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Retire Early? Work Forever? Both Are Wildly Unrealistic

Writing for Barron’s, Sarah Green Carmichael interviewed Teresa Ghildarducci, the Irene and Bernard L. Schwartz Chair in economic policy analysis in the economics department at the New School, and the author of How to Retire with Enough Money: And How to Know What Enough Is. Regarding the FIRE (financial independence retire early) movement, Ghildarducci said: …

Sequence of Returns Risk in Retirement

Many have heard that it is “safe” to spend 4% of one’s nest egg (adjusted for inflation) each year in retirement, expecting funds to last for a 30 year retirement.Michael Kitces explains both the up and down side risk:https://www.kitces.com/blog/url-upside-potential-sequence-of-return-risk-in-retirement-median-final-wealth/There are many reasons for adjusting one’s spending during a lengthy retirement rather than expecting to spend…

Quick and easy retirement calculator

Writing for The Squared Away Blog, one of my favorites, author Kim Blanton describes a new online tool from Vanguard to help near retirees and retirees figure out how long their savings will last. She explains the tool and reviews some of the limitations of online calculators. Read her blog: https://squaredawayblog.bc.edu/squared-away/how-long-will-retirement-savings-last/Keep in mind that the…

If your retirement funding plan is to keep working… reality check needed!

Think the solution to inadequate retirement savings is to keep working? That’s what a lot of people thought until… poor health, layoff, age discrimination, or caregiving needs interfered. Fully 61% of retirees left the paid workforce before they planned… and not on their own terms. Even part-time work may be unrealistic; only 29% of retirees…

Financial Benefits of Delaying Retirement

Alessandra Malito explains in MarketWatch:“Delaying retirement for just three to six months does to the standard of living after retiring what an entire percentage point of 30 years of earnings would do, according to researchers at Stanford University, George Mason University, Cornerstone Research and Financial Engines. “Working longer is relatively powerful compared with saving more…

5 Steps to take before you retire

1. Make a financial plan that starts with a budget.2. Determine how much you can safely withdraw from savings.3. Identify which retirement sources to use when.4. Set your asset allocation.5. Figure out how to pay for medical costs.Get the details from Margaret Price, writing for Investors Business Daily at: http://www.investors.com/etfs-and-funds/retirement/dont-quit-your-job-before-taking-these-5-retirement-steps/     Source: Financial Planning for…

How to Create a Retirement Plan in 15 Minutes

Writing for the Motley Fool, Wendy Connick explains that this 5 step process “will work for the majority of savers to ensure that they have enough funds for a comfortable retirement.” Step one: Set aside 15% of your income Step two: Put your retirement savings into a tax-deferred retirement account Step three: Put the money…

Do you have enough money to retire?

A common question for pre-retirees is whether they have enough money to retire. Of course, the most accurate answer is: “It depends.” How long are you likely to live? What lifestyle do you desire? What “guaranteed” sources of income do you have and how secure are those sources? What health expenses will you face? Will…

13 Questions to help plan your retirement

“Many pre-retirees spend more time planning vacations than they do preparing for retirement, resulting in a lack of financial readiness. But planning is essential to avoid the worst, and Life Income Management founder Melody Juge reviews 13 questions to ponder to move toward sound retirement.”“What is your target retirement date? • What are your monthly…