Posted on July 19, 2011 by Erin
When most people think of the tools used for planning their retirement, they think about 401k’s, pensions and other funds that are typically associated with employed wage earners. But what happens if you or your spouse forgo a paycheck and stay at home? What kind of retirement planning is available to you?
One way to collect money is through Social Security’s spousal benefits. A spouse who has never worked under Social Security can receive a benefit equal to one-half of the working spouse’s full retirement. But just like regular Social Security benefits, it’s a good idea to diversify and not rely fully on this as your sole retirement income. Another available option is funding what is known as a Spousal IRA. If one spouse is working and the couple files a joint federal tax return, the non working spouse can contribute up to $5,000 into their own IRA or ROTH IRA.
Need more tips on how to fund retirement for a non-working spouse? Get ideas here.
Would spousal benefits be a good idea for you? Read more about them, here.
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Posted on July 13, 2011 by Erin
Did retirement sneak up on you? Do you not have as much money saved as you had hoped for? If you’re attempting to play catch up, financial writer and equity analyst Glenn Curtis, has some ideas of you may find come in handy. Curtis recommends taking advantage of your current job’s 401k if it is offered. In fact, he recommends funding it to the maximum amount allowed. Consider this, if you’re 40 years old and you contribute $16,500 a year to the plan, you could possibly accrue more than $1.3 million by age 65! Curtis also recommends turning your home equity into liquidity through a reverse mortgage. Though this should not be your primary source of retirement income, it does provide a way to tap into the money you have been paying into your home for all these years.
Read about more ways to quickly increase your retirement fund, here.
Curious to see how your retirement plan is shaping up? Use our free Retirement Calculator to find out!
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Posted on July 6, 2011 by Erin
Do you think it’s a wise idea to take part of your retirement savings to purchase an annuity? That’s what the US Government Accountability Office (GAO) recommends. People are living longer and it’s no secret that Social Security is nearly impossible to live on as a primary source of income. The GAO interviewed financial experts who recommend that in order for retirees to cover the expenses they may encounter further down the line, they should delay Social Security benefits, work as long as possible to continue to save and to systematically draw down their savings to purchase an annuity.
Do you agree with the GAO’s recommendations for purchasing annuities?
Read the GAO’s full report, here.
See some FAQ’s on annuities and get some answers.
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Posted on June 29, 2011 by Erin
You and your spouse have been together for ages now. You’ve raised children and been together through thick and thin. Retirement will be nothing but simple and delightful. Well think again! There seems to be quite a large disconnect between couples and their retirement. Not only are people realizing that their spouses’ views of retirement may be a little bit country and theirs is a little bit condo-in-the-city, they are also beginning to realize that their views on when to actually retire also differ. In a study released today by Fidelity, it was found that 62 percent of preretirement couples disagree on when to stop working. And a whopping 73 percent of pre and post retirement couples can’t even agree on if they have a detailed retirement-income plan!
Think you and your spouse have it all figured out? Fidelity recommends sitting down with your significant other and discussing some major questions such as, what are your retirement lifestyle expectations, where do you want to live and are you both prepared for unexpected health care costs? Fidelity has even provided a six question couples quiz that is available to take. So even though you’ve navigated the waters together throughout the years, be prepared for retirement. It’s something that both of your deserve to enjoy equally.
Read the Fidelity survey or take the Couples Quiz.
Test out you and your spouse’s retirement plan with out Retirement Calculator.
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Posted on June 28, 2011 by Erin
In a recent study done by J.P. Morgan, it was found that a large number of Americans are ill-prepared when it comes to turning their retirement savings into income. The majority of those surveyed openly admitted to not understanding how their 401K plans work or how the money saved will turn into their retirement income when needed. The same study also found that a shockingly large two out of three people don’t know how much they should be saving for retirement. And almost half of the same people surveyed assume that outliving their retirement savings is a very real possibility.
Why are American’s so far behind with retirement savings? Some believe it has to do with the recession. When you have bills that need to be paid now, those will most likely take precedence over saving for the future. What do you think? Are YOU prepared for retirement? Why do you think so little people are? Let us know what you think!
