Many people periodically update their wills or other estate plans, but don’t remember to update who will receive distributions from their retirement plans (such as IRAs and 401(k)s) upon their deaths. Every year you should review your entire estate plan, and the review should include retirement plan “beneficiary designations” to make sure they aren’t outdated. The following are some tips for naming a retirement plan beneficiary: It is important to name a beneficiary. Do not assume that your retirement plan will be distributed according to your will. If you don’t name a beneficiary, the distribution of benefits may be controlled…
Inheriting an IRA may seem like a good thing, but there can be tax consequences if you aren’t careful. If you inherit an IRA, you should check with an attorney or financial advisor as soon as possible to find out your options. IRAs are personal savings plans that allow you to set aside money for retirement and get a tax deduction for doing so. Earnings in a traditional IRA generally are not taxed until distributed to you. At age 70 1/2 you have to start taking distributions from a traditional IRA. Earnings in a Roth IRA are not taxed, nor…
The main goal before you retire is to make sure that you have enough money when you do retire so you can maintain your standard of living. How much is enough depends on when you wish to retire, what your anticipated living expenses will be, what rate of return you can expect on your savings, and whether you will continue to work at all after retirement. The anticipated date of your retirement affects two important factors: how much time you will have to save up for retirement and the number of years you can expect to live after you retire….
Retirement has changed radically over the last several decades in America. Years ago, when you expected to work most of your life for a single, large employer, you could count on a pension. Retirement planning meant figuring out how to use your free time when you stopped working, not calculating rates of return and deciphering tax rules. You didn’t have to worry — enough money would be there from your pension and Social Security. Currently, with the exception of federal and state employees, most workers are not enrolled in pension plans, and the numbers continue to drop. Because fewer and…
Retirement has changed radically over the last several decades in America. Years ago, when you expected to work most of your life for a single, large employer, you could count on a pension. Retirement planning meant figuring out how to use your free time when you stopped working, not calculating rates of return and deciphering tax rules. You didn’t have to worry — enough money would be there from your pension and Social Security. Currently, with the exception of federal and state employees, most workers are not enrolled in pension plans, and the numbers continue to drop. Because fewer and…
Given the likelihood of needing long-term care and the tremendous cost that this care entails, it is important that individuals plan for it—and the sooner the better. Certainly, there are barriers. For example, people tend not to think about becoming older and needing care, or they don’t anticipate that they will ever need care themselves; they resist the idea of becoming dependent. They may believe (erroneously) that Medicare or their current health insurance will cover the cost of this type of sustained, ongoing care. They may find it difficult to raise this issue with their loved ones. Or they may…
Our vast experience has taught us that the greatest fear of retirees is running out of money. We look at it as our job to make clients’ money last as long as possible, in good times and in bad. We have seen too many good people hurt by well-intentioned advisors giving advice that is incomplete at best or wrong at worst. Let’s face it, getting to retirement is only like making it to halftime of a football game. To win the game, we need to make half-time adjustments and win the second half as well. By advisors, we are referring…
Retirement has changed radically over the last several decades in America. Years ago, when you expected to work most of your life for a single, large employer, you could count on a pension. Retirement planning meant figuring out how to use your free time when you stopped working, not calculating rates of return and deciphering tax rules. You didn't have to worry — enough money would be there from your pension and Social Security. Currently, with the exception of federal and state employees, most workers are not enrolled in pension plans, and the numbers continue to drop. Because fewer and…
A growing market for fellowships that targets older workers connects private sector expertise with nonprofits in need of help. Nancy Diao works part-time, for a small stipend, at a Bay Area education nonprofit. But at 60, Diao isn't your average intern. She's a former executive who will spend her fellowship year at Breakthrough Collaborative serving as Acting Chief Operating and Chief Financial Officer. Millions of baby boomers, like Diao, don't want or can't afford to check out of the workforce at age 65. And many are seeking a transition into work that has a social impact. The San Francisco-based Encore.org…
California lawmakers are pushing a controversial, first-in-the-nation plan that would require private-sector employers to remove 3 percent from every worker's paycheck. The money would go into a new state fund with a guarantee that all withheld funds plus investment gains will be available for distribution at retirement age. The idea behind the Secure Choice Retirement Savings Program, which got preliminary approval, is for it to be a state-run supplement to Social Security, but only for people who don't have traditional workplace retirement plans. For an estimated 6 million working Californians, the benefit of a pension or 401(k) is out of…
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