Blog - SafeMoney.com

For IMMEDIATE support, call 877.GROW.SAFE (877.476.9723)       

Retirement Planning Blog

on 06 February, 2019

what might spending look like in retirement

Thanks to progress in healthcare and technology, you may expect to have a long retirement. But living to 100? While a lofty milestone, it’s not as out of reach as it may seem.

In 2014, U.S. government statisticians found that the number of people reaching age 100 had increased 40% from four years prior. And by 2050, the “100 and up” crowd is expected to grow to 3.68 million people worldwide.

Given the reality of lengthening lifespans, it’s no wonder why outliving retirement money remains a top concern. In a 2017 Allianz Life survey, almost two-thirds of surveyed Americans (63%) said they worried about running out of money in retirement more than death!

Financial planners and advisors call this chance of outliving your money a “longevity risk.” Building a well-defined retirement strategy will help you guard against this hazard, not to mention enjoy more financial peace of mind in your golden years.

Building a Financially Confident Retirement Lifestyle

A rock-solid plan will lay out how you maintain your lifestyle with the retirement income and assets at your disposal.

Whether someone lives to 100, goes beyond, or simply faces the prospect of a long-time retirement, the importance of managing your income and expenses also can’t be overstated. And it’s equally important to recognize that income alone doesn’t solve all problems in retirement if you don’t have a plan.

To help you plan for these golden years on the expense side of the ledger, we have assembled some general guidelines. For illustration, here’s an idea of typical expenses you might expect as you go through the three stages of retirement:

  • Go-Go, 60-75: Just starting out, fit as a fiddle, traveling and living the dream
  • Slo-Go, 75-90: Grandkids are growing up, may be time to consider selling the house or downsizing
  • No-Go, 90+: Hung up your traveling shoes, every day is a blessing

Read More
on 02 January, 2019

2019 market roller coaster

While a volatile stock market is often referred to as a roller coaster ride, the closing days of 2018 seemed to have been the next step up.

After a prolonged growth period, the market moved into a new record-setting path of volatility. And some financial pundits suggest that it may continue in the new year. Welcome to the new reality of 2019.

The week before Christmas, the Dow notched its worst weekly loss in a decade. This was followed by a Christmas Eve drop that was the worst on that date in the stock market’s history. These precipitous declines propelled the market to the edge of a bear market, which is considered a 20% decline from the market’s most recent high point.

Then, the Dow whiplashed to climb by 1,000 points. This was the highest one-day point gain ever. CNN.com called these events “a head-spinning, jaw-dropping 10 days in the markets.”

But with healthy employment figures and a surge of buoyant holiday shopping, how did things get here? And what could the new market volatility mean for those trying to plan for a successful retirement—and for those who already retired?

Read More
on 31 January, 2019

average vs compounding returns in retirement

Most people consider investment returns as a benchmark for judging the performance of their portfolio. This may be especially true for retirees and pre-retirees who likely have been invested in the market for some time. That experience might have been through brokerage mutual fund investments, brokerage accounts, or even retirement savings plans such as 401(k)s or IRAs.

But the reality is that many financial concepts rely on average returns to forecast future portfolio activity. Yet compounding growth and compounding losses are the real-life factors that will potentially affect a portfolio’s value. 

This is strongly exemplified in sequence of returns risk, a potential hazard for American retirees. And that doesn't apply to only retired households.

Sequence risk can also linger for soon-to-be-retirees, especially during the “retirement red zone,” that critical decade of five years before and five years after one retires.

Read More
on 18 December, 2018

retirement concerns decline with age

With age comes wisdom - and apparently the ability to better handle unexpected expenses, according to the Society of Actuaries (SOA).

In their recent study, the SOA analyzed financial risk management across generations. Chief among their findings? That "the ability to handle unforeseen expenses increases with age, peaking with Early Boomers and then declining for the Silent Generation." 

It's one of many findings according to the study, "Financial Risk Concerns and Management Across Generations." The Silent Generation refers to those born between 1925 and 1945.

The SOA based its finding on the fact that 6 in 10 Early Boomers say they could afford a $10,000 expense using their savings or emergency funds. Yet "only 46% of Millennials would use their savings, which is not surprising since they have lower assets and more competing financial priorities."

Those in the Silent Generation remain vulnerable. The SOA reports that half of them aren't able to use their savings for an unexpected $10,000 expense.

Read More
on 24 January, 2019

fegli insurance for federal employees

If you are an employee of the U.S. government, then you and millions of your colleagues have access to the largest life insurance program in the world: the Federal Employees’ Group Life Insurance Program (FEGLI). It's one of a number of employee benefits available to the federal civil service.

Created in 1954, FEGLI provides group term life insurance that may serve several purposes.

