Continue reading source article here.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, December 30, 2015
Why so many boomers need a retirement reality check
Many baby boomers have expectations for their retirement years that their financial and employment circumstances don't support, nor does the experience of recent retirees. That's one of many conclusions from a recent study conducted by the Transamerica Center for Retirement Studies. It surveyed more than 4,000 workers age 50-plus and over 2,000 recent retirees, then compared the results to gain useful insights for boomers approaching retirement.
How to Maximize Your Retirement Accounts in 2016
Contributing to a retirement account qualifies you for tax breaks and employer contributions, both of which will grow your nest egg faster. Here's how to take full advantage of the 401(k) and individual retirement account perks you're eligible for in 2016.
Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal income tax bill. Retirement savers in the 35 percent tax bracket will save $6,300 on the same contribution. Income tax won't be due on this money until it is withdrawn from the account. And if you drop into a lower tax bracket in retirement, you will pay that lower rate on the distributions. If you withdraw that $18,000 while in the 15 percent tax bracket, you will only ultimately pay $2,700 on that contribution.
Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal income tax bill. Retirement savers in the 35 percent tax bracket will save $6,300 on the same contribution. Income tax won't be due on this money until it is withdrawn from the account. And if you drop into a lower tax bracket in retirement, you will pay that lower rate on the distributions. If you withdraw that $18,000 while in the 15 percent tax bracket, you will only ultimately pay $2,700 on that contribution.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, December 23, 2015
Don't let these unexpected costs derail your retirement: Plan ahead instead
It’s not what you know that will crush your lifestyle in retirement. It’s what you don’t know.
And that’s especially the case when it comes to expenses in retirement.
On average, retirees can expect housing to represent about one-third of expenses in retirement, health care, 10% to 15%; transportation, 15%; food, 12%; and apparel, insurance and discretionary expenses making up the rest.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, December 17, 2015
7 Year-End Retirement Mistakes Experts Say You'll Want to Avoid
In a few short weeks, the books will close on 2015 and along with them, the chance to make some last-minute decisions about retirement funds.
U.S. News spoke to Klein and other financial planners who say these are the seven biggest retirement mistakes people make at the end of each year.
Mistake No. 1: Failing to make planning a priority.
U.S. News spoke to Klein and other financial planners who say these are the seven biggest retirement mistakes people make at the end of each year.
Mistake No. 1: Failing to make planning a priority.
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, December 16, 2015
How Retirement Benefits Will Change in 2016
While a new type of retirement account will emerge, several Social Security claiming options will soon disappear.
Retirement savers will get the option to participate in a new type of retirement account next year, the myRA. There will also be fewer Social Security claiming options for married couples and a small Medicare premium increase for some beneficiaries. Here are some of the important ways retirement benefits will change in 2016.
Retirement savers will get the option to participate in a new type of retirement account next year, the myRA. There will also be fewer Social Security claiming options for married couples and a small Medicare premium increase for some beneficiaries. Here are some of the important ways retirement benefits will change in 2016.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
3 Overseas Retirement Spots With Great Weather
For many retirees considering making a move overseas, weather is a priority. The cost of living and the cost of real estate are also important, of course. But a desire for a more temperate and comfortable climate is often a primary motivation behind making a move abroad. You can swap the snow, ice and freezing temperatures of North American winter for regular sunshine and pleasant weather all year long.
Better weather not only makes for more comfortable living but can also mean health benefits. Living in a place where it's never too cold or too hot means not having to sequester yourself part of the year behind closed doors. And not having to invest in heat or air conditioning means lower utility costs, as well.
Better weather not only makes for more comfortable living but can also mean health benefits. Living in a place where it's never too cold or too hot means not having to sequester yourself part of the year behind closed doors. And not having to invest in heat or air conditioning means lower utility costs, as well.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, December 9, 2015
The 8 Steps To A Successful Early Retirement
How would you like to retire early? Maybe 62 is a good age or maybe you’d like to retire at 60 or even 55.
But unless you’ve won the lottery, have a government pension or are the favorite niece or nephew of a rich uncle, you may find it difficult to achieve your goal. If can still be done, though. You have two options: cut your expenses or increase your retirement savings. Better yet, do both.
More specifically, you should be able to take that job and shove it at an age earlier than 65 if you do the following:
But unless you’ve won the lottery, have a government pension or are the favorite niece or nephew of a rich uncle, you may find it difficult to achieve your goal. If can still be done, though. You have two options: cut your expenses or increase your retirement savings. Better yet, do both.
More specifically, you should be able to take that job and shove it at an age earlier than 65 if you do the following:
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Creating A Rainy Day Fund For Your Personal Life In Retirement
It’s not uncommon to hear a financial expert preach the importance of having a rainy day fund equal to 3-6 months of expenses to cover emergencies or unexpected costs. While that’s very important, what’s often missed is that the same idea should be applied to your personal life in retirement as well.
It’s one reason why I ask people, “Where is your retirement sanctuary? Where do you go or who do you turn to after a bad day?”
On the surface, it may seem like a depressing question to think about and answer but the reality is, a successful retirement isn’t one without problems, but one in which you learn to overcome them. Therefore, in order to make a successful transition from work-life to home life, it’s important to understand how you deal with bad days, hard times, and even suffering.
It’s one reason why I ask people, “Where is your retirement sanctuary? Where do you go or who do you turn to after a bad day?”
On the surface, it may seem like a depressing question to think about and answer but the reality is, a successful retirement isn’t one without problems, but one in which you learn to overcome them. Therefore, in order to make a successful transition from work-life to home life, it’s important to understand how you deal with bad days, hard times, and even suffering.
Damian J. Sylvia
220 Monmouth Road
Oakhurst, NJ 07755
Friday, November 13, 2015
Retirement options dwindle, and states step in. But should they?
Whether it's the reality of living paycheck-to-paycheck, or just plain procrastination, more than a third of all Americans say they have nothing saved for retirement.
With fewer companies offering pension plans, and the number of companies offering employees 401(K) programs decline, more and more workers could find themselves on their own in their golden years. Less than half of private sector workers have access to retirement plans at their workplace, a state of affairs that is making state governments step in.
With fewer companies offering pension plans, and the number of companies offering employees 401(K) programs decline, more and more workers could find themselves on their own in their golden years. Less than half of private sector workers have access to retirement plans at their workplace, a state of affairs that is making state governments step in.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, October 30, 2015
The average retirement age in every state
Choosing the right retirement age is as difficult as it is important. Retiring too early could leave you short on savings years into your retirement. A premature retirement can also cost you a chunk of your annual Social Security income.
SmartAsset's free retirement calculator can help you decide when to retire.
On the other hand, if you wait too long to retire, you may miss out on some of the experiences you have planned for your golden years. Sticking with your job once you're ready to retire can be stressful and exhausting.
SmartAsset's free retirement calculator can help you decide when to retire.
On the other hand, if you wait too long to retire, you may miss out on some of the experiences you have planned for your golden years. Sticking with your job once you're ready to retire can be stressful and exhausting.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
How much do I really need to save for retirement?
I always thought 10% of salary was the amount you need to save for retirement. I save more than that, but a retirement calculator told me I'm not saving enough. Am I on track or is retirement just an impossible dream --Jessica, Texas.
I wish I could give you a simple-but-accurate rule of thumb that could assure you're saving enough to stay on track toward a secure retirement. But I can't because there isn't one.
The 10%-of-salary figure you cite is often tossed around as a viable benchmark -- and it might be if you start saving that amount in your early 20s and stick to it faithfully over the next 40 or so years. But few of us actually adhere to that regimen. We get a late start or have years when we save less than 10% or we may even dip into our savings occasionally. To allow for more leeway in building a nest egg, many pros suggest a higher target of 15%, which is the figure cited in recent research by the Center for Retirement Research at Boston College.
I wish I could give you a simple-but-accurate rule of thumb that could assure you're saving enough to stay on track toward a secure retirement. But I can't because there isn't one.
The 10%-of-salary figure you cite is often tossed around as a viable benchmark -- and it might be if you start saving that amount in your early 20s and stick to it faithfully over the next 40 or so years. But few of us actually adhere to that regimen. We get a late start or have years when we save less than 10% or we may even dip into our savings occasionally. To allow for more leeway in building a nest egg, many pros suggest a higher target of 15%, which is the figure cited in recent research by the Center for Retirement Research at Boston College.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, October 29, 2015
6 Ways to Prepare for Retirement in Your 20s and 30s
Compound interest works best when you start saving early in your career.
Although retirement may be decades away when you're in your 20s and 30s, it's an important milestone to start planning for. The earlier you start thinking about and preparing for it, the less likely you are to have to play a game of catch up as retirement approaches. To get yourself started with retirement planning, consider these six ways to prepare:
Open an account already. If your employer offers a savings vehicle, such as a 401(k), take advantage of it. You can also open your own traditional IRA or Roth IRA. While saving early is important, so is the habit of doing so automatically on an ongoing basis. By setting yourself up with automatic paycheck deductions or transfers to a Roth IRA, you're getting into the habit of putting money aside for your future. Aim to save at least 10 percent of your gross income and work up from there.
