Retirement Watch Weekly
Reconsidering the 80% of Pre-Retirement Income Rule
Pick up a standard retirement reference or work with a traditional planner, and you’ll be told that a retirement plan has to save enough to spend 80% of pre-retirement income in retirement. I’ve criticized that a number of different ways in Retirement Watch and in my books. Christine Benz of Morningstar takes up that argument […]
Shattering Another Retirement Myth
Most retirement plans assume a simple income progression. For example, the plans often take today’s salary and assume it rises at the rate of inflation, at least, until retirement age. A more rigorous plan might assume some promotions or pay raises above the inflation rate along the way. It turns out that, outside of government, […]
Thinking Differently as We Age
People’s attitudes and emotions change through life. As a general rule, researchers concluded that people worry less and have fewer other negative emotions as they age. Some think it’s a coping mechanism, while others think as we go through life we learn to focus on positive things. They say older people tend to live in […]
Grasping the Risks of Estate Planning Neglect
Many people have their estate plans on the backburner. They know the estate tax changed a lot in recent years, is scheduled to change next year, and after that probably will change again. Many believe that since today’s generous estate tax exemption exceeds the value of their estate, they don’t need to worry about an […]
Estate Planning Strategies for Asset Ownership
When your estate planning aims to help a grandchild financially, especially for college, an important question is: Who should own the assets? In fact, answering this question can be harder than determining how much money you should set aside and how it should be invested. Deciding who should own the property means looking at several […]
Tip-Toeing Into the Second Home Market
The signs are we’re in or nearing a good time to look at a vacation home or a property in a vacation area. I don’t think we’re entering a new real estate boom, so don’t expect buying now will set you up for big capital gains in a few years. I’ve been saying that residential […]
Avoiding Costly IRA Blunders
IRAs are among the most valuable assets most people own, and they become more valuable after receiving 401(k) rollovers. But they aren’t the s vehicles they seemed when people were opening them. There are many misunderstandings about IRAs. These misunderstandings frequently result in taxes and penalties that easily could be avoided. IRAs aren’t the simple […]
Planning Taxes in a Transition Period
We’re hurtling toward the fiscal cliff. Tax increases across the board are scheduled to take effect on Jan. 1, 2013. In addition, a number of tax breaks expired at the end of 2011 and still haven’t been extended. (See our February 2012 visit for details.) Congress, at least at the moment, doesn’t seem inclined to […]
