The findings of a recent study suggest that “retirees tend to reduce spending once they realize they are unprepared for how quickly expenses add up.” However, the study also found that certain subsets of retirees – such as retirees with pensions – spend considerably more than average, which the author of today’s article points to as reflecting “the power of predictable income”. Where does that leave retirees without pensions? The author highlights one strategy they can use to harness this power. CLICK HERE.
When it comes to amassing enough wealth to be able to fund the retirement lifestyle of your choosing, there are a number of potential sources to consider beyond a 401(k), including Social Security, pensions…and employee stock options. In regards to the latter, how can employee stock options be best incorporated into one’s overall retirement plan? Acknowledging that “the answer can get complicated”, the author of today’s article details the considerations involved – including some critical tax considerations. For more, CLICK HERE.
Traditional corporate pensions have largely fallen by the wayside in recent decades – but there is a way that investors in particular situations can still get a pension-like benefit in retirement: personal defined-benefit plans. The author of today’s article notes that, while few investors are even aware they exist, “they very much do, though now it’s up to us to set them up. And there can be huge tax advantages for doing so.” For more – including who defined-benefit plans are right for (and who they aren’t for) – CLICK HERE.
The author of today’s article divides the 10,000 baby boomers that are turning 65 each day into two groups: those that will depend on Social Security as a major source of income in retirement and those that have more savings and will therefore be less reliant on Social Security. To those in the latter group, however, she cautions that “it’s too soon to pat yourself on the back and relax. You need a retirement war chest unless you’re in the top 1% of net worth and/or you have amazingly generous pensions.” As such, she lays out a series of do’s and don’ts for navigating “the coming retirement crisis” (e.g. Do retire as late as you can. Don’t drain retirement savings to support aging parents). To read more, CLICK HERE.
“Retirement planning has changed a lot over the last few decades. And perhaps one of the most dramatic changes is the slow and steady death of employer-provided pensions.” Today’s article examines how “for those who don’t have the backstop of a traditional defined-benefit pension plan…annuities could be an attractive way to re-create the kind of guaranteed retirement income most Americans enjoyed in decades past.” But when it comes to immediate versus deferred, and fixed versus variable, what are their respective risks and which is best for who? And what exactly are the relatively new equity-indexed annuities? CLICK HERE to read more.