Posted in Retirement

Understanding the Charitable Remainder Trust

Understanding the Charitable Remainder Trust The charitable remainder trust (CRT) is a popular retirement- and estate-planning tool. It can be a convenient way to create a stream of lifetime income for yourself and others or donate to a charity while minimizing and deferring taxes. But there are many choices to make when establishing a CRT and, in some cases, these tools may not be right for everyone. What is a Charitable Remainder Trust and How Does it Work? A charitable…
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The Sequence-of-Returns Risk in Retirement

The Sequence-of-Returns Risk in Retirement

Markets go up and down in ways that are not entirely predictable. For long-term investors, what the market is doing in the present isn’t that troubling; they’ve got a long time to ride out potential downturns. But for recent retirees, an ill-timed market downturn can have a negative impact on their nest egg, increasing the chances they’ll outlive their money. It’s a risk all investors face, and, fortunately, there are several things you can do to mitigate it. What is…
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match on fire

Lessons from the FIRE Movement

The Financial Independence/Retire Early, or FIRE, movement is an investment practice and lifestyle that focuses on saving aggressively and spending frugally so individuals can move toward financial freedom and perhaps even retire decades ahead of schedule. The movement has been around since the 90’s and has gained more exposure recently as the financial fallout from the COVID-19 pandemic has more people considering what financial independence and freedom from their 9-to-5 jobs could mean for them. Even if early retirement isn’t…
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timing the market

4 Tips to Help You Avoid Timing the Market

Sudden ups and downs in the stock market can be hard to ignore. It’s common to get the urge to sell when you see your investments lose value — or to buy when the market is surging. But predicting the effects of short-term market movements like these is nearly impossible. And efforts to “time the market” can backfire, undermining your ability to grow your savings. If you sell right after the market drops, for instance, you’ll lock in your loss…
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Don’t Let Debt Derail Your Retirement

Debt poses a growing threat to the financial security of many Americans — and not just college graduates with exorbitant student loans. Recent studies by the Center for Retirement Research at Boston College (CRR) and the Employee Benefit Research Institute (EBRI) reveal an alarming trend: The percentage of older Americans with debt is at its highest level in almost 30 years, and the amount and types of debt are on the rise. Debt Profile of Older Americans In the 20-year…
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Five Tips to Regain Your Retirement Savings Focus in 2021

In early 2020, 61% of U.S. workers surveyed said that retirement planning makes them feel stressed.1 Investor confidence was continually tested as the year wore on, and it’s likely that this percentage rose — perhaps even substantially. If you find yourself among those feeling stressed heading into the new year, these tips may help you focus and enhance your retirement savings strategy in 2021. 1. Consider increasing your savings by just 1%. If you participate in a retirement savings plan…
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Seeking Sun or Savings? Explore a Retirement Move

Many people intend to retire in the place they call home, where they have established families and friendships. But for others, the endof a career brings the freedom to choose a new lifestyle in a different part of the country — or the opportunity to preserve more wealth and protect it from taxes. This big life decision is not all about money or the weather. Quality-of-life issues matter, too, such as proximity to family members and/or a convenient airport, access…
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Changing Jobs? Know Your 401(k) Options

If you’ve lost your job, or are changing jobs, you may be wondering what to do with your 401(k) plan account. It’s important to understand your options. What will I be entitled to? If you leave your job (voluntarily or involuntarily), you’ll be entitled to a distribution of your vested balance. Your vested balance always includes your own contributions(pre-tax, after-tax, and Roth) and typically any investment earnings on those amounts.It also includes employer contributions (and earnings) that have satisfied your…
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Wrong way road sign

Three Regrets of Retirees

A recent survey found that more than half of retirees have retirement planning regrets. Unfortunately, many of these retirees had to cut back on their lifestyles to compensate for financial shortfalls.1 Considering their most common regrets may help you avoid making the same mistakes. Not saving enough More than one-third of retirees wish they had saved more.2 How much is enough? The amount you need depends on your other sources of income and your anticipated retirement lifestyle. It might be…
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Taking Notes and Keeping Records

Five Retirement Lessons from Today’s Retirees

Each year for its Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI)surveys 1,000 workers and 1,000 retirees to assess how confident they are in their ability to afford a comfortable retirement. Once again, in 2019, retirees expressed stronger confidence than workers: 82% of retirees reported feeling “very” or “somewhat” confident, compared with 67% of workers. A closer look at some of the survey results reveals various lessons today’s workers can learn from current retirees. Current sources of retiree income…
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