The Social Security Administration recently started rolling out newly designed statements. The new statements graphically illustrate the increase in income from delaying benefits. Here’s the retirement benefit information from an old statement: From a different client, the retirement benefit illustration from a new statement: The new design helps workers get a better understanding of the income increase they can gain from delaying their benefits. It can make sense to delay claiming your benefit even if you have retired. It all depends on the numbers, but if you have other assets to draw on, holding out for a larger Social Security payment could be more …
Retirement
Do you need permission to spend?
One of the best parts of my job is giving clients permission to spend. A typical situation is a retired client (or couple) who has spent a lifetime accumulating wealth. First, they followed the fundamental equation for reaching financial independence: They paid attention to the outgoing dollars. Maybe they looked for sales. Maybe they always drove used cars. Maybe they took modest vacations. Maybe they did all of these things and more. They didn’t really feel deprived and they weren’t concerned with keeping up with the Joneses. For decades they saved and invested -- often in employer retirement plans. At some point it was time to retire – sometimes …
Ladies, are you prepared to handle your finances on your own?
Start by asking the following questions: What do we own? All bank accounts, retirement/investment accounts, real estate, business interests. Where are these accounts and if they are all over the place, why? What do we owe? Mortgages, loans, credit cards, other debt. Do we have life insurance? What kind? How much? Who is the beneficiary? What is my financial situation if you die before me? “You’ll be fine” is not an acceptable answer. Where, exactly, would my money come from to live? Social Security? Pension? Life Insurance proceeds? Investment Portfolio? If necessary, sit down with a fiduciary financial advisor to help figure it …
Good News for Savers in 2020!
2020 is nearly upon us and with it comes higher employee contribution limits for 401k plans. Of course, not everybody is in a position to contribute the max. But no matter how much you are contributing now, I encourage you to increase it for 2020. If you are contributing nothing right now – start with 1% of salary. If your employer matches your contribution, try to capture the entire match. That match is part of your total compensation package – don’t leave your employer dollars on the table! Every time you get a raise – earmark some of it for increased savings. Your balance will seem puny. It will go down when the market does. Then you are buying stocks on …
Are You A Clueless Spouse When It Comes To Finances?
In my work helping single women make sense of their money and their taxes, I frequently talk to women who used to be married, but are not now. If you are a married woman, the odds are high you will not be married in the future. Longer lifespans for women and increasing rates of divorce among those over 50 mean that many married women will inevitably become widows or divorcees. Eighty per cent of women will end up solely responsible for their finances, often for a decade or more. Some are ready for this responsibility - many are not. I have spoken to widows who haven't seen a bill in decades. Divorcees who lived in nice houses, drove nice cars, went on lavish trips who were …
