Two-stage retirement Archives - Page 3 of 4 - Jerry Golden on Retirement

A strategy for income as Boomers age and taxes loom

August 9, 2016 By Jerry Golden in Annuity, Two-stage retirement 10 Comments Tags: Annuities, Baby Boomers, Guaranteed Income, retirement, two-stage retirement

The first Baby Boomers turned 70½ on July 1, which means most of them have to figure out how to pay more taxes to the U.S. government. It takes a little edge off the half-birthday celebration, doesn’t it?

The oldest Boomers can still take advantage of strategies to minimize taxes, but the best approach might involve (as Boomers used to say) an attitude adjustment.

These taxpayers have been diligently putting savings in 401(k), IRA and other retirement accounts to pay for retirement. When they reach 70½ they must begin to take money out of those accounts to meet the statutory minimum of Required Minimum Distributions, or “RMDs” for short. More

Take charge of your own retirement

August 2, 2016 By Jerry Golden in Annuity, Social Security, Two-stage retirement Tags: Annuities, retirement income, Social Security

Anyone who has taken the time to fill out the input required for more than one retirement calculator will know the output results vary dramatically. Recent studies by financial and academic institutions, in fact, show that the numbers you get could vary by 60 percent or more!

No matter how much careful skepticism you apply, there is no way you can use those calculators to help you reliably plan for retirement. As I wrote in a blog post earlier this year, such calculators fail to account for several factors while determining the “magic number” you seek. In fact, calculators don’t even give you a reliable range of numbers to choose from.

The problem with calculators

Not only do calculators each use different algorithms and assumptions, they also often leave important factors, like taxes or late-in-retirement expenses, out of the equation. Also, if one calculator assumes your return on investment will be 5%, and another predicts 7%, the results will be impossible to compare. More

Live long and prosper – with a deferred income annuity

July 19, 2016 By Jerry Golden in Annuity, Social Security, Two-stage retirement 3 Comments Tags: retirement income, Social Security, two-stage retirement

Planning for old age is good. That is why I like income annuities as part of a retirement plan: because they guarantee income through your entire life, no matter how long you live.

It turns out, though, one reason people don’t buy income annuities is that they don’t like thinking about old age (and especially the end of old age). Several studies that looked into why more people don’t buy these products found that the language to describe income annuities caused potential buyers to close their computers, walk away from their desks, and promise to think about retirement another day.

Emotionally, I get it. I want to live forever, too. But the evidence is overwhelming that I will have to settle for a long and happy life, not an endless one. More

A smart mix: Family vacations and a check up

July 13, 2016 By Jerry Golden in Annuity, Two-stage retirement Tags: Annuities, retirement income, Social Security

Summer vacation is the perfect time to visit with family you haven’t seen in awhile as you enjoy the leisure activities – and check up on how your parents are really doing.

Most of the time, everything will be fine. Dad might walk a little more slowly and perhaps mom tires more easily, but it’s great to get together year after year.

At some point, though, maybe you notice something more troubling – one of your parents is having trouble remembering, or a sudden weight loss has been ignored. That’s when the squeeze begins for the sandwich generation, with the difficult and complex steps you need to contemplate, including figuring out their financial and living situations.

You may find they haven’t been paying all their bills or medical costs might loom that threaten to deplete their savings. Thank goodness you are there for your parents. It will be a trying time for you, but in many cases it would be impossible for them without you. More

Market volatility works against retirement stability

July 5, 2016 By Jerry Golden in Annuity, Social Security, Two-stage retirement Tags: Annuities, Guaranteed Income, retirement income, Social Security

The new financial and political challenge known as “Brexit” is a good reminder that your plan for the late, or second, stage of your retirement should not depend on the stock market.

In the two days following Britain’s vote to exit the European Union, the Dow Jones Average plunged 800 points. The markets have since rebounded, but here’s the question you ought to ask yourself:

Will I feel secure in my retirement if my savings are fully invested in financial products that swing so wildly and unpredictably? More