Retirement in Stages

One way to approach retirement is to think of it in stages. While retirement might seem like the final step of a journey, your goals and lifestyle will likely continue to evolve, and your income strategy should reflect that. For example, consider looking at your retirement in five-year stages; can you meet your income needs for the next five years with relatively little downside?  This is another reason an annuity might help; an annuity can offer guaranteed income for life (backed by the claims-paying ability of the carrier) thus creating an income source you won’t ever outlive. If you’re interested,

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Why? 

We were recently asked why we believe that an annuity can help with your retirement strategy. Three reasons come readily to mind.  The first reason is that they can be used as asset protection. Fixed annuities, for example, are safer for your money than volatile investment options. The second reason is the possibility of a guaranteed (backed by the claims-paying ability of the carrier) income stream. An annuity can offer a consistent source of income, which can be valuable in ensuring that retirees have enough money to cover essential living expenses. A third reason is longevity protection; by placing at

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Before You Click 

Some scams are run on a daily basis, and are so intricately made, they can trick even the smartest of us. The scams we’re talking about come in the form of emails where the sender shows up in your email box as purportedly coming from an entity you recognize, such as the Social Security Administration, Best Buy, PayPal, and the like. The emails usually look very real, even having the proper logo, and disclaimers on the bottom. They often will tell you that you overpaid for something or that you received some letter telling you how much money you would

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Retirement Paycheck 

Retirement is different from your working years–you’re no longer putting in time and collecting a paycheck regularly. Creating a sustainable paycheck in retirement is, however, an art worth mastering. Without a full-time employer, retirees are left with the task of cobbling together a sustainable cash-flow strategy that will not only cover their expenses, but also prioritize which sources of income to use, and when. Call us if you’d like to brainstorm with us about how you envision using your savings and assets. We might have some ideas you haven’t considered that may act as a replacement for your paycheck you

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Social Security and Working In Retirement 

Have you ever wondered if working in retirement reduces your Social Security benefits? If you are younger than your full retirement age for the entire year, your benefit will reduce by $1 for every $2 you earn in excess of the [current] annual limit of $22,320. If you start working in the year you reach your full retirement age, your benefit will reduce by $1 for every $3 you earn in excess of the [current] annual limit of $59,520, but only for the months prior to reaching your full retirement age. Once you reach your full retirement age, you’ll start

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Tying to Knot

According to the US Census Bureau, about 1 in 5 people over the age of 60 have married at least twice. However, all marriages are not created equal. The Schwab Center for Financial Research lets us know that “Unlike those just starting out in life, many older individuals have adult children, substantial assets, and established financial habits that may not easily mesh with those of another person.” One area that bears particular attention relates to how marriage may affect sources of retirement income, such as Social Security. For example, generally, you can collect 100% of your own benefits or up

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Back to Basics

An annuity is a financial product designed to provide a regular, guaranteed income stream (backed by the claims-paying ability of the carrier) over a specified period or for the rest of a person’s life. Essentially, it’s a contract between you and an insurance company in which you make a lump-sum payment called a premium. In return, you receive a series of regular disbursements (payments) that begin either immediately or at some point in the future.  There are three participants involved in an annuity contract (aside from the issuing insurance company), these are: The owner, the person who buys the annuity

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Limits on Deductibility 

We’ve spoken in the past about annual contribution limits into qualified accounts, but have not focused on the nuances of the income limits for tax deductibility of those contributions.  It’s very important to speak with your tax preparer, as specific limitations will apply. For example, in the scenario where a spouse has a 401(k) and joint tax returns are filed. There comes a point where it may be more advantageous to make your IRA contribution into a Roth, as you won’t be able to deduct your contribution anyway, and when you do start to withdraw funds from that qualified account

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Financial Stability

According to many experts, knowing your cash flow is the most important piece of information you will need in order to tell if you are not only living within your means, but if you have financial stability. Financial stability in retirement becomes increasingly important the older you get. The reason for that is as we age, our ability to supplement our income by, for example, back to work part-time, will eventually disappear.  Once we are fully in retirement, most of us will have already factored in possibilities like obtaining money by selling our home, and we will have moved past

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Pay Attention! 

We’re inundated with so many changes to rules related to retirement, that we oftentimes tell ourselves we can just ignore them and “focus on them later.” However, there are some changes you might want to pay attention to now. For example, the changes made by the Secure Act:  Firstly, the Secure Act interest and penalties for missed RMDs from an IRA account, which could go on indefinitely. Currently, there’s a three-year statute of limitations beginning with the filing of the income tax return for the relevant year, which means that the IRS can’t impose a penalty for an RMD you

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