Continue reading source article here.
Damian 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.
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
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