Although retirement may be decades away when you're in your 20s and 30s, it's an important milestone to start planning for. The earlier you start thinking about and preparing for it, the less likely you are to have to play a game of catch up as retirement approaches. To get yourself started with retirement planning, consider these six ways to prepare:
Open an account already. If your employer offers a savings vehicle, such as a 401(k), take advantage of it. You can also open your own traditional IRA or Roth IRA. While saving early is important, so is the habit of doing so automatically on an ongoing basis. By setting yourself up with automatic paycheck deductions or transfers to a Roth IRA, you're getting into the habit of putting money aside for your future. Aim to save at least 10 percent of your gross income and work up from there.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, October 28, 2015
The Best Places to Work in Retirement
Just over a quarter (26.2 percent) of people age 60 and older remain employed. But in some cities, nearly a third of the population continues to work during the traditional retirement years, according to 2012 Census Bureau data. Here are the places those age 60 and older are the most likely to be employed.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, October 21, 2015
Retirement strategies based on birthday? Start savings now
Despite warnings to the contrary, many Americans aren't saving for retirement. About half of households age 55 and older have no retirement savings, according to a May report by the Government Accountability office.
But for employees being blasted with open enrollment information this October, it's never too soon to start. When it comes to retirement, it's all about the time value of money, Matt Sommer of Janus Capital Group told CNBC's "Power Lunch" Tuesday.
Continue reading article here.
But for employees being blasted with open enrollment information this October, it's never too soon to start. When it comes to retirement, it's all about the time value of money, Matt Sommer of Janus Capital Group told CNBC's "Power Lunch" Tuesday.
Continue reading article here.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, October 14, 2015
Why You Won’t Run Out of Money in Retirement
One prominent retirement fear is outliving your retirement savings. But this common concern seldom happens, because there are plenty of ways to adjust your spending and tighten your belt when the markets take a dive. Here's why you aren't likely to completely run out of money in retirement.
Spending has been going up and down all your life. No one actually spends a constant amount adjusted for inflation every year. You sometimes get big expense years, such as when you decide to change your car. Other years, you are too busy to take a vacation and you naturally spend less.Spending will fluctuate, which means you can easily tighten and loosen your purse strings as long as you pay attention.
Spending has been going up and down all your life. No one actually spends a constant amount adjusted for inflation every year. You sometimes get big expense years, such as when you decide to change your car. Other years, you are too busy to take a vacation and you naturally spend less.Spending will fluctuate, which means you can easily tighten and loosen your purse strings as long as you pay attention.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Monday, October 12, 2015
Instead of full retirement, many opt to ‘phase out’ of work
Seven years ago, Steve E. Norwitz, who was then a 61-year-old executive at the Baltimore mutual fund group T. Rowe Price, proposed a scaled-down work schedule that would reduce his duties.
“I didn’t figure it would go beyond two years,” said Norwitz, who started working at T. Rowe Price in 1977. In fact, “10 years ago, I thought I’d retire at 60.”
“I didn’t figure it would go beyond two years,” said Norwitz, who started working at T. Rowe Price in 1977. In fact, “10 years ago, I thought I’d retire at 60.”
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Saturday, October 10, 2015
Women and Retirement
Retirement planning is important for all Americans, but the importance is heightened for women. The retirement deck is stacked against women in several ways, including generally lower pay compared to men and lower Social Security benefits upon retirement. Social components include greater likelihood of caregiving responsibilities resulting in increased part-time work or time out of the workforce. Since women outlive men by 4.8 years on average, they also have a longer retirement period.
Continue reading source article here.
Continue reading source article here.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, October 8, 2015
Women and Retirement
Retirement planning is important for all Americans, but the importance is heightened for women. The retirement deck is stacked against women in several ways, including generally lower pay compared to men and lower Social Security benefits upon retirement. Social components include greater likelihood of caregiving responsibilities resulting in increased part-time work or time out of the workforce. Since women outlive men by 4.8 years on average, they also have a longer retirement period.
Damian Sylvia
Founder
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Tuesday, October 6, 2015
The first retirement-planning question you need answered
As a Certified Financial Planner, there's one question I get asked more than any other: “Will I ever be able to retire?”
If you're feeling uncertain about this yourself, that's understandable. Financial markets seem to get more complex by the day, and a quick glance at the day's headlines show a global economy rife with question marks and seeming risk. The Employee Benefit Research Institute, a highly respected research outlet, recently released its latest survey on retirement confidence, and the results are bleak: overall retirement confidence is at record lows. So if you're concerned about how to prepare for your own retirement, you're not alone.
Luckily, there are a few things everyone can do to put themselves on a strong footing, and financial advisors can help with the biggest questions you may have.
If you're feeling uncertain about this yourself, that's understandable. Financial markets seem to get more complex by the day, and a quick glance at the day's headlines show a global economy rife with question marks and seeming risk. The Employee Benefit Research Institute, a highly respected research outlet, recently released its latest survey on retirement confidence, and the results are bleak: overall retirement confidence is at record lows. So if you're concerned about how to prepare for your own retirement, you're not alone.
Luckily, there are a few things everyone can do to put themselves on a strong footing, and financial advisors can help with the biggest questions you may have.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
The End of Retirement As We Know It?
For those of you who have ever considered an encore career, did you ever think your next job would be in retirement research? That's what happened to Paul Irving. After thirty years as a corporate attorney and CEO of a large law firm with roots in the financial services industry, he says, "I fell into a project having to do with aging and I just fell in love with the subject."
That project ignited a new passion and inspired him to launch his own encore career. Today, Irving is the Chairman of the Milken Institute Center for the Future of Aging and Distinguished Scholar in Residence at the University Of Southern California Davis School Of Gerontology. He believes we need a new conversation about the benefits and costs of retirement for individuals, businesses and the broader society-and wonders if the word retirement makes sense in the 21 st century. Here are a few of the topics we discussed.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Tuesday, September 8, 2015
How to Play 'Retirement Catch-Up' If You Had a Late Start
You've celebrated your 40th birthday (or better).
Now that you're older and wiser, you decide to start learning about retirement planning. You assume you still have plenty of time. After all, retirement is more than a decade away.
You start reading about retirement planning -- and your stomach churns. Every article and book says that you were supposed to start saving in your 20s. Oops. It's too late for that. You're firmly in the middle of life, and your retirement savings are meager.
How can you catch up, if you've had a late start? Here are a few tips.
Now that you're older and wiser, you decide to start learning about retirement planning. You assume you still have plenty of time. After all, retirement is more than a decade away.
You start reading about retirement planning -- and your stomach churns. Every article and book says that you were supposed to start saving in your 20s. Oops. It's too late for that. You're firmly in the middle of life, and your retirement savings are meager.
How can you catch up, if you've had a late start? Here are a few tips.
Thursday, September 3, 2015
Five Things To Do Within Five Years Of Retirement
It’s easy to imagine your first day of retirement.
You won’t need to set your alarm clock the night before, since you can get up any time you’d like. You can enjoy your breakfast at a leisurely pace, since you don’t have to rush out the door.
Doesn’t that sound wonderful?
You won’t need to set your alarm clock the night before, since you can get up any time you’d like. You can enjoy your breakfast at a leisurely pace, since you don’t have to rush out the door.
Doesn’t that sound wonderful?
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
4 mistakes that could ruin your retirement
Considering the stock market's wild swings over the last two weeks, some investors may be a bit queasy. Those who are newly retired or near retirement may be tempted to cash out of stocks or adjust their portfolio so that it is mostly invested in bonds. That could be a big mistake.
That's one of a few mistakes that can derail your retirement plans.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, August 26, 2015
5 Ways You Can Pay for Retirement in Advance
In retirement your income is largely fixed. Your Social Security payments will increase only by the annual inflation rate. And you can safely withdraw only about 4 percent of your savings each year, perhaps also adjusted for inflation. Given these constraints, it can be difficult to cope with sudden or large expenses. One way to prepare yourself is to eliminate as many bills as you can before you retire. Your fixed income will provide for a better lifestyle if there are fewer bills you need to cover. Here are some retirement expenses you can pay for in advance.
Continue reading source article here.
Continue reading source article here.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Stock Market Correction of August 2015 - What does it mean?
As you read this, we’ve been experiencing something that hasn’t occurred on Wall Street since 2011 – a stock market correction.
Corrections are unsettling, yes – and they are also part of any ordinary bull market. Historically, they have occurred about every 18 months. This current bull is extraordinary – the S&P 500 has sailed along without a correction since October 2011 – the third longest interval with a correction in the past 50 years. That 2011 correction took three months to occur, so it was not nearly as dramatic as what we seem to be witnessing now.
Thinking in the long-term.
A correction is short-term, and your investing is long-term. The same goes for a bear market. Patience is part of investing, and when you have the patience to ride out turbulence and market shocks and stay invested, you position yourself to deal with any development.
What is driving stocks downward so violently? You can cite three things.
Global investors are starting to believe China isn’t fully admitting the trouble within its economy. Officially, China has maintained that its economy is growing about 7%. That is slow growth for China, but still the kind of economic expansion that its business sector and global investors have relied on for years. A key flash factory PMI for China came in at 47.1 for August – a reading deep into contraction territory, down from 47.8 for July. China’s economy relies heavily on its manufacturing engine, and this signal hinted to many investors that the Chinese economy is currently growing far less than the official forecasts project.
