Nearing Retirement? 5 Must-Do Steps
Posted: November 2, 2012 at 12:58 am
Are you within a few years of retirement? It's time to get your financial house in order. Here are five must-do items to take care of now.
Take a look at all of your company benefits. Your 401(k) might be your biggest benefit, but there may be others. Can you continue medical or other insurance? Are there other benefits that you can continue at reduced group rates? In the case of your 401(k), you need to determine if you want to leave it with your soon-to-be-former employer, roll it into an IRA, or take a distribution. The last choice will likely result in a hefty tax bill, so this is generally not a good idea for most folks. Do you have company stock options that you haven't exercised? Check the rules here. Speaking of company stock, there are special rules called net unrealized appreciation to consider when dealing with company stock held in your 401(k).
Take a look at any pensions from current or former employers. Depending upon the rules of the plan, you may have several decisions to make with regard to your pension benefit if you are covered by one. Do you take the benefit immediately upon retirement, or wait? This will depend upon the plan rules and your need for the money. In some plans the benefit may be greater if you wait until age 65. Additionally, some plans allow you the choice of taking an annuitized lifetime benefit (a monthly check) or taking a lump-sum payout. This decision should be made in the context of your overall financial situation and your ability to effectively manage a lump sum. Also, as this lump sum would be taxable, it is generally advisable for you to roll it over into a tax-deferred account such as an IRA. Lastly, if you have earned a pension benefit from a former employer, be sure to contact your old company to get all of the details and to make sure they have your current address and contact information.
Determine your Social Security benefits. The main decision is when to start taking your benefit. While you can start at age 62, there is a significant reduction versus waiting until your full retirement age. Further, if you wait until after full retirement age your benefit increase until age 70. If you are married the planning should involve both spouses' benefits. There are a number of sophisticated strategies surrounding couples and whose benefits to take when so planning can payoff for you here.
Take stock of all of your retirement financial resources. Many pre-retirees suffer from financial clutter. They have several old retirement plans from previous employers in IRAs or still in an account in the old plan. Their spouse has several old retirement plans. They each have a 401(k) with their current employer. There might be IRAs, a variable annuity, taxable investments, stocks, bonds, mutual funds, etc. There is a lot of financial "stuff" but it isn't organized into a coherent portfolio. It is vital that you take the steps to consolidate accounts and to get a handle on what you have and how and where it is invested.
Determine how much you will need from all sources to support your retirement lifestyle and compare this with your projected retirement income. While this might seem intuitive you'd be surprised how many pre-retirees within a few years of retirement haven't done this. Specifically look at your Social Security, any pension payments, any part-time income from work, consulting, etc. Compare these with the amount that you project that you will need to support your lifestyle on a monthly basis to determine how much you need to take from your various investment accounts, both taxable and tax-deferred (IRAs, etc.). If this gap amounts to more than 4 percent of your nest egg (as a quick rule of thumb) you may need to reassess your lifestyle needs or possibly plan on working a bit longer.
This is a very cursory "checklist" for pre-retirees within a few years or less of retirement. This might be a good point to engage the services of a fee-only financial advisor if you've never done a financial plan, or if your plan is out of date. Retirement can be a great stage of life, but proper planning is required to help ensure your success.
Roger Wohlner, CFP, is a fee-only financial adviser at Asset Strategy Consultants based in Arlington Heights, Ill., where he provides advice to individual clients, retirement plan sponsors, foundations, and endowments. Read more about Roger here.
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Nearing Retirement? 5 Must-Do Steps
BMO Retirement Institute Report: Canadians Should Not Rely on Their Homes to Help Fund Retirement
Posted: at 12:57 am
TORONTO, ONTARIO--(Marketwire - Oct 31, 2012) - The BMO Retirement Institute today issued a report which found that, while Canadians'' top financial goal to achieve over the course of their lifetime is to live comfortably in retirement, many are not confident that they will save enough to achieve this. As a result, one-third of Boomers will or plan to sell their home to help fund their retirement.
