Category: Financial and taxes in retirement
June 2, 2019 — The number one Google search about retirement is “How much do I need to retire”. Or, phrased slightly differently, “how much can I spend in retirement”. It is a tough question, dependent on a lot of factors unique to you. The short answer is: “a lot more than you thought”.
We liken the problem to a maxim our old friend Ralph came up with on a fall camping trip. After a night when the temperature dropped, the fire died down, and we ran out of firewood well before bedtime, he came up with the solution for the next campfire. Before it gets dark go out and collect about as much wood as you think you will need. Then go back out and gather at least that same amount again.... now you will probably be OK!
Here in this article we will address how to identify how much you need to retire comfortably. We want to stress that people usually underestimate two related things: how much is needed, and how long they will live. To be safe, keep Ralph’s maxim in mind. We will also explain the major withdrawal techniques, and provide a list of the situations that cause people to underestimate their needs.
How much do you need - the budget
The lifestyle you plan to live will determine how much you need. Step 1 is to figure out how much you are spending now, and estimate how that might change once you retire, including estimates for future medical expenses. You probably won't spend a whole lot less than you do now, particularly if plan to travel a lot. If you make big changes to where you live, those expenses might go down a lot.
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Published on June 1, 2019
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Category: Health and Wellness Issues
June 9, 2019 -- America's seniors are a little bit healthier than they were a few years ago, even though obesity and excessive drinking are on the rise. America's Health Rankings; put together by the United Health Foundation, an affiliate of UnitedHealth Group, and the Gerontological Advanced Practice Nurses Association, rated the states with the healthiest people over 65. Some of the states that ranked the highest were a bit surprising.
Top ranked for the healthiest older people ranged geographically all over the country: Hawaii, Utah, Connecticut, Minnesota, and Colorado. States in the South brought up the rear: Mississippi, Kentucky, Louisiana, Oklahoma, and West Virginia. Rhode Island earned most improved honors, going from #30 to #7. Going in the unhealthy direction were Kansas and Nebraska, which both fell 10 places, from 18 to 28 and 13 to 23.
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Published on June 8, 2019
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Category: Financial and taxes in retirement
June 16, 2019 -- Most of retirement age America, with the possible exception of our elected representatives in Washington, D.C., has some inkling that Social Security retirement is facing big benefit cuts as early as 2034. The commonly held reason why is that are too many baby boomers collecting their Social Security retirement checks, with too few millennials and Gen Xers paying into the system to keep it in balance. While that is not inaccurate, there is another, more fundamental reason for the shortfall, which dates back to the beginning of the Social Security program.
When the program started in the 1930’s there was an intrinsic problem. Half of the working population at the time was at least halfway towards retirement age. Yet because the program was new, no one had yet contributed anything into the system. It was decided that these Depression-era workers would be given full benefits anyway. Enough money was being collected that benefits could be paid as these workers retired. So they essentially had a windfall - they collected far more than they ever paid into the system. The benefits paid to them would ordinarily have been paid into the trust fund reserves, forever reducing the trust funds. In retrospect, it might have been better to have funded the shortfall from the general treasury at the time.
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Published on June 16, 2019
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Category: Best Retirement Towns and States
June 22, 2019 – We have been posting on Facebook about some of the most likely places to retire as we continue our tour of Scotland and a little bit of Ireland. These posts will give you a little hint…
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Published on June 21, 2019
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Category: Financial and taxes in retirement
June 24, 2019 -- Women tend to do more of the worrying than men, at least in the circles we travel in. And for us men, that is usually a good thing for our preservation. When it comes to women's big fears about retirement, the research primarily focuses on money concerns, but there is no shortage of other worries. We'll cover the common concerns that we are aware of, but we are eager to hear what yours are in the Comments section at the end.
Top Worries - Money
A study published by the nonprofit Transamerica Center for Retirement Studies reported that 46% of women were concerned they wouldn't have a comfortable retirement lifestyle. By comparison, only 31% of men had similar concerns.
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Published on June 23, 2019
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