Oil prices are still descending, partly on the assumption that China will demand less of the commodity. Light sweet crude even went under the $40 mark Friday for a moment; it may close under $40 this week for all investors know.
Wall Street still assumes that the Federal Reserve could raise interest rates next month. The latest Fed policy meeting minutes did note some conflicting views, but even the latest (tame) consumer price index and factory output readings may not dissuade the Fed from its intent to start tightening.
The point is that these are short-term issues. They may not preoccupy investors next quarter, next month, or even next week for all we know. (Remember the Greek debt crisis?) “This volatility is likely to remain with us, at least until the end of the year,” deVere Group CEO Nigel Green told TheStreet, noting that “for most long-term investors, fears of a near-term financial apocalypse are overdone.”
Headlines come and headlines go; the market has amazing rallies and harsh selloffs. Think of them as the “weather” of Wall Street. Stay patient through these headwinds, and remember that when it comes to equity investing, the sunny days have tended to outnumber the bleak ones.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
References:
1 - cnbc.com/2015/08/21/the-associated-press-qa-what-a-stock-market-correction-means-to-you.html [8/21/15]
2 - money.cnn.com/2015/08/21/investing/stocks-market-lookahead-august-21/index.html [8/21/15]
3 - thestreet.com/story/13263507/1/stocks-end-brutal-week-as-market-nears-correction.html [8/21/15]
Corrections are unsettling, yes – and they are also part of any ordinary bull market. Historically, they have occurred about every 18 months. This current bull is extraordinary – the S&P 500 has sailed along without a correction since October 2011 – the third longest interval with a correction in the past 50 years. That 2011 correction took three months to occur, so it was not nearly as dramatic as what we seem to be witnessing now.
Thinking in the long-term.
A correction is short-term, and your investing is long-term. The same goes for a bear market. Patience is part of investing, and when you have the patience to ride out turbulence and market shocks and stay invested, you position yourself to deal with any development.
What is driving stocks downward so violently? You can cite three things.
Global investors are starting to believe China isn’t fully admitting the trouble within its economy. Officially, China has maintained that its economy is growing about 7%. That is slow growth for China, but still the kind of economic expansion that its business sector and global investors have relied on for years. A key flash factory PMI for China came in at 47.1 for August – a reading deep into contraction territory, down from 47.8 for July. China’s economy relies heavily on its manufacturing engine, and this signal hinted to many investors that the Chinese economy is currently growing far less than the official forecasts project.
Oil prices are still descending, partly on the assumption that China will demand less of the commodity. Light sweet crude even went under the $40 mark Friday for a moment; it may close under $40 this week for all investors know.
Wall Street still assumes that the Federal Reserve could raise interest rates next month. The latest Fed policy meeting minutes did note some conflicting views, but even the latest (tame) consumer price index and factory output readings may not dissuade the Fed from its intent to start tightening.
The point is that these are short-term issues. They may not preoccupy investors next quarter, next month, or even next week for all we know. (Remember the Greek debt crisis?) “This volatility is likely to remain with us, at least until the end of the year,” deVere Group CEO Nigel Green told TheStreet, noting that “for most long-term investors, fears of a near-term financial apocalypse are overdone.”
Headlines come and headlines go; the market has amazing rallies and harsh selloffs. Think of them as the “weather” of Wall Street. Stay patient through these headwinds, and remember that when it comes to equity investing, the sunny days have tended to outnumber the bleak ones.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
References:
1 - cnbc.com/2015/08/21/the-associated-press-qa-what-a-stock-market-correction-means-to-you.html [8/21/15]
2 - money.cnn.com/2015/08/21/investing/stocks-market-lookahead-august-21/index.html [8/21/15]
3 - thestreet.com/story/13263507/1/stocks-end-brutal-week-as-market-nears-correction.html [8/21/15]
Monday, August 24, 2015
Why you need a vacation from retirement
During our working years, few of us need any convincing to take a vacation. In retirement, however, it's not always clear that a vacation makes sense. That should change. In the time period following full-time work, vacations may be as necessary as they ever were, if not more.
Why take a vacation in retirement? After all, retirement is a vacation without end — or at least, that's how it's portrayed in magazines, brochures, financial advisory offices, and of course, in our own imaginations. Essentially, retirement is framed as time off for good behavior.
Why take a vacation in retirement? After all, retirement is a vacation without end — or at least, that's how it's portrayed in magazines, brochures, financial advisory offices, and of course, in our own imaginations. Essentially, retirement is framed as time off for good behavior.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, August 21, 2015
The 4 Questions You Must Get Right for a Secure Retirement
To stay on track to a comfortable retirement, focus on these four essentials.
Given the flood of often confusing and conflicting information from financial services firms, market pundits and the media, it’s easy to lose sight of what really matters when it comes to retirement planning. No doubt that’s one reason only 32% of American workers surveyed by Personal Capital reported they are very or somewhat prepared for retirement.
Given the flood of often confusing and conflicting information from financial services firms, market pundits and the media, it’s easy to lose sight of what really matters when it comes to retirement planning. No doubt that’s one reason only 32% of American workers surveyed by Personal Capital reported they are very or somewhat prepared for retirement.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
3 tips to getting retirement right in your 20s
I’m in my 20s and would like to start taking steps to ensure a secure retirement and financial future. But like many people in my generation I’m confused about where to start, who to contact and what to do. Can you point me in the right direction? –S.V.
I’m not surprised that you’re confused. Now that your generation has become a prime target audience for the financial industry’s products and services, hardly a day goes by that one study or another doesn’t purport to offer insights into what Millennials are doing, should be doing or shouldn’t be doing about their finances.
Unfortunately, these insights aren’t always consistent. Some surveys claim Millennials are poor savers; others say they’re more diligent than boomers. Some research warns that Millennials are investing far too conservatively.
I’m not surprised that you’re confused. Now that your generation has become a prime target audience for the financial industry’s products and services, hardly a day goes by that one study or another doesn’t purport to offer insights into what Millennials are doing, should be doing or shouldn’t be doing about their finances.
Unfortunately, these insights aren’t always consistent. Some surveys claim Millennials are poor savers; others say they’re more diligent than boomers. Some research warns that Millennials are investing far too conservatively.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Monday, August 17, 2015
A 3-step plan to getting the retirement income you need
My wife & I have substantial 401(k) balances & hope to retire in five years. But we're not sure about how to turn our savings into income. We're considering buying an annuity, but don't know whether that's a good move or whether we should be doing something else. What do you think? -Ken R.
I think that you and your wife need a retirement income plan, a detailed strategy for figuring out how much income you'll need to live the retirement lifestyle you envision and coming up with a realistic way to generate that income.
I think that you and your wife need a retirement income plan, a detailed strategy for figuring out how much income you'll need to live the retirement lifestyle you envision and coming up with a realistic way to generate that income.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Sunday, August 16, 2015
Don’t be too generous with your retirement cash
We hear a lot these days about the strains on the sandwich generation, those caught between the demands of their children and their aging parents. Yet a recent study suggests these intergenerational demands aren’t always equal: while children can strain middle-aged pocketbooks, aging parents generally don’t.
Indeed, older family members are more often on the giving end than on the receiving end of financial support, according to a recent study by the Employee Benefit Research Institute (EBRI). The goal with familial cash transfers is to make sure they’re based on math, not emotion, so they don’t endanger the giver’s near-term finances or retirement security, experts say.
Indeed, older family members are more often on the giving end than on the receiving end of financial support, according to a recent study by the Employee Benefit Research Institute (EBRI). The goal with familial cash transfers is to make sure they’re based on math, not emotion, so they don’t endanger the giver’s near-term finances or retirement security, experts say.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road,
Oakhurst, NJ 07755
Saturday, August 15, 2015
Green Retirement Communities Are Sprouting
Is “green” living important to you? If you’re a boomer or GenX’er, the answer is likely “yes,” and interest in environmental sustainability is increasing. That’s why some forward-thinking retirement communities are offering residents everything from greener buildings to energy-efficient lighting to community gardens. And some towns are putting a focus on walkability.
According to AARP surveys, such measures are important to a large segment of older Americans. Its 2014 House and Community Preferences of the 45+ Population survey, for example, found that 61% of respondents valued their community being “easy to walk,” with those over 65 most appreciating walkability. Roughly 30% wanted their community to be near transit with an equal portion wanting to be close to a park.
According to AARP surveys, such measures are important to a large segment of older Americans. Its 2014 House and Community Preferences of the 45+ Population survey, for example, found that 61% of respondents valued their community being “easy to walk,” with those over 65 most appreciating walkability. Roughly 30% wanted their community to be near transit with an equal portion wanting to be close to a park.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, August 14, 2015
The Big Social Security Disconnect In Americans' Retirement Plans
No wonder Americans are so worried about retirement. A new survey shows 80% of them are planning to rely on Social Security benefits “substantially” or “somewhat” in retirement (or already do so). But only 42% are “very” or “somewhat” confident in the program’s future.
Compounding this uncertainty: widespread confusion about what the looming exhaustion of the Social Security Trust funds really means. According to the Social Security Trustees’ most recent projections issued last month, the combined trust funds (those paying for both old age and disability benefits) will be exhausted in 2034, at which point Social Security taxes coming into the Treasury will be enough to pay only 79% of promised benefits. Yet 19% of those surveyed thought Social Security would be unable to pay any benefits at all after trust fund exhaustion and 54% admitted they had no idea what the impact would be. Just 26% knew that the program would be able to pay some, but not all, benefits.
