Archives for Retirement

Top 5 Things Baby Boomers Should Know

The Social Security COLA (cost of living adjustment) in 2019 will be 2.8%. This is the largest COLA increase from the Social Security Administration since 2012.1 Social Security benefits are often taxed. If you work and are at full retirement age or older, you can earn as much as you want and your benefits will not be reduced; however, you may have to pay taxes on them. If your annual combined income is from $32-$44,000 filing jointly, you may have to pay taxes on 50% of your benefits. If your income is more than $44,000 filing jointly, then you may
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Categories: Retirement.

7 Things You Should Know About Medicare Before You Retire

It’s important to understand the facts about Medicare before heading into retirement. Here is a basic overview of seven things you should be aware of when it comes to this important federal health insurance benefit. But keep in mind that certain parts of the Medicare program vary by state, so you will want to get more in-depth information before you turn 65 based on your primary retirement residence. It’s not free. Even though studies have shown that Medicare is cheaper than most health plans offered by private insurers, it still does not cover all health costs when a person retires.
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Categories: Medicare and Retirement.

7 Hidden Retirement Risks

Longevity The average life expectancy has increased. Chances are that if you’ve reached 65 years old you will live into your mid-80s according to life expectancy calculations. Many are living even longer—one in four people will live into their 90s, while one in ten will live past 95. Make sure that your retirement plan takes longevity into account so that you don’t run out of money—no matter how long you live. Loss of Income Make sure both you and your spouse are protected from the unexpected. Consider the financial impact of the loss of one spouse, running the numbers both
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Categories: Retirement.

Retirement Planning In a Continued Bull Market

The bull market for equities continues to defy predictions of an impending correction. Most economists maintain that it’s not if a pullback will happen. It’s when. That being said, vigilance in this environment is critical, particularly in retirement. Is It Time to Rebalance? Since stocks bottomed out in 2009 after the financial crisis, we’ve seen them come roaring back at about five times the rate of the bond market. If you haven’t been rebalancing your asset allocation during this period you may have too much risk in your portfolio—and it not might be from stocks. For example, former CNNMoney “Ask
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Categories: Economic Indicators and Retirement.

Volunteering in Retirement Offers Tangible Benefits

Volunteerism among retirees is popular these days and the activity seems to help them live longer. Studies from the Corporation for National and Community Service show people who volunteer “report lower mortality rates, lower rates of depression, fewer physical limitations and lower levels of stress than those who don’t volunteer.” Data from their 2014 study shows that more than 20 million older adults (55 and up, representing around a quarter of the 55+ population) average more than 3 billion hours of service in their communities annually. The value of this time is estimated at $75 billion. Tax Deductible Volunteering has
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Categories: Retirement.

How to Live Longer and Better: New Research.

Work Longer, Live Longer. People who retire early tend to die sooner than those who delay retirement, and recent research provides new proof. A 2016 study by Oregon State University provided some startling numbers. Researchers found that healthy adults who retired one year past age 65 had an 11 percent lower risk of death from all causes, even when taking into account demographic, lifestyle and health issues. Even adults who described themselves as unhealthy were likely to live longer if they kept working. “It may not apply to everybody, but we think work brings people a lot of economic and
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Categories: Lifestyle and Retirement.

Have You Sown the Seeds for a Bountiful Retirement?

As the leaves turn brilliant colors and the weather cools, harvests are underway across the farmlands of America. The bounty that will be headed toward our tables is the result of seeds sown months before. This is an excellent reminder that, in order to reap the rewards of a bountiful retirement, you need to plant the right seeds in advance. This is a critical issue for baby boomers, as the results of a 2016 survey on retirement readiness (by PNC Bank) revealed: • 55% worry their savings may not last as long as they will. • 74% haven’t reached the
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Categories: Retirement.

“What’s Your Retirement Number?” May Not Be the Right Question

We’ve all heard the advertising. “What’s your retirement number?” This question is based on asset accumulation. If we knew exactly how long we were going to live, that calculation might be valuable. But since we don’t know that timeframe, the better question to ask is, “How much sustainable income will I need during the different phases of my retirement?” Asset accumulation is normally the goal, pre-retirement. When planning for retirement, the focus shifts to developing sustainable income. Sustainable Income The primary purpose of sustainable income is to create a predictable amount to cover expenses throughout the phases of your retirement.
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Categories: Financial Literacy and Retirement.