Read J.P. Morgan’s report, “Searching for Certainty,” here.
Are you financially prepared for retirement? Use our retirement calculator to find out!
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Posted on June 10, 2011 by Erin
Think that providing financial support for your kid ends when they turn 18? Think again! In an new survey conducted by the National Endowment for Financial Education (NEFE), it was found that 59% of boomer parents have given their adult children financial assistance. This includes help with big expenses like housing and insurance costs, down to putting gas in the car or shelling out some dough for spending money.
Helping your kids is a great thing – especially when you do it out of the kindness of your own heart. But is your generosity destroying your retirement? The same study found that 26% of parents had gone into debt because of their support for their adult children and 7% of parents were forced into delayed retirement. When is enough, enough? Know the goals that you have to meet to have an on-time and comfortable retirement. THEN you can start helping your children. The old saying rings true – you can’t help any one else if you can’t help yourself.
See the entire survey here.
Would you be able to help out your children? See where you stand by using our retirement calculator.
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Posted on June 9, 2011 by Erin
Have you lost faith in the stock market? If so, you’re not alone. In a study put out by Prudential Financial, it was found that almost 6 out of 10 investors have lost faith in stocks. Not really a surprise when you consider what we’ve all been through with the market these past few years.
But what’s the alternative? We know that low risk investments such as CDs are safer, but they also don’t yield the big payments that aggressive, well performing stocks can produce. If you plan on dumping your stocks and sticking with low risk and low earning alternatives, you need to be realistic about your financial future. Will you be able to save enough for retirement by cutting out risk? Or are you one of those 6 out of 10 investors that simply don’t care and are done with stocks?
Read the full article, “Survey: Nearly Half of Americans Plan to Never Invest More in Stocks,” here.
Do you know where you stand regarding your retirement planning? Use our free Retirement Calculator.
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Posted on June 7, 2011 by Erin
Target-date mutual funds seem simple enough – a group of diversified investments that adjust over time with the end goal of having a good balance of risk and reward. Sounds great, right? It can be, as long as you don’t allow yourself to keep your investment out of sight and out of mind. This is difficult because target-date mutual funds appeal to people who are more hands off investors.
So what can you do to make these funds work for you? First off, understand that where there’s a chance for money to be made, there a chance for risk. If you are 30 years away from retirement, your ability to handle risk is greater than if you are planning on retiring in a year. Also, ask yourself if you are entering into the right fund for you. There’s an interesting blog that answers a lot of questions and highlights the hidden risks “Target Date Retirement Blog.” Check it out here.
Posted on June 1, 2011 by Erin
Everyone wants to have enough money to retire – but what goes into that planning? Obviously, beginning to save many years before the big day is ideal, but having a five year plan that takes a look at how you actually envision your life in retirement, is also crucial.
Five years out from retirement, experts suggest you reflect on your hobbies and spending habits. What do you want to continue during retirement? What do you think your biggest expenses will be? Will you have enough to cover it all? A great way to answer these question is to find a financial advisor. They can help you with long term care insurance, estate planning and and more.
Read the full article, “Ready to Retire? Here’s a Five-Year, Pre-Retirement Plan,” here.
How does your plan stack up? Find out by using our Retirement Calculator.
Need help in choosing a Financial Advisor? We can help!
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Posted on May 31, 2011 by Erin
In the past few years, have you experienced a significant decrease in your home’s value? If you have, you are not alone. Approximately 32 percent of seniors have, and one fourth have depleted their personal savings.
The recession has financially impacted many people, but seniors have been hit especially hard. In a survey conducted by AARP that will be released later this year, 83 percent expressed concern that the current economic situation will make it more difficult for them to retire. More than half stated that they do not believe they will have enough money to make it through the entirety of their retirement.
How has the recession affected you? Have you tapped into your retirement account? If so, do you have a new plan?
Read AARP’s full article, “One Fourth of Seniors Have Exhausted Personal Savings,” here.
Will you run out of money? Use our calculator and find out.
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