on retirees based on Kiplinger’s 2015 analysis. To find out which states taxed their way onto the list and see their policies in regards to the aforementioned tax questions and more, CLICK HERE.
“In many ways, retirees seem perfectly positioned to succeed as entrepreneurs,” states today’s article – pointing out that, among other things, retirees have the wisdom that comes from experience, and are more aware of their strengths and weaknesses. However, it also points out that “what retired entrepreneurs don’t have is time…to recover if their entrepreneurial efforts fail.” As such, the author outlines five questions retirees contemplating a shot at entrepreneurship should ask themselves in order to ensure that both their new business venture and their nest egg are protected. What are these critical questions? CLICK HERE to read more.
“Americans running their own businesses wear many hats… [including] that of retirement benefits coordinator,” states today’s article. “If you’re an independent contractor or an entrepreneur, you have to fend for yourself when it comes to benefits, including retirement planning….” As such, the author outlines two retirement-planning vehicles for the self-employed – solo 401(k)s and SEP IRAs – and the benefits and restrictions of each. Which savings vehicle offers more flexibility? Which can be set up in a matter of minutes? Which might be “the best course of action for many contractors and freelancers”? CLICK HERE to find out.
“As Tax Day approaches…you may be looking at a whopper of a tax bill and wondering where you’ll find the money to pay it. And then you might think: Hmmm, I have some money sitting in my 401(k). Maybe I should take out a 401(k) loan to write a check to the IRS….” Today’s article examines the benefits, cost and drawbacks of taking out a 401(k) loan for your taxes. To read the author’s comprehensive assessment of this strategy, as well as what might be a better alternative, CLICK HERE.
“Discussing the end of life is never easy,” affirms today’s article. However, it warns that “because women live an average of four years longer than men…if the man takes the lead on family finances, the woman could be in for trouble one day.” It is against this sobering reality that the author outlines five things couples can do in retirement to guard against this happening, from the practical (e.g. communicate!) to the technical (e.g. simplifying accounts such as multiple IRAs). To see all five suggestions, which may prevent a great deal of stress for you or your partner down the road, CLICK HERE.
“Baby boomers beware: A major retirement expense may be hiding in your mouth.” Today’s article explains that, while “a majority of those age 50 to 64 either believe that – or are unsure whether – a Medicare health insurance plan will cover routine dental care”, Medicare, in fact, does not cover most dental care (or procedures, or devices). Recognizing that “those expenses can really add up, taking a big bite out of your nest egg”, the author outlines four ways in which retirees can save on their dental bills. CLICK HERE to find out what they are.
“It’s when the big things happen — the catastrophes and near-catastrophes that occur in life — when having enough savings can keep your world from crashing down around you, or at least feeling like it is.” Today’s article emphasizes the importance of having an emergency fund and outlines “eight scenarios where a pile of cash can really save the day.” What are these eight situations, how many months of living expenses do most financial experts recommend having available in an emergency fund, and what percentage “of Americans don’t have enough money saved to carry them through an emergency”? CLICK HERE to read more.