Americas best-selling vehicle gets better, more advanced and more fuel efficient. Detroit Free Press

Thechief manufacturing and labor affairs officer at Ford Motor Co., a manpraised by union leaders for a negotiating style that helped avert strikes during contract talks in the U.S. in 2019 and Canada in 2020, is retiring, the company announced Tuesday.

Gary Johnson, 56, will end his career at Ford on Feb. 1. He began with the automaker in 1986 as a paint-shop supervisor at the Flat Rock Assembly Plant. He leaves as head of operations for every Ford assembly, stamping and powertrain plant. Previously, Johnson led manufacturing inAsia Pacific. Heoversaw construction of 12 manufacturing plants.

Gary Johnson, chief manufacturing and labor affairs officer, will retire on Feb. 1.(Photo: Ford Motor Co.)

Johnson played a key role in responding to the coronavirus pandemic and rapidly manufacturingpersonal protective and healthcare equipment, while directing a safe return toglobal manufacturing.

Hes been central to expanding and modernizing our operations to produce high-quality vehicles, our exceptional partnership with the UAW, and this past year leading our people and production through the coronavirus pandemic," said Kumar Galhotra, president, Ford Americas and International Markets Group.

From left, Ford engineering specialist Shaunise Williams, Gary Johnson, CEO Jim Farley, Dearborn Truck Plant Manager Debbie Manzano and launch team member Edana Jones discuss a machine operation in September. Johnson, chief manufacturing and labor affairs officer, will retire on Feb. 1.(Photo: Ford Motor Co.)

One day before the announcement,IndustryWeek named Johnson2020 Manufacturing Technology Leader of the Yearfrom what wasdescribed asanespecially competitive field of candidateschallenged byCOVID-19 disruption.

The UAW praised Johnson's ability to find common ground.

"Over the past year, as Ford and the U.S. auto industry faced unprecedented challenges over the coronaviruspandemic, Gary Johnson worked tirelessly with the UAW and our members to address the serious health and safety issues in our workplace with collaboration, honesty and real concern," Gerald Kariem, UAW vice president of the Ford Department, said Tuesday."Although we had differences at the bargaining table, Gary always understood that ultimately UAW members were his family too and it was reflected in the way he approached bargaining."

Ronald Green, left, is a 43-year Kansas City Assembly Plant worker who talked with John Savona, Ford North America Manufacturing vice president in October after a company celebration. They're standing in front of a 2021 F-150 pre-production prototype. Savona was promoted Tuesday.(Photo: Amanda Wilhite)

John Savona, 52, will succeedJohnson in overseeingworldwide manufacturing strategywhile continuing to leadmanufacturing in North America.

The UAWsaid it looked forward to working with Savona.

He joined Ford in 1989 as a security guard at the Wayne Assembly Plant after serving in the U.S. Army. Savonahas led manufacturing operations in North America since 2018 and currently serves as executive champion for the Ford Veteran's Network. He will report to Lisa Drake, chief operating officer, North America

These and other executive changes are part of an ongoing management overhaul since CEO Jim Farley took the helmOct. 1.

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Johnson is one of two topFord executives retiring who will be succeeded by colleagues, "while assignments for two Product Development and Engineering leaders areevolving with the companys intense focus on connectivity and electrification," Ford said in a news release.

The changes "will assure consistency and capability as Ford works through next-level changes in its plan to transform, modernize, disrupt and grow its automotive business," Ford said.

Mark Ovenden, 56, president of Fords International Markets Group, is retiring effective Feb. 1 after 35 years at the company. He is credited with improving business in 100 markets including Australia, India, the Middle East, South Africa and Southeast Asia. He coordinated global demand for the Ranger pickup. Previously, Ovenden waspresident, Middle East and Africa; vice president, Marketing, Sales and Service, Asia Pacific; led transformation of Fords joint-venture company in Russia, and was chairman and managing director of Ford of Britain.

Mark Ovenden, 56, president of Fords International Markets Group, is retiring effective Feb. 1 after 35 years at the company.(Photo: Ford Motor Co.)

Mark has been on the leading edge of expanding the worldwide reach and stature of the Blue Oval, Galhotra said in prepared remarks. He has sharp understanding of and been a strong and constant advocate for customers in places that were newer for Ford.

Dianne Craig, 56, who has for the past two years beenCEO of FordDirect, a digital marketing joint venture with Ford and Lincoln dealers, will succeedOvenden as president, International Markets Group and become a corporate officer. She willreport to Lyle Watters, president, South America and International Markets Group.

Dianne Craig, who has for the past two years beenCEO of FordDirect, a digital marketing joint venture with Ford and Lincoln dealers, has been promoted to president, International Markets Group.(Photo: Ford Motor Co.)

Craig, whohas been at Fordsince 1986, was director, U.S. Sales, and president and CEO of Ford of Canada.

Starting Jan. 1,Dave Filipe, 53, will become vice president, Vehicle Hardware Modules, andChuck Gray, 56, vice president, Vehicle Embedded Software and Controls.

"Both represent shifting responsibilities within the new Ford operating model that CEO Jim Farley introduced in October," Ford said.

Filipe and Gray continue as officers of the company and reportto Hau Thai-Tang, chief product platform and operations officer.

Despite being seasoned veterans at Ford, their roles are new aspart ofrestructuring.

"They will support the companys aggressive push to raise overall product quality and employ a new approach that will scale the innovative battery-electric vehicle platforms and deliver its first fully networked vehicles and services," Ford said.

