Transition to Retirement: Will Your Income Match or Exceed Expenses?

Category: Retirement Planning

By Bob Stacy
National Institute of Transition Planning

September 15, 2018 — I am consistently amazed when conducting my NITP “Transition to Retirement” sessions when I ask participants a very simple question: “Do you know how much you spend each year?” The answer is almost universally “no”!

Retirement income should be easier to calculate
In preparing for retirement you should know approximately what your income will be. If you are a federal or state worker or you are employed by a larger company, you can visit your HR department and have them provide an estimate of your annuity or pension, which will probably be your main source of retirement income. Then you can add other possible sources of projected income such as 401Ks, Social Security, investment income, TSPs, part-time work and maybe even inheritance. If you don’t have a pension, it will probably be slightly easier to estimate your income.

No matter how much income you may have forthcoming, no one should retire if you don’t know what you actually spend each month. Running out of money in retirement is one of the worst things that can happen to you. So I suggest that you not consider retirement until you know your (more…)

Posted by Admin on September 13th, 2018

Downsizing, Decluttering, or Ridding Out: Whatever the Name, It’s Time to Do It

Category: Retirement Planning

August 6, 2018 — In addition to death and taxes, you can add one more to the list of things you can’t avoid. Whether you call it decluttering, ridding out, or downsizing – the job has to be done, sooner or later. Sooner…. if you plan on moving to a different home in retirement. Later… even if you die without emptying out your basement, attic, garage, overflowing closets, and countless drawers – your children or heirs are going to have the thankless task of getting rid of everything you managed to hoard all these years. And the job is even harder if you plan on moving to a tiny home, boat, or RV.

Last year we surveyed our Members to find out how they are doing at downsizing. The answer is (more…)

Posted by Admin on August 5th, 2018

Where You’ll Retire – and Why: What You Said

Category: Retirement Planning

July 25, 2018 — Note: Last week we reported on the statistical results from our 12 question poll about where members want to retire, and why. (See” When It Comes to Where to Retire, Climate and Weather Rule“). This week we are reprinting a sampling from the hundreds of comments you made to the survey, which reveal a fascinating depth of detail on retirement choices and reasons. We hope you enjoy them as well as find them helpful!

We have arranged the comments into themes where they seemed to fit. The major themes are: Reasons for choosing a retirement area, Particular states/regions chosen and why, and type of community. Each “–” indicates a new comment from a different person. There were (more…)

Posted by Admin on July 24th, 2018

When It Comes to Where to Retire, Climate and Weather Are Top Reasons

Category: Retirement Planning

July 16, 2018 — Thanks to the more than 750 members who took the time to contribute their valuable insights to last week’s “Where You’ll Live and Why” poll. We appreciate you sharing! As promised, here is our first detailed report on the summary for each question. Within the next few days we will publish a second article which will feature the fascinating comments the poll generated.

Highlights
Your input confirms many opinions we hold about retirement preferences in general, along with some surprises. For example, it is not much of a stretch to bet that most of you are interested in retiring to a warm weather clime, with the Southeast (Florida) and Southwest at the top of your preferences. We did not expect to see the level of interest there was in a suburban environment. (more…)

Posted by Admin on July 16th, 2018

Countdown: Five Years to Retirement

Category: Retirement Planning

July 10, 2018 — Think of your retirement as if it were a rocket poised for liftoff at Cape Canaveral. You, flight safety, are going through an elaborate countdown, ticking off countless items from exhaustive checklists. Only when everything is lined up properly is permission granted for your retirement launch!

In this piece we’ll go through a five year countdown to retirement, an excellent idea developed in a NY Times feature last week by retirement expert Peter Finch. Without first looking at what he proposed, we took our own crack at this countdown idea… and look forward to comparing notes (a link to his article is at bottom).

Five, four, three, two, one – retirement blastoff!
Although we have tried to concentrate each year on one major task, that doesn’t mean you should not be thinking about other planning aspects. This is a suggested timetable – you don’t have to be rigid about which planning area gets emphasized each year – but these are the important areas to consider. What is important is to tackle all the key planning bases with the remaining time you have before “blastoff”. Think where you live now is the best place for you to retire, and don’t need to bother? Going through this planning process helps guarantee that as a mindful decision, rather than planning by just letting things happen.

