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The greatest fear about retirement is running out of money. There are three risks that could cause one to run out of money. Investments could earn less than estimated; the retiree might live much longer than anticipated; and spending could be greater than estimated, because of either inflation or higher consumption. In last month’s visit, […]
State tax laws discriminate based on age, and that can be a good thing for some taxpayers. Even notoriously high tax states can be tax havens for retirees. In fact, Florida and other retiree magnets might not be the tax havens they are promoted as when the full tax picture is considered. Florida has no […]
The biggest planning mistake most people make is not realizing how much retirement will cost and how much money they will need. Fortunately, those who remember a few principles and use today’s low-cost technology can substantially reduce the margin of error. Surveys of future retirees abound. An interesting recent survey from Merrill Lynch found that […]
The recent termination of the United Airlines pension plan put pension safety on the front burner. The news quickly was followed in Congress by hearings and reports on the underfunding of both corporate pension plans and the government guarantee agency, the Pension Benefit Guarantee Corporation. Most large companies offer some kind of a guaranteed pension […]
Opportunities are increasing for cheap investors. Only a couple of years ago I reported that the discount and mutual fund brokers were raising fees and increasing minimum investment amounts. The brokers didn’t want small investors, frugal investors, or long-term investors. Since then, the stock market has rebounded and trading volume is up. In addition, a […]
The prospect of rising interest rates this year could affect retirement payouts. If your retirement plan offers a choice between an annuity and a lump sum and you were planning to retire in the next year or two, pay attention now. Lump sum payouts increase as interest rates fall and decrease as rates rise. The […]
There are two ways to save money. One way is to cut nickels and dimes off each purchase. The other way, which we’ll look at in this visit, is to save a lot of money on a few big dollar expenses. Let’s see how you might be able to save big dollars on a few […]
Americans are confident they will have comfortable retirements. Seventy percent of Americans age 25 and older told the Retirement Confidence Survey for 2004 they are confident of achieving a comfortable retirement. Yet only 58% were actively saving for retirement, and only 42% ever tried to calculate the amount of money they will need in retirement. […]