spacer
spacer
spacer
What's New Saving & Investing Advocacy Lifestyle Other
April 11, 2020

When should you start taking Social Security benefits?

It’s a perennial question. When you reach age 62, you can apply for Social Security benefits, but they’ll be significantly reduced for life. Or, you can wait until you’re old enough for full benefits (a sliding scale between ages 65 and 67, depending on when you were born). Which is best?

The question isn’t easy to answer, since it depends, among other things, on the age of your future demise. If you die at age 64, you’ll get nothing if you wait. But if you last to age 100, you’ll suffer 35 years of reduced benefits for the sake of a few years of payments early on. Where’s the break-even point?

You can spend hours poring over Excel spreadsheets if you want. But according to The Center For Retirement Research at Boston College, there’s a way you can have your cake and eat it too
[Read more]

April 7, 2020

Don’t delay starting a retirement savings program

The old saying “you snooze, you lose” is especially applicable to saving for retirement.

Einstein

No lesser a genius than Albert Einstein once declared “the power of compound interest” to be “the most powerful force in the universe.” That’s probably true; and the second most powerful force is arguably the power of regular saving. Together, they’re “thermonuclear” in power—but only if they have enough time to operate.

For example: based on reasonable historical assumptions, a 55-year-old will have to put away $610 per month in order to have $100,000 saved up by age 65. If he or she had started 10 years earlier, only $216 per month would need to be saved in order to achieve the same result. And if the savings program had begun at age 25, only $50 per month would suffice!


[read more]
April 6, 2020

Pooh-poohing the impending Social Security and Medicare crisis

Head in the sand

Tens of millions of baby boomers are approaching retirement age. Over the course of the few decades, this enormous segment of the population will stop contributing to Social Security, Medicare, and private investment programs. It will instead be drawing upon these institutions to the tune of trillions of dollars. This will result in enormous dislocations for the economy as a whole, shaking its very foundations. Still, some people—like deputy assistant secretary of the Navy Russell Beland—insist on sticking their heads in the sand and pretending that the problem will go away by itself.
[read more]
April 2, 2020

Upper middle-class retirees aren’t immune from inflation woes

Having owned an employment agency for twenty years, Linda Miller thought she was well-off enough to retire four years ago, and she did.

Now, she’s back at work selling Avon cosmetics. Why? “All the money is going for gas and groceries,” she laments.
[Read more]

April 1, 2020

“RHAs” and “IHAs”: Phony health care coverage for future retirees

Rep. John "Randy" Kuhl (R-NY) is keenly aware of the health care crisis facing future retirees. As corporations eliminate health care coverage for retirees, many people on fixed incomes are forced to choose between food and medicine. But his proposed means for dealing with the problem—tax-favored accounts similar to IRAs that allow people to save for future expenses—offers only a tiny band-aid, not a real solution. What is needed is real insurance with no ifs, ands, or buts.
[read more]

eNews & Updates

Sign up to receive breaking news
as well as receive other site updates!

We will not spam you, or sell, rent, exchange, or otherwise share your email address with a third party.

 
spacer
spacer