How To Avoid Having Your Retirement Devastated By The “Tax Time Bomb”

2019-03-30 21_11_49-Eventually everything hits the bottom... _ HD photo by Aron Visuals (@aronvisualIt’s an unwelcome surprise for many retirees: having to pay more taxes in retirement than when they were working. In fact, one financial security expert cited in today’s article warns that “tax-deferred retirement accounts such as a 401(k), IRA, or 403(b) can be like sitting on a tax time bomb”. What are the two main reasons Americans are paying higher taxes in retirement than when they were working, why is the tax burden on retirees likely to only worsen from here, and what’s one strategy that can help avoid the tax time bomb? CLICK HERE.

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How Starting Valuations Could Make Or Break Your Retirement

2019-03-25 08_16_43-Hammer, mallet, wooden and toy HD photo by Markus Spiske (@markusspiske) on Unsp“While the market has long periods of high returns, it has even more long period of low returns. Investors have seen entire decades delivering nothing but losses,” notes the author of today’s article – and this reality is critical for retirement planners to be cognizant of, given that financial advisors often use overly optimistic return assumptions when creating retirement plans for clients. For more – including how today’s lofty valuations could “determine your returns for the next 10 years” – CLICK HERE.

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A “Divergent Thinker’s” Homey Retirement Formula

2019-03-23 22_29_16-System of equations photo by Antoine Dautry (@antoine1003) on UnsplashWhen it comes to determining how much money you need to retire, there is no lack of opinions out there. Today’s article, however, highlights “an elegant solution to the problem” devised by one financial advisor that the author describes as a “divergent thinker”: a simple formula based on the market value of your house. For this formula – and why the author declares that, when it comes to retirement savings, “The house drives everything. The house drives everything. The house drives everything.” – CLICK HERE.

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How To Wreck Your Retirement – With Minimal Effort

2019-03-21 21_37_26-Red, tranquil, minimal and focu HD photo by Zorlu Tuna Koç (@ztuna) on UnsplashOnly save in tax-deductible accounts – and disregard Roth accounts. Claim your Social Security benefit at age 62 – whether you need it then or not. Plan on your expenses dropping significantly once you leave the workforce. Double down on your employer’s stock. Ditch stocks for bonds when the market goes south. These are five of the 20 ways identified in today’s article that you can go about “wreck[ing] your chances of a financially comfortable retirement”. For more, CLICK HERE.

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Controlling “The Retirement Equation”

2019-03-18 09_31_47-1 + 1 = 3 Text on Black Chalkboard · Free Stock PhotoAs part of its 2019 Guide to Retirement, J.P. Morgan Chase includes a simple chart that presents a “sound plan for retirement.” The chart depicts six different factors (two that retirement planners have total control over, two they have some control over, and two that are out of their control), with the investment bank advising to “Make the most of the things you can control but be sure to evaluate factors that are somewhat or completely out of your control within your comprehensive retirement plan.” For this chart – and some guidelines on how to make the most of the factors you have total or some control over – CLICK HERE.

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A Better Approach To De-Risking Your Retirement Portfolio

2019-03-17 21_00_24-WindowWhen it comes to de-risking your retirement portfolio, the author of today’s article suggests thinking of it as being akin to de-icing your car, noting that “de-risking is important. It helps insulate your future retirement income from a market plunge that could occur near, or soon after, your retirement date.” In terms of how to de-risk, however, she advocates taking a different approach than the one traditionally employed – “a planning process that tells you when to de-risk your retirement money based on your goals.” For more, CLICK HERE.

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Mini Retirements – And Other “Alternative Retirement Options”

2019-03-13 22_03_15-Morning Walk photo by Fancycrave (@fancycrave) on UnsplashIt’s hard to imagine that what is perhaps most people’s primary financial preoccupation today – retirement – was not always a common thing. In fact, today’s article notes, there was a time when this life stage that everyone strives to achieve today was not considered desirable! Today, the question is not so much whether retirement is desirable but what type of retirement is most desirable for you. Along with the well-known traditional and early retirement options, the author outlines three “alternative retirement options” – temporary retirement, semi-retirement and mini retirements – and the advantages and disadvantages of each. For more, CLICK HERE.

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Delving Into “The Nastiest Hardest Problem In Finance”

2019-03-11 08_23_28-Rubik’s cube photo by Olav Ahrens Røtne (@olav_ahrens) on UnsplashToday’s article calls it “the nastiest hardest problem in finance”: retirement spending strategies. And unfortunately, despite the complexity inherent in retirement spending strategizing, it is often subject to simplistic rules of thumb, most notably the 4% rule. The author outlines the dangers associated with the 4% rule, how it “can go very badly”, and the implications of this for the FIRE (financial independence, retire early) movement. For more, CLICK HERE.

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The State Of – And Strategies For – Retirement In America

2019-03-10 14_58_43-1000+ Beautiful Old Age Photos · Pexels · Free Stock Photos“Maybe your retirement plan is on track, but that doesn’t mean you can rest easy. We all exist within a society and an economy. Its problems are ours, too, as we may find out when taxes rise to help pay for others to retire,” warns the author of today’s article. He proceeds to examine the state of retirement in the U.S., including how Social Security is not enough for a secure retirement, the disturbing reality regarding Americans’ retirement savings, the “indexing problem” inherent in retirement accounts, and the “double problem” facing Baby Boomers. For more – including some strategies to help counter these concerns – CLICK HERE.

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