The report, Home Sweet Home or Retirement Nest Egg?, examines the relationship between Canadians'' readiness for retirement and their attitudes regarding home ownership:
"The reliance on home equity to fund retirement is no surprise, given that almost half of Canadians say that their home is their biggest financial asset and, on average, accounts for half of their total net worth," said Marlena Pospiech, Retirement Strategist, BMO Retirement Institute. "While it is true that, in the past, Canadians have enjoyed a stable housing market and increasing real estate values, there is no guarantee that this trend will continue.As a result, individuals shouldn''t count exclusively on their homes to fund their retirement and should be focused on building up their personal retirement savings."
According to the report, one-third of Boomers who intend to sell or have sold their home will or have done so to supplement their income in retirement.
Boomers may face a number of challenges when deciding whether to stay in their home or to sell it and downsize.
Market fluctuations: The majority (87 per cent) of Boomers have seen their homes rise in value; nearly half report gains of 50 per cent or more. But, considering the rapidly aging Canadian population, and more Boomers retiring and selling their houses, home prices could fall.
Attitudes toward home ownership: Canadians are torn between holding on to their "castle" vs. treating it as a retirement asset. According to the report, 45 per cent of homeowners do not intend to sell their home, and 34 per cent are unsure if they will sell it prior to or during retirement.
Lending standards: Should they materialize, tighter lending policies and the risk of higher interest rates could reduce the number of eligible homebuyers and motivate people to buy smaller, less expensive houses. In fact, they may lead to people not buying a home at all, which could impact the housing market.
Carrying mortgage and debt into retirement: Recent survey data suggests that many Boomers are carrying mortgages or other debt into retirement.Consequently, Boomers may not have accumulated as much home equity as they would like and may be more vulnerable to an increase in interest rates.
"If your retirement is only a few years away, it is wise to try and pay off your mortgage before you enter retirement," said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. "On the other end of the spectrum, for younger Canadians entering homeownership, it''s important to consider options that will ensure mortgage debt can be paid down faster and well before their retirement years."
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BMO Retirement Institute Report: Canadians Should Not Rely on Their Homes to Help Fund Retirement
CULTURE CLUB: TAKING BACK SUNDAY – Video
Posted: at 12:56 am
CULTURE CLUB: TAKING BACK SUNDAY
Adrian Brinkley of NYLON GUYS catches up with TBS, and we get a truly personal performance in the NYLON office. featured music amzn.to #39;sad savior #39; #39;your own disaster #39; #39;cute without the #39;e #39; (cut from the team) #39;From:NylonMagazineTVViews:12332 59ratingsTime:07:28More inEntertainment
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CULTURE CLUB: TAKING BACK SUNDAY - Video
Family Life Coach
Posted: at 12:56 am
Family Life Coach Parenting Expert, Adrienn Faklya Schmitz
Adrienn works as a personal performance and family life coach, and is also an early years professional. She has over a decade #39;s experience helping children and parents get the most out of family life. Her skills pan from baby and toddler troubles, to sibling introduction integration, behavioural problems and Grandparents support. Through to relationship building and future planning for family life and career development. For one to one advice from Adrienn you can speak to her direct through Greatvine http://www.greatvine.comFrom:GreatvineTVViews:47 0ratingsTime:08:59More inEducation
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Family Life Coach
Tips for a Happy family Life – Family Life Coach
Posted: at 12:56 am
Tips for a Happy family Life - Family Life Coach Parenting Expert, Adrienn Faklya Schmitz
Adrienn works as a personal performance and family life coach, and is also an early years professional. She has over a decade #39;s experience helping children and parents get the most out of family life. Her skills pan from baby and toddler troubles, to sibling introduction integration, behavioural problems and Grandparents support. Through to relationship building and future planning for family life and career development. Here she offers some tips on how to achieve a happy and harmonious family life. For one to one advice from Adrienn you can speak to her direct through Greatvine http://www.greatvine.comFrom:GreatvineTVViews:21 0ratingsTime:04:13More inEducation