More: Ford wants to cut 1,400 salaried jobs in U.S.: Who is targeted

More: Ford cuts contract workers effective immediately, declines to say how many

Filipe, who has been vice president, powertrain engineering, for the past three years, will now lead hardware development and systems integration of exterior, interior, underbody, internal-combustion powertrain and electrified modules. Previously,he was vehicle line director for North America trucks; director of Global, Engine Engineering; and director, Transmission and Driveline Engineering. Filipe has been with Ford since 1992.

Dave Filipe will become vice president, Vehicle Hardware Modules, at Ford on Jan. 1.(Photo: Ford Motor Co.)

Gray will be "responsible for transforming the in-vehicle service experience for Ford customers through embedded software, including those that enable over-the-air updates, vehicle controls, embedded connectivity technology, advanced driver-assist technologies and systems, and vehicle cybersecurity," Ford said.

Since 2019, Grayhas been vice president, Vehicle Components and Systems. Earlier, Gray, who joined Ford in 1991, was director of Fords Core Electrical team and also led Transmission and Driveline engineering.

Chuck Gray will become vice president, Vehicle Embedded Software and Controls, starting on Jan. 1 at Ford.(Photo: Ford Motor Co.)

With this new structure, our engineering teams will be even more agile, to capitalize on emerging trends and opportunities and the speed of innovation, Thai-Tang said in prepared remarks. Instead of focusing on components, we will use a systems view of technology and its integration at scale to unlock innovation for customers and Ford.

Contact Phoebe Wall Howard at 313-222-6512or phoward@freepress.com. Follow her on Twitter @phoebesaid. Read more on Ford and sign up for our autos newsletter.

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Top Ford labor negotiator Gary Johnson to retire after 34 years - Detroit Free Press

Northam will propose to pay off the debt at the end of the current fiscal year on June 30. He also will propose to reduce the liabilities for other post-employee benefits, such as retiree health credits, which are currently underfunded and require higher ongoing contributions by state and local governments.

The lower we can push down these liabilities, the better it is for everybody, Layne said.

VRS officials say the payment will not affect employer rates in the current two-year budget, but will result in lower costs in the next budget.

The extra money coming in will essentially moderate future rates, said Rory Badura, senior staff actuary for the retirement system.

The proposed payments also would partly offset the higher rates that the state and local governments already have begun to pay since the VRS decided last year to lower its expected long-term annual return on investments from 7% to 6.75% a year.

The decision reflected diminished expectations for investment income that pays for most of the retirement costs for almost 750,000 active, retired or inactive employees in the $85 billion system.

The lower the investment income, the higher the contributions that state and local governments must pay in their annual budgets. The lower investment return is estimated to cost $216 million a year in contributions from public employers, including about $94 million a year from the state general fund budget, which relies on state taxes to pay for core government services.

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Northam to spend $100 million to reduce teacher retirement liabilities - Richmond.com

Beware these 15 worst states for taxes on your retirement

Maybe you want to spend your retirement somewhere sunny. Or maybe a view of the mountains is more your style.

But before you start making plans, its worth looking at the tax situation in any state youre considering. Some places impose significantly harsher taxes on retirees than others.

Our rankings take into consideration how much tax each state imposes on retirement income, any state-imposed estate or inheritance taxes, and the Tax Foundations estimates for average state and local sales taxes and the average, effective property tax. We also highlight some of the tax credits and exclusions seniors may qualify for.

An expert can help you look at your options. Certified financial planners who are "fiduciaries" have strategies just for retirees and they're bound by law to put your interests first.

Here are the 15 worst states when it comes to taxing retirees, counting down to the state where seniors face the worst tax burdens.

Tax on retirement income: Yes

State income tax: 5% flat rate

Average property tax: 1.15% of home value

Average state and local sales tax: 6.25%

Massachusetts does not tax Social Security benefits or government pension income, but most other retirement income is taxed at a flat rate of 5%.

The Bay State has the 18th-highest average property tax rate in the country, with owners of a $350,000 house paying roughly $4,025 in tax per year.

Fortunately, residents over the age of 65 who earn less than a certain amount (for the 2020 tax year, thats $61,000 for individuals and $92,000 for married couples who file jointly) are eligible for a property tax credit of up to $1,150.

Massachusetts also has an estate tax a tax on the fair market value of your assets after you die ranging from 0.8% to 16% on estates worth over $1 million. This $1 million threshold is tied with Oregon's for the lowest in the country.

Tax on retirement income: Yes

State income tax: 0% to 4.797% (highest rate applies to incomes over $217,400)

Average property tax: 1.62% of home value

Average state and local sales tax: 7.17%

The Buckeye State does not tax Social Security benefits, although income from most other retirement accounts is taxed as regular income.

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Seniors aged 65 or older can claim a retirement income credit of up to $200 per year on sources of income other than their Social Security, as well as a senior citizen tax credit of $50.

Ohios property taxes are the ninth-highest in the country, but seniors who earn less than a certain amount ($33,600 during the 2020 tax year) may qualify for the homestead exemption, which exempts up to $25,000 of their homes market value fromlocal property taxes.

Calculate how much more you need to save each month to reach your retirement nest egg goal.

Tax on retirement income: Yes

State income tax: 2% to 5.75% (highest rate applies to incomes over $250,000)

Average property tax: 1.04% of home value

Average state and local sales tax: 6.00%

Although Maryland is known as the Free State, dont expect much in the way of freebies if youre planning to retire there. While Social Security benefits are not subject to state income tax, most other forms of retirement income are.

