two-stage retirement Archives - Jerry Golden on Retirement

Surprised by Election Results? Don’t Let it Happen to Your Retirement

November 11, 2016 By Jerry Golden in Annuity, Two-stage retirement 1 Comment Tags: Annuities, personal savings, retirement income, Social Security, two-stage retirement

As a longtime student of retirement products and planning, I’ve often been critical of most retirement calculators . I’ll go out on a post-election limb and say that it appears that most of the predictive election models suffer from similar limitations.

Retirement calculators supposedly help you determine how much money you need in the present to be able to enjoy retirement during an average lifespan. But the averages don’t work out for the situations of specific people, who aren’t average and whose lives are not governed by the assumptions built into the models.

Likewise, numerous election polls this year talked to small numbers of people and then extrapolated based on “average” voter turnout and preferences among several different groups. Even some of Donald Trump’s own pollsters told him on Election Night that he was headed to defeat, based on their interpretation of the numbers. 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

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

Rethink Your Plans for Retirement — Split into Two Stages

June 28, 2016 By Jerry Golden in Annuity, Two-stage retirement Tags: Annuities, Guaranteed Income, retirement income, Social Security, two-stage retirement

Sometimes we only get serious about planning for retirement when we hit a bump in the road that reminds us about the consequences of being unprepared.

In the video below, Sam and Sally realize their own retirement plans aren’t adequate when Sally’s parents run into problems later in retirement.

Thinking about retirement as a two-stage process can help you deal with what is often our greatest fear: Running out of money. More