Jerry Golden on Retirement

Kiplinger’s recognizes the value of a QLAC

September 13, 2016 By Jerry Golden in Annuity, Two-stage retirement Tags: Guaranteed Income, QLAC, Qualifying Longevity Annuity Contract, retirement, Social Security

Kiplinger’s September issue of the Retirement Report featured the Golden Retirement website, Go2Income.com, in an article about Qualifying Longevity Annuity Contracts, or QLACs. Here’s what the article said about the website.

Golden’s firm, Golden Retirement Advisors, created go2income.com to help consumers shop for QLACs. If you’re interested in a QLAC, you’ve got homework to do and may need the help of an adviser. Golden emphasizes that the first step is to design the policy. Death benefit or no? Single or joint life? Cost-of-living adjustments or not? Then shop for the best deal.

During his interview with me, the reporter and I discussed why QLACs are not more popular. As he wrote, in the first quarter of 2016, only $87 million of the $729 million invested in deferred annuities went to QLACs.The view that I expressed to him is that while the product and tax features of a QLAC are attractive, QLACs should be positioned as a component of an overall retirement plan – not as a standalone product. That’s when it makes sense: As an addition to most retirement plans.

As I wrote in the blog post QLAC Introduction, “the IRS published regulations in July 2014 that allow savers to use a portion of their rollover IRA or 401(k) to purchase a QLAC, which will provide guaranteed lifetime income starting at an age you choose (but not later than age 85).” More

Real solutions to Social Security’s problems

August 30, 2016 By Jerry Golden in Annuity, Social Security 6 Comments Tags: Annuities, Baby Boomers, retirement income, Social Security, Social Security Reform

Last week, we examined the Republican and Democratic parties’ platforms regarding Social Security. The Republican position would allow us to invest some of our Social Security savings in the stock market. The Democrats advocate higher taxes on the wealthy to ensure Social Security solvency.

This week, I offer my own platform, a list of proposals that I think provide common sense solutions to the real problems that the Social Security system faces, while offering some new benefits.

Jerry’s Platform on Social Security and retirement security

GOP and Democratic Social Security fixes both fall short

August 24, 2016 By Jerry Golden in Social Security, Two-stage retirement 1 Comment Tags: Annuities, Baby Boomers, retirement income, Social Security

With election season in full swing, the Republican and Democratic parties are running on platforms that explain how they would tackle difficult problems facing the country. I was particularly interested in their stands on Social Security. As the government’s most expensive program, which affects millions of workers and which faces the possible need to reduce payouts after 2037, leaders of the two parties will have to do something eventually.

What they choose to do would affect each of us in different ways, ranging from no change in our circumstances to potentially large adjustments in lifestyle. I consider myself neutral in the political debate, beyond desiring a solution that doesn’t lead to calamity. With that in mind, I present both parties’ stances on Social Security in this article, and also examine some possible approaches that I believe would lead to financial health for retirees in a second article to be released next week.

When it comes to Social Security, here are my general principals: More

The joys of parenthood: Paying for college while planning retirement

August 17, 2016 By Jerry Golden in Annuity Tags: Annuities, Baby Boomers, retirement

One of my first assignments as a junior actuary was to analyze a new program that helped students to afford college. It was a public-private loan program that varied students’ repayment responsibilities based on how much money they made after graduation. For each $3,000 borrowed, a student-borrower committed to paying the loan back with 1% of their earnings. So if four years of college cost $24,000, the student committed 8% of their earnings.

The loan had a market rate of interest and you kept paying until the balance was paid off.

If you had a well-paying job, you paid down the loan quickly. If you were teaching poetry to prison inmates, you might only pay off the interest and never repay too much of the principal. My job was to look at the “actuarial aspects” of the loan program and price the insurance cost of paying off the loan in the case of death, disability or unemployment.

That project has influenced my position on paying for college ever since. More

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