Posted by Andrew Moser on Thu, Apr 02, 2009 @ 10:50 AM
The economy and the markets have been pretty tough on many people's investments over the last several months. People who are retired or who are near retirement have been hit especially hard. Fallen stock prices, declines in home values, and uncertainty surrounding some pension funds have wreaked havoc on nest eggs. At a time like this, it might seem hard to figure out what to do.
This week, we are doing a four-part series on some strategies that retirees, or people near retirement, can apply to their investments to deal with the recent downturn. Here is strategy number four:
4. Avoid Borrowing from Retirement Accounts, and Delay Some Benefits
Those approaching retirement, and even thouse who are retired, should avoid taking withdrawals from retirement accounts that will trigger fees and penalties. Such withdrawals may harm your retirement future for years to come.
You may also want to delay taking Social Security benefits, if you have not already begun receiving payments. Simply delaying Social Security payments from age 62 to age 65 gives retirees a mugh higher benefit. We are more than happy to help you determine how Social Security benefits fit into your overall income projections for retirement.
Posted by Andrew Moser on Wed, Apr 01, 2009 @ 10:04 AM
The economy and the markets have been pretty tough on many people's investments over the last several months. People who are retired or who are near retirement have been hit especially hard. Fallen stock prices, declines in home values, and uncertainty surrounding some pension funds have wreaked havoc on nest eggs. At a time like this, it might seem hard to figure out what to do.
This week, we are doing a four-part series on some strategies that retirees, or people near retirement, can apply to their investments to deal with the recent downturn. Here is strategy number three:
3. Delay Retirement
If you are still working, it may be prudent to delay retirement for a little while. Even one extra year of income, and with it one extra year of preserving your nest egg, can make a world of difference over the course of retirement, especially when many investments are down. If you are retired, you could consider working part-time in a field that you enjoy or about which you have always been curious. Of course, this solution may be more ideal for some than for others. It is important to consider your health, your spouse or family, and your other life goals and interests. But it might offer a great opportunity to add something to your life, both financially and otherwise.
Posted by Andrew Moser on Tue, Mar 31, 2009 @ 08:11 AM
The economy and the markets have been pretty tough on many people's investments over the last several months. People who are retired or who are near retirement have been hit especially hard. Fallen stock prices, declines in home values, and uncertainty surrounding some pension funds have wreaked havoc on nest eggs. At a time like this, it might seem hard to figure out what to do.
This week, we are doing a four-part series on some strategies that retirees, or people near retirement, can apply to their investments to deal with the recent downturn. Here is strategy number two:
2. Cut Costs and Reduce Savings Withdrawals
The current economic situation offers us a great opportunity to review our spending habits. Most of us, if not all of us, could review our budgets and cut out unnecessary expenditures. It is also important to make sure your withdrawal rate is sustainable. Your withdrawal rate is the percentage of money you withdraw from your investments each year. If your withdrawal rate is too high, you run the risk of exhausting your nest egg during retirement. It is important to review your withdrawal rate on a regular basis to make sure it is still appropriate for your circumstances, and that you will not run out of money. There are certain ways to analyze how much money you can withdraw safely. We would be happy to review this with you.
Posted by Andrew Moser on Mon, Mar 30, 2009 @ 10:48 AM
The economy and the markets have been pretty tough on many people's investments over the last several months. People who are retired or who are near retirement have been hit especially hard. Fallen stock prices, declines in home values, and uncertainty surrounding some pension funds have wreaked havoc on nest eggs. At a time like this, it might seem hard to figure out what to do.
This week, we are doing a four-part series on some strategies that retirees, or people near retirement, can apply to their investments to deal with the recent downturn. Here is strategy number one:
1. Don't Lock In Losses
Investors should avoid locking in losses, some experts say. It can be challenging to keep money in a market that has seen so much trouble, but investors do themselves no favors by selling near a rock-bottom price.
Of course, investors do not want to take their money out when the market is at a low. Some experts recommend that people not pull money out now because no one knows when things will turn around, or if they have already begun to turn around. If you pull your money out at the wrong time, you will miss the rebound. For some investors, this is a great time to be buying equities, because prices are low. These investors believe that the markets will be higher in a year or two, and have a long-term perspective.
This is a great time to review your asset allocation and your risk tolerance. With big shifts in the markets, it is more important than ever to make sure you are properly diversified and allocated to reach your long-term goals. Call us to discuss this further.
Posted by Andrew Moser on Mon, Jan 05, 2009 @ 09:00 AM
In December 2008, Congress passed and President Bush signed the Worker, Retiree, and Employer Recovery Act. This law makes some important changes to retirement accounts.
The IRS normally requires people over the age of 70 1/2 to take a Required Minimum Distribution from their retirement accounts, such as IRA, 401k, or 403b accounts. However, because of this new law, you are not required to take a minimum distribution for 2009.
The idea behind this new law is to allow people to leave their investments untouched so that they might benefit from a potential rebound in the stock market.
As of now, this rule applies to the year 2009 only. Minimum distributions will once again be required in 2010.
We know some of these tax laws can be confusing! So to find out what this might mean for you, please call us at (781) 398-0017 and we will be happy to answer your questions.