You have had your dream retirement in the back of your mind your entire life.
Whether that movie in your head shows you traveling to exotic lands, spending quality time with your grandchildren, or turning a lifelong hobby into a business, retirement isn’t the end of your story. It’s the beginning of an exciting new sequel.
But how do you make the retirement of your imagination a reality? For many, bringing their ideal retirement to life includes consulting with a financial professional who specializes in retirement planning services.
If you have a nest egg, you have experience in personal finance. Earning an income and saving for a “rainy day.” Building wealth in equity markets, and putting away money into a 401(k), IRA, or other retirement account.
But those are all actions on the front side of retirement—called the accumulation phase. The backend? It’s known as the distribution phase, or how you draw retirement income from those assets accumulated over many years.
How you prepare for reliable income streams in retirement will determine if you live out the retirement of your dreams — or possibly deal with some scaled-down version.
Finding the right retirement planning services can help strengthen your chances of a confident lifestyle. Read More
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 an 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. Read More
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
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
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
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
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
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. Read More
Buckle up, everyone. The holidays are just around the corner. And while they bring a spirit of joy and cheer, they can also be a stressful time for many Americans.
From Thanksgiving dinners and holiday shopping to seasonal parties and family get-togethers, there is no shortage of events in which folks participate.
Aside from the festivity, fellowship, and merriment, however, people can “feel the heat” in their money matters in a number of ways. And how might that be?
The pressure to overspend, for one. According to a recent survey by NerdWallet, a little over half of all Americans (51%) say they “typically overspend” on gifts.
Meanwhile, 39.4 million Americans are still paying off debt from last year’s holiday spending spree. And gift shopping is just one of many seasonal expenses that can keep the holiday cash register ringing.
Expenditures such as these can put the strain on retirees, who are more likely to have fixed incomes than other age groups. Not only that, the pressure of growing debt loads can have an impact on people’s retirement goals, not to mention any other financial objectives they may have.
But there is good news. Taking the right steps can go a long way toward achieving more financial security. If you, and your partner, are in your 50s or 60s, it’s good to start laying out your goals, mapping out a strategy for your future, and taking action so your money can work hard for you.
Here are some steps you can take to improve your financial wellness and potentially be more confident for the years ahead. Read More
Woulda. Coulda. Shoulda.
That is how a surprising number of retirees feel about their tax planning. In a recent study by Nationwide Retirement Institute, staggering proportions of retired Americans wished they had done more to prepare for their sometimes-surprising tax bills.
Over the course of the “Retirement Income and Tax Planning Consumer Survey,” researchers asked people in different life stages about their preparedness for paying taxes in retirement.
The survey was revealing. An estimated 60% of future retirees, 70% of recent retirees, and 75% of those retired for more than 10 years said they are only “somewhat knowledgeable” or “not at all knowledgeable” about tax planning in retirement.
That’s right. Three of every four people retired for at least a decade still admit to feeling less than certain about planning for taxes in retirement. Read More