On the bright side, residents 65 or older may qualify for an exclusion of up to $31,100 on distributions from 401(k), 403(b), and 457 plans and income from public and private pensions.

In addition to a state income tax of 2% to 5.75%, Marylands 23 counties and Baltimore City also levy local income taxes ranging between 2.5% and 3.2% of residents taxable income.

Property taxes in Maryland also are fairly high, with the owner of a $350,000 home paying around $3,640 a year. Maryland also is the only state in the country to charge both an estate tax and an inheritance tax: Estates are taxed, and so are the heirs who receive a deceased persons assets.

Tax on retirement income: Yes

State income tax: 5.80% to 7.15% (highest rate applying to incomes over $52,600)

Average property tax: 1.27% of home value

Average state and local sales tax: 5.50%

Retiring in the Pine Tree State is not all bad: Maine doesnt tax Social Security benefits, and retirees can deduct up to $10,000 of eligible pension income.

However, all other forms of retirement income are subject to state income tax rates as high as 7.15%, with the highest rate applying to anyone with an income of more than $52,600.

Maines property taxes are also pricey, plus Maine charges an estate tax ranging from 8% to 12% on estates valued above $5.7 million. Fortunately, the sales tax in the state is lower than average, and Maine does not allow cities or towns to impose any local sales tax.

To get reach retirement faster, consider building your nest egg through an fee-free investment app.

Tax on retirement income: Yes

State income tax: 1% to 13.30% (highest rate applies to incomes over $1,000,000)

Average property tax: 0.74% of home value

Average state and local sales tax: 8.66%

Lets start with some good news: If youre planning to retire in the Golden State, your Social Security benefits are exempt from state income taxes.

Unfortunately, all of your other retirement income is fully taxable, and at the highest tax rate in the country if you earn more than $1 million a year. (If thats the case, well done.)

Another bright spot for retirees is that the average property tax rate in California is quite low; on a home worth $350,000 youll only pay around $2,590. However, its worth noting that California has the highest state sales tax in the country at 7.25%, and the cost of living is 18% higher than the national average.

If you need a bit of help navigating California's complex tax rules, work online with a certified financial planner who can tailor you a tax-light retirement plan.

Tax on retirement income: Yes, but deductible up to $20,000

State income tax: 4% to 8.82% (highest rate applies to incomes over $1,077,550)

Average property tax: 1.40% of home value

Average state and local sales tax: 8.52%

Social Security benefits and military pensions are exempt from state taxes in New York. But the Empire State has the 14th highest property tax rate in the country, with the average taxes on a $350,000 house costing around $4,900.

The good news is that tax breaks are available for seniors at the local level. Local governments and school districts have the option to reduce the assessed value of a seniors home by up to 50%, depending on the seniors income.

Some seniors may also qualify for a School Tax Relief (STAR) exemption, in which the first $66,800 of their home value is exempt from school property taxes. In order to be eligible, youll need to be at least 65 years of age and have had an annual household income below a certain threshold ($86,300 or less during the 2019-2020 school year).

In addition to property taxes, retired New Yorkers also have to consider the combined state and local sales tax, which is the 10th highest in the country, as well as an estate tax of 3.06% to 16% on estates worth $5.9 million or more.

Tax on retirement income: No

State income tax: 4.95% flat rate

Average property tax: 2.05% of home value

Average state and local sales tax: 9.08%

Retirees planning to settle down in the Land of Lincoln had better start saving their pennies (or start taking photos of their grocery receipts), because Illinois has the second-highest average property tax rate in the country.

An owner of a $350,000 house pays roughly $7,175 a year in property taxes, although some seniors in Illinois may qualify for a homestead exemption of up to $8,000, depending on which part of the state they live in.

Aside from the high property taxes, Illinois residents are also subject to the sixth-highest combined state and local sales tax in the U.S., as well as an estate tax ranging from 0.8% to 16% on estates above $4 million.

On the bright side, the states flat 4.95% income tax rate is quite low, and income from most retirement plans including Social Security benefits is exempt from state taxes.

Tax on retirement income: Yes, but minimal below $60,000

State income tax: 1.40% to 10.75% (highest rate applies to incomes over $5 million)

Average property tax: 2.21%

Average state and local sales tax: 6.60%

For retirees in the Garden State, property taxes are the biggest weed in the flower bed. New Jersey has the highest average property tax rate in the country: The owner of a $350,000 home has to shell out around $7,735 each year.

New Jersey provides some relief for retirees through its Senior Freeze program, which reimburses eligible seniors for property tax increases. Additionally, senior citizens with an annual household income of $10,000 or less qualify for a property tax deduction of $250.

Most Americans can cushion the blow from high property taxes by cutting costs on their home insurance many people overpay by $1,100.

Social Security benefits are not taxed in New Jersey, but while the state eliminated its estate tax in 2018, it still charges an inheritance tax of 11% to 16% on inherited property worth $500 or more.

Tax on retirement income: Yes

State income tax: 3.75% to 5.99% (highest rate applies to incomes over $148,350)

Average property tax: 1.53% of home value

Average state and local sales tax: 7.00%

Rhode Island may offer scenic views of the Atlantic, but you can expect to be hit with a tidal wave of taxation if you decide to retire in the Ocean State. All retirement income is fully taxable, including Social Security benefits, as long as it is also taxed federally.

