Today’s column addresses questions about whether a number of years with no income taxed by Social Security will actually lower retirement benefits rates, whether it’s possible to be reimbursed for a gap in different types of benefits and how spousal benefit rates are determined. Larry Kotlikoff is a Professor of Economics at Boston University and
Retirement
This is a true story about what we sometimes refer to as an “elder orphan”. These folks have no children, they are single, and they can be very vulnerable to the worst abuse. Ralph, in his late 80s had a home in an expensive part of CA. As he grew more frail with age, and
If you thought investing in your 401(k) plan was hard, just wait until the time comes when you have to start taking money out of your retirement plan. Are you ready for this? “In pre-retirement planning, the investor needs to decide three things: how much to invest, asset location and asset allocation,” says James DiLellio,
One of the most common mistakes I see people make is overestimating their tax rate in retirement. This is important for a couple of reasons. First, as Roth 401(k) and 403(b) plans become more common, estimating your future tax rate is a big factor in deciding whether you should make Roth or pre-tax contributions. Second,
You’re retired. Congratulations. Now what? For decades, during most of your working years and especially at the end of your career, it’s all been about one question. “The most common question asked by pre-retirees regarding their financial situation is ‘At what age should I plan to retire?’” says Ann Martin, Director of Operations of CreditDonkey
The ivory tower of higher ed, the U.S. government, the financial industry, the bumper sticker barrage, a healthy pinch of pride, and, yes, even our genuine love for our children have all converged to serve up a big fat guilt sandwich for parents of college-bound kids. We’ve been made to think that we’re damned if
Forensic investigations in Rhode Island, North Carolina, Kentucky and Ohio reveal that gambling 30 percent or more on high-cost, high-risk, secretive alternative investments has exposed pensions to massively greater risks and reduced net returns. The time is ripe for legislators, regulators, and law enforcement to act to stop the looting. A recent New York Times NYT
There’s an old adage when it comes to building a seven-figure retirement account: “Save early and often.” Implicit in these four words lies the powerful concept of compound interest. You’ve heard the term “compounding,” you’ve probably grown numb to its true meaning. In case you need reminding, it refers to the fact that, over time,
By Rosie Wolf Williams, Next Avenue The last year changed so many things in all our lives, including how we spend. Although the recent reduction of pandemic restrictions has some people starting to splurge, COVID-19 has been a time of frugality for many Americans, especially older ones, according to a CouponFollow survey and Next Avenue interviews with consumers.
By Chris Farrell, Next Avenue Increasing numbers of people have found themselves living on low and insecure incomes for decades, including many workers 55 and older. Following the trauma of the pandemic and the social unrest after the murder of George Floyd by a former Minneapolis police officer, addressing the problem of creating a more equitable
By Kerry Hannon, Next Avenue Job hunting these days is not for the meek, especially for those in their 50s or 60s. It’s challenging both in terms of time and emotional energy. But Steve Dalton, author of the new book “The Job Closer: Time-Saving Techniques for Acing Resumes, Negotiations, and More,” has some smart advice, which
Bitcoin, Dogecoin, GameStop GME , and AMC are several on a list of those that for many have sparked dreams of early retirement and riches beyond their wildest dreams. Every day you miss out on these momentary “opportunities”, it feels like you fall another year behind your goals. The Fear of Missing Out (FOMO) can
The backdrop Twelve million adults over age 65 live alone. That is 27% of the population–the highest rate in the world. The majority are women. By age 75, the rate of women living alone rises to 44%. With the mobility in today’s society, many family members live far away. Among boomer women, 19.4% never gave birth, so there are
Sometimes our political leaders have to hear the obvious. In mid-May, members of the United States Congressional Joint Economic Committee (which was constructed to be bipartisan in 1946) heard testimony about why Black people have less wealth than white people. Chair Rep. Don Beyer (D-VA) introduced the hearing saying, “Much of the racial wealth divide
More than half of Americans need to take action quickly if they’re going to reach their retirement savings goals, according to the most recent Retirement Preparedness Measure (RPM) calculated by Fidelity. The average RPM is 74, but 41% of Americans have an RPM of 65 or lower, placing them in the “poor” category when it
Looming over the nation’s workers and their families is the dread of being busted in retirement. The pandemic calamity of 2020 has hastened old-age poverty dread because those without work place retirement coverage lost one more year of savings, were left out of the stock market boom, and are one more step towards leaving or
How can Congress and the Administration get working teenagers to save by opening a Child IRA? This is a question that no one is asking. It is, however, the best question that everyone should be asking. You’ve probably seen many reports about the lack of retirement savings. Currently, there’s a debate regarding whether this is
Nobody minds market volatility when it’s in the upward direction. But this week, we got plenty of the type of volatility that we don’t like so much as investors, the kind that inspires headlines with words like “plunge” and that end with exclamation points. It presents an opportunity, therefore, to remind ourselves of one of
Today’s column addresses questions about how spousal benefits are calculated after early retirement benefits when the record holder delays until 70, whether spousal benefits are 50% of age 70 benefits and when survivor’s benefits may become available to surviving spouses. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president
When you are walking through the supermarket, you’re likely to see an array of financial magazines recommending that you wait until 70 to collect Social Security. You may infer from the articles that your full benefit grows by 8% annually until you reach age 70. In other words, the longer you wait to file, the