A major part of my job – perhaps the most important part – is helping people reach their financial goals in life. Over the years, I’ve discovered that while things like planning, saving, and investing are crucial, it’s equally important to look beyond the numbers. Achievement is about more than just spreadsheets or quarterly statements. …
DetailsThe Focus Formula Focus is a skill that drives success, productivity, and the ability to generate new ideas and possibilities. When you’re truly focused, you’re at the top of your game. Great musicians, doctors, actors, lawyers, and athletes know this. Without focus, their performances become flawed and mistakes are made, often serious mistakes. How do…
DetailsWhy Open a my Social Security Account? I’ve written about this before, I want to encourage you again to go to ssa.gov/myaccount and open a Social Security account. This is not just for people who are close to retirement. Everyone should open their own account with SSA—before someone else does. Here’s Why: I heard about…
DetailsHuman beings are obsessed with setting records. The fastest. The strongest. The first. The longest. It’s exciting whenever a new record gets set. It makes us feel like we’re witnesses to something important, something historic. Something we can tell our grandchildren about. And now, we can add a new record to the list: The Longest…
DetailsWhat’s in a Phrase: Your Retirement There are certain phrases that have become so pervasive in our culture that we rarely stop to think about what they mean. Many of these sayings contain some very profound lessons that can apply directly to your retirement. Here are some of my favorites. April Showers Bring May Flowers:…
DetailsAs my birthday approaches, I’ve been thinking about certain milestones. Do you realize that the only time in our lives when we like to get old is when we’re kids? If you’re less than 10 years old, you’re so excited about aging that you think in fractions. “How old are you?” “I’m four and a…
DetailsWhen we plan retirement some don’t want to hear how much it may help to work a few more months. I’ve just reviewed a new study published by the National Bureau of Economic Research. Their research confirms working a few years longer has a bigger impact on improving retirement income security for older workers than…
DetailsWhat is a 401(k)? Have one? Here’s how to take advantage of it. A 401(k) is a retirement savings plan provided by an employer and allows you to save and invest a portion of your paycheck before taxes (the tax-advantage). The money in a 401(k) has the potential to grow tax free. In retirement, withdrawals…
DetailsWhat is a Required Minimum Distribution (RMD)? After you turn 70½, the IRS requires you withdraw a portion of the money in your retirement savings accounts each year (except for Roth accounts1). This is called a Required Minimum Distribution (RMD). Many of you who are enjoying your 2nd Half are approaching or have reached 70…
DetailsNot making a move may not be the best move to make. A decision not made may have financial consequences. There is an old belief that women are more cautious about money than men, and whether you believe that or not, both women and men may fall prey to a kind of money paralysis as…
DetailsIt is only wise to consider what Medicare won’t cover in the future. As you save for retirement, you also recognize the possibility of having to pay major health care costs in the future. Is there some way to plan for these expenses years in advance? Just how great might those expenses be? There’s no rote answer,…
DetailsWhere do things proceed from that point? Every day, people die intestate. In legalese, that means without a will. This opens the door for the courts to decide what happens with their estates. When no valid will exists, state intestacy laws dictate how assets are distributed. These laws divide an estate evenly (or equitably)…
DetailsWho should inherit your IRA or 401(k)? See that they do. Here’s a simple financial question: who is the beneficiary of your IRA? How about your 401(k), life insurance policy, or savings account? You may be able to answer such a question quickly and easily. Or you may be saying, “You know… I’m not…
DetailsHow do you claim them? How much can you receive? About 5 million widowed Americans get Social Security survivor benefits. If your spouse has passed, you may be eligible to collect them. This means that you could receive as much as 100% of your late spouse’s Social Security income.1,2 Some widows and widowers aren’t aware…
DetailsWise moves to make before things are finalized. Before your divorce goes through, it will be wise to check up on financial matters. It will be better to assess the state of your financial life before the split rather than after. You may also find this article on divorce helpful. Find out where you stand financially. Beyond…
