A digest of
timely information and insight about finance, investing, and retirement.
The
big, surprising cost in retirement no one plans for, but should |
Forbes
For most older Americans, driving is not a
choice, it is a necessity. Transportation is often taken for granted but it is
critical to living well at any age. Yet most people, including many financial
advisors, are surprised to learn that transportation is the second largest
cost in retirement. According to the Bureau of Labor Statistics, the top five
expenses for people 65 years old and older are housing, transportation, health care, entertainment,
and food. Transportation costs an average
65-year old head of household more than $7,100 a year compared to health care,
which is often, and incorrectly, identified as the second greatest expense in retirement
at $6,300 annually.
As
retiree health care costs soar, public employers turn to private insurers | Governing
The cost of retiree health care is spiraling
out of control. In just two years, according to a recent S&P Global Ratings
report, unfunded retiree health care liabilities across the 50 states increased
by $100 billion to now just under $700 billion. In response, some public
entities are scrapping government-sponsored health plans and instead paying for
retirees to purchase a plan on a private health insurance exchange. The change
is expected to save some cities hundreds of millions of dollars and make their
annual retiree health care costs more predictable.
Why
you should take a vacation in retirement | US News
While many people imagine retirement as a permanent
vacation, it isn’t. Retirement is more like a stay-at-home vacation. You’re not
going to work, but you still have all your usual responsibilities, whether it’s
taking care of the house and yard, doing your volunteer job or taking care of grandchildren. To really relax and
take time off, you have to get away from home.
This
retirement plan feature can help save on taxes—if you can find it at work |
CNBC
If you’re looking for a strategy to slash your tax bill in retirement,
your employer just might have the answer. You’re probably familiar with the
traditional 401(k) — the workplace retirement savings plan where you can stash
pretax dollars and have them accumulate on a tax-deferred basis. What you may
not know is that many companies are now offering a Roth 401(k) option as well.
You can stash after-tax dollars in these accounts, have them accumulate free of
taxes and take tax-free withdrawals in retirement, provided you meet a set of conditions.
How
all 50 states tax retirees | Kiplinger
Retirees relocate for lots of different
reasons, from the weather to proximity to grandchildren. Moving from a pricey
part of the country to one with low housing prices could also lower your
expenses and make your retirement savings last longer. But as you consider the
cost of living in potential retirement destinations, don’t overlook the impact
of state taxes on your bottom line.
The
big problem with 56 percent of people retiring earlier than expected
| Yahoo
Finance
Early retirement is far more common than
people realize, and it’s often unplanned. Retiring early may sound like cause
for celebration, and it is for some, but for many people, early retirement can
strain finances and cause stress. Few people who retire ahead of schedule do so
because they can afford it. According to a recent Transamerica survey, 56 percent of retirees reported retiring earlier than
they had planned. Of those, only 11 percent did so because they had saved
enough money — the rest citing employment-related reasons like job loss or
family and health-related reasons like an illness or sick family member.