However, residents earning a certain amount or less ($85,150 for individuals and $106,400 for joint filers in 2019) are exempt from paying state tax on their Social Security benefits.

Property taxes in Rhode Island are the 10th highest in the country, although homeowners 65 or older whose income is $30,000 or less are eligible for a state tax credit. And if you're still carrying a mortgage, you could be due for a money-saving refinance.

Rhode Island also has an estate tax ranging from 0.8% to 16% on estates worth more than $1.6 million, making it one of only a few states that tax estates valued at under $2 million.

Tax on retirement income: Yes

State income tax: 3.35% to 8.75% (highest rate applies to incomes over $204,000)

Average property tax: 1.80% of home value

Average state and local sales tax: 6.22%

If you retire in Vermont, the government will tap your income just like one of the states maple trees. The Green Mountain State taxes all forms of retirement income at rates between 3.35% and 8.75%, and that includes Social Security benefits.

However, individuals who earn an adjusted gross income of $45,000 or less, and joint-filing couples who earn $60,000 or less, are eligible for full exemptions from state Social Security tax.

Vermont also charges a flat 16% estate tax on any estate that exceeds $2.8 million in value. And, property taxes are quite pricey, with the average tax on a $350,000 house coming to around $6,300.

Fortunately, some retired homeowners may qualify for Vermonts Elderly and Permanently Disabled Tax Credit, which is worth 24% of the federal credit for elderly and permanently disabled individuals.

Tax on retirement income: Yes

State income tax: 5.35% to 9.85% (highest rate applies to incomes over $164,401)

Average property tax: 1.44%

Average state and local sales tax: 7.46%

Minnesota taxes all forms of retirement income including Social Security benefits with the exception of military pensions.

However, thanks to the North Star States progressive tax system, households earning less than $23,900 are exempt from paying state taxes on their Social Security benefits. The state also offers a special income tax deduction for seniors who make $61,080 or less, or $78,180 or less for couples who file jointly.

Property taxes in Minnesota are the 13th highest in the country, with owners of a $350,000 home paying around $5,040 a year.

The state's residents also are subject to an estate tax of 13% to 16% on estates valued at more than $3 million, although assets left to a surviving spouse are exempt.

Tax on retirement benefits: Yes

State income tax: 4% to 7.65% (highest rate applies to incomes over $263,480)

Average property tax: 1.73% of home value

Average state and local sales tax: 5.46%

Although all Social Security benefits and income from government pensions are exempt from state taxes in Wisconsin, any other retirement income is fully taxable at rates ranging from 3.86% to 7.65%.

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Beware these 15 worst states for taxes on your retirement - Yahoo Finance

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One of the biggest challenges of retirement is saving for it. But another challenge is that you only do it once.

When you've done something once, you have an idea of how to do it again for example, once you've bought your first home, buying your next home feels a lot less intimidating. But retirement isn't like that it's not something you have another shot at later on.

Luckily, lots of people have retired comfortably and are willing to share the steps they took to do so. Here, we've compiled the best advice from four retired people for anyone who's looking forward to a long and happy retirement.

Business Insider contributor Sean, of The Money Wizard, didn't find out that his grandfather was a millionaire until he was comfortably retired.

For years when Sean was growing up, his grandfather drank the cheapest beer, pinched pennies, and drove older-model cars. His grandfather brought in an average salary and never earned a college degree while raising five children. But eventually, Sean found out his grandfather had a retirement account worth $1.2 million.

"My grandpa eventually let me in on his secret: Wealth doesn't mean earning a lot of money. Nor does it mean spending a lot of money. Instead, wealth is all about investing inincome-producing assets,"Sean writes.

One of the biggest factors in building wealth through investing is how long investments can stay in the market. He learned early that investing consistantly and earning average stock market returns could help him grow his savings over his long career.

"He only needed to invest about $8,000 per year for his portfolio to grow from nothing to $1.2 million," Sean writes. And he focused on buying assets and investments instead of things.

Sean says that his grandfather's advice has helped him get on track to hit $6.8 million at age 60, or retire early.

Writer Michelle Jackson's grandmother only started saving for retirement 10 years before she retired. Jackson's conversations with her grandmother confirmed that it's never too late to start saving.

Jackson's grandmother started saving 10% to 15% of her paychecks in her 50s. And it all worked out she retired comfortably in her 60s. And she's happy, Jackson writes. "In observing my grandmother's financial habits, I found myself realizing that she feels quite wealthy. She has enough. Enough money for the things she enjoys."

Like Sean of The Money Wizard, Business Insider contributor Eric Rosenberg didn't know his grandfather was a millionaire until later in his life. Rosenberg's grandfather using a simple buy-and-hold investment strategy to reach millionaire status, while similarly not flaunting it.

Buying and holding shares is exactly as it sounds: buying shares of stock and keeping them for years. While it isn't the most glamorous way to invest, Rosenberg's grandfather is proof that it works. "Picking good companies and sticking with them can pay off very well in the long run. He didn't follow some get-rich-quick scheme," Rosenberg writes. "He picked solid companies and held on as they grew in value over time."

While Rosenberg's grandfather built his portfolio by buying into Walmart very early on, it's also possible to use ETFs to invest in multiple companies at once and see growth. "Buying a low-cost S&P 500 ETF and investing more steadily over time gives you investment exposure to 500 of the biggest stocks in the United States. If history continues to repeat itself, chances are good you would do well with that type of investment over time," he writes. Index funds can also be used, which track individual industries the way S&P 500 tracks the largest 500 companies.

