What Keeps You Working?

There are many reasons why people retire. There are also many reasons why people continue to work well into what some consider the “retirement years”. If you are one of those people working well into your 60s or 70s–or have decided you want to continue working well into those age ranges–what keeps you motivated to stay in the working world? In recent years, many have said that health and retirement benefits are a big factor for staying employed. For others, it can be the social aspect of the office that keeps them motivated to keep working. Some may have no Continue reading What Keeps You Working?

Thinking About the Here and Now With Money

You may have sensed a bit of a theme with my recent blog posts as I have tended to focus on the current economic climate and how it might affect retirees and people saving for retirement. I see no need to change that theme at the moment. However, today I want to remind you that while saving for retirement is very important, so too is surviving to retirement. We are currently in a very difficult economic climate as we have put a massive stall on the economy in an effort to stifle the spread of the Coronavirus.  This has led Continue reading Thinking About the Here and Now With Money

Working Isn’t an Alternative to Retirement Saving

Many Americans plan to work during retirement, which is a great idea. Working during retirement has a number of benefits, mainly it provides income that allows you to delay tapping into your nest egg and it can keep you mentally and physically active, which can have beneficial health impacts. However, some Americans look at working in retirement as an alternative to saving, which is a fallacy. Yes, you can work in retirement to avoid tapping into your nest egg–or at least to lessen the load on your retirement savings. Avoiding saving for retirement with the belief that you will just Continue reading Working Isn’t an Alternative to Retirement Saving

Taking Advantage of a Long Career

Not everyone retires at 65. Some may work longer, while others may retire well before that age. While financial experts often try to make early retirement the goal, that doesn’t mean it’s right for everyone and it overlooks the advantages that a longer career can have. The obvious plus to a long career is that it provides more time to stash away money for retirement. As you may well know, your nest egg can get quite large if you are able to add to it over decades. For example, if you start saving for retirement at 25 and work until Continue reading Taking Advantage of a Long Career

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?

Exploring Your Retirement Date Options

There is no set time when people have to retire by. Thus, some people choose to retire in their late 50s, while others may work well into their 70s. Unless you are forced to retire–either because of health reasons or are forced out–then you most likely have options regarding when you can retire. If you find that you have such options, then it’s important that you explore them and understand the advantages to retiring at certain points in your life as compared to others. For example, the decision to retire at 60 will carry with it different consequences that deciding Continue reading Exploring Your Retirement Date Options

What Does “Still Working” Mean?

You’re probably aware of the “still working” exception found in certain employer-sponsored retirement plans. These exceptions allow people to delay taking required minimum distributions (RMDs) from your retirement account if you are still working at age 70 1/2. Taking advantage of still working exceptions can extend your retirement savings by allowing you to delay tapping into your nest egg. However, do you know what it means to be “still working?” If you don’t, then you’re in good company, because the IRS doesn’t have a definition either. Don’t worry, though, as that isn’t as scary as it seems. Chances are if Continue reading What Does “Still Working” Mean?

Using an Employer Plan to Avoid RMDs

Today’s post is focused on employer plans–most likely 403(b)s and their potential to help you if you plan to keep working past age 70 1/2. As you may well know, when you reach the magic age of 70 1/2, you must begin taking required minimum distributions (RMDs) from IRAs that you own. However, if you have an employer-plan that offers a “still working exception” you can roll your funds into that and avoid taking RMDs until you retire. Now, there are a lot of complexities to that, including the fact that you must be employed by the employer for the Continue reading Using an Employer Plan to Avoid RMDs