Five years out – Finances rule
Your most important task this year is prepare a financial balance sheet that shows what your expected income will be compared to your retirement expenses. By taking a serious (more…)

Posted by Admin on July 9th, 2018

Take Our Newest Poll – What Factors Affect Where You Will Retire?

Category: Retirement Planning

July 9, 2018 — We think one of the most interesting questions about retirement is where people decide to retire – and why. In this short poll we list a number of potential reasons why someone might prefer one area to another, and ask you to rank them in order of how important they are to you. Plus we added a question on how important the political atmosphere of an area is to your retirement decision, just to see what might come back. We will use the anonymous data from the survey as the basis of an article published in the next few weeks – should be interesting!

TAKE THE POLL!

PS – If you have suggestions about this poll or other questions to add, please use the Comments section below.

Posted by Admin on July 8th, 2018

How Will You Celebrate Your First Day of Retirement

Category: Retirement Planning

June 28, 2018 — LakeSinclair (LS) posted this challenging comment on the Topretirements Forum last week: “I’m eight days away from retirement after being a college administrator for 40 years. Any thoughts on a particularly profound way to spend my first day?”

What a great question, thanks LS. It is worthy of a lot of thought. Part of the answer has to do with how far you have come in your pre-retirement planning. If you did a good job of that, then Day 1 can be even more celebratory. You know where you are going to retire, how you are going to stay busy, and you are confident you are on a path to a financially secure retirement. If your planning is not so far along, or maybe not even started yet, then perhaps (more…)

Posted by Admin on June 26th, 2018

Finding a Purpose in Retirement

Category: Retirement Planning

By Craig Blouin
April 13, 2018 — The warm, inviting glow of retirement on the horizon motivated me as I moved toward it during my last years in the workaday world. I’d put a good many miles on the roadway of life up to this point and now there was a sweeping curve up ahead. I sure wanted to have a look at what was around the other side.

Those last few miles seemed to take an inordinately long time to get through. But then I was there, the promised land: Retirement! After a rousing send-off by my work colleagues — either sad or delighted to see me go — finally it’s the first day of the rest of my life. Great! … So now what?

I’m not usually a goal-oriented sort of person, even though many years ago I’d attended a Covey Institute intensive workshop at the Sundance (more…)

Posted by Admin on April 12th, 2018

Should You Retire – Or Not?

Category: Retirement Planning

Some people really want to retire – but there are reasons why they can’t.
Other folks want to keep on working – but there are pressures on them to retire.

April 4, 2018 — Assuming you are lucky enough not to have found yourself unexpectedly retired, as so many baby boomers have, you might be wondering if this is the right time to retire. Unfortunately, there are so many different and unique situations that it is hard to assign a one-size-fits-all answer. In this article we will lay out some common situations where there is either pressure to retire or pressure against, and then some possible solutions. At the end what we are really hoping for is Member input for ideas on the best way to handle these situations. And, if you are looking for more articles on this topic, including case studies about actual people’s retirement experiences, check out the Retirement Planning section of our Blog (67 articles).

Not just a number
Retirement shouldn’t be just about a number – such as “I’m 65 so I better retire”. Obviously the best time to retire is when you want to, and when you think you can afford to. Many people dream of retiring as soon as they can – even in their 30s. But others hope never to stop working. But sometimes there are other factors that force the issue. That is what we will talk about here.

Some different situations:

A basic consideration about when to retire is if you love your job or not. Another big one is, can you afford to retire? Not being in a financial position to call it quits adds extra pressure. Sometimes there might be multiple factors that affect your decision to retire or not.

Let’s assume first (more…)

Posted by Admin on April 3rd, 2018

A Sad Surprise: Nobody Wants Your Stuff

Category: Home and Garden

March 23, 2018 — Are you one of the many people who have been carefully amassing, polishing, and preserving all kinds of collections for posterity? Here is some really bad news – nobody wants it but you! As one furniture dealer, speaking about early 20th century goods, commented, “It’s never coming back.”

Recent articles in the New York Times and the NextAvenue.org blog highlighted this sad issue, which then generated an avalanche of emotional comments. It is very hard for people to part with objects that represent emotional or sentimental ties with the past. Many people develop feelings of guilt about losing objects tied to their ancestors, while others go into denial.

Here are some of the top 10 treasures that you might love, but nobody (more…)

Posted by Admin on March 22nd, 2018