Category: Financial and taxes in retirement
We get a kick out of the ING TV commercial, the one where one baby boomer asks another, "What's your number"? The response, "a Gazillion", always gets a laugh. But more importantly, the company makes a solid point - most people don't have any idea how much they are going to need in retirement. It is a very important issue, because starting the day you retire, your life changes. You no longer have a salary that will pay the bills. Now you are on your own - you have to know if what you have saved and will receive from other sources will be enough to live on. If the "number" you have accumulated is too small, you might outlive your money. This article will try to help you get a better idea of how to calculate your number.
What is the Magic "Number
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Published on June 22, 2010
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Category: Financial and taxes in retirement
May 25, 2010 -- Social Security recipients born in certain years have been notched before - notably those born in 1917-1921. Those unlucky souls didn't receive social security benefits quite as generous as those born in 1916 and before. Individuals in both groups, however, if they lived long enough, probably received far more in benefits than they ever paid into the system.
Now, according to the Boston College Center for Retirement Research, a new notch has been created - one affecting people born in 1947. The Center calculates that
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Published on May 25, 2010
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Category: Financial and taxes in retirement
This is the second of a multi-part article on retirement confidence and the ability of retirees to have a comfortable retirement. The first article was called "Retirement Confidence Hits Rock Bottom".
A new study from the Boston College Center for Retirement Research shows that 6 out of 10 retirees (61%) are at risk of not having enough retirement income to maintain their pre-retirement living standard. Those who choose to use a reverse mortgage to increase their retirement income can reduce their risk to 51%. For many reasons, however, only
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Published on March 30, 2010
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Category: Financial and taxes in retirement
March 20, 2010 -- According to a new study from the Employee Benefit Research Institute (EBRI), worker confidence about their retirement has hit rock bottom. The 2010 Retirement Confidence Study found that the percentage of workers who are very confident about having enough money for a comfortable retirement has stabilized at 16 percent, statistically equivalent to the record low 13% reported in 2009. Among workers who are already retired, the confidence index is slightly better at 19%.
These numbers paint a very discouraging picture about retirement - only 1 in 5
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Published on March 21, 2010
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Category: Financial and taxes in retirement
March 15, 2010 and updated October, 2020 -- Notes: First,this article was prompted by an excellent suggestion from one of our visitors, Gerry. Second, since this article was written there have been two increases in the per person estate tax exemption. Currently it is $11.4 million (indexed to inflation), which means that only a tiny sliver of people will ever pay any estate tax.
It's not the cheeriest topic, but what critics call the "death tax" is on the minds of many people.
A complex subjectLet's start by saying that estate and inheritance taxes are a complex subject, one where you should have a competent professional helping you. If your estate is worth less than $11.4 million, at least you don't have to worry about that problem - your estate will not be taxed by the federal government under current laws. Some definitions - an "estate tax" is levied on the net value of what you are worth when you die, an "inheritance tax" is levied on your heirs from what what they collect from the estate. The estate tax is more common. Your spouse will not pay inheritance taxes from your estate, but your children and other heirs might in some states.
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Published on March 15, 2010
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Category: Financial and taxes in retirement
As we have said before, if your retirement fund isn't what you hoped it would be, it's time to get creative. One of the most interesting ways to stretch your budget was profiled in a New York Times article last week, "Retirees Trade Work for Rent at Cash-Strapped Parks". The article profiles the experiences of several retirees as they travel around the country and help keep state and national parks ticking under the serious budget constraints these institutions now face.
As Sharon Smith points out in the article, there are three simple reasons why she and her husband Bill want to work in these parks: “We’re here for three reasons,” she said. “No. 1, we like to travel. No. 2, we like people. And No. 3, we’re on a budget.” They also mentioned occasionally indulging in online casinos not on gamstop during their downtime, though they remain mindful of every expense to maintain their nomadic lifestyle. At the time of that quote, Mrs. Smith was making cinnamon rolls for the park center. Others provide bird guiding, cleaning, and maintenance. As states and the federal government have cut back on their support for parks, retirees working for free RV or tent space are now taking over more and more roles previously provided by paid employees.
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Published on February 23, 2010
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Category: Financial and taxes in retirement
February 15, 2009 - You have probably read about the problems Greece is having with its unmanageable debt these days. Well if you thought that sort of problem couldn't effect you as a retiree in the good old USA, think again. A recent article, These 7 States are Headed for Something Worse, by Gregor Macdonald at Seeking Alpha makes a good case with 4 different reasons why 7 U.S. states are NOT the best place to retire. His conclusions are quite similar to what Topretirements reported on back
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Published on February 15, 2010
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Category: Financial and taxes in retirement
Let's just say that Plan A for your retirement didn't quite work out the way it was supposed to do. Whatever the reasons, the fact is you are a 60-something baby boomer looking to retire on a lot less money than you thought you would have. Luckily for gritty you, sulking is not an option. Here are 10 of our best ideas on what you can do to retire in style - and on a budget.
1. Move, now. Most people about to retire are living in a lot more house than they really need. So downsizing, the sooner the better, is the smart
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Published on January 4, 2010
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Category: Financial and taxes in retirement
November 23, 2009 - It's impossible to see into the minds of our readers to try to assess their motivations in finding their best place to retire. We do, however, have some evidence based on which of our articles get read the most. No surprise, articles on low-tax states and most affordable always attract many readers. As in that rude truism, "It's the Economy, Stupid".
One of our pet peeves is the overemphasis that many people place on low taxes as a retirement criteria. In this article we will argue
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Published on November 23, 2009
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Category: Financial and taxes in retirement
Editor's note: This report was originally written in 2009. There have been several new articles since then, notably "Worst States for Retirement, 2014", which are more up-to-date.
Deciding which state you ought to retire to is hard enough. First you have to find the right climate, tax structure, environment, culture, crime, etc. But with the economic recession of the last few years another factor enters in - is your state in financial trouble so deep it might not be able to dig itself out (think worst states to retire)? The Pew Center on the States issued a report last week that should be enough to
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Published on November 16, 2009
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