Buy-and-hold investing doesn't require much maintenance when stocks simply sit and grow over many years. It's a relatively simple strategy that's a great option for anyone who still has many years before retirement.

For many people, retirement is lasting longer. Personally, I learned about the benefits of long-term care insurance, a type of insurance that can help pay for assisted living and in-home care later in life, from my grandmother, as I've previously written.

When my parents could no longer care for my grandmother full-time, my grandma's experience moving into an assisted living facility taught me just how important long-term care insurance is, especially for women who tend to live longer. Typically, this type of insurance is most affordable to purchase between ages 52 and 64.

Now in her 90s, my grandma had a long and comfortable retirement before moving into the facility. But, having that coverage helped to make sure she could afford to do so, and continue to live comfortably in her later years.

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4 pieces of advice to help you retire comfortably, according to people who have done it - Business Insider

Investors have been challenged like never before in 2020 as the pandemic took the market from the record highs that marked the start of the year, to the brink of a depression by the end of March, and back to record highs.

And if daily headlines about Covid-19 and its economic impact werent enough, many investors are grappling with conflicting emotions: boredom and anxiety, hope and fear, gratitude and guilt. These emotions can be particularly debilitating to retirement savers, whose decisions today can have a lasting impact on their ability to amass enough for a decadeslong retirement.

It can be difficult to make sound, emotion-free investment decisions in even the most typical of times, but the environment today could be a case study in bad behavior. We are just constantly stressed in a way that were not used to, and in an environment that is so uncertain and ambiguous, says Maria Konnikova, an author with Ph.D. in psychology who specializes in decision making. (Please see our conversation with Konnikova.)

Yet as the stock markets round trip has shown, the biggest influence on our retirement savings might not be what we hear on the news or read on social media. Its how we respond to it.

And how have we responded?

When markets tanked in March, many investors did exactly what they were supposed to dostayed the course and in many cases increased their retirement contributions. Still, a large share of investors cashed out or remained on the sidelines, fearing that the worst was yet to comeand who can blame them? Losing money, especially if youre counting on this cash to cover near-term expenses, is perhaps more painful than missing out on market gains.

Investors generally grapple with two elements of decision making: the impact of the decision and the emotion that comes with it. Fear of future regret probably drives more behavior than anything, says Denise Shull, a former trader and CEO of the ReThink Group, a decision-making and performance consultancy.

Its impossible to know what the future holds, but there are strategies for avoiding the biggest behavioral mistakes. In fact, by focusing more on the process for making decisions and less on whether a decision is good or bad, you have a better chance for successand a lower probability of driving yourself crazy.

The Covid-19 pandemic has given rise to all kinds of new habits and behaviors, and that includes what Charles Schwab chief investment strategist Liz Ann Sonders calls a new breed of day trader. With new apps such as Robinhood and Webull at their disposal, investors of all ages have taken to trading individual stocks and even options.

Daily trading volume driven by individual investors has averaged 20% this yeardouble what it was in 2019and approached 25% on peak days, according to Citadel Securities. Meanwhile, options premiums paid by individuals reached an all-time high in August, and after declining in late October, they are up again. There is more volume in single-share options than there is in the actual shares themselves, Sonders says.

Is it any wonder that many investors have a newfound interest in the stock market? Rising stocks can offer a nice dopamine hit in the absence of good newsand the market has continued to reach new highs as the news has been largely bleak.

Ive never had so many friends and family members so interested in investing, says Sarah Newcomb, a behavioral economist for Morningstar. She points to a combination of factors: many people have more time on their handsand more money in their pockets. Trading stocks was among the more common uses for the $1,200 stimulus cash, according to Envestnet Yodlee, a software and data-aggregation company.

Its a perfect storm for DIY investors, Newcomb says.

In fact, one of the unusual things about the Covid-19 market is that while the selloff was fast and extreme, so was the recovery. We have seen an entire market cycle condensed into an incredibly short span of time, says Sonders, explaining that investor sentiment is affected by both the severity and the duration of bear markets. This helps explain the lack of pervasive despair that investors typically have in a deep bear market.

The payoff for staying invested came quickly, and for investors who stayed put or bought on the dips, the markets return reinforced their beliefs. I think peoples recollections of 2000 and 2009how in hindsight it was a good time to stay invested or enter the marketdid play a role in turning the market around, says George Lowenstein, a professor of economics and psychology at Carnegie Mellon University. Now it seems to be fueling itself.

Confirmation bias, or the tendency for people to hear what they want to hear, is running rampant. There seems to be an asymmetric reaction to news, says Lowenstein, explaining that any bit of good news sends the market higher, while bad news seems to have little impact.

Advice: The conventional wisdom from most experts on trading individual stocks or options is simple: Dont do it. While options can be a tool for managing risk, speculating with options can be risky and costly. If you must buy individual stocks, wager only with money youre prepared to loseand that means money you might have otherwise spent on travel or other entertainment, not retirement.

Set a budget for buying individual stocks and create a dedicated account. Next, write out your investment processfor example, your logic for buyingand your exit strategy on when to take profits on winners or unload losers. You need to articulate exactly why you are buying a stock and under what parameters you will get out, ReThinks Shull says.

A key part of the process, she adds, is deciding which experts to follow. Theres so much information out there, much of it conflicting, she says. Identify a few smart sources that resonate with you, she says, and tune out the others.

