Financial planners will often advise waiting until age 70 to max out the potential amount of your Social Security checks. This may be a good policy but there are many variables that affect when you should claim. Amassed wealth for retirement, personal health, job security and/or burnout are some of the top reasons people may choose to apply before age 70.
Tag: retirement
Nervous About Retirement?
‘Mary Dovel, CPA/PFS, managing partner at Telos Family Office in Charlotte, N.C., and a member of the AICPA Personal Financial Planning (PFP) Executive Committee advises that for the best outcomes when planning for retirement, “Clients are much happier when they have clarity and fewer decisions.”’
They recommend following these steps:
Start With an Overview
Consolidate and Automate
Talk About Worst Case Scenarios
Consider Test Runs
Calming nervous clients nearing retirement Read the full article, HERE.
Retirement Mistakes to Avoid
You’ve enjoyed the celebrations and a few days of “sleeping-in,” and now you’re ready to start your retired life. Evan T. Beach from Kipplinger recommends these easy steps to help start your retirement in the right direction and keep it on track for years to come.
Avoid purchasing big ticket items or taking extravagant trips. See if you can actually plan these investments while you are still working in order to preserve retirement funds. It will also keep you from tapping into social security and retirement funds too quickly which can help with your tax rates later in life. Be sure to work with your financial planner to adjust your investment strategy, be careful not to lose touch with former co-workers and other acquaintances, and create a daily schedule for yourself. All of these things are an important part of maintaining an active life in retirement.
Read more here: Five Mistakes to Avoid in Your First Year of Retirement
Best Practices Financial Q & A
Ever wonder about the best way to handle certain financial needs? Liz Weston for LA Times Business offers insight into these three situations: hospital bills, home ownership, and retirement savings. Read more for quick tips that can help you make the most of your money. For example, did you know that most hospitals offer financial assistance at low or no interest to patients who qualify?
Here’s why you shouldn’t put that huge hospital bill on a credit card
Midwest Retirement Plans
There are many large companies that brag of their attraction to America’s elite and how the states offer great places for families to live and raise their children. Some even boast of more women as part of the workforce than many other states but do any of these reasons explain why, as retirement plans everywhere have been reduced, Iowa and Minnesota remain on top? Andrew Van Dam for the Washington Post considers these questions and more in, The surprising reasons these Midwest states are the last bastion of retirement plans.
Living Off Your 401K?
Recently unemployed? Considering dipping into your 401K to stay afloat? Here are some options to consider. Fees are waived for withdrawals made from 401K accounts. Taxes must be paid but can be spread over three years. These are some of the most lenient restrictions ever imposed. Even if you decide not take money out of your account, you may want to consider moving your 401K into an IRA. Mark Miller for the New York Times in his article, Lost Your Job but Still Have a 401(k)? Here’s What to Do With It, offers advice and tips on best managing your retirement funds and money for daily living during this turbulent time.
Keeping Your Budget Organized
What tools do you use for your personal budgeting? Ever wonder if you are saving enough to last through retirement or if you have the money for a trip you’ve been wanting to take? What about teaching your children the value of a dollar and how to save, delay gratification when they see an item they want?Tara Siegel Bernard, a personal finance reporter for the New York Times explains her preferred method of saving and recommends a variety of Aps that may help you on your journey to better money management.
Among her suggestions, Mint, You Need a Budget, and PiggyBot (for kids). Read more here: Spending Is as Easy as Pushing a Button. The Hard Part? Keeping Track.
Retirement?
As clients approach the presumed age of retirement, some are beginning to question this expectation. In her article, Why retire? 10 reasons clients should keep working, Ann Marsh for financialplanning.com offers ten valid reasons why you might want to continue working, drawn from money management professionals. One sites this article as well, Voices The worst retirement advice I ever gave. What will you do when the time comes?
Avoiding Money Decisions?
Many of us, even if trained in the field, often struggle with decisions about our finances and retirement. Thinking about money opens the door to discomfort for most,m as Tim Herrarra for the New York Times states in his article, A Smarter Way to Think About Financial Decisions.
These feelings span all levels of financial training, “I have a Ph.D. in business and an M.B.A. in finance, on top of a degree in architecture, so I think I can understand financial products pretty well,” Professor Sela said. “But still, every time I get a letter from my bank, my instinct is to shove it in some drawer.”
How do we reframe our thinking and make these decisions easier? Try picturing the questions from a lifestyle vs. solely financial product view, such as, I would love to visit Paris or take a cruise around the world, as opposed to just choosing which annuity would suit you best.
Retirement Ready?
Does the thought of retirement make you nervous or are you still in the stage where you’re throwing out all the mail you get from AARP? Peter Finch for the New York Times offers a detailed, five-year plan to help you prepare. Finch explores the process by breaking each year down into easy steps, ranging from calculating self-worth/future needs, to recognizing health insurance options, investigating reverse mortgages, and considering long term care.