Retirement Archives - Page 2 of 7

What About Your Retirement Debt?

July 23, 2019 September 13, 2019

So much is written about eliminating your debt, paying off your debt, and being totally debt free at any and every age in life that you may believe that it’s always the only goal you should have. Financial independence (FIRE) depends to a huge degree on not owing money to anyone or anything.

Many recommend that you reduce or eliminate your debts, especially if you're about to retire. But are there times it makes sense to keep retirement debt?

Truthfully, it’s a wonderful goal and for some people it actually can be achieved. It’s not common, but it does happen. When you owe debt, more than you can ever repay, it can ruin your life. But today’s post isn’t about that subject. There are many posts about it, so I want to look at debt from a different angle. What about debts you hold after you retire….your retirement debt?

Health, Retirement

The Big “H” to Worry About in Retirement

July 16, 2019 September 13, 2019

Most people who talk about retirement planning are usually concerned about the “financials”. They talk about saving for it, investing for it, earning more for it, and guarding against the erosion of it so it will last on and on into the sunset of those golden years. And they are 100% right to do that, for sure. Without a strong financial base, retirement will be a struggle at best or a disaster at worst. Believe me when I say that the proper planning doesn’t just appear magically when you are actually retiring and needs to starts much earlier. So much earlier, in fact, that it should start when you begin your very first job because it’s that important. I say that to anyone who will listen, but very often if falls on deaf ears.

Healthcare in retirement is the Big "H" to worry about. Many retirees don't plan adequately for healthcare costs and don't realize how significant they are.

But, the fact that financials are so important doesn’t mean that there isn’t “something else” to be concerned about. I like to call it the Big “H” that you need to give plenty of thought to when it comes to your retirement years. What is it you ask? The twist is it’s about your healthcare, the Big H of your retirement years!

Personal Finance, Retirement

When Financial Knowledge is Wasted on the Retired

June 11, 2019 September 13, 2019

I am really amazed about how things work out in life. For one, we spend so much of our lives mulling over money that when you think about it, it is kind of scary. I’m not claiming here that I don’t, hell I always have and now even in my retirement I spend hours every day writing and thinking about it. But the time I devote to the subject these days is much more balanced than it was all the years that came before. Know why? It’s because as I have aged, I have learned and re-learned the ups and downs, the trial and tribulations, and the financial knowledge that makes money make much more sense to me! I’m not claiming I have all the answers but I can say at least this: I know most of the questions. And that’s something.

Financial knowledge is critical for success, but it's often wasted on the retired. Here are some considerations for those pondering early retirement.

One of the good things in life is that I have lived long enough (69.833 years) to have learned stuff and yet one of the great mysteries is why all of that financial knowledge is wasted on the retired?

Budgeting, Money Mindset, Personal Finance, Retirement, Saving & Investing

How to Better Your Financial Decision Making

June 7, 2019 September 13, 2019

Life isn’t easy. We all make little and big decisions every day and sometimes it feels like there isn’t a minute that goes by that we can just veg and not have to do any decision making at all. Oh, and by the way, if you actually try to do just that, someone will probably call you out and tell you that you’re shirking your responsibilities or not facing up to reality or must be plain lazy or stupid. Is that why you never avoid making a decision or you agonize over one and never ever take a few minutes to take a deep breath before you do?

Financial decision making can be difficult and overwhelming, but here are some ways to make it easier and more successful.

When it comes to your money decision making, the pressure is even more ridiculous. Why? Because not only are those decisions important to you, but they show up and stand out. I mean they are pretty visible to the naked eye and often are the main ways that others can see how you function and judge how good your decision making actually is. Even though it sometimes doesn’t show up immediately to the naked eye, your money decisions will eventually be very visible and will affect you, your family, friendships, and even your job. Perhaps you can hide a few bad decisions, at least for a while. But when that day of reckoning arrives, everyone will know what really happened. When that happens, it’s not just bad for you, but for everyone around you and that just sucks!

Retirement, Saving & Investing

Can You Be a Millionaire By Retirement?

April 5, 2019 September 13, 2019

One out of every six people in America today gets to retire a millionaire! That sounds fairly optimistic since most of us at some point in our lives dream of becoming one of them. One out of every six retired Americans is now retiring as one and that is from a documented report by online investing company United Income which analyzed data from multiple sources including the Federal Reserve Board and the U.S. Bureau of Labor Statistics. The purpose of the study was to find out how retirees are faring now compared to previous generations and compare the results.

Not only is it possible to retire a millionaire, but it's fast becoming a necessity. Here's what you need to do to make that retirement goal.

One way I suppose to become a millionaire is to buy lots of scratch off tickets in your state lottery or to try to get on a quiz show like “Who Wants To Be a Millionaire” but let’s be somewhat realistic here. There are other ways, aren’t there?

Retirement, Saving & Investing, Taxes

ESPP Exit: What’s Your Financial Advice for Us?

February 26, 2019 September 13, 2019

I can’t help but realize that writing this blog each week almost always involves me giving some advice about some money issue. Sometimes it has been very specific on things like saving money at the grocery store or preparing yourself for retirement and at other times it’s been more spiritual like when I refer to things that can motivate you and good money habits to develop that help protect your financial well-being.

My wife and I need to make a decision about what to do with her old ESPP (Employee Stock Purchase Plan) shares. What's your financial advice for us?

Sometimes when I look back on what I’ve written, I realize I definitely have had a tendency to pontificate and yes, even ramble. I’m being kind to myself more than a little here. I really think writing a 2,000+ word post can lose even the most diehard readers. Who has the time for that much stuff to read on a regular basis?

Retirement, Saving & Investing

Why is Planning for Retirement So Damned Confusing?

February 22, 2019 September 13, 2019

Retirement planning is no easy task. Oh, you may think it is, but it never really is, at least it isn’t for most people. Maybe if you are lucky enough to hit the Powerball jackpot and win a few hundred mil, you may be able to just coast into a retirement and never have to worry, but seriously? I hope you aren’t actually trying to do that. If you are, your retirement plan sucks!

Planning for retirement isn't always easy, but it can be much smoother if you start early and avoid these mistakes. Here's what to do and what not to do.

There are a lot of things that go into your retirement planning. Obviously, factors like salary, debt, and expenses all will affect your ability to save, but also know this: there is no one-size-fits-all solution to planning and realizing the vision of your successful golden years!

Retirement, Saving & Investing

Your IRA RMD – What You Need to Know About Required Minimum Distributions

January 25, 2019 January 14, 2020

Update: See The SECURE Act: The New 2020 Retirement Plan Rules for updates to the timing of RMD requirements.

You may not have given it that much thought while you were socking away your retirement contributions over the years, but in every life, some rain must fall! The rain in your IRA may be that “special” time when you must start withdrawing funds from it. Many retirees taking required minimum distributions (RMDs) from their traditional IRAs may not know all of the ins and outs of exactly the right way to do it and avoid any penalties along the way if they don’t!

You need to make sure you know all the facts about your IRA RMD (required minimum distribution) so that you avoid penalties. Check out all the details here.

Making IRA RMDs: the What, When, and How

When you reach age 70½—and that’s about 3.5 million Americans right now—you need to know the ins and outs of required minimum distributions (RMDs). If your parents or grandparents are the ones moving into RMD-land, do them a favor and give them some really good advice and information about this subject ASAP.