Investors who stayed invested or upped the ante on equities have, in many cases, been rewarded. But now investors need to make sense of a market that seems at odds with the current economic reality. This was what prompted some investors to cash out during the March selloff and never get back in, or put their contributions on hold while they wait for a signal that the coast is clear or confirmation that they made the right decisions.

People look at the apparent disconnect and it becomes a reason to justify not being in the market, says Jurrien Timmer, Fidelitys director of global macro.

Fear is obviously a big driver, and understandably. Investors shouldnt discount fear, says Shull, but neither should they blindly trust it. Instead, she recommends going through the exercise of whats the worst that can happen. Not only can this help identify blind spots in a plan or important precautions to take, it can also help investors take more appropriate amounts of risk.

People often go straight to the worst possible outcome, but if they really think through it logically they realize that the worst case isnt that bad, and it changes their willingness to tolerate the feeling of risk, Shull says. So much of that is tolerating your feelings; separating valid information from the irrelevant impulses.

Advice: Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, says one way to address this fear is to do an analysis of what a sustained downturn would do to your portfolio, and how that affects your retirement timeline or income. In many cases, weathering the downturn is better than missing out on long-term gains.

It can help investors feel more comfortable with risk, he says. They understand that even under some of the worst scenarios, their nest egg will be protected and they can make it through.

For investors who are still anxiety-ridden, Ric Edelman, founder of Edelman Financial Engines, has a few suggestions. First, his firm is counseling clients of all ages to increase their emergency savings to cover up to two years of living expenses so they dont have to worry about selling assets in a down market.

The next move is to consider reducing equity exposure, he says. Going from a 60% stock allocation to 50%, for example, will be less detrimental than cashing out entirely.

For clients who cant stomach any exposure to stocks right now, he offers this compromise: Go to cash but with a concrete plan to dollar-cost-average back into the market within a predetermined period of time, such as six months to a year.

This might be the most common mistake investors makeand unlike speculating on individual stocks or sitting on too much cash, its a mistake that is a little harder to pin down.

When the market was at its most volatile earlier this year, investors did not run for the hills but they were making changes to their accounts, says Cory Clark, chief marketing officer of Dalbar, which found that nearly a third of investors working with traditional or robo-advisors reallocated their assets during the Covid market crisis.

Notably, they shifted from passive funds to more active strategies. They also shifted between sectors, such as by increasing exposure to technology and precious metals. The decisions seem rational at first glance, but did they work? We saw a lot of bouncing around but didnt see greater alpha, Clark says, referring to Wall Street parlance for excess returns.

Barrons brings retirement planning and advice to you in a weekly wrap-up of our articles about preparing for life after work.

During times of uncertainty, making changes in a portfolio offers a sense that you are actually able to make decisions about risk that you cant make in your daily life anymore, says Dan Egan, managing director of behavioral finance and investing at robo-advisor Betterment. One of the things we know is that people hate doing nothing when they are in an anxiety-provoking situation.

It might feel good in the moment, but the data show that over time the odds are stacked against investors who try to time the top or the bottom or rotations in styles or sectors. Myriad studies have shown that active traders tend to have subpar results over time, while buy-and-hold investors earn the highest returns over time.

Take heart. Even professionals grapple with this. The quintessential challenge is how can you be fully engaged but detached, says Fidelitys Timmer, who points out that markets are in a 10% correction about 50% of the time. You have to do what you can to keep that separation or balance. I go on very long bike rides. I try not to overread short-term market commentary. I barely watch news on television, even though Im on the shows.

Advice: Its an old saw, but this is why having a plan is critical, the experts say. A plan can also help to articulate all of the factors behind your decisions. Professional investors refer to this as their processground rules for why and when they buy or sell a security.

The best way to prevent your emotions from dictating your behavior is to establish a rules-based strategy, says Edelman, who adds that these issues are compounded when spouses have opposing views. While youre calm and contemplative, you can establish a set of guidelines that you agree to follow.

The upshot: You cant control everything that is going on in the world, but you can control your process for making decisions. Your focus has to be on process, says Konnikova, the psychologist and decision-making expert, because thats the only thing you can control.

Write to us at retirement@barrons.com

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Common Mistakes That Could Derail Your Retirement and How to Avoid Them - Barron's

One of the most important investing decisions you'll need to make is exactly where to put your money. Index funds are a great option for retirement because they're a relatively safe choice that can limit your risk.

But can you retire a millionaire by investing in index funds? It's possible, if you have a strategy in place.

Image source: Getty Images.

Index funds are large collections of stocks that track a particular stock market index, such as the S&P 500 or the Dow Jones Industrial Average. Like any investment, there are pros and cons for index funds:

Advantages

Disadvantages

Despite the downsides, index funds can be a great investment when saving for retirement. And if you start saving early enough, you may be able to retire a millionaire.

Because index funds offer slow but steady growth, you'll ideally need to invest for several decades to accumulate $1 million. But if you save consistently, index funds can be a reliable way to build a healthy retirement fund.

Say, for example, you have 30 years before you retire and you want to save $1 million. The S&P 500 has experienced an average annual return of around 10% since its inception, and if your index funds also earn a 10% annual return, you'd need to save just over $500 per month over 30 years to reach the million-dollar mark.

Exactly how much you'd need to save each month will depend on your age, the amount you currently have saved, as well as how many years before you retire. For instance, if you only have 20 years left to save but are still earning a 10% annual return, you'd have to save a whopping $1,500 per month to reach $1 million. So the more time you have to save, the easier it will be to achieve your goal.

