Planning to Retire
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Obama's 7 Retirement Initiatives for the Middle Class
Continue reading… 7 CommentsThe White House previewed several tax cuts and spending programs yesterday that President Barack Obama will discuss in Wednesday's State of the Union address. Many of the proposals aim to help middle class families prepare for retirement. Here are 7 ways your retirement benefits could soon change.
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Study: 3 Effortless Ways to Get Higher 401(k) Returns
Continue reading… 1 Comment401(k) participants who use target-date funds, managed accounts, or online advice get better returns on their retirement investments than those who do not, according to a Hewitt Associates and Financial Engines study released today. The median annual return for 401(k) account holders using any of these forms of investing assistance was 1.86 percent higher than among investors who choose their own investments with no guidance from their employer, the study of 400,000 401(k) plan participants at 7 companies between 2006 and 2008 found. The improved return takes into account fees paid on the investments.
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Record Numbers Claimed Social Security in 2009
Continue reading… 0 CommentsNew Social Security applications surged in 2009. Some 3.2 million Americans age 62 and older began collecting their due last year, up about 20 percent from 2008 and the most new awards paid out since Social Security payouts began in 1940, according to a new Urban Institute analysis of Social Security Administration data.
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Free Retirement Financial Advice
Continue reading… 1 CommentMeeting with a financial adviser can be expensive. The National Association of Personal Financial Advisors (NAPFA) says its members, who receive only fees and not commissions, generally charge clients between $150 and $300 an hour. But for two days only NAPFA and Kiplinger’s Personal Finance magazine are making financial advisers available for free to address your personal investment, tax, or insurance concerns.
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How To Crack Into Your Nest Egg Early
Continue reading… 1 CommentRetirement accounts are generally intended to finance life after you leave the workforce. When you crack into your nest egg before retirement you rob yourself of tax-deferred growth. But if you do need to access to your retirement stash before age 59 ½, there are a variety of ways to avoid paying an early withdrawal penalty. Medical bills, a first home, and even college tuition are among the Uncle Sam approved ways to spend your IRA balance.
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Why Job Hopping Makes You Worse Off In Retirement
Continue reading… 11 CommentsFrequently changing employers can make it more difficult to save for retirement. The median job tenure of American workers was 5.1 years at the same job in 2008, according to a new study by the Employee Benefit Research Institute. Many pension formulas reward long-term and highly paid employees more than workers with a shorter job tenure. Some job hopping workers also move in and out of retirement plan coverage throughout their career and cash out small 401(k) balances when they change jobs, both of which lead to smaller retirement account balances.
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What Retirees Wish They Had Done Differently
Continue reading… 5 CommentsEven relatively wealthy Americans have begun to significantly cut back on spending. More than half of affluent investors have downsized their lifestyle over the past year, according to a new Merrill Lynch Wealth Management telephone survey of 1,000 Americans with investable assets of $250,000 or more.
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The 4 Biggest Sources of Retirement Income
Continue reading… 2 CommentsAmericans age 65 and older receive most of their income from four sources: employment, Social Security, pensions, and asset returns, according to a recent Congressional Research Service report. The prevalence of each of these types of income has shifted somewhat since 1980. More Americans now continue working past age 65 and fewer people bring in income from assets. Here’s a look at how the biggest sources of retirement income have changed over the past 30 years.
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8 Retirement Gift Ideas
Continue reading… 2 CommentsAs the oldest baby boomers begin to retire, you may want to honor some of these retiring colleagues with a retirement gift. U.S. News asked a cross section of business etiquette experts how to appropriately recognize a coworker’s retirement. Here are eight gift ideas to get you started.
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More Seniors Eligible for Medicare Prescription Help
Continue reading… 1 CommentMore seniors are now eligible for government help paying their Medicare Part D prescription costs. Changes in Medicare law that went into effect on January 1, 2010 relaxed some of the qualification requirements to receive financial assistance to pay for out-of-pocket drug expenses. The Social Security Administration and Grammy award-winner Chubby Checker launched a campaign today to promote this new “twist" in the Medicare drug program.