Compounding this uncertainty: widespread confusion about what the looming exhaustion of the Social Security Trust funds really means. According to the Social Security Trustees’ most recent projections issued last month, the combined trust funds (those paying for both old age and disability benefits) will be exhausted in 2034, at which point Social Security taxes coming into the Treasury will be enough to pay only 79% of promised benefits. Yet 19% of those surveyed thought Social Security would be unable to pay any benefits at all after trust fund exhaustion and 54% admitted they had no idea what the impact would be. Just 26% knew that the program would be able to pay some, but not all, benefits.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Opinion: “Staying Active” after Retirement: Consider Mentorship
About one-third of us working in the sciences are approaching or have reached typical retirement age, according to the National Science Foundation. Many of us enjoy the intellectual aspects of science and wish to stay involved in them after retirement. Some of us also like interpersonal aspects and do not wish to abandon those, either.
As recently explored in The Scientist, continuing lab work after retirement—by leading a smaller lab, joining someone else’s, or even becoming a late-life postdoctoral fellow—serves some well. Yet such opportunities can be hard to arrange, and arguments have been made that space and funding should go to those earlier in their careers. And some in the sciences do not wish to continue lab work—or, like me, have pursued non-laboratory careers. Fortunately, other options exist
As recently explored in The Scientist, continuing lab work after retirement—by leading a smaller lab, joining someone else’s, or even becoming a late-life postdoctoral fellow—serves some well. Yet such opportunities can be hard to arrange, and arguments have been made that space and funding should go to those earlier in their careers. And some in the sciences do not wish to continue lab work—or, like me, have pursued non-laboratory careers. Fortunately, other options exist
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
The biggest Social Security mistake women make
Is 62 too young to claim for women to claim Social Security?
That is the age at which both women and men are allowed to claim, and sure enough, 40.8 percent of the women who were newly awarded Social Security retirement benefits in 2014 were aged 62. Some 65 percent were below their full retirement age, typically 66. And just 2.8 percent of the women were 70 or older, the age at which they receive their maximum Social Security retirement benefits, according to Social Security Administration data.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
That is the age at which both women and men are allowed to claim, and sure enough, 40.8 percent of the women who were newly awarded Social Security retirement benefits in 2014 were aged 62. Some 65 percent were below their full retirement age, typically 66. And just 2.8 percent of the women were 70 or older, the age at which they receive their maximum Social Security retirement benefits, according to Social Security Administration data.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Saturday, August 8, 2015
Will retirement make you happier?
"We find strong evidence that retirement improves both health and life satisfaction." This provocative line came from the summary of a recent National Bureau of Economic Research (NBER) working paper produced by researchers at George Mason University and Utah State University.
If you're of retirement age and on the fence about pulling the trigger on your retirement application, digging into this topic a little deeper is a good use of your time. You'll want to consider your unique life goals and circumstances, and not be influenced too much by studies that report averages over a broad population.
If you're of retirement age and on the fence about pulling the trigger on your retirement application, digging into this topic a little deeper is a good use of your time. You'll want to consider your unique life goals and circumstances, and not be influenced too much by studies that report averages over a broad population.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, August 7, 2015
Three retirement savings tactics that may disappear
Maxing out contributions to retirement plans to avoid taxes has become a common strategy, but three popular techniques could be cut under proposals afloat in Washington. Here’s a look at the proposed changes, and who would be affected by them.
Capping retirement plan tax benefits
Current law encourages taxpayers to save for retirement by deferring income taxes on money they contribute to retirement plans — and on the earnings on those contributions — until they withdraw the money later in life. However, since higher earners are taxed at higher rates, the biggest rewards from retirement incentives also go to high earners. Someone in the highest personal tax bracket, the 39.6% bracket, saves 39.6 cents on the dollar by participating in a 401(k) plan. For a low earner in the 15% bracket, it’s 15 cents on the dollar.
Capping retirement plan tax benefits
Current law encourages taxpayers to save for retirement by deferring income taxes on money they contribute to retirement plans — and on the earnings on those contributions — until they withdraw the money later in life. However, since higher earners are taxed at higher rates, the biggest rewards from retirement incentives also go to high earners. Someone in the highest personal tax bracket, the 39.6% bracket, saves 39.6 cents on the dollar by participating in a 401(k) plan. For a low earner in the 15% bracket, it’s 15 cents on the dollar.
Damian Sylvia
Retirement Income Solutions
Monday, August 3, 2015
More American savers skimp on retirement plans
Americans are saving more, just not in their employer-sponsored retirement plans, according to a new analysis by retirement market researcher Hearts & Wallets.
Average annual household savings increased almost a full percentage point to 5.5 percent last year, up from 4.6 percent in 2013, based on Hearts & Wallets' annual survey of 5,500 U.S. households. (The personal savings rate this May was 5.1 percent, according to the latest release from the Federal Reserve Bank in St. Louis.) But the percentage of household savings that went into employer-sponsored retirements plans like 401(k)s fell 7 percentage points to 22 percent in 2014, and households participating in employer-sponsored plans declined to 56 percent last year from 60 percent in 2013.
Average annual household savings increased almost a full percentage point to 5.5 percent last year, up from 4.6 percent in 2013, based on Hearts & Wallets' annual survey of 5,500 U.S. households. (The personal savings rate this May was 5.1 percent, according to the latest release from the Federal Reserve Bank in St. Louis.) But the percentage of household savings that went into employer-sponsored retirements plans like 401(k)s fell 7 percentage points to 22 percent in 2014, and households participating in employer-sponsored plans declined to 56 percent last year from 60 percent in 2013.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Sunday, August 2, 2015
Saving for Retirement
To the Editor:
“Paving the Way to Better Retirements” (editorial, July 23) drew crucial attention to retirement insecurity and states leading the way in expanding workplace savings opportunities.
Fifty-five million Americans lack workplace retirement savings plans. Yet we know that access to payroll deduction makes people 15 times more likely to save for retirement. States have recognized this and are stepping up — red and blue states, urban and rural. Since 2012, roughly half the states have considered the effect of retirement insecurity.
Continue reading source article here.
“Paving the Way to Better Retirements” (editorial, July 23) drew crucial attention to retirement insecurity and states leading the way in expanding workplace savings opportunities.
Fifty-five million Americans lack workplace retirement savings plans. Yet we know that access to payroll deduction makes people 15 times more likely to save for retirement. States have recognized this and are stepping up — red and blue states, urban and rural. Since 2012, roughly half the states have considered the effect of retirement insecurity.
Continue reading source article here.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 0775
Saturday, August 1, 2015
How To Calculate Your Retirement Liability
Financial advisors and planners know the issue all too well, as do retirement experts: There is a pressing need for Americans to contribute to a 401(k), individual retirement account or some sort of structured, tax-deferred account to take them through their post-employment years.
Yet recent government statistics reveal quite the shocker: Just 53 percent of the civilian workforce participates in or contributes to a retirement plan, according to the U.S. Bureau of Labor Statistics. In the private industry subset, it’s even lower: 48 percent. Among the two major civilian categories surveyed by the BLS, only one, state and local government workers, shows healthy participation rates at 81 percent.
Yet recent government statistics reveal quite the shocker: Just 53 percent of the civilian workforce participates in or contributes to a retirement plan, according to the U.S. Bureau of Labor Statistics. In the private industry subset, it’s even lower: 48 percent. Among the two major civilian categories surveyed by the BLS, only one, state and local government workers, shows healthy participation rates at 81 percent.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, July 31, 2015
What Happens If You Fumble In Retirement?
I remember when I was a junior in high school and playing in the big homecoming football game. The stands were packed and as we entered the fourth quarter I went back to receive a punt. Back then, I was a sure-handed player with good speed and aspirations to play at the next level. However, none of that mattered when the punt slipped through my hands, bounced between my legs, and slowly rolled end-over-end, out of my reach as I was sandwiched by two opposing players running full speed.
It was physically painful and emotionally disheartening because the game was on the line and the other team just recovered the ball on our 20 yard line. As I pulled myself up, I had to make the 25 yard jaunt back to the sidelines. As you might expect, it seemed like a journey of a thousand miles that had nothing but bad news and angry sentiments waiting for me.
It was physically painful and emotionally disheartening because the game was on the line and the other team just recovered the ball on our 20 yard line. As I pulled myself up, I had to make the 25 yard jaunt back to the sidelines. As you might expect, it seemed like a journey of a thousand miles that had nothing but bad news and angry sentiments waiting for me.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst NJ 07755
Divorcing Women: How Much Do You Know About Your Husband's Retirement?
Achieving a secure retirement should be a primary financial goal for all adults. Ideally, married couples work as a team to plan for their retirement, invest and save according to strategies they discuss openly with each other and their financial and tax advisors, and check in on a regular basis to make adjustments as needed.
In the real world, though, things often work quite differently –and not nearly as well.
Fidelity Investments recently published the 2015 edition of its online biennial Couples Study, analyzing the retirement and financial expectations and preparedness of 1,051 committed couples (at least 25 years old, and with a minimum annual household income of $75,000 or at least $100,000 in investible assets).