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Tips for a Happy family Life - Family Life Coach
Ryan Sacko LLC #4 – Video
Posted: at 12:56 am
Ryan Sacko LLC #4
Running tips and tricks from personal performance training #4From:rsackoViews:2 0ratingsTime:03:04More inSports
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Ryan Sacko LLC #4 - Video
Accerlerate performance – Video
Posted: at 12:56 am
Accerlerate performance
Shawn provides three tips on how to accelerate your personal performance.From:Shawn CasemoreViews:5 0ratingsTime:04:09More inEducation
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Accerlerate performance - Video
Anthony Galie: Hypnotist, Psychotherapist, Author, Trainer, Performance Consultant, Keynote Speaker – Video
Posted: at 12:56 am
Anthony Galie: Hypnotist, Psychotherapist, Author, Trainer, Performance Consultant, Keynote Speaker
An author, speaker and trainer, Anthony Galie is a Psychotherapist with a degree in Psychology from Rutgers University. Anthony Galie attended Florida Atlantic University for his Masters degree. In addition to his own practice as a psychotherapist, Anthony Galie is a published author in leading technical journals and a columnist for key trade and industry publications. Anthony Galie has also been a guest lecturer for colleges and universities, and a consultant to such organizations as the American Cancer Society. As a lecturer on the "The Subconscious Aspects of Business", Anthony Galie has regularly appeared before major industrial, manufacturing and business associations, medical groups and major corporations throughout the United States. Anthony Galie #39;s clients include Prudential Insurance, Fedex, Walmart, Sprint, State Farm, and the National Association of Homebuilders, to name a few. Anthony Galie brings a new approach to an old problem - how to get and stay motivated over a long period of time. Through a series of hands-on easy to learn, and effective techniques, Anthony galie shows each participant how to focus on daily, monthly and long term production goals. But more importantly, each student is given the tools with which to accomplish them. More About Speaker, Anthony Galie. . . Anthony Galie #39;s program is geared to defy logic -- because theperception of logic is what commonly stands in most people #39;s way. Mr Galie #39;s presentations address the subconscious - how to ...From:TheBigSpeakViews:70 0ratingsTime:13:46More inEducation
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Anthony Galie: Hypnotist, Psychotherapist, Author, Trainer, Performance Consultant, Keynote Speaker - Video
Teaching Raw Food Preparation For The Health Of Families In Our Communities – Video
Posted: at 12:56 am
Teaching Raw Food Preparation For The Health Of Families In Our Communities
A video introduction to the raw food classes offered by Professor Serena Pellarolo. These vegetables can be grown in our own organic gardens. More videos of the class soon. In her raw food classes, Professor Pellarollo shows families the best ways to ferment vegetables. In this class, she emphasizes the value of food to children and how they can make healthy food. Fermentation releases many pro-biotic enzymes for diet, health, and well-being -- both physical and mental. A recent medical study finds that diet may determine the lifelong success of a child. The study shows that a poor diet often leads to obesity and physical weakness --- and a physical and mental condition defined as, #39;metabolic syndrome. #39; This condition degrades the life of the child beyond the physical. The symptoms include poor intellectual development and emotional distress. The researchers studied thousands of obese teenagers and the data revealed failing cognition, poor performance in learning, low test scores in school classes, and perhaps impaired personal performance due to the combination of low self-esteem for physical image and failing self-confidence after low outcomes in education. Upper- and middle- socio-economic families enjoy the benefits of education in diet and access to quality supermarkets offering an array of healthy foods. Lower socio-economic families do not. Quality supermarkets abandon low-income towns and neighborhoods. Fast-food outlets dominate the boulevards. Low-income ...From:learninghydroViews:151 0ratingsTime:02:17More inHowto Style
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Teaching Raw Food Preparation For The Health Of Families In Our Communities - Video
I Said You Were Lucky – Video
Posted: at 12:56 am
I Said You Were Lucky
Dead Sara performing I Said You Were Lucky in Grand Rapids 10/27/12. Up close and personal performance by Emily even grabbing me at one point.From:eman1091Views:26 5ratingsTime:04:02More inMusic
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I Said You Were Lucky - Video