by Mary Suplee on Sep 8, 2017
by Mary Suplee on Sep 5, 2017
by Mary Suplee on Aug 25, 2017
RMDs or Required Minimum Distributions are the amounts that the federal government requires individuals to withdraw from their retirement accounts annually after they reach the age of 70½. You can take out more than the minimum from your retirement account, but if you take out less, you will be subject to a federal penalty. This is to ensure that the retirement accounts aren't used to simply defer taxes on accumulated assets and then leave them as an inheritance. The RMDs are intended to spread out the distribution of your IRA or plan assets over your lifetime.
by Mary Suplee on Aug 18, 2017
The solution to retirement spending isn’t easy. There isn't one perfect solution for everyone. Three potential approaches include immediate annuities, a total income approach or a total returns approach. While each of these solutions have their pros and cons, we strongly favor the total returns approach in most situations. Here's a look at each of these and their pros and cons.
by Mary Suplee on Aug 7, 2017
Top Retirement Planning Mistakes
Here is a list of what I'd consider the top mistakes people make for their retirement planning:
by Mary Suplee on Aug 4, 2017
To follow up on my latest post regarding retirement and the importance of planning ahead, there are a number of things to consider. The biggest challenge is to create a lifelong paycheck, one that allows you to live the lifestyle you envision for yourself in retirement. To accomplish this, it should be structured so that it lasts your (or multiple) lifetime(s), is paid on a regular basis, takes inflation into account and is relatively stable. Each one of these factors could be a whole discussion on its own.
by Mary Suplee on Aug 2, 2017
One of the most difficult aspects of retirement, is the mental switch required to go from a saving mentality to a spending plan. After a lifetime of putting aside money for the future, it's not easy to start spending down that savings. When they're no longer receiving a regular paycheck, many retirees find it hard to transition from saving to spending. The biggest concern is making sure they don't outlive their savings. Fear of other outside factors also play into this concern like investment risk, health issues, medical expenses and caring for family members.
by Mary Suplee on Jul 20, 2017
The most recent Dalbar study continues to show that people who trade in their 401(K) plan, lose ground when compared to those that don’t.
by Mary Suplee on Jul 17, 2017
I find it fascinating to watch the Illinois budget fiasco being played out like a game of chicken between the Governor and the Senate. The Senate just overrode the Governor's veto of a tax increase. While this is good to stave off a downgrade to junk status, it is not so good for the citizens of the state. While yes, more money is available to pay for services, there is also less money that people can spend on what they need.
by Mary Suplee on Jul 12, 2017
That’s a very common assumption that many people make. Based on the idea that taxes will go down over time, they decide to take as little as possible from retirement accounts and spend their taxable money first. For some people that works fine, but for many it becomes a tax trap.