In the real world, though, things often work quite differently –and not nearly as well.
Fidelity Investments recently published the 2015 edition of its online biennial Couples Study, analyzing the retirement and financial expectations and preparedness of 1,051 committed couples (at least 25 years old, and with a minimum annual household income of $75,000 or at least $100,000 in investible assets).
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Have a plan when tailoring retirement draws to your income
Are you financially prepared for a 20-year retirement? How about replacing your income over a 30- or 40-year retirement?
The Social Security Administration estimates that the average 65-year-old woman today will live to age 86 and a 65-year-old man today will live to age 84. Also according to Social Security Administration projections, about 25% of today's 65-year-olds will live past 90, with approximately 10% living to be older than 95.
The Social Security Administration estimates that the average 65-year-old woman today will live to age 86 and a 65-year-old man today will live to age 84. Also according to Social Security Administration projections, about 25% of today's 65-year-olds will live past 90, with approximately 10% living to be older than 95.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Americans Left $24 Billion in Retirement Money on the Table Last Year
The average worker is missing out on more than $1,300 a year. Make sure to get your share.
Personal savings rose last year, as conscientious workers reined in their spending. But a smaller portion of those savings were stashed in employer-sponsored retirement plans, new research shows. This and other recent findings suggest that the much-vaunted 401(k) match may not be the silver bullet for retirement savings that is widely presumed.
Personal savings rose last year, as conscientious workers reined in their spending. But a smaller portion of those savings were stashed in employer-sponsored retirement plans, new research shows. This and other recent findings suggest that the much-vaunted 401(k) match may not be the silver bullet for retirement savings that is widely presumed.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Your Retirement Checklist for Every Age
It's never too late—or too early—to start planning for your eventual retirement. The Adventist HealthCare Retirement Plan, along with human capital and management consulting services provider Hewitt Associates, has compiled a list of retirement strategy steps people should take in each decade of adulthood, from their 20s to their 60s.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
3 Retirement Problems and Solutions That Millennials Face Today
It's no secret that millennials have had a tough time getting started with careers, families and saving for retirement.
Everything from the Great Recession, to the rising cost of higher education, to the increasing scarcity of better-paying jobs has taken its toll on people born in the last two decades of the 20th century.
And while retirement may be three to four decades away for even the oldest of this bunch, there are some very real problems that they will face if they don't take action soon. Let's look at three:
Everything from the Great Recession, to the rising cost of higher education, to the increasing scarcity of better-paying jobs has taken its toll on people born in the last two decades of the 20th century.
And while retirement may be three to four decades away for even the oldest of this bunch, there are some very real problems that they will face if they don't take action soon. Let's look at three:
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, July 22, 2015
5 Best Tips to Save $1 Million for Retirement
Everyone knows that they need to save for retirement especially with company pensions becoming extinct over the next generation. At some point, you’re going to stop working and will have to live on whatever you have saved plus what you’re entitled to receive from Social Security.
Having worked with many people who have saved $1 million or more, there are patterns of behavior that they all possess that have helped them to accumulate their wealth. While there’s no denying that it helps to start with a well-paying job, earning more money is no guarantee that you’ll be set for retirement. If you want to have $1 million or more saved for retirement, here are 5 tips to help you join the millionaire retiree ranks.
Having worked with many people who have saved $1 million or more, there are patterns of behavior that they all possess that have helped them to accumulate their wealth. While there’s no denying that it helps to start with a well-paying job, earning more money is no guarantee that you’ll be set for retirement. If you want to have $1 million or more saved for retirement, here are 5 tips to help you join the millionaire retiree ranks.
Tuesday, July 21, 2015
Pensions Are Taking the Long, Lonely Road to Retirement
Pensions were once just as much a given in the full-time working world as rock-solid health insurance and gold watches on retirement day. Remember that time? Touch-tone phones were still all the rage, too.
But in the 21st century, many employers have already made the call to eliminate pensions, with more joining their ranks every day. Thus that once-secure source of retirement income could quickly become a relic, although other instruments – such as 401(k) accounts and certain annuities – have since replaced pieces of the pension puzzle.
But in the 21st century, many employers have already made the call to eliminate pensions, with more joining their ranks every day. Thus that once-secure source of retirement income could quickly become a relic, although other instruments – such as 401(k) accounts and certain annuities – have since replaced pieces of the pension puzzle.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Retirement Planner: An active, healthy lifestyle is a wise investment
In 1966, I was accepted by the University of Vermont medical school at about the same time Bernie Sanders was arriving in the state. Medical school appealed to me in part because I was a hypochondriac, but I had also paid my dues as an undergraduate having to endure tough courses like organic chemistry, and I couldn't bear to have that ordeal go to waste. As it turned out, I decided to go to the UC Berkeley Haas School of Business instead, so here I am. Be thankful that I'm your retirement planner and not your physician. But as your planner, I can't emphasize enough the importance of good health as a primary ingredient of a successful retirement. It's more important than money.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, July 8, 2015
How Your Retirement Account Balance Compares to Your Peers
Your age often dictates your retirement saving priorities. In your 20s and 30s, you need to get some money into a retirement account so that it can start growing on your behalf. Once you have accumulated a significant nest egg, it becomes increasingly important to protect what you've got. And after you retire, you need to sensibly draw down your assets so that your nest egg lasts the rest of your life. Here are some strategies to give your retirement finances a boost at each stage of your life.
Damian Sylvia
Retirement Income Solutions
220 Oakhurst, NJ 07755
Tuesday, July 7, 2015
Pay Off All my Debt With My Retirement Money?
Dear Liz, My wife and I no longer work. She is 57 and I am 55. We have retirement income of about $90,000 in military and Department of Defense pensions. We have several Roth IRAs and some mutual funds. I have a 403(b) with $75,000. Is it wise to tap retirement accounts to clear off a credit card and pay my car off early to get out of debt? I owe $17,000 on it at 4.2% interest. -- Jeff
Dear Jeff, It rarely makes sense to prematurely tap a retirement account to pay off debt. It usually is much better to use savings or cash in nonretirement assets.
Withdrawals from your 403(b) retirement plan would trigger income taxes that would eat up at least a quarter of what you pulled out. While you wouldn't be subject to the 10% federal penalty because you are 55 and separated from your employer, you'd still wind up paying income taxes equal to your federal and state tax brackets. If you were in the 25% federal bracket, for example, a $20,000 withdrawal would trigger at least $5,000 in income tax (plus whatever your state charges).
Dear Jeff, It rarely makes sense to prematurely tap a retirement account to pay off debt. It usually is much better to use savings or cash in nonretirement assets.
Withdrawals from your 403(b) retirement plan would trigger income taxes that would eat up at least a quarter of what you pulled out. While you wouldn't be subject to the 10% federal penalty because you are 55 and separated from your employer, you'd still wind up paying income taxes equal to your federal and state tax brackets. If you were in the 25% federal bracket, for example, a $20,000 withdrawal would trigger at least $5,000 in income tax (plus whatever your state charges).
Damian Sylvia
Retirement Income Solutions
Retirement advice from a Boomer to a Millennial
I'm in my early 60s and fortunately will be able to retire soon. But I work with a lot of young people who just don't get how important it is start planning early for retirement. They don't even seem to know where to start. I'd like to help them better prepare -- do you have any advice? --Jeff M.
I applaud you for wanting to help your colleagues in their 20s and early 30s, but let's not be too quick to assume they're clueless about retirement. The latest Allstate/National Journal Heartland Monitor Poll did find that young workers are more concerned with immediate needs like paying off student debt and building an emergency fund than retirement. But a new T. Rowe Price study also reports that saving for retirement is important to Millennials and that they're actually doing a pretty good job of balancing current obligations with preparing for retirement.
I applaud you for wanting to help your colleagues in their 20s and early 30s, but let's not be too quick to assume they're clueless about retirement. The latest Allstate/National Journal Heartland Monitor Poll did find that young workers are more concerned with immediate needs like paying off student debt and building an emergency fund than retirement. But a new T. Rowe Price study also reports that saving for retirement is important to Millennials and that they're actually doing a pretty good job of balancing current obligations with preparing for retirement.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Monday, July 6, 2015
3 Retirement Loopholes That Are Likely to Close
The government has a knack for catching on to the most popular loopholes.
There are plenty of tips and tricks to maximizing your retirement benefits, and more than a few are considered “loopholes” that taxpayers have been able to use to circumvent the letter of the law in order to pay less to the government.
There are plenty of tips and tricks to maximizing your retirement benefits, and more than a few are considered “loopholes” that taxpayers have been able to use to circumvent the letter of the law in order to pay less to the government.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, July 3, 2015
What's Wrong With Our Retirement System And What We Can Do About It
What’s wrong? As the Baby Boom moves into retirement, confidence in our retirement system is waning, for good reason. Plan sponsors, including public and private employers, are rapidly freezing their defined benefit plans—those that promise a guaranteed level of income in retirement—by closing the plans to new hires or stopping current employees from earning additional benefits.
