Retirement

By Kerry Hannon, Next Avenue Laurence Kotlikoff, the provocative Boston University economics professor and Social Security expert, has written an excellent new book, “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life.” In it, he offers counterintuitive and surprising personal finance tips regardless of your age. You’ll want to hear them.

Has your financial firm inquired lately about you naming a “trusted contact”? There has been a recent renewed effort by the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA), along with the U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy (SEC OIEA), to encourage financial firms to

By Michael Lubell, Next Avenue Roughly three years ago, a journalist friend of mine explained to me that I was transitioning from a full-time employee to a gigger. And I wondered, what the hell is that? He explained that it’s when you go from temp job to temp job in an attempt to earn what you

Reducing your tax bill seems to be one of the biggest motivators for making 401(k) contributions. The good news for 2022, 401(k)-contribution limits have increased. Keep reading as we share five reasons to supercharge your 401(k) contributions in 2022. Increased 401(k) Contribution Limits for 2022 The contribution limits for the 401(k) plan have increased for

Today’s Social Security column addresses questions about what effects a potential drop in the 2020 Average Wage Index might have on benefit amounts and timing, survivor’s benefits and the earnings test and when first checks can start and when they’ll arrive. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and

Conventional planning, in my view, is about wishful and dangerous thinking. Conventional planning was designed by Wall Street to sell product, not to obey commonsense economic principles. This is why not a single top economics or finance department teaches conventional financial planning. Economics-based financial planning is at complete odds with conventional financial advice. That assertion

Retirees and near-retirees, we are told, are taking too much risk. Here’s USA Today, in an article from mid-December: “Investing for retirement is crucial to building a nest egg that can provide financial security in your later years. Unfortunately, many people who are investing are making a big mistake with the money they’re saving for

When last I updated readers on the American Rescue Plan multiemployer pension plan bailout, back in July, the PBGC had just issued its interim final rule, subject to a comment period, and had made the decision, reasonably enough, to interpret the law, well, by following the law — or, specifically, by following “the plain meaning

Today’s Social Security column addresses questions about taking early reduced retirement benefits and switching to spousal benefits, moving from a survivor’s benefit to a retirement benefit and taking a retirement benefit while awaiting approval of a disability application. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic

The new year has arrived and once again it’s time to make our New Year’s Resolutions. Of course, many will go with the proverbial eat healthy/exercise more, but here are some money ideas that may make 2022 a more prosperous year. Here’s a hint: to keep these close at hand, you can paste these directly

Is it possible that Congress will do nothing to improve long-term services and supports for older adults and younger people with disabilities or assist their families? Even after 603,000 people over age 65 were killed by Covid-19 in the past two years. Yes, it is possible. The House version of President Biden’s Build Back Better

It is the first work week of 2022 and 358 very special American workers already paid their Social Security taxes, or FICA (at least if 2020’s numbers are any guide). Because they make more than $50 million a year, they hit the Social Security cap sometime in the first working day of 2022. Some American

As the jury debates the case against disgraced Theranos blood testing company founder Elizabeth Holmes who has been charged with wire fraud and conspiracy to commit wire fraud many are wondering why the jury still can’t decide whether she is a fraudster who intentionally misled investors or an ambitious startup executive who merely stretched the

Betty White died only a few weeks from her 100th birthday. Few people knew her, that is, really knew her as a person. Most of us knew her through her work. And, it is through her long life, and long work life, that we can draw some insight for our own possible futures and ideas

What’s on the agenda for retirement legislation in 2022? Let’s start with retirement initiatives that are waiting in the wings: The “SECURE Act 2.0” is a set of enhancements to 401(k)s and other retirement savings programs which has been in the works, well, pretty much ever since the original SECURE Act passed. Its House version

The Pew Research Center recently reported that half of U.S. adults 55 and older are retired. While the number of retired Americans age 55 and older grew by about 1 million per year between 2008 and 2019, over the past two years, the number of new retirees grew by 3.5 million. The rise in household

Several positive economic developments characterized 2021. The economy is on the mend from its steep decline and massive job losses at the beginning of the pandemic. But, a lot of work remains to be done to maintain economic momentum and build a truly inclusive economy. There are already signs of hope for a stronger, more

Today’s Social Security column addresses questions about how income earned after previous earnings are inflation indexed at 62 affect how benefits rates are calculated, recalculation of WEP reductions due to substantial covered earnings and the family maximum benefit. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic

A major weakness of the HECM reverse mortgage program is that it is a stand-alone. Potential synergies from integrating HECMs into retirement plans have been ignored. This article provides one illustration. It shows how a HECM can be combined with an annuity to neutralize the high risk that accompanies a high-yield asset portfolio. Consider Mary

If you want to optimize your savings opportunities, can you contribute to your 401(k) at work and to an IRA (individual retirement account) at the same time? Forbes.com readers want to know. P.H. wrote: My daughter has both a 401(k) at work and also contributes to a Roth IRA. Are there contribution limits here? She is 54