DetailsThe Five Phases of Life After 50 and the Considerations That Accompany Them. The journey to and through retirement occurs gradually, like successive chapters in a book. Each chapter has its own things to consider. Chapter 1 (the fifties). At this stage of life, retirement becomes less like a far-off dream and more like a…
DetailsWhy you should refrain from making this move. Thinking about borrowing money from your 401(k), 403(b), or 457 account? Think twice about that. These loans are risky and could be injurious to your retirement planning. A loan of this kind damages your retirement savings prospects. A 401(k), 403(b), or 457 should never be viewed like…
DetailsNot All Financial Statements Need to be Retained Indefinitely We all have filing cabinets and boxes of statements and records that we retain … “just in case”. How long does one really need to retain paper statements, such as 401(k) statements, credit card statements, or transaction receipts? Most paper files do not need to be…
DetailsTwo possibilities. Years ago, retirees exploited loopholes in Social Security’s framework to dramatically increase their lifetime Social Security benefits. Many of the tactics they used are no longer permitted, but there are still a couple of ways to restart those retirement benefits in pursuit of higher monthly income. Once, retirees could hit “reset” on their…
DetailsYou might be able to take money out of your 401(k), 403(b), or 457 Plan while still working. If you withdraw money out of a workplace retirement plan in your fifties, will you be penalized for it? In most cases, the answer is yes. Distributions taken from a qualified retirement plan before age 59½ usually…
DetailsA convenient move that could ward off probate on your accounts. TOD, JTWROS…what do these obscure acronyms signify? They are shorthand for transfer on death and joint tenancy with right of survivorship – two designations that permit automatic transfer of bank or investment accounts from a deceased spouse to a surviving spouse. This…
DetailsSteps to see that financial matters remain in good order. When a spouse passes away, the emotion and magnitude of the loss can send our lives reeling. This profound change can also affect our finances. All at once, we have a to-do list before us, and the responsibility of it can make us feel pressured.…
DetailsWill you have enough money to make ends meet? You may have heard that people spend less once they are retired. Statistically, that is true. The question is whether a retiree has enough income to meet his or her expenses. Ideally, retirees should be able to live comfortably on 70-85% of their end salaries and…
DetailsWhat could you do (or do differently) in the months ahead? How will your money habits change in 2017? What decisions or behaviors might help your personal finances, your retirement prospects, or your net worth? Each year presents a “clean slate,” so as one year ebbs into another, it is natural to think about what…
DetailsIf your loved ones have invested, saved or insured themselves to any degree, you may be named as a beneficiary to one or more of their accounts, policies or assets in the event of their deaths. While we all hope “that day” never comes, we do need to know what to do financially if…
DetailsWhat should you focus on as the transition approaches? You can prepare for your retirement transition years before it occurs. In doing so, you can do your best to avoid the kind of financial surprises that tend to upset an unsuspecting new retiree. How much monthly income will you need? Look at your monthly expenses…
DetailsThe arguments for & against this estate planning decision. Uncommon, or uncommonly wise? Occasionally, a couple or a family will elect to put their home into a revocable living trust, a charitable remainder trust (CRT) or a qualified personal residence trust (QPRT). There are advantages and disadvantages to doing this. People make this move for…
DetailsWhy are they made again and again? Much has been written about the classic financial mistakes that plague start-ups, family businesses, corporations and charities. Aside from these blunders, there are also some classic financial missteps that plague retirees. Calling them “mistakes” may be a bit harsh, as not all of them represent errors in judgment.…
DetailsTry living as a “retiree” for a month or two before you commit to leaving your career. Imagine if you could preview your retirement in advance. In a sense, you can. Financially and mentally, you can “rehearse” for the third act of your life, while still enjoying the second. Pretend you are retired for…
DetailsMinor inflation means small, but notable, changes for the new year. Each October, the Internal Revenue Service announces changes to annual contribution limits for IRAs and workplace retirement plans. Are any of these limits rising for 2017? Will IRA contribution limits go up? Unfortunately, no. Annual contributions for Roth and traditional IRAs remain capped at…
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