Investing in index funds requires patience, because it will take years or even decades to see substantial growth. But because of their diversification and ability to recover from market crashes, they are one of the safest investment options, which can be perfect for investors looking to limit their risk.

Keep in mind, too, that no matter where you choose to invest your money, it's wise to take a long-term investing approach. So even if you invest in individual stocks rather than index funds, you should still aim to buy solid stocks and keep your money invested for as long as possible.

Your goal when investing in the stock market shouldn't be to get rich quickly. So be prepared to stay invested for the long haul no matter where you put your money. If you choose to invest in index funds, starting early and saving consistently can help you retire a millionaire.

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Can You Retire a Millionaire With Index Funds? - The Motley Fool

When it comes to Medicare, you have choices -- you can stick to original Medicare (Parts A and B, plus a Part D drug plan), or you can enroll in a Medicare Advantage plan. The latter option could actually be more beneficial than you'd think. Not only do many Advantage plans cover services that original Medicare won't, like dental care, but they also offer lifestyle benefits, like gym and wellness perks that keep you healthy and also, busy. It pays to see which Advantage plans are available in your area when your next opportunity to switch your coverage arises.

You deserve to enjoy retirement to the fullest -- whatever that happens to mean for you. These moves will put you on the road to doing just that.

The $16,728 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

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A Happier Retirement Could Be Yours if You Do These Things - Journal Gazette and Times-Courier

They say money can't buy happiness, but when it comes to retirement,a little extra cash never hurts.

Retirement is becoming more and more expensive, and the average U.S. adult is expected to outlive their savings by around eight to 10 years, according to a report from the World Economic Forum. If you run out of money later in life, it can be tough to enjoy your senior years.

While everyone will have different financial needs and goals in retirement, a new study shows there may be a dollar amount tied to happiness. Here's how much it costs to retire happy.

Image source: Getty Images.

In a study conducted by Audley Villages, a retirement home community based in the U.K., researchers ranked the happiest cities in the world, and determined how much the average person in those cities needs to retire comfortably.

The results revealed that it costs, on average, $288,240 to retire in the world's happiest cities. The city scoring highest on the "happiness index" was Helsinki, Finland, where it costs approximately $252,599 to retire. The least expensive city on the list was Wellington, New Zealand, with retirement costing $206,228.

Among U.S. cities, Honolulu was revealed to be the happiest. Researchers found that it costs around $304,591 to retire there.

While there's nothing wrong with seeing how much retirement costs on average, it's important not to base your retirement plan around these numbers alone.

Everyone's retirement will look different, and each retiree will also have a different definition of "happiness." Some retirees will be perfectly happy staying home and spending very little outside of their basic necessities. Others, though, may want to travel the world or take on expensive new hobbies in order to be happy in retirement.

As you're saving for retirement, it's important to think about your expectations for your senior years. Ask yourself what type of retirement lifestyle will make you happy, and consider how your future costs will compare to what you're spending now. You may find that your expenses will decrease in retirement, but they could just as easily skyrocket. By thinking about these expenses now, you'll have a better idea of how much retirement will cost.

Because everyone's retirement needs will differ, it's wise to calculate your retirement goals based on your unique situation.

Once you've determined approximately how much it will cost each year for you to enjoy a happy retirement, plug that information into a retirement calculator. Be sure to consider Social Security benefits as well, because although they likely won't cover all your expenses, they can reduce the amount you'll need to save.

As you're inputting your information into the retirement calculator, be honest with yourself about factors such as your retirement age and the amount of time you expect to spend in retirement. If you're battling health issues, for example, it may not be realistic to assume you'll be able to continue working into your 70s or spend several decades in retirement. The more accurate your inputs are, the more accurate your results will be as well.

Enjoying a happy retirement is a goal nearly everyone can strive for, but it takes strategic planning to achieve this target. By calculating your retirement needs and preparing accordingly, it will be easier to enjoy your senior years to the fullest.

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Report: This Is How Much It Costs to Retire Happy - The Motley Fool

Reforming the private retirement system has been one of the rare issues that Congress has been able to move on in a bipartisan way in recent years.

The SECURE Act was signed into law last December as part of a larger appropriations bill and Congressional advocates on the issue were hoping for a repeat in 2020. The House Ways and Means Committee recently unveiled a bill known colloquially as Secure Act 2.0 with further reforms.

But as Washington finalizes its spending plans for the end of the year, it appears that retirement reform measures wont be included and will have to wait until 2021.

It's more likely now that it would be right after the first of the year, House Ways and Means Committee Chairman Richard Neal (D., Mass.) told Yahoo Finance in an interview this week, adding that he sees no reason we couldn't have this done and on the new president's desk in late winter.

One of the bills main sponsors, Rep. Kevin Brady (R., Texas), had told reporters immediately after the election he was hopeful "that there's such a strong bipartisan support for a new retirement security bill that we can move that quickly. Brady, Ranking Member of the House Ways and Means Committee, pointed to end-of-the-year spending bills as a possible vehicle for the bill. Those must-pass pieces of legislation were the vehicle that got the SECURE Act - which included measures like removing the age limit restricting IRA contributions and expanding access to annuities in retirement plans - done in 2019.

The details on the reported $1.4 trillion spending package the type of bill that Congress must pass every year are currently being kept under wraps and many aspects still need to be negotiated, so things could change. Its also unclear if any economic stimulus measures will end up as a part of the final funding package.

