You may be familiar with annuities. Since fewer employers are offering retirement pensions nowadays, annuities are a way of creating your own retirement income. But if you’re concerned about tying up a large sum of money in an annuity contract, and are willing to forego an immediate payout in return for a larger payout later, a deferred income annuity might be the answer.
Many retirees choose to move when they retire. Some stay in the same town and move to a smaller home, or a larger one. Some across the country to be closer to family or friends. And some move simply because a new environment better suits them. If you’re one of the footloose kind, how do you choose a place to retire? Here’s some advice.
Are you ready for retirement? While working forever might make the most sense financially, most people want to call it quits at some point and enjoy the things they really like to do. Here are some things you must do before you can safely leave the working world behind.Continue reading
A common conception of a person who lives to be very old, is someone hanging on to life, but disabled if not bedridden, in constant discomfort, and having lost most of their mental faculties. Current research, however, is showing this to be a misconception.Continue reading
Researchers in Sweden have produced a free, online quiz that they say determines with 80 percent accuracy the probability of dying in the next five years for men and women age 40 to 70. There’s a separate quiz for men and for women; each consists of about a dozen simple, straightforward questions. Continue reading
Picking the optimal retirement age is a complex balancing act among several factors. On the one hand, you want to leave the 9-to-5 life while you’re still young enough to enjoy your golden years. But you also want to make sure your savings are enough to last through your retirement and to fund the lifestyle you want. Statistics show the majority of workers retire much earlier than planned.
A vacation can be good for renewing the mind and spirit, but there are physical health benefits as well. The Framingham Heart Study found that women age 45 to 64 who vacationed at least twice a year had a significantly lower risk of heart disease than women who hardly ever took a vacation. Another study found that regular vacations also reduced the risk of death from heart disease in men. Here are some reasons why it’s good to get on the road every once in a while.Continue reading
Regular exercise is beneficial for most everyone at any age. When you’re young, exercise helps set a foundation of basic health and creates a good habit of physical activity that carries with you for a lifetime. When you’re older, you might engage in different types of activities, but the benefits are still the same. Continue reading
Multiple surveys show that too many Americans have not saved enough for the retirement lifestyle they envision. Most people recognize that their employers will not provide pensions, so they’re largely on their own for retirement savings.
But a lot of people still have assumptions about retirement planning that may not be realistic. The sooner you realize that these assumptions may not be feasible, the sooner you can adjust your retirement planning in time to have a comfortable retirement.Continue reading
Being rich or poor can often have little to do with how much money you make, and more to do with how well you manage what you have. Just consider the case of Allen Iverson. The retired pro basketball star, who earned over $200 million during his 15-season playing career, was reportedly broke and heavily in debt in the final years of his career. During his 2012 divorce proceedings, he shouted to his estranged wife, Tawanna, “I don’t even have money for a cheeseburger!” She handed him $61.
Iverson is certainly not alone. Reports are that 60% of NBA players are broke within five years after retirement from playing. Their stories hold lessons for all of us.Continue reading
An often-repeated rule of thumb is that you’ll need 80 percent of your pre-retirement income after retirement. This rule assumes that some of your expenses will decrease, such as commuting costs to and from work, wardrobe expenses, and, of course, contributions to retirement accounts. But the unstated assumption is that your other expenses will stay the same.
What if they didn’t? Your utility bills will probably not change much, and there’s little you can do to reduce those. Your cell phone, cable, and food expenditures may remain the same too – that’s the idea behind living comfortably in retirement.Continue reading
When it comes to medication, your insurance always gives the best deal, right? Not necessarily. Many people don’t realize that Walmart, Target, CVS, and other national pharmacy chains offer prescription drug discount plans that may provide some savings.
Although these plans have nominal annual fees, often it’s possible to more than recoup that on prescription drug savings, as well as savings on other services such as flu shots. Continue reading
If you’re a high-salary-earner and are looking for ways to put away a sizeable portion of your income for retirement, traditionally your options have been limited. Employer-sponsored retirement accounts like 401(k)s and individual accounts like IRAs have contribution limits that cap how much you can put in each year. For example, Roth IRAs have a limit of $6,500 per year for those age 50 and over. And if you make over a certain limit ($131,000 for singles in 2015) you can’t open a Roth IRA at all.
But under recent IRS rules, you have a potential way around that. Some are calling it the mega-backdoor Roth because it allows you to sock away larger amounts into your Roth IRA, if you qualify.
For many people, retirement involves a plunge into an unknown realm for which they are not sufficiently prepared. Like every life transition, retirement goes much more smoothly with proper planning. Here are four misconceptions that many people have about retirement.