Unemployment Over 55: Early Retirement or Find a Job?

People are losing jobs. It’s what happens when the economy takes a turn for the worst. For those over 50, right now can be a downright scary atmosphere. Not only are people losing jobs, but it’s getting harder for those over 50 to get either their old jobs back or a similar job. This was true back after 2009–after the most recent recession–and it’s true now. For many people over 50, especially those over 60, they may just choose to stay jobless after all this is over; they’ll essentially retire. They will effectively be forced into retirement. Now, that doesn’t Continue reading Unemployment Over 55: Early Retirement or Find a Job?

Understanding RMDs Under the SECURE Act

As many of you may be aware, the SECURE Act that was recently signed into law made some big changes to retirement for many Americans. Along with opening up opportunities for small businesses to band to together to offer retirement benefits, it raised the age for required minimum distributions (RMDs) to 72. However, that new age for taking RMDs doesn’t go into effect immediately or retroactively. If you turned 70 1/2 in 2019 and thought you could wait a year an a half to take your first RMD, well, that’s not the case. The option to wait until you are Continue reading Understanding RMDs Under the SECURE Act

Will You Really Need RMDs at 70 1/2?

I’ve written about the SECURE Act here many times in recent months as it is legislation that could open up a lot of retirement saving opportunities for a wide swath of Americans. Officially titled as “The Setting Every Community Up for Retirement Enhancement Act of 2019,” this bill could allow for small businesses to band together to offer retirement savings plan benefits, increase the age for required minimum distributions (RMDs), and allow IRA and 401(k) plan holders to purchase annuities with money in the accounts. While all those a good things, this post is really going to focus on the Continue reading Will You Really Need RMDs at 70 1/2?

Are You Serious About Working During Retirement?

Many people say they plan to continue working during retirement, but few actually follow through with such intentions. In fact, according to research recently done by the Employee Benefit Research Institute, about 80% of future retirees say they plan to keep working in retirement. Do you know how many actually do? A little over 25%. That’s a pretty big discrepancy. Now, there are various reasons why people don’t end up working during retirement–from health issues to not finding a job that they are suited for. If you are really serious about working during retirement, though, you should take steps before you Continue reading Are You Serious About Working During Retirement?

Don’t Fear Talking Money Talks

Finances can be a taboo topic for many Americans. Such conversations can lead to anxiety and fear about potential outcomes or whether you are doing things correctly. However, these feelings should not prevent you from having important discussions with friends and family members about your future financial plans. These conversations can be valuable and can avoid a lot of confusion. For example, if you have children or grandchildren that you plan on leaving money to, you may want to discuss that with them so that they can start thinking about what they want to do with that money. Or, if Continue reading Don’t Fear Talking Money Talks

Working Beyond 65 Because You Can

In past blog posts, I’ve written about how working past age 65 is a reality that many Americans face because they don’t have enough saved for retirement. However, I haven’t really acknowledged that a number of Americans work past age 65 not because they need the money, but because they can and they want to. Many members of the Baby Boomer generation are working past 65 because they are healthier at that age than generations before them. They remain active well into their 70s. Furthermore, Baby Boomers are very well educated and want to continue to put that education–and the Continue reading Working Beyond 65 Because You Can

Do You Know the Important Retirement Dates?

As you move through the retirement saving journey and into retirement, there are certain age points that you will need to be aware of. These age points allow you to do things that will help you both in saving for retirement and once you actually cross into retired life. The first major age point is when you reach 59 1/2, at which time you can begin taking distributions–from most retirement accounts–without a penalty. This can be huge for people who are planning to retire in their early 60s and who may need to tap into their retirement funds sooner than Continue reading Do You Know the Important Retirement Dates?

A Creative Way to Avoid RMDs From an Inherited Account

Do you know your options should you inherit an IRA from a spouse? There are often multiple choices regarding what you can do with the money. Furthermore, your options may be impacted by your spouse’s age when they passed, especially if they are under the age of 70½. Your age may also play a factor into your decision. One common option is to roll the IRA money into your own IRA and begin taking required minimum distributions (RMDs) either immediately if you are over age 70½ or when you turn 70½ if you are under that age at the time of Continue reading A Creative Way to Avoid RMDs From an Inherited Account

Could You Handle Retiring Sooner Than Anticipated?

While you may have plans to retire at a particular age, life and your career may dictate otherwise. Certain scenarios may arise that may force you to think long and hard about retiring sooner than anticipated. A major company restructuring or other organizational changes may make retirement seem more appetizing than continuing working. Furthermore, general discontent with your career can be another driver of the decision to retire earlier than intended. If you’ve been consistent with your retirement saving and focused on saving as much as possible, you may be okay, especially if you are within a year or two Continue reading Could You Handle Retiring Sooner Than Anticipated?