Category Archives: Financial

Are you ready to retire?

Are you ready to retire?  Every individual is different and the time to retire for one person is most likely the time for another to buckle down.  I’ve recently read two articles about early retirement.  I’m going to include their links but first I wanted to say two things.  Not everyone wants to retire even…

5 dos and 5 don’ts of financial planning

If you’re in your 50s, retirement is on the horizon.  Here are some important financial planning decisions you need to avoid. Don’t dip into retirement.  With the average employee having seven careers in a lifetime, there’s a possibility that you’ll experience seven or more temptations to cash out an IRA rather than roll it over. …

Steps to take after receiving a large lump sum payment

Winning the lottery doesn’t make the top 10 sources of retirement income, yet it’s often a major part of many people’s retirement plans.  The top ten list by the way goes something like this: Retirement savings accounts Home equity Pension plans Social Security Certificates of Deposit Stocks and mutual funds Retirement jobs Annuities or insurance…

Roth IRAs versus traditional IRAs

The primary difference between Roth IRAs and traditional IRAs is the point at which your investment is taxed.  Contributions to a Roth IRA are not tax-deductible and withdrawals are generally tax-free.  The benefit to Roth IRAs is that there are fewer restrictions and requirements.  For inheritance purposes, passing a traditional IRA to your children means…

Retirement mistakes to avoid

In February, the average retiree received a Social Security retirement check for $1,331.  That check is, as said here, primarily set in stone, except for Cost of Living Increases.  Something that isn’t set in stone is the cost of Medicare, which although it has stayed steady recently could jump from year to year.  Based on…

Preparing for a smaller Social Security check

If you are retiring in 15 to 20 years, you’re probably already aware that projected Social Security shortages are expected to cut those benefits by nearly 25 percent during that same time frame.  This suggests that the U.S. government needs to get on the stick and find a solution to those projected shortages.  One of…

WSJ: Reverse Mortgage Could Help Boost Retirement Income By 30%

by Emily Study Taking out a reverse mortgage could help increase retirees’ annual income by 30% when done in conjunction with a few other retirement planning steps, according to a recent Wall Street Journal article. The strategy comes at a time when retirement fears plague the nation, as reports indicate that few Americans are truly…

A Reverse Mortgage to Increase After-Tax Wealth

By Emily Study A recent column published by the Wall Street Journal states that using proceeds from a reverse mortgage could help retirees strategically maximize the after-tax value of their wealth. In his column, Wade Pfau — a professor of retirement income at The American College in Bryn Mawr, Penn. — suggests that reverse mortgage…

Guarding against identity theft starts with protecting your Social Security Number

The other day I purchased a shirt from a big box store.  As I stood in line waiting to check out, the woman ahead of me asked to use her reward card even though she didn’t have it on her person.  “Sure,” said the sales clerk.  “Just give me your Social Security number.”  I flinched…

Strategies for taking Required Minimum Distributions

Retirement accounts provide beneficial tax deductions during the time when you’re working.  However, once you’ve retired you’ll need to begin drawing on those funds.  The IRS calculates your minimum distribution by dividing your retirement savings by their estimate of your life expectancy.  Vanguard has a calculator on their site to help you figure out your…