When legally permitted to do so, some plan sponsors are even cutting back benefits employees have already earned. Municipal pension cutbacks growing out of the Detroit bankruptcy offer one recent example where previously earned benefits already have been cut. Congress provided another example late last year when it authorized severely underfunded multiemployer pension plans to reduce previously earned benefits of collectively-bargained employees. Meanwhile, Washington is awash in proposals to cut back, tax away, or means test Social Security old-age benefits whenever a political opening makes that feasible.
When legally permitted to do so, some plan sponsors are even cutting back benefits employees have already earned. Municipal pension cutbacks growing out of the Detroit bankruptcy offer one recent example where previously earned benefits already have been cut. Congress provided another example late last year when it authorized severely underfunded multiemployer pension plans to reduce previously earned benefits of collectively-bargained employees. Meanwhile, Washington is awash in proposals to cut back, tax away, or means test Social Security old-age benefits whenever a political opening makes that feasible.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, July 2, 2015
Stop your grown kids from ruining your retirement
If you are in your 50s or 60s and are still caring for your kids financially, you really need to start caring for yourself—or you may never be able to afford to retire.
A recent study found more than half of parents who are supporting adult children are "extremely concerned" about saving enough for retirement.
A recent study found more than half of parents who are supporting adult children are "extremely concerned" about saving enough for retirement.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ
07755
Tontines: The retirement plan of the future?
Question: What is a tontine? How do tontines work? And, what’s the financial and economic thinking behind them?
Milevsky: A tontine can be thought of as an arrangement with some friends to purchase a very long-dated bond. You agree to split the coupons as they get paid, but (and this is the key) if one of the friends dies, the coupons get split among the survivors. So, people that live a long time end up getting (very) large coupons, at the expense of those who died earlier. The financial economic idea here is that it allows investors to earn mortality credits without requiring an insurance company to guarantee anything.
Milevsky: A tontine can be thought of as an arrangement with some friends to purchase a very long-dated bond. You agree to split the coupons as they get paid, but (and this is the key) if one of the friends dies, the coupons get split among the survivors. So, people that live a long time end up getting (very) large coupons, at the expense of those who died earlier. The financial economic idea here is that it allows investors to earn mortality credits without requiring an insurance company to guarantee anything.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
5 reasons the retirement crisis is worse for women than men
It often seems that nearly every day, there's a new report telling ushow woefully unprepared Americans are for retirement.
But dig a little deeper into the myriad studies, and another trend emerges: While both men and women lack retirement savings, the picture for women is far bleaker. The gap starts to develop early: A recent T. Rowe Price study of millennial workers found that women were less likely to put money into a 401(k), and those who did had smaller balances than men.
But dig a little deeper into the myriad studies, and another trend emerges: While both men and women lack retirement savings, the picture for women is far bleaker. The gap starts to develop early: A recent T. Rowe Price study of millennial workers found that women were less likely to put money into a 401(k), and those who did had smaller balances than men.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
Saturday, June 27, 2015
When Should You Take Social Security Retirement Benefits?
For a lot of folks, the title question is a no-brainer: take the money and run. Why, you’ve been paying into this system all your life, so you should begin taking it back out as soon as you can, right?
Well, maybe.
Well, maybe.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07719
Thursday, June 25, 2015
Behind on Retirement? Here's How to Catch Up
It's hard to believe, but according to a recent report by Forbes, 68% of Americans aren't saving for retirement in an employee-sponsored plan. What's more 69% of Americans under the age of 30 and a full third of those between 30 and 49 have nothing put away for retirement. If retirement is looming and you have nothing saved up, you don't have a lot of options. Still, you have a few things that you can do if you have even a decade left before your last day on the job.
Damian Sylvia
Managing Partner
Retirement Income Solutions
3 ways to get retirement ready in your 20s
As a 20-year-old, saving for retirement can easily fall to the bottom of the priorities list.
College graduates must focus on repaying their loans and paying rent wherever they may have moved for a career, although several would rather backpack and see the world before making their next career moves. Add to all of those ambitions potentially accrued debt and it could spell a recipe for disaster.
However, despite all of their immediate financial needs and responsibilities, 20-year-olds have the greatest opportunity to ensure a successful retirement if they start on the right path.
College graduates must focus on repaying their loans and paying rent wherever they may have moved for a career, although several would rather backpack and see the world before making their next career moves. Add to all of those ambitions potentially accrued debt and it could spell a recipe for disaster.
However, despite all of their immediate financial needs and responsibilities, 20-year-olds have the greatest opportunity to ensure a successful retirement if they start on the right path.
Damian Sylvia
Managing Partner
Retirement Income Solutions
5 Ways Retirement Will Pleasantly Surprise You
Most worker bees who are grinding away at a day job will tell you they can't wait to retire. However, those who have saved enough money to retire sometimes don't quit right away, even if they don't like going to work. Many savers develop a bit of anxiety about hanging up their work hat and choose to suffer the obvious because they are afraid of the unknown. Fortunately, there are many wonderful aspects of retirement, so the unknown isn't always all bad. For the workaholics among us, here are some reasons to plunge into retirement.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
You should break these six retirement rules. Here's why.
Are there right and wrong ways to retire? While that's a relative question, there are retirement rules that are in your best interest to follow — and those you might want to break. Consider these six retirement rules you might be better off ignoring.
1. Depending on a Pension or Social Security
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
1. Depending on a Pension or Social Security
Counting on a pension or Social Security to help you ride out your retirement years? That's probably not the best strategy to have, considering that very few companies still offer pensions (though you'd know if yours does) and Social Security is still in crisis (so much so that it might be bankrupt and not even exist by the time you retire). That's not to mention that inflation is likely to outpace your per-month payouts in the off chance that you do receive these income sources.Continue reading source article at CSmonitor.com.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
Self-employed? Start saving for retirement
If you’re self-employed, retirement may be the last thing on your mind.
When financial gurus recommend setting aside 15-20 percent of your income toward retirement, your eyes may glaze over. After all, as an independent contractor or small business owner, you know income is often sporadic. Clients don’t always pay on time. Markets tend to move in cycles. Seasonal fluctuations may pinch your company’s cash flow.
You also know bills need to be paid – every month. Once you’ve settled up with suppliers, utility companies, lenders, and all those other folks clamoring for your money, most of your remaining cash may need to be pumped back into the business to keep it afloat. Contributing to a retirement account can seem like a luxury you can’t afford.
When financial gurus recommend setting aside 15-20 percent of your income toward retirement, your eyes may glaze over. After all, as an independent contractor or small business owner, you know income is often sporadic. Clients don’t always pay on time. Markets tend to move in cycles. Seasonal fluctuations may pinch your company’s cash flow.
You also know bills need to be paid – every month. Once you’ve settled up with suppliers, utility companies, lenders, and all those other folks clamoring for your money, most of your remaining cash may need to be pumped back into the business to keep it afloat. Contributing to a retirement account can seem like a luxury you can’t afford.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
When Is the Ideal (and Actual) Retirement Age?
The ideal age to retire falls somewhere between the ages of 60 to 65, according to a new Allstate/National Journal Heartland Monitor Poll.
The ideal age to retire falls somewhere between the ages of 60 to 65, according to a new Allstate/National Journal Heartland Monitor Poll. Retiring then works best, poll respondents say, because it's the sweet spot for both age and finances. People are young, healthy, and financially secure enough then to enjoy their time.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, June 11, 2015
How To Play Catch-Up For Retirement At 50 Or Older
Are you farther along in your career than you are in your retirement planning? If so, you’re not alone: 42% of people in their 50s surveyed for a recent Transamerica Center For Retirement Studies report said they expect their standard of living to decline after they retire. But no matter how far behind you may be, you can still improve your retirement prospects, if you go about it the right way.
Continue reading the source article at www.realdealretirement.com.
Damian J. Sylvia,
Managing Partner
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, June 4, 2015
How do you define retirement?
Everyone knows what retirement means, right? Well, according to the 16th Annual Transamerica Retirement Survey, it turns out that people define retirement differently. In prior generations, when someone told you they were retired or plan to retire, it meant they weren't working at all. But that's no longer the case.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
Tuesday, June 2, 2015
Three Reasons Why Women Should Lead Household Retirement Planning
It's high season for nuptials, and newlyweds-to-be are better focused on wedding plans than retirement plans. Fair enough. But there’s an additional, important vow for new husbands to consider post-honeymoon: Thou shalt look to thy wife to drive retirement planning.
If that sound sexist, it’s not. In many cases, it’s just smart financial planning, given a few key retirement facts:
Continue reading the source article at Bloomberg.com.
If that sound sexist, it’s not. In many cases, it’s just smart financial planning, given a few key retirement facts:
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road,
Oakhurst, NJ 07755
Here’s the Unsettling Truth About the Retirement Crisis
It all depends on whether you're on the right side of the retirement divide.
It’s late spring, and retirement surveys are falling like so many cherry blossoms from the trees. Some of the results are profoundly grim, especially for Gen Xers. In one survey, 67% of Gen X respondents felt that the targets for how much you need to retire are way out of reach. Meanwhile, another survey, this one from Transamerica, found that 37% of workers expect one source of income in retirement to be…working.
