Retirement Planning Education

When it comes to lifestyle, it can be said that we have “two” lives – or rather two different life phases. The first phase is the working years, or when we work for a living. The second phase is retirement, or when we can choose to stop working, should we desire to, and do what we want. From volunteering or spending time with family to social gatherings, vacation getaways, gourmet dining, or personal luxuries, there’s no shortage of ways we can enjoy our time in retirement.

However, many Americans who are retired or nearing retirement face unique barriers – financial challenges which can keep them from enjoying the lifestyle they worked hard for. Preparation is key, so the importance of planning ahead can’t be overemphasized. Here’s a quick look at some common financial challenges to account for. Read More

Chances are you have heard of “safe money” at some point. From financial talk shows and radio commercials to television broadcasts and retirement seminars, it’s a concept that is all over the place. “Safe money” is commonly defined as the money you can’t afford to lose.

But for those of us approaching retirement, what does that mean in real-world terms? Many advisors explain safe money in investment terms. For example, it could mean discussion of “safe money investments,” or vehicles with less exposure to market volatility.

A downside with this approach is its investment planning focus. We have discussed how retirement planning should emphasize monthly income over asset values in its goal-setting. After all, retirement is a life stage in which we draw on a nest egg and other income sources for income – wealth we have accumulated over many years for this timespan. So, when discussing “safe money” in retirement, we shouldn’t frame it in terms of only the possibility of money losing value. Read More

In the past, we’ve covered some of the financial challenges seniors are likely to face in retirement. In turn, these hassles have played a role in shaping Americans’ retirement expectations. One of the growing trends is post-retirement employment.

At present, many people have a shortfall in retirement funds. For instance, the Boston College Center for Retirement Research found many Americans were greatly underprepared. According to the center’s data, as of 2013 half of American households didn’t have enough money to sustain their current standard of living in retirement.

Despite this challenge, many Americans believe working longer will help cover the shortfall. This belief is increasingly giving way to a new expectation: that post-retirement employment in itself is enough to make up for not having a retirement plan. But the truth is many factors can unbalance this approach and lead to unnecessary financial hardship. Read More

In a prior blog, we’ve covered what a dream retirement lifestyle may look like. Other discussions have centered on the importance of planning for retirement or the array of retirement vehicles available. But what about the process of retirement planning itself?

Retirement planning isn’t limited to just people and their advisors. When someone reaches retirement age, support networks become important. Responsibilities shift. Family members are actively involved in their parents’ caretaking. Or they may take on the role of caretaker for their parents. Read More

We’ve already covered how the retirement landscape in America is changing. One contributing factor is the changes being made to defined-benefit pension plans. In the private sector, defined-benefit pensions simply are disappearing. According to Towers Watson, over the last 15 years there has been a big decline in the number of largest American companies offering new hires defined-benefit pensions. That percentage took a 36-point nosedive from 60 to 24 percent.

There also has been pressure on defined-benefit pensions in the public sector. In mid-June, the Obama administration announced it would be looking at ways to cut benefits in multi-employer private pension plans. Over 10 million people are covered by about 1,400 multi-employer plans. It’s been estimated around 1 million of those individuals would run out of money in the coming years. Hundreds of thousands of retirees would be affected with the benefit cuts. Read More