Baby Boomers Archives - Page 2 of 5 - Jerry Golden on Retirement

How interest rates affect income annuity choices

March 15, 2017 By Jerry Golden in Annuity, QLAC Tags: Annuities, Baby Boomers, Guaranteed Income, retirement income

The one thing nearly every professional financial advisor will agree upon, no matter what their specific approach, is that it’s very difficult to time the stock market. Money managers who are celebrated as stars one year — because they spotted something the rest of us didn’t see – may be bums the next.

The same truth applies to the more mundane world of interest rates. Though interest rates don’t tend to soar and crash with the drama of the stock market, the only sure way to detect trends is with a rearview mirror.

So when a 65-year-old woman visited Go2Income to calculate how much money her savings could provide, she remained hesitant. She knew how much income a QLAC she was considering would pay at age 85, but she wondered if she could get more income by delaying her investment in the hopes that interest rates would rise and insurance companies would offer better QLAC rates. More

Get numbers first for better retirement decisions

March 1, 2017 By Jerry Golden in Annuity, QLAC Tags: Baby Boomers, Guaranteed Income, Jerry Golden, QLAC, retirement, Social Security

Many experts tell you to base decisions on your “gut” reaction, and often that is a good and accurate way to make up your mind, such as when you meet a politician face-to-face for the first time or your daughter brings home a new boyfriend.

But when you are making decisions about your financial future, it’s usually better to rely on reason and fact, such as numbers that you can calculate. After you have looked at the analysis and the potential results, you can make a decision that fits your life and personal preferences. More

How Trump and Congress can fix Social Security

January 10, 2017 By Jerry Golden in Interesting Articles, Social Security 5 Comments Tags: Baby Boomers, Congress, Donald Trump, retirement income, Social Security, solutions

This column first ran Dec. 15, 2016, in The Hill, a daily journal that covers the federal government and related policy issues.

As the federal government’s largest entitlement program, Social Security faces the possibility of having to reduce payouts for millions of new retired workers after 2037. To prevent what would be a political and social disaster, I hope the new administration works with Congress to fashion a non-partisan solution.

An examination of the Republican and Democratic parties’ pre-election platforms, however, suggests that the parties are pretty far apart. The Republican platform position would allow us to invest some of our Social Security savings in the stock market while making unspecified reforms to address the increasing longevity of the population.

The Democratic platform advocates higher taxes on those with incomes above $250,000 along with adjustments to cost of living payments that would more accurately reflect the spending pattern of retirees. Of course, we all understand that platforms do not always indicate how policy actually gets implemented.

Worried about year-end financial decisions? You’re late!

December 15, 2016 By Jerry Golden in Annuity Tags: Annuities, Baby Boomers, Guaranteed Income, retirement income, Social Security, Year-end finances

Some people read tons of articles for year-end guidance to deal with retirement planning decisions. Lots call their accountant, money manager or advisor for advice.

My advice is no advice – it’s too late.

Too many of us spend the final month of the calendar year assembling our files of financial documents and making sure we take Required Minimum Distributions (RMDs) from our 401(k) or rollover IRA accounts. We figure out our realized capital gains from mutual funds or stocks to date, and see if we should realize more gains or losses. We estimate our taxes for the year and consider converting a rollover IRA to a Roth IRA. Then we squeeze in tax-reducing donations to charity or the kids, along with any number of additional important actions. More

6 really good (3 are brilliant) retirement ideas

October 19, 2016 By Jerry Golden in Social Security, Two-stage retirement Tags: Annuities, Baby Boomers, retirement income, Social Security

Retirement planning encompasses a wide range of consumers and advocates, from those who have no idea what to do to those who will suggest anything, no matter how unrealistic, to all but a narrow niche of consumers.

Your plan, then, should be built on the middle ground, with reliance on no single product or tactic. Rather it should consist of a mix of proven, safe and thoughtful approaches that will generate enough income to ensure you never run out of money.

There are plenty of ideas to choose from. GoBankingRates.com, a website that tracks interest rates recently published an article listing 25 ideas for retirees to consider. I focused on those addressing retirement finances, and I liked three of them enough to highlight here – followed by another three of my own ideas that everyone should consider. More