Trick Questions To Ask Before Retirement

Time and time again, people perceive retirement as a financial goal and objective rather than personal one. That causes people to focus on financial questions and answers such as, how much money do I need… how much can I withdrawal…and how long will it last?

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

The Gender Gap In Retirement Savings: Why It's Important And What Employers Can Do

At Financial Finesse, our most recent research report focuses on the significant gender gap that exists in financial wellness. Last year’s discussed how women have a higher risk of running short of retirement funding for a number of reasons, ranging from income inequality to more family-care related work absences and longer lifespans that can mean higher lifetime medical expenses. 

This year’s report builds on the findings from the previous report and discusses how millennial women are particularly impacted by the gender gap in financial wellness.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

 

Should You Plan On Your Retirement Lasting 30 Years Or 40?

The 4% rule has a planning horizon of thirty years. As I mentioned during the discussion of the PMT formula, different time horizons suggest different spending rates. An eighty-five-year old is not necessarily limited to a 4% spending rate.

The 4% rule gets its name from its suggested spending rate for the first year of retirement. Beyond that, the spending rate evolves as inflation guides future spending and portfolio returns guide the amount of remaining financial assets.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

4 Numbers That Help You Plan for a Secure Retirement

Try these rules of thumb for your retirement nest egg.

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Damian J. Sylvia
Retirement Income Solution
220 Monmouth Road
Oakhurst, NJ 07755

How To Not Run Out Of Money In Retirement

Investing for retirement doesn't have to be hard. You read up on how to put together a diverse mix of low-cost index funds, bonds, etc. Then keep setting aside all you can into that retirement account. Easy.

But when you actually retire and start spending that money, that's like going from playing checkers to playing chess. It can get a lot harder.

Here's the big pickle: You don't want to run out of money. But how can you know how much it's safe to spend when you might live for another five years — or 25 years?

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755 

6 Ways to Fix Social Security’s Finances

The Social Security program currently has enough resources to pay out all promised benefits for nearly two decades. However, the Old-Age and Survivors Insurance Trust Fund is projected to be depleted in 2035. After that, the program expects to have enough tax revenue coming in to continue to provide about 77 percent of scheduled benefits. There are several Social Security tweaks that would correct the problem. A recent Government Accountability Office report examined several Social Security changes and how far they would go toward fixing Social Security's long-term projected deficit. Here's a look at how several potential Social Security solutions would change the system's finances.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

 

Simple ways to create a happier retirement

Are you interested in learning how to improve your financial security and happiness in retirement without having to save thousands of dollars? By taking some easy-to-understand steps, you can increase your retirement happiness and financial security -- and reduce your anxiety about retirement, according to several surveys and reports.

Does this sound like it's too good to be true? It's not. So, let's piece together results from different surveys and reports to support the steps you can take.

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The Future is Now: How Late Is Too Late to Start Saving for Retirement?

By now, you've probably read all of the articles that tell you the best time to start saving for retirement is, well, yesterday.

The earlier you start, the more time your investments have to grow.

Compound interest, it's said, is the eighth wonder of the world. Over time, you earn more from the interest on your investments than from the investment itself.

If you put $10,000 away when you are 22 years old, it will grow to be almost $100,000 by the time you are 70 years old, even if you never put another cent in, assuming a conservative 5 percent rate of return.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

How to Know if You’re Saving Enough for Retirement

As a financial planner, one of the most common questions I am asked is "How much money should I have saved?" or "How far behind am I in saving for retirement?" My answer? It depends.

There's no one size fits all solution when it comes to how much you should have stashed away for your retirement. What you need will differ from those around you. Here's how to track your progress toward saving for retirement:

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Damian J. Sylvia

220 Monmouth Road

Oakhurst, NJ 07755

What Americans Are Saving For -- It's Not Retirement

Olivia Wood, a Millennial social media specialist for a community bank in Pennsylvania’s Lehigh Valley, is saving for a trip to Iceland. “I want to be able to travel while I’m young, so I stay ahead of the curve, and always have a little extra for spontaneous trips,” @oliviawood_610 tweeted in a chat promoting America Saves Week. She uses Intuit’s @mint app to help budget and track spending, treats savings as a monthly bill, and sleeps on big purchases. Retirement savings? That’s next on her agenda.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755 

Is The Self-Driving Car In Your 401(k) Setting Your Portfolio Up For A Crash?

By Maggie McGrath and Janet Novack

Some day you may buy an autonomous vehicle. But first you’re likely to spend a good bit of time considering its cost, its safety and whether it fits your lifestyle and even the way you like to drive. Maybe you tend to speed, but the car is programmed to obey the law.

Target date funds are the self-driving cars of the retirement industry. If you’ve got one in your 401(k), do you know how much it’s costing you? How much risk it takes? How it synchs with your own investing preferences and life plans? If you can’t answer (or haven’t asked) those questions, you’ve got lots of company.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

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.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

 

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.

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Damian Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

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.

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Damian Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

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.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

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.

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Damian J. 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).

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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.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755 

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.

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Damian Sylvia

Retirement Income Solutions

220 Oakhurst, NJ 07755 

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).

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Damian Sylvia

Retirement Income Solutions