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The Four Key Retirement Measurements to Assess where You Are in Retirement
Monitoring the Four Retirement Gauges Will Help You Make The Needed Adjustments
Withdrawal Rates: Most advisers no longer use the 4% income, i.e. bond interest and stock dividends currently are generating between 2.5% and 3.0%. And often retirees must spend portfolio principle to meet their monthly expense and discretionary spending. But identifying your monthly spending can help you partition assets dedicated to lifetime income using single premium immediate annuities and deferred income annuities.
Reliability of Income: These types of income annuities are guaranteed income you can’t outlive. And in retirement you need reliable income because your Social Security benefits won’t be enough. You can also add an inflation rider to these annuities as well, to guarantee annual increases throughout retirement, unlike the unpredictability of Social Security benefit increases.
Discretionary Liquidity: You’ll need liquidity in retirement. You may have an opportunity to suddenly go on an exciting trip with friends, or face unforeseen medical bills or have a major home repair or car purchase. You don’t want to be in a position to sell off qualified plans monies that will trigger taxes and taxes on Social Security benefits. You don’t want to sell non-qualified mutual funds or ETFs with significant profits and pay capital gains tax. So you need discretionary income that can be used without the additional transaction of triggering taxes.
Net Worth: Although retirement is for retirees, most seniors desire to be benevolent to their family, friends and charities. Many seniors want to grow their wealth for additional spending goals or big-ticket items. Some seniors want to grow their estate to pay for future long-term care costs. And a growing number of retirees are simply unconcerned about wealth accumulation and are income driven in their money philosophy.
There are several retirement software packages that can monitor these four areas and others of interest. The big news here is that the software is intuitive and user friendly.
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Risk & Reward: Everyone Has Some Threshold of Financial Pain
Most people have a predisposition about risk. It’s generally environmental and based on family upbringing. That doesn’t mean it’s necessarily right, it’s just where you are, depending upon your financial literacy. Whether you know it or not, you ...
Released On: 12/27/2019
Views: 1932
Establish Your Financial Timeline Based On Approximating Your Life Span
There are mortality averages based on actuarial statistics that can approximate the life expectancy of the general population at large. But “averages” don’t address half of those who will exceed the norms. The more data you put into determining y ...
Released On: 12/26/2019
Views: 1867
You Can’t Make Good Financial Decisions Without Knowing Your Effective Tax Bracket
For most wage earners and retirees taxes are the biggest expense they’ll ever have over their lifetime. Managing your tax bill effectively is learning to become a “gamer,” by avoiding tax traps and snares along life’s journey. You have to know th ...
Released On: 12/25/2019
Views: 1790
Baby Boomers Must Create a Retirement Budget or Risk Losing Control of their Money
It’s rather stunning to discover that most baby boomers have never had a budget in their life, but they’re going to need one in retirement. Retirement may be the biggest motivator for most Americans to create a budget because retirees live month ...
Released On: 12/24/2019
Views: 1898
Life Has Milestone Events That Have A Financial Impact
Life just happens, but there are predictable events common to most in our culture and most of those events have a financial impact. Planning for those predictable events can prepare you to meet many of these obligations. The life event checklist ...
Released On: 12/23/2019
Views: 1971
The Extension of Human Life Expectancy: The Final Frontier of Retirement Planning
The Mortality Revolution may very well be the final frontier in mankind’s quest to beat death. So far, the grim reaper has won every time, but new timelines are emerging in human longevity that are delaying the inevitable. Prepare yourself for l ...
Released On: 12/20/2019
Views: 1790
Longevity Risk is its Own Risk Multiplier of Every Other Retirement Risk
Living longer is exacerbating over a dozen other retirement risks that threaten the vast majority of retirees and those near retirement. If the status quo continues, the retirement lifestyle of most seniors will be severely pared back. Watch the ...
Released On: 12/19/2019
Views: 1830
Almost All Retirement Plans Need Serious Updating in Light of the Mortality Revolution
Most of the retirement plans currently operational have a significant flaw. They’ve grossly underestimated the increase in life expectancy over the last generation. But government and military pensions are in the greater financial jeopardy, becau ...
Released On: 12/18/2019
Views: 1804
Bonds Have Interest Rates, Stocks their Dividends, Annuities Longevity Credits
The law of large numbers and changing demographics of life expectancy is having a significant impact on guaranteed lifetime annuities. Annuity manufacturers are touting their alpha with mortality credits and receiving newfound interest among fina ...
Released On: 12/17/2019
Views: 1821
Shock! The Age Wave is Upon Us and We’re Not Ready
The last 100 years have seen a significant increase in human longevity compared to the earliest records of mankind. The spike in longevity has caught the Western world by surprise. The effects of this revolution are affecting financial planning a ...
Released On: 12/16/2019
Views: 1776
Protecting Social Security Benefits from Taxation
There was a time when Social Security benefits were not exposed to ordinary income taxation. But over the years, small incremental steps were taken to tax the benefits. Maybe “means testing” may be implemented to shore up the vulnerable Social Se ...
Released On: 12/13/2019
Views: 1467
Collateralized Loans from Cash Value Life Insurance Policies & Home Equity Could Be Tax Free
Collateralized loans are not characterized as income and are not reportable, as such, on your 1040 form. And because these loans are not forms of taxable income, they are not counted for the provisional income test for Social Security taxation. W ...
Released On: 12/12/2019
Views: 1932
Tax Management in Retirement Requires Tax Management During the Contribution Period
Retirement, as it is today, is inherently crippled by taxes. You may very well have one million dollars in your retirement plan, but Uncle Sam may own up to 40% of it. Health Savings Accounts (HSA) and Roth IRAs need to be reconsidered as a first ...
Released On: 12/11/2019
Views: 1735
Taxes in Retirement is the #1 Threat in Retirement Cash Flow
Most American workers don’t comprehend the realities of retirement until they’re a few years from retirement date, which is often too late. They’re just too busy dealing with immediate financial pressures to understand the long-haul consequences ...
Released On: 12/10/2019
Views: 1766
Retirement Facts, Stats and Hacks for the Next Generation
Retirement will undergo a drastic reinvention as the newest generation redefines it's golden years in their investment habits and senior lifestyle goals. https://www.youtube.com/watch?v=RAdtMWBaseY&feature=youtu.be
Released On: 12/9/2019
Views: 1729
Uncle Sam Owns a Chunk of Your Retirement Accounts
Your retirement account is only as big as your tax planning strategy. Your personal exemptions and standard deductions in retirement will not be enough to offset your tax bill. Tax management must be a major component of your retirement plan. Wat ...
Released On: 12/6/2019
Views: 1831
Guaranteed Income You Can’t Outlive Can Mitigate Market & Longevity Risk
If you have longevity in your family, guaranteed income for life is a must consideration. If you think it’s reasonable that medical advances will impact your longevity, then guaranteed income for life may need to be in your retirement plan. Watch ...
Released On: 12/5/2019
Views: 1690
How to Retire Happy
A happy retirement is based on math and science, not on wishful thinking and hoping things turn out right. You need to eliminate debt and risk in retirement and secure reliable income to generate the peace of mind that seniors desire in their gol ...
Released On: 12/4/2019
Views: 1438
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