You're Going to Work Well Into Your Retirement

Get used to working: you're going to have to do so for much longer than you'd imagined if you're ever going to retire.

As the folks at Bankrate.com discovered in a recent survey, 70% of non-retired Americans plan to work as long as possible during retirement. Only 25% say they have no plans to work during retirement. Of those who plan to work as long as possible during retirement, 38% are planning to work because they like to work, 35% need the money and 27% say it's a mix of both.

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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

How Your Social Security Benefit May Be Unfair

Are you happy with Social Security? If you are, bravo. If not, read this discussion of benefit calculations and get angry.

Don’t take my word for it that the payout formulas are screwy. Recently published comment from Eugene Steuerle, budget expert at Urban Institute:

“Social Security spousal and survivor benefits are so peculiarly designed that they would be judged illegal and discriminatory if private pension or retirement plans tried to implement them.”

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

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

4 ways to tell if you’re financially ready for retirement

Do you have enough money to retire? That’s not an easy question to answer, but there are some ways to tell if you’re on track. Experts like to use the following methods to determine if you have enough to fund your desired lifestyle.

Crunch the numbers. Map your projected income — from personal assets, earned income, pensions and Social Security — against projected expenses. This is perhaps the most accurate way to determine whether you’re financially ready. But it will require more than a weekend of number crunching.

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Damian J. Sylvia 

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

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.

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Damian J.  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

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.

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Damian Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755