Category: Financial and taxes in retirement
This is the second of a multi-part article on retirement confidence and the ability of retirees to have a comfortable retirement. The first article was called "Retirement Confidence Hits Rock Bottom".
A new study from the Boston College Center for Retirement Research shows that 6 out of 10 retirees (61%) are at risk of not having enough retirement income to maintain their pre-retirement living standard. Those who choose to use a reverse mortgage to increase their retirement income can reduce their risk to 51%. For many reasons, however, only
more...
Published on March 30, 2010
Comments 5
Category: Financial and taxes in retirement
March 20, 2010 -- According to a new study from the Employee Benefit Research Institute (EBRI), worker confidence about their retirement has hit rock bottom. The 2010 Retirement Confidence Study found that the percentage of workers who are very confident about having enough money for a comfortable retirement has stabilized at 16 percent, statistically equivalent to the record low 13% reported in 2009. Among workers who are already retired, the confidence index is slightly better at 19%.
These numbers paint a very discouraging picture about retirement - only 1 in 5
more...
Published on March 21, 2010
Comments 5
Category: Financial and taxes in retirement
March 15, 2010 and updated October, 2020 -- Notes: First,this article was prompted by an excellent suggestion from one of our visitors, Gerry. Second, since this article was written there have been two increases in the per person estate tax exemption. Currently it is $11.4 million (indexed to inflation), which means that only a tiny sliver of people will ever pay any estate tax.
It's not the cheeriest topic, but what critics call the "death tax" is on the minds of many people.
A complex subjectLet's start by saying that estate and inheritance taxes are a complex subject, one where you should have a competent professional helping you. If your estate is worth less than $11.4 million, at least you don't have to worry about that problem - your estate will not be taxed by the federal government under current laws. Some definitions - an "estate tax" is levied on the net value of what you are worth when you die, an "inheritance tax" is levied on your heirs from what what they collect from the estate. The estate tax is more common. Your spouse will not pay inheritance taxes from your estate, but your children and other heirs might in some states.
more...
Published on March 15, 2010
Comments 13
Category: Financial and taxes in retirement
As we have said before, if your retirement fund isn't what you hoped it would be, it's time to get creative. One of the most interesting ways to stretch your budget was profiled in a New York Times article last week, "Retirees Trade Work for Rent at Cash-Strapped Parks". The article profiles the experiences of several retirees as they travel around the country and help keep state and national parks ticking under the serious budget constraints these institutions now face.
As Sharon Smith points out in the article, there are three simple reasons why she and her husband Bill want to work in these parks: “We’re here for three reasons,” she said. “No. 1, we like to travel. No. 2, we like people. And No. 3, we’re on a budget.” They also mentioned occasionally indulging in online casinos not on gamstop during their downtime, though they remain mindful of every expense to maintain their nomadic lifestyle. At the time of that quote, Mrs. Smith was making cinnamon rolls for the park center. Others provide bird guiding, cleaning, and maintenance. As states and the federal government have cut back on their support for parks, retirees working for free RV or tent space are now taking over more and more roles previously provided by paid employees.
more...
Published on February 23, 2010
Comments 1
Category: Financial and taxes in retirement
February 15, 2009 - You have probably read about the problems Greece is having with its unmanageable debt these days. Well if you thought that sort of problem couldn't effect you as a retiree in the good old USA, think again. A recent article, These 7 States are Headed for Something Worse, by Gregor Macdonald at Seeking Alpha makes a good case with 4 different reasons why 7 U.S. states are NOT the best place to retire. His conclusions are quite similar to what Topretirements reported on back
more...
Published on February 15, 2010
Comments 64
Category: Financial and taxes in retirement
Let's just say that Plan A for your retirement didn't quite work out the way it was supposed to do. Whatever the reasons, the fact is you are a 60-something baby boomer looking to retire on a lot less money than you thought you would have. Luckily for gritty you, sulking is not an option. Here are 10 of our best ideas on what you can do to retire in style - and on a budget.
1. Move, now. Most people about to retire are living in a lot more house than they really need. So downsizing, the sooner the better, is the smart
more...
Published on January 4, 2010
Comments 13
Category: Financial and taxes in retirement
November 23, 2009 - It's impossible to see into the minds of our readers to try to assess their motivations in finding their best place to retire. We do, however, have some evidence based on which of our articles get read the most. No surprise, articles on low-tax states and most affordable always attract many readers. As in that rude truism, "It's the Economy, Stupid".
One of our pet peeves is the overemphasis that many people place on low taxes as a retirement criteria. In this article we will argue
more...
Published on November 23, 2009
Comments 8
Category: Financial and taxes in retirement
Editor's note: This report was originally written in 2009. There have been several new articles since then, notably "Worst States for Retirement, 2014", which are more up-to-date.
Deciding which state you ought to retire to is hard enough. First you have to find the right climate, tax structure, environment, culture, crime, etc. But with the economic recession of the last few years another factor enters in - is your state in financial trouble so deep it might not be able to dig itself out (think worst states to retire)? The Pew Center on the States issued a report last week that should be enough to
more...
Published on November 16, 2009
Comments 24
Category: Financial and taxes in retirement
October 15, 2009. It's official, there will be no social security COLA (Cost of Living Allowance) increase in 2010, the first time this has happened since 1975. The reason is simple, this year there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2008 to the third quarter of 2009, hence no need for a payment.
more...
Published on October 15, 2009
Comments 9
Category: Financial and taxes in retirement
With many of us baby boomers increasingly worried about their finances in retirement, reducing what we pay in taxes is an attractive option. It's one option that might not impact our lifestyles in any way. So, if you already live in a high tax state, voting with your feet to escape some of those taxes might be a good idea.
The principal state taxes you typically face in retirement are income, property, and sales taxes. Gasoline, cigarette, and estate taxes certainly exist, but they probably
more...
Published on September 8, 2009
Comments 2