It’s late spring, and retirement surveys are falling like so many cherry blossoms from the trees. Some of the results are profoundly grim, especially for Gen Xers. In one survey, 67% of Gen X respondents felt that the targets for how much you need to retire are way out of reach. Meanwhile, another survey, this one from Transamerica, found that 37% of workers expect one source of income in retirement to be…working.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Saturday, May 30, 2015
Study: Day-to-Day Financial Concerns Trump Retirement
How are you doing, financially? Are you satisfied with the state of your finances?
Think about your answer to that question and what drove it. If you are like most people, you were probably thinking about your day-to-day financial health -- your ability to pay your bills and buy the occasional movie ticket or latte.
Think about your answer to that question and what drove it. If you are like most people, you were probably thinking about your day-to-day financial health -- your ability to pay your bills and buy the occasional movie ticket or latte.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Friday, May 29, 2015
Many Americans have no retirement savings: Fed survey
Many Americans are not financially prepared for retirement, with almost a third of working adults without savings or a pension, according to a Federal Reserve survey published on Wednesday.
The Fed's 2014 Survey of Household Economics and Decisionmaking found that about 38 percent of the more than 5,800 respondents have either no intention to retire or plan to keep working for as long as possible.
The Fed's 2014 Survey of Household Economics and Decisionmaking found that about 38 percent of the more than 5,800 respondents have either no intention to retire or plan to keep working for as long as possible.
Damian Sylvia
Retirement Income Solutions
Thursday, May 28, 2015
3 key retirement numbers you need to know
Retirement means different things to each of us. As you consider your vision for retirement, there are three key numbers to keep in mind; you’ll want to discuss them with your financial adviser if you have one:
Your withdrawal rate
This could be your most important retirement number. Your withdrawal rate is the amount you will be taking out of your investment portfolio each year once you’re retired.
This could be your most important retirement number. Your withdrawal rate is the amount you will be taking out of your investment portfolio each year once you’re retired.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
Save for college without hurting your retirement
Struggling to figure out how they'll pay for rising college costs, some parents are willing to dip into their retirement savings and delay retirement but may not realize that in doing so they may be jeopardizing their own financial security.
Some parents may not mind delaying retirement or may believe that using their retirement fund is the best alternative to help their child pay for college. More than half of parents recently surveyed by T.Rowe Price agreed that they'd rather dip into their retirement savings than have their child take out student loans. Parents worry about the long-term impact of student loan debt. Two out of five parents who used student loans to pay for their own college education said their payments have impacted their ability to save for retirement, according to that survey.
Some parents may not mind delaying retirement or may believe that using their retirement fund is the best alternative to help their child pay for college. More than half of parents recently surveyed by T.Rowe Price agreed that they'd rather dip into their retirement savings than have their child take out student loans. Parents worry about the long-term impact of student loan debt. Two out of five parents who used student loans to pay for their own college education said their payments have impacted their ability to save for retirement, according to that survey.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
220 Monmouth Rd
2nd Floor
Oakhurst, NJ 07755
Wednesday, May 27, 2015
5 Things to Do Now if You’re Near Retirement
Believe it or not, the last five years before you retire may be some of the most critical in retirement planning.
Don’t wait until the very last minute to make sure you are prepared, says Michael H. Milarski, a partner and senior financial advisor with Signature Financial Planning.
“Retirement is such an important transition for an individual and, oftentimes, people are so busy with their day-to-day lives that they don’t sit down to begin planning for this transition until they are a few months from their desired retirement date. As a result, they find themselves scrambling to try and get all of their ducks in a row at the last minute,” says Milarski.
Don’t wait until the very last minute to make sure you are prepared, says Michael H. Milarski, a partner and senior financial advisor with Signature Financial Planning.
“Retirement is such an important transition for an individual and, oftentimes, people are so busy with their day-to-day lives that they don’t sit down to begin planning for this transition until they are a few months from their desired retirement date. As a result, they find themselves scrambling to try and get all of their ducks in a row at the last minute,” says Milarski.
Managing Partner
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Retirement Myth #1: I Can Wait Until I’m Earning More To Save For Retirement
The reality is if you start later in your working career you will need to save more money than if you had started younger.
The key years for saving have passed you by if you start in your 40s. Your best income producing years may still lie ahead but at 40 you have many more demands on your income compared to your 20s. You could have kids needing braces, college tuition. You may have kids from a first marriage. Then there is really no money left over for retirement savings.
The key years for saving have passed you by if you start in your 40s. Your best income producing years may still lie ahead but at 40 you have many more demands on your income compared to your 20s. You could have kids needing braces, college tuition. You may have kids from a first marriage. Then there is really no money left over for retirement savings.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Retirement 'Danger Zone' -- How to Get Through It
Are you prepared to enter the danger zone?
That's the time right around retirement when you have accumulated savings and are on the verge of drawing them down. A wrong move or a significant bear market at that point can have an outsized effect on your future financial life.
The question is, what constitutes a wrong move?
That's the time right around retirement when you have accumulated savings and are on the verge of drawing them down. A wrong move or a significant bear market at that point can have an outsized effect on your future financial life.
The question is, what constitutes a wrong move?
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Why Regular Retirement Saving Can Improve Your Health
More workers who make saving a habit report better health than those who do not. And it's not just about having a high income.
People who save money out of habit are more confident about retirement and better prepared financially, as you might expect. But there’s a sleeper benefit, new research shows. Consistent savers also are in better health—no small matter as longevity stretches out life spans and means you likely will live in retirement more years than you did in childhood.
People who save money out of habit are more confident about retirement and better prepared financially, as you might expect. But there’s a sleeper benefit, new research shows. Consistent savers also are in better health—no small matter as longevity stretches out life spans and means you likely will live in retirement more years than you did in childhood.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Thursday, May 21, 2015
Worried About Outliving Retirement Funds? Consider This
If you're worried about outliving your retirement savings, you're not alone. Research shows it's a top concern for many Americans.
In a recent survey, financial advisors noted that health-care costs, market fluctuations and potential lifestyle expenses caused clients the most stress about running out of money. To alleviate those fears, many financial advisors suggest annuities as a way to ensure that clients have a stable stream of income during retirement.
In a recent survey, financial advisors noted that health-care costs, market fluctuations and potential lifestyle expenses caused clients the most stress about running out of money. To alleviate those fears, many financial advisors suggest annuities as a way to ensure that clients have a stable stream of income during retirement.
Damian J. Sylvia
Retirement Income Solutions
Thursday, May 14, 2015
Consider using your home to fund retirement plans
The idea of staying in the family home may be a comforting thought for people heading into retirement, but for many Americans it's probably a bad idea.
The median two-person household entering retirement has a net worth of a just over $300,000, with a home—or equity in one—representing more than half of their assets, according to the latest University of Michigan Health and Retirement Study, conducted in 2010.
The median two-person household entering retirement has a net worth of a just over $300,000, with a home—or equity in one—representing more than half of their assets, according to the latest University of Michigan Health and Retirement Study, conducted in 2010.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Thursday, May 7, 2015
Are you emotionally prepared to handle retirement?
Fill in the blank: "When I retire, I hope to __________."
Many of us have grand ideas of trips we will take, groups or clubs we will join, home projects we will tackle or new hobbies we will take on. We look to retirement as a time to finally do all the things we've always hoped to do but never had the time to accomplish.
Many of us have grand ideas of trips we will take, groups or clubs we will join, home projects we will tackle or new hobbies we will take on. We look to retirement as a time to finally do all the things we've always hoped to do but never had the time to accomplish.
Damian Sylvia
Managing Partner
Retirement Income Solutions
These 4 Rules of Thumb Can Screw Up Your Retirement
Rules of thumb are often partly true—but the part that's wrong can wreck your portfolio. Here's what you need to know.
Retirement planning can get complicated, so we often fall back on rules of thumb, or “heuristics” as economists call them. That approach may work sometimes—and is certainly better than doing nothing—but it can be dangerous too. Here’s what you need to know about four largely-but-not-completely true tenets of retirement planning.
Retirement planning can get complicated, so we often fall back on rules of thumb, or “heuristics” as economists call them. That approach may work sometimes—and is certainly better than doing nothing—but it can be dangerous too. Here’s what you need to know about four largely-but-not-completely true tenets of retirement planning.
Damian Sylvia
Managing Partner
Retirement Income Solutions
2 ways to get guaranteed retirement income
Ask advisers this question and the answer may depend on how the adviser makes his living. If he or she sells annuities, you'll probably hear how wonderful annuities are and why you should have one. If, on the other hand, the adviser charges a fee to invest retirees' savings for retirement income, you'll likely get an earful about annuities' shortcomings and reasons why keeping your savings in stocks, bonds and other investments is the better way to go.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Tuesday, May 5, 2015
Retire? Older Americans Plan to Work Until They Drop
A majority of workers aged 60 and older say they work for the health coverage or because they need the money.
It's the retirement elephant in the room: How much do you need to be financially secure if you stop working? The answer, from a pool of workers of all ages, was a median of $1 million, according to a new report.
It's the retirement elephant in the room: How much do you need to be financially secure if you stop working? The answer, from a pool of workers of all ages, was a median of $1 million, according to a new report.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
Traditional retirement possibly becoming a thing of the past
It may be time to redefine retirement.
A new survey of American workers from the Transamerica Center for Retirement Studies found that 82% of the respondents age 60 and older either are, or expect to keep working past the age of 65. Among all workers, regardless of age, 20% expect to keep on working as long as possible in their current job or a similar one.