Neal remains optimistic of a retirement bill in 2021: We intend to get this up and going, it's ready to go, he said. But it could be equally or more challenging to find space on the Congressional calendar for the legislation as President-elect Joe Biden will be trying to get his Cabinet approved and his campaign agenda enacted.

Story continues

Neal called the 2019 SECURE Act the most important advance of retirement savings in 15 years, and pointed to provisions in his new bill that build on it.

Perhaps the most significant piece of the new legislation is a rule pushing new employees to automatically enroll in their companys retirement plan if one is offered. Employees could opt out, but the default would be enrollment.

The bill would also push up the age for mandatory distributions in all private retirement plans (including 401(k)s and IRAs) from 72 to age 75.

Other provisions include changes to the SAVERS credit, which lets certain lower-income workers get additional tax breaks when they save for retirement. This change would simplify the program and index the credit to inflation.

Another provision in the bill makes it easier for employees to find their lost retirement accounts by creating a national database. The provision would help workers who move from company to company keep track of their retirement accounts. It would also help workers who move from state to state who participated in the various state-level plans (state-level IRA plans have been gaining traction around the country).

In addition to the bipartisan support in the House, many of these provisions have found backing in the Senate in a similar bill championed by Sen. Rob Portman (R., Ohio) and Sen. Ben Cardin (D-Md.).

Neal notes that, whatever the timeline for this particular bill, retirement reform is a career issue for him with broader ambitions in the years ahead. Democrats and Republicans have been able to show remarkable bipartisan support on the issue when the focus is on reforms to the private retirement system.

I think [the bipartisan streak] is because a lot of this stuff is forward-looking, said Andrew Biggs, a conservative-leaning retirement expert and resident scholar at the American Enterprise Institute, in a recent interview. Where things get divisive is how you deal with the mistakes of the past, he said, pointing to some of the funding shortfalls that Social Security could see in the coming years.

According to recent analyses, the Social Security program could run short of money by 2031.

Clearly, I think that at some point we're going to need to look at the whole idea of raising Social Security benefits, Neal said. President Biden did indicate during the campaign that he's open to the discussion, I'm open to the discussion.

The average Social Security benefit for 2020 is about $1,503 a month. The debate during the Democratic primary was around how much not whether to increase those payouts. At the time, Sen. Bernie Sanders advocated the most ambitious plan, with Biden more focused on targeted benefit increases. Biden has voiced support for increases in survivor benefits and benefit increases for the oldest Americans, as well as a minimum benefit for workers who spent at least 30 years paying into the system.

Any Democratic plans to boost benefits, which will almost surely require an increase in payroll tax rates, will likely face strong Republican opposition.

Talking with reporters just days after the 2020 election, Rep. Brady pointed to Republican gains in the U.S. House of Representatives and said his takeaway was that Americans rejected higher taxes at the ballot box.

Ben Werschkul is a writer and producer for Yahoo Finance in Washington, DC.

Read more:

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Washington aims to pass SECURE Act 2.0 with more changes to the retirement system

Student debt cancellation already in focus amid President-elect Biden transition

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Retirement reform likely slips to 2021 as Washington finalizes end-of-year spending - Yahoo Finance

A man in his 20s called 911 to say he fired in self-defense after being threatened with a gun, the Hillsborough Sheriffs Office said.

LITHIA A man shot to death by a relative at his Lithia home Wednesday appears to be a retired Marine lieutenant colonel who worked with U.S. Central Command in Tampa.

Citing an active investigation, the Hillsborough County Sheriffs Office declined Wednesday to release information on the shooting at a home in FishHawk Ranch including the name of the shooter or the person who was shot. A sheriffs spokeswoman confirmed the man who was shot was in his 50s.

Based on Sheriffs Office activity at the scene, the shooting happened at a home in the 15000 block of Starling Water Drive owned by Timothy and Colleen Missler, property records show.

The Tampa Bay Times requested a preliminary case summary report and autopsy for a 50-year-old Timothy Missler from the Hillsborough County Medical Examiner, but a county spokeswoman said the records are exempt from disclosure because they are part of an active criminal investigation.

A woman who answered at a phone number listed for Colleen Missler hung up Wednesday when a Times reporter identified himself. According to information released by the Sheriffs Office, a call was made from the home to 911 at 6:56 p.m. Wednesday.

The caller, a man in his 20s, told dispatchers that a male relative had threatened him with a gun. The caller said he armed himself because he was in fear for his life then shot the relative several times, the Sheriffs Office said.

When deputies arrived at the scene, they found the older man dead.

The caller was cooperating with investigators, the Sheriffs Office said. No arrests had been made as of Wednesday.

According to his Facebook and LinkedIn pages, Timothy Missler was a retired lieutenant colonel who served in the U.S. Marine Corps for 22 years, retiring in 2016, and worked as an instructor pilot for L3 Technologies.

From 2014 to 2016, he worked in Tampa at U.S. Marine Corps Central Command, or MARCENT, according to the LinkedIn profile. Among his duties was to supervise three top secret and secret operational and concept supporting plans to Central Commands ... series campaign plans, the profile says.

His Facebook profile describes him as a happily married father of two wonderful boys.

Breaking News Reporter Tampa Police and Hillsborough Sheriff

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Man fatally shot by relative in FishHawk Ranch home could be retired Marine officer - Tampa Bay Times