Federal employees depend on FEGLI for many reasons in the event of untimely death: income replacement, death benefit protection, coverage for debts or expenses that may overwhelm survivors, financial safeguards for young families, and other benefits.  

FEGLI often features a lower requirement for participation compared to other life insurance policies. For private-sector group life insurance – or just personal life insurance coverage in general – people are often required to undergo a medical examination or to meet other eligibility criteria.

Read More
in Annuity
on 12 December, 2018

annuity mistakes avoid

Whether you are considering purchasing an annuity or you already have one, there are some key mistakes to avoid in order to benefit from annuity ownership.

The pitfalls below have tripped up many annuity buyers. Our insider tips on knowing what to look out for can prevent you from experiencing the same fate. Use these tips to help you in simplifying your annuity buying decisions or in optimizing your annuity contract as part of your retirement strategy.

Mistake #1: Thinking you can get out of an annuity at any time.

Insurance companies stipulate “surrender” periods in an annuity contract for a reason. They want you to hold the contract for at least that length of time.

These surrender periods are part of annuity contracts for many reasons. One of the most important is it helps the insurance company maintain the guarantees it’s promised to you as a policyholder.

Read More
on 17 January, 2019

2019 advisor economist outlook

As 2019 begins, two new surveys suggest that both advisors and economists aren’t so optimistic about where the economy is headed.

This kind of insight from industry experts is useful, but especially to those who are approaching retirement. Knowing what pundits and advisors believe could lie ahead, and exploring what action can be taken in case of any untimely disruptions to their portfolios, is critical to those within five to 10 years of retirement.

So, what do advisors and economists see when they look ahead? They see the shakiness of 2018 leading to a potentially rocky 2019.

Read More
on 06 December, 2018

10 most tax friendly states for retirees

While Uncle Sam plays a part in your retirement, he isn’t the only tax man. All 50 states are also partners to some extent.

Many state governments depend on income taxes for public revenues, and in some, city governments take a piece of the income tax pie as well. And what about the states that don’t have an income tax? They rely on other revenues, like gas, property, and sales tax collections.

If you are among the growing numbers of Americans who wish to retire elsewhere than your current community, take note. Many variables play into people’s choice of retirement relocation: the cost of living, unemployment rate, work possibilities, social opportunities, and closeness to people and causes that you hold dear.

However, they aren’t the only factors, as taxes can take a bite out of retirement income. It’s important to see how your tax situation might affect your bottom-line in any places you may be considering. 

Every year, Kiplinger publishes an updated, annual guide to state taxes. Their findings show how state and local government taxes are “all over the map” – and how living in different states can be a difference of thousands of dollars in income, depending on your retirement tax situation.

Just as importantly, the guide includes an analysis of each state’s “tax friendliness” for retirees. Those judgments are based, in large part, on taxability of Social Security payments, exemptions for other retirement income, and property tax rates.    

Here’s a look at the top 10 most tax-friendly states for retirees in the U.S., as ranked by Kiplinger.

Read More
on 09 January, 2019

ring in retirement resolutions

A new year has dawned, and you can feel the anticipation in the air. People everywhere have scribbled down their New Year’s resolutions, as 2019 has swept in the allure of new beginnings.

A world of opportunity awaits!

Perhaps with a nod to another passing year, many of us will put eating healthier at the top of our list of resolutions. Hitting the gym more often (or even at all), being more productive with our time, and perfecting our work-life balance are perennial New Year’s Resolution favorites.

And for those in their 50s who have visions of their ideal retirement, the New Year is an ideal opportunity to take stock of what they want to achieve. It’s a time to evaluate where they are in terms of reaching that goal, and to reflect on whether they need to create or refine a retirement plan that will help them get there.

Especially for those who are planning on retiring within the next five years, here are three New Year’s Retirement Readiness Resolutions.

Read More
on 29 November, 2018

year end financial checklist

With the holidays upon us, many demands compete for our time. It can be hard to sit down and organize our financial lives as the year draws to a close. Indeed, it might appear easier to put off financial planning and review until the New Year.

That being said, there are still money moves you can think about doing before the year ends. After all, life doesn’t take a straight path. People’s needs, goals, and situations change.

Making these moves before year-end can help with managing money-related stress in the upcoming year. Not only that, it can help you get started on the right foot. And if by chance you could meet with a financial professional for your annual review, you could measure progress, see where to improve, and set new goals.

Here are some savvy money moves to consider making before the New Year rolls in, so you can improve your financial wellness, your peace of mind, and your bottom-line.

Read More

Proud Member

 FBIC LogoHorizSOFA Logo1LegacyShieldSafeMoney

Contact Info

Safe Money Broadcasting Home no glow img

1107 Key Plaza #450
Key West FL, 33040-4077
1.877.476.9723
(877.GROW.SAFE)

;