A new survey of American workers from the Transamerica Center for Retirement Studies found that 82% of the respondents age 60 and older either are, or expect to keep working past the age of 65. Among all workers, regardless of age, 20% expect to keep on working as long as possible in their current job or a similar one.
Damian Sylvia
Managing Partner,
Retirement Income Solutions
Saturday, May 2, 2015
10 Ways to Fund Your Retirement
Most workers depend on the steady paychecks they receive from a single job. But retirees often have multiple sources of income, including Social Security, pension payments, withdrawals from retirement accounts or other investments and sometimes even income from a part-time job, according to a recent Gallup poll of 1,015 adults, including 652 workers and 363 retirees. Setting up several sources of retirement funds can give you extra security in retirement. Here are 10 ways you can pay for retirement.
Damian Sylvia
Managing Partner
Retirement Income Solutions
4 ways to outlive your retirement savings
If you can work longer, for many people that will be a more palatable solution than saving a crazy percentage of your salary," Webb said.
Working longer also allows you to wait to claim Social Security retirement benefits.
Typically, the longer you wait to claim benefits, the bigger your monthly payments will be, up until age 70. Those who claim benefits at age 70 get a whopping 76 percent more per month than they would if they began drawing benefits at age 62, according to the book "Falling Short: The Coming Retirement Crisis and What to Do About It."
Damian Sylvia
Managing Partner
Retirement Income Solutions
Tuesday, April 21, 2015
Tips for joining rising number of 401(k) millionaires
Retirement savers achieved record balances in their 401(k) balances in 2014—thanks in part to the stock market's gains—but the biggest winners were the thousands of workers who became newly minted millionaires.
The average 401(k) balance hit a record high of $91,300 at the end of last year, according to new data from Fidelity Investments, the largest provider of 401(k) plans. Only a tiny fraction of the company's 13 million plan participants ever reach the million-dollar mark, but that number has grown sharply in the past two years.
The average 401(k) balance hit a record high of $91,300 at the end of last year, according to new data from Fidelity Investments, the largest provider of 401(k) plans. Only a tiny fraction of the company's 13 million plan participants ever reach the million-dollar mark, but that number has grown sharply in the past two years.
Damian Sylvia
Managing Partner
Retirement Income Solutions
One-third have almost no retirement savings
Many people are woefully unprepared financially for retirement, and they shouldn't count on working longer to make up the difference, a new national survey reveals.
Almost a third of workers (28%) say they have less than $1,000 in savings and investments that could be used for retirement, not counting their primary residence or defined benefits plans such as traditional pensions. And 57% say they have less than $25,000, according to a telephone survey of 1,003 workers and 1,001 retirees from the non-profit Employee Benefit Research Institute (EBRI) and Greenwald and Associates. Previous surveys from EBRI and other groups have shown similar savings rates.
Almost a third of workers (28%) say they have less than $1,000 in savings and investments that could be used for retirement, not counting their primary residence or defined benefits plans such as traditional pensions. And 57% say they have less than $25,000, according to a telephone survey of 1,003 workers and 1,001 retirees from the non-profit Employee Benefit Research Institute (EBRI) and Greenwald and Associates. Previous surveys from EBRI and other groups have shown similar savings rates.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Monday, April 20, 2015
How to Build a $1 Million Retirement Plan
The number of savers with seven-figure workplace retirement plans has doubled over the past two years. Here's how you can become one of them.
The 401(k) was born in 1981 as an obscure IRS regulation that let workers set aside pretax money to supplement their pensions.
The 401(k) was born in 1981 as an obscure IRS regulation that let workers set aside pretax money to supplement their pensions.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Sunday, April 19, 2015
For millions, 401(k) plans have fallen short
You need to know this number: $18,433.
That's the median amount in a 401(k) savings account, according to a recent report by the Employee Benefit Research Institute. Almost 40 percent of employees have less than $10,000, even as the proportion of companies offering alternatives like defined benefit pensions continues to drop.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Heartbreaking Reasons To Save Outside Of A 401k, 403b, Or IRA For Retirement
An advisor friend recently shared two frightening withdrawal requests from retired clients. The first was an $85,000 call for funds to cover rehab costs for an adult child. The lethal combination of depression and alcohol abuse contributed to suicidal thoughts, an inconsistent medication schedule, and a trail of hospital stays and doctor visits. The center treating this individual is among the few that address both mental health issues and addiction, which comes with a hefty price tag.
Damian Sylvia
Managing Partner
Retirement Income Solutions
How much do you need to save for retirement?
Not everybody has a clear idea of how to handle their retirement money. According to an assessment of retirement readiness from Voya Financial, nearly 50 percent of workers have saved less than $49,000 and 60 percent say they're worried about running out of money.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Powell: 8 biggest misconceptions about retirement
Perception might be reality. But that's not necessarily the case for pre-retirees. For Americans on retirement's doorstep, misconceptions are reality.
Yes, many Americans retire thinking and imagining this or that lifestyle, and the reality that awaits them is entirely different, say experts.
So, what are the biggest misconceptions people have about retirement and, more importantly, what can you do to avoid or deal with unrealistic images of your golden years?
Yes, many Americans retire thinking and imagining this or that lifestyle, and the reality that awaits them is entirely different, say experts.
So, what are the biggest misconceptions people have about retirement and, more importantly, what can you do to avoid or deal with unrealistic images of your golden years?
Damian Sylvia
Managing Partner
Retirement Income Solutions
Thursday, April 16, 2015
Retirement: The payoffs of an active lifestyle
Some people are planning ahead for their physical fitness in retirement just like they plan for their financial fitness, says one of the country's top national diet and exercise experts. And that's as it should be, he says.
If you start a few years before retirement, says James Hill, executive director of the the University of Colorado Anschutz Health and Wellness Center in Aurora, Colo., you'll be ready to go when you do retire; most people can make a lot of progress toward getting in better shape in a matter of a few months.
Damian Sylvia
Managing Partner
Retirement Income Solutions, LLC
Behind on retirement savings? Here are 3 ways to catch up
Generally, you should have six to nine times your salary tucked away in a 401(k) or other accounts by your mid-50s to early 60s to have a good shot at maintaining your standard of living in retirement. So you're definitely short of where you ought to be.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Friday, April 10, 2015
How much do you need to save for retirement?
Not everybody has a clear idea of how to handle their retirement money. According to an assessment of retirement readiness from Voya Financial, nearly 50 percent of workers have saved less than $49,000 and 60 percent say they're worried about running out of money.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Thursday, April 9, 2015
Key Retirement Concerns And 7 Planning Tips For Women
Retirement planning is extremely important for women, and ideally it should consider the big picture including financial resources, the family’s situation, risks, and employment. Nevertheless, many women are more focused on meeting their families’ current needs than on their longer-term futures.
Damian Sylvia
Managing Partner
Retirement Income solutions
1 in 3 Older Workers Likely to Be Poor or Near Poor in Retirement
Fewer Americans have access to a retirement plan at work. If you're one of them, here's what you can do.
A third of U.S. workers nearing retirement are destined to live in or near poverty after leaving their jobs, new research shows. One underlying cause: a sharp decline in employer-sponsored retirement plans over the past 15 years.
A third of U.S. workers nearing retirement are destined to live in or near poverty after leaving their jobs, new research shows. One underlying cause: a sharp decline in employer-sponsored retirement plans over the past 15 years.
Damian Sylvia
Managing Partner
Retirement Income Solutions
The Retirement Crisis: Why 68% Of Americans Aren't Saving In An Employer-Sponsored Plan
Few Americans are saving for retirement, suggesting many workers may face a retirement with a lower standard of living, according to a recent study released by the Schwartz Center for Economic Policy analysis at the New School.
Since Social Security cannot fully replace income in retirement, other savings is needed, and that usually comes in the form of funds accumulated in employer-sponsored retirement plans such as 401(k)s.
Since Social Security cannot fully replace income in retirement, other savings is needed, and that usually comes in the form of funds accumulated in employer-sponsored retirement plans such as 401(k)s.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
Thursday, April 2, 2015
Retirement: Minimize taxes to maximize savings
Retirement planning is hard enough for most Americans. But when you layer in a convoluted web of U.S. tax laws, the task can seem truly overwhelming.
Some complexity is unavoidable. After all, how much you make, when you choose to retire and how much you'll need in retirement can vary greatly from family to family.
Some complexity is unavoidable. After all, how much you make, when you choose to retire and how much you'll need in retirement can vary greatly from family to family.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Generations Confess Retirement Fears
A common stereotype about baby boomers and retirement might need some tweaking. This is the commonly held view that the “me” generation puts a very high priority on being able to retire whenever they want. Some are said to make it their highest financial priority. It is said that a lot of retirement planning for this generation spins around that goal.
But new Harris Poll sponsored by the Million Dollar Round Table (MDRT) found that it is Generation X, not the boomers, who are most concerned about not being able to retire when they want. The December survey sampled the views of more than 2,000 adults.
But new Harris Poll sponsored by the Million Dollar Round Table (MDRT) found that it is Generation X, not the boomers, who are most concerned about not being able to retire when they want. The December survey sampled the views of more than 2,000 adults.
Damian Sylvia
Managing Partner
Retirement Income Solutions
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