Category: Retirement

At Some Point You Need To Stop Investing

It’s well-understood that as we age, we experience a general decline in our physical health. And there is increasing evidence that cognitive decline in old age is also natural and inevitable, and cannot be slowed by education or intelligence, nor by so-called brain exercises such as solving crossword puzzles.  Our brain, like the rest of…
Read more

Bring Back The Tontine for Retirees?

In today’s world, newly-minted retirees are being forced to take on risks that their predecessors did not have to deal with. Prior to the 1990s, a retiree could typically count on a guaranteed amount of income from social security and from company pensions lasting until he or she passed away.   In effect, the federal government…
Read more

What Have They Done To My Social Security Ma?

On November 2, 2015 President Obama signed the Bipartisan Budget Act of 2015. With the stroke of a pen he and Congress eliminated some lucrative Social Security (SS) benefits that had been on the books for well over a decade.  Here’s a brief summary on what has changed and who can still take advantage of…
Read more

Five Ways to Extract the Equity In Your Business

If you own a small business, chances are you expect to use the equity you’ve built up over the years to fund all or part of your retirement. At the same time, you may want to pass on ownership of the business to your family to ensure that they can benefit from it beyond your…
Read more

How to Delay the IRS From Taxing Your Savings

If you’ve been working for a midsize or larger employer, chances are you’ve been utilizing a 401(k) to save for retirement. And even if you haven’t, you probably have an Individual Retirement Account (IRA) into which you’ve been saving every year. The great thing about these savings accounts is that the IRS gives you a…
Read more

Should You Pay Off Your Mortgage Before Retiring?

I get this question a lot from my own clients and from others nearing retirement who own homes on which they still hold a mortgage.  There’s a widely-held belief that you should eliminate all your debt before you retire.  Is that true? And does that include paying off your mortgage?  The answer, as is common…
Read more

Five Tips on Supporting Your Boomerang Child

The Pew Research Center found that some 36% of all 18 to 31-year-olds were living at home with their parents in 2012.  As the parent of one such child I fully understand what life is like under those circumstances.  I want to offer a few financial planning tips to those of you who are in…
Read more

How Safe Is Your IRA?

No, this blog is not about how the custodian holding your IRA investments protects itself against hackers.  Rather it’s about the legal protection your account offers against creditors.  Although most of you probably will never have to deal with irate business creditors, keep in mind that should you end up being among the large minority…
Read more

Don’t Forget Social Security Survivor’s Benefit!

I’ve written often about the value of delaying Social Security (SS) payments until age 70.  By waiting until you reach that age, you accumulate what the SSA calls delayed credits, and are effectively purchasing (using the payments you’ve given up) an inflation-adjusted immediate annuity paying 8%.  You won’t find a better annuity anywhere on the…
Read more

4% Retirement Withdrawal Rate Not Safe?

In 1994 William Bengen, a financial planner in Southern California, discovered that an individual starting retirement should be able to spend the equivalent of 4% of his/her investment assets, adjusted each year for inflation, for a period of 30 years without running out of money.  The portfolio allocation that maximized this return was about 60%…
Read more