Retirement

2019 IRA Contributions Delay

By |2020-03-23T11:18:05-04:00March 23rd, 2020|Financial Planning, Retirement|

As a result of the COVID-19 pandemic, U.S. Treasury Secretary Steve Mnuchin extended the 2019 tax filing date to July 15.  As a result, it also extends the deadline for making a 2019 contribution to your Individual Retirement Account (IRA) or Roth IRA. You now have until July 15 to make last year’s contributions. According to the Internal Revenue Code, [...]

When To Buy MediGap Insurance

By |2020-02-26T14:31:40-05:00February 26th, 2020|Financial Planning, Retirement|

I was having a conversation about retirement health insurance with an acquaintance of mine who just retired. He’s a former corporate executive—an analytical person—who’s always done his homework to avoid as many surprises as possible in the business world. He’s done the same thing with healthcare and decided that a Medigap policy is best to handle that part of his [...]

The Magic Is Gone

By |2020-02-18T09:22:10-05:00February 18th, 2020|Financial Planning, Retirement|

I’m a Baby Boomer—in the middle of the Boomer pack. Talk to almost anyone of my generation and they’ll tell you stories of what retirement looked like for workers when we were growing up. Back then it was common for someone to work for only one company, starting at age 18 and retiring at 65. You took your pension and [...]

The Growing Financial Risk of Retired Americans

By |2020-01-30T12:58:58-05:00January 30th, 2020|Financial Planning, Retirement|

Retirement is supposed to be the time of carefree living; the reward for a lifetime of hard work, saving, and sacrifice. But it seems that may be more utopian pipe dream than reality. The wealth gap in the United States is getting wider, which in turn increases the financial risk of many retired Americans, limiting their options and forcing them [...]

401(k) Contribution Limit Goes Up in 2020

By |2020-01-15T08:35:41-05:00January 15th, 2020|Financial Planning, Retirement|

Call it a gift. Call it crazy. Call it whatever you want. But it’s good news. The IRS will let you put more money into your 401(k) account in 2020. The maximum contribution to a 401(k) this year is $19,500, up from $19,000 in 2019. If you are age 50 or older, you can make an additional $6,500 catch-up contribution [...]

Keeping your IRA a Little Longer

By |2020-01-08T13:29:28-05:00January 8th, 2020|Financial Planning, Retirement|

Americans are living much longer. Some are running out of money before their death and need additional assistance from the Federal Government, which puts more strain on a system that’s bringing in less money than it’s paying retirees. On January 1, 2020, the SECURE Act (Setting Every Community Up for Retirement Enhancement) took effect, allowing you to save more and [...]

2020 Social Security Cost of Living Numbers Released

By |2019-10-17T16:19:40-04:00October 17th, 2019|Financial Planning, Retirement|

This is the time of year when leaves fall and the Social Security Administration announces the annual cost of living adjustment (COLA) for people receiving Social Security. For 2020 the increase will be 1.6 percent, or about $24 per month, raising the average monthly individual payout to $1503. It will boost the maximum retirement benefit by $150 to $3011 per [...]

The Alarming Growth of Elder Bankruptcy

By |2019-10-16T13:48:05-04:00October 14th, 2019|Financial Planning, Retirement|

Being elderly in America has more than its share of issues—affording proper healthcare, being forced to work much longer because of the need for health insurance or not having saved enough for retirement. Now, throw one more financial demon into the mix. More and more elders are being forced into bankruptcy. In 1991, elder bankruptcies made up 2% of total [...]

Roth IRA Conversion Traps to Avoid

By |2019-10-10T14:08:59-04:00October 10th, 2019|Financial Planning, Retirement|

Since the Roth IRA was created by the Taxpayer Relief Act of 1997, it’ been an appealing addition to retirement planning. While contributions to a Roth are not tax-deductible, the trade-off is tax-free and penalty-free withdrawals after you cross the age of 59 ½. The withdrawal benefit is one reason many people consider converting their traditional IRAs to Roth IRAs. [...]

Medicare: Don’t Set It And Forget It

By |2019-10-02T08:37:56-04:00October 2nd, 2019|Financial Planning, Retirement|

It may be one of the biggest misconceptions people have about Medicare—thinking that when they’re eligible they can enroll and then they’re set for life—set it and forget it. Nothing could be further from the truth. Never changing your Medicare plan can be a costly mistake. Every year, insurance companies make changes to the Medicare plans they offer. Those changes [...]