Jerry Golden on Retirement

Would you rather spend that extra cash or make it last a lifetime?

January 24, 2018 By Jerry Golden in Annuity Tags: Annuities, Baby Boomers, Estate planning, QLAC, retirement income

Save it or spend it? That’s the question to answer when you find extra money.

Our friends at Kiplinger’s Personal Finance magazine headlined its February 2018 issue with great approaches when the figure at hand is $1,000, $10,000 or $100,000. I have some ideas, too.

The best opportunity with money that you unexpectedly discover – either from a windfall or cuts in spending you have achieved – in my view centers on “leverage.”

Leverage can mean different things to different people. It can be financial leverage by borrowing money to buy a property you can’t pay for with cash. Or political leverage when the majority needs the minority to pass legislation.

I like the following definition of leverage: “using something to maximum advantage.” More

Why I don’t do a Top 10 list

January 9, 2018 By Jerry Golden in Income Power Tags: Annuities, retirement income

Everywhere you turn this time of year you will see a Top 10 list. Whether it’s automobiles, restaurants, vacation spots, chocolates or gardening tools, you will find someone willing to guide you.

I don’t think Top 10 lists always work for you, particularly when it comes to retirement security.

Let’s take restaurants as an example of why lists often fail. Unless you have your own jet, a list of Top 10 restaurants in the country won’t help you decide on a site for your anniversary dinner the next month. A more helpful list would describe restaurants within, say, 30 miles of your home.

Or perhaps you prefer Italian. Therefore, information on French, Indian or Vietnamese restaurants is not of much interest to you. Now you’ve narrowed it down to Italian restaurants within 30 miles of your home. But you prefer northern Italian cuisine.

Bottom line, before you start your search for the restaurant, decide what you want in terms of location, cuisine (even region) and, of course, your budget.

Wrapping up 2017 — and wishing for a retirement czar

December 28, 2017 By Jerry Golden in Social Security Tags: Annuities, retirement czar, retirement income, Social Security

An open letter to my U.S. senators:

Dear Senator,

I keep my preferences regarding Republican vs. Democrat to myself, but I have to admit I’ve never spent so much time talking about politics with my friends and spouse as I have in 2017. What a year!

As the country takes stock and we head into 2018, I would like to share my thoughts with you about retirement — the area of government I’m most interested in both professionally and personally. The question is what role should the government play in encouraging retirement savings and providing income, healthcare and long-term care for those who aren’t able to save enough?

Based on my experience and research, “retirement” ought to have a seat at the table and have someone represent the interests of current and future retirees. More

How to put income into retirement INCOME planning

December 12, 2017 By Jerry Golden in Income Power Tags: Guaranteed Income, Income annuities, Income power, retirement income

I’ve been preaching about the importance of securing true income in retirement for a long time. And for just as long, I have seen that financial firms and advisors tend to view retirement planning as simply the accumulation of savings before retirement and the drawing down of savings (often described as “deaccumulation”) after retirement.

Of course, saving is important. But creating a plan to turn that savings into reliable income after you stop working full-time is the real answer to enjoying a satisfying retirement.

When I wrote about the 40th anniversary of the 401(k), I argued that for all its value in helping people to save, it does not replace the traditional pension, which offers guaranteed income for life.

The 401(k) reaches 40, and needs work to fully reach its retirement promise

December 7, 2017 By Jerry Golden in Annuity 1 Comment Tags: 401(k), Dependable spendable income, traditional pension

On its 40^th anniversary, let us celebrate the 401(k). And then let’s get to work solving the problems left unresolved a generation ago.

The 401(k) has enabled millions of everyday workers to put away substantial sums for retirement, do it conveniently and get some tax savings. Without this mechanism and without the discipline of regular savings, future retirees might be left with just Social Security to rely on.

As you have probably heard, about forty years ago corporations that experienced the rising and fluctuating cost of traditional pensions stopped offering this lifelong, guaranteed source of retirement income. Instead, employees were steered toward the 401(k), where they could save pre-tax dollars for use when they stopped working.