4 New Year's resolutions for retirement savers

Resolution no. 1: Don't cash out, or leave behind, your 401(k) — Roll it into your current plan

Lifetime participation in your employer-sponsored plan is the best way to save enough money for a comfortable retirement, which is why savers who cash out their 401(k) accounts at the point of job change are making a very costly mistake.

Our firm's proprietary research has found that a hypothetical 30-year-old who cashes out a $5,000 401(k) balance today will forfeit as much as $52,000 in lost earnings that he/she would have received by age 65 (assuming the account would grow 7% per year).

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Damian J. Sylvia

220 Monmouth Road

Oakhurst, NJ 07755

How to hike your guaranteed lifetime retirement income

One of the most difficult retirement planning challenges is dealing with the uncertainty of how long you might live. You just don't know whether you'll make it to age 75, 85 or 95. That's why it's smart to develop sources of retirement incomethat guarantee to pay you no matter how long you live, such as Social Security, a pension or an annuity from an insurance company.

The trouble is, many people haven't earned a significant pension from their employer, and many retirees don't buy annuities from insurance companies. That leaves you with just one option: maxing your Social Security benefits, which you can do by delaying the start of benefits. For each month you delay, your monthly retirement income rises, but that increase stops at age 70, after which you receive no additional credits for delaying your benefits.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

6 trends that could rattle your retirement

Boomers are getting older, fatter and more likely to live in Florida. They are less likely to be poor and more likely to hold a job past age 65 than any other U.S. generation since the end of World War II.

"In the 70, 80s and 90s, families experienced a lot of changes in structure. There was an increase in divorce, in cohabitation and in families headed by single parents. Now, it seems like all the turmoil is catching up with baby boomers just as they reach retirement age," says Mark Mather, a demographer and an associate vice president of U.S. Programs at the nonprofit Population Reference Bureau, or PRB.

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Damian J. Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755

Saving for retirement? Here’s what you need to do in 2016

With the stock markets notching their worst-ever start for a new year, what should folks saving for retirement and those living in retirement do in the coming year? Our experts offer some practical advice for retirees and preretirees about staying healthy, staying in the workforce and staying on top of Social Security policy.

Stay healthy, my friend. Susann Rohwedder, a senior economist at the RAND Corp. and the associate director of the RAND Center for the Study of Aging, said her research is revealing the importance of health as a driver of so many things, including the timing of retirement and economic resources in retirement; subjective well-being, that is satisfaction with life as a whole and several other domains of well-being, including experienced well-being; the risk of future health shocks; and life-expectancy.

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Damian J. Sylvia

220 Monmouth Road

Oakhurst, NJ 07755

How to Earn Extra Money in Retirement

The cost of living continues to rise after retirement, which is why a lot of people look for ways to earn extra money, often just a couple of years after retiring. Other people are bored by a life of complete leisure and need new challenges to take on. The fresh income source is a nice bonus. Here are some common ways to earn extra money in retirement.

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

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.

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

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.

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Damian Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755