So baby boomers, heading into retirement and leery of risk, will unload their stocks — and deflate the equities market for a long time, right? Don’t bet on that. For reasons ranging from low bond yields to estate planning, they’ll likely stick with stocks, especially those paying nice dividends. Of the 314 million people who live in the United States, 76 million or nearly 25 percent were born between 1945 and 1964. This baby boom generation sent a pressure wave of demand through the economy for the past 40 years. Boomer consumption created wealth. Wealth led to increased savings. Financial…
This phase occurs during the final years of the accumulation phase and should begin when you reach 50 years old or are 15 years away from retiring, whichever happens first. Now is the time to get your plan in place, making sure your finances are lined up correctly for retirement day so nothing will be left to chance. If you work for a company with a benefits specialist, arrange an appointment to become informed about the various ways you can convert your employer retirement savings into a stream of income or an IRA. Give yourself time to learn the ropes…
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…
Great hospitals! Good public transportation! Booming economy! The best small city for seniors looking to age well is…Sioux Falls, South Dakota? Forget the palm trees and warm sea breezes, the health care facilities in this small western city “specialize in geriatric services, hospice, and rehabilitation, and the metro has recreation and an active lifestyle.” It’s enough, at least, to make Sioux Falls No. 1 of 259 small cities in a recent study by the Milken Institute, a non-partisan think tank. Looking for a more major metropolitan vibe? Set your gaze to Provo, Utah, where the pro-business environment, a focus on…
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…
Three government agencies —the Department of Labor, the Social Security Administration, and the Centers for Medicare & Medicaid Services— have developed a retirement toolkit to enable workers to better plan for their retirement. The toolkit includes a list of publications and interactive tools to help in your planning, plus information on how to contact the agencies with specific questions. The toolkit stresses that it is important to start early and be well-informed so you can make timely decisions and, if necessary, make changes while you still have time before retirement.
Harriet Moravec retired in 1985. But it didn't last forever. Her retirement fund shriveled up, "and then in 2008 the government had fun with what was left," Moravec said. So what else could she do? About nine months ago, after more than 25 years out of the workforce, the 90-year-old Kenai resident got a job. And she's quite happy. Moravec is not the only senior on the Kenai Peninsula who has left retirement to rejoin the workforce. From 2005 to 2011, 5.7 percent more Alaska residents 65 and older and 4.4 percent more 55 to 64-year-old residents have joined the…
When Keith Farner was 14, he made $2,000 at a summer job. Instead of buying the XBox he'd been wanting, his parents helped him open a Roth IRA. The 30-year-old, who lives in Athens, Ga., now has more than $30,000 saved. While Farner may have gotten an earlier start on retirement than most, a new study from Merrill Edge shows that Gen Y, defined by the study as those 18-34, is starting to save for retirement earlier than any other generation. Many are investing by age 22, compared with Baby Boomers who started on average at age 35. Abe Mulvihill…
The Employee Benefit Research Institute (EBRI) has published its annual Retirement Confidence Survey that confirms what virtually all such surveys have concluded: 1) that Americans are living longer; and 2) that they do not have anywhere near enough saved for retirement. The truth is that Americans do almost no thinking about what kind of retirement they want. They mistakenly assume that Social Security is a retirement program, when in fact it is a supplemental retirement program. The three legs of the retirement "stool"—Social Security, a pension, and private savings—have all seen some shrinkage in the past few years. For Social…
ING has some key features make your plan one of the best ways to save for your retirement: You’re in control of your savings potential. You can save automatically. You simply specify how much to save. The amount will be automatically deducted from your paycheck and deposited to your plan account—before you ever see the funds in your paycheck. Plus, your plan offers a variety of investment options managed by experienced professionals. Your contributions reduce your current taxes. Because your contributions are made with pre-tax money, you reduce your overall taxable income, which adds up to considerable savings. Put the…
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