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Paid to Wait

Richard Connor  |  Jun 6, 2022

ARE YOU IN YOUR 60s and worried about rising consumer prices? It’s worth understanding how inflation affects Social Security benefits—especially its impact on those who postpone claiming their monthly check.
Social Security benefits jumped 5.9% in 2022, thanks to the annual cost-of-living adjustment. This inflation increase was based on the Bureau of Labor Statistics’ CPI-W. This was the largest adjustment since 1982, and it affected nearly 64 million retirees. The increase took effect in January.

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Super Old

Larry Sayler  |  May 26, 2022

FINANCIAL ADVISORS used to suggest a 20-year planning horizon for retirement. Now, most advisors say to plan for a 30-year retirement. From my own experience, I believe 40 years should be the norm, and 50 years isn’t unreasonable.
If we plan for the longest possible life expectancy, we’ll almost always die with money left over. That’s far better than the alternative—living longer than planned and running out of money.
People who live to 100 are called centenarians.

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Spend With a Smile

Kenyon Sayler  |  May 25, 2022

AS I WAS PREPARING to retire last year, I spoke with a number of friends who were also about to leave the workforce. One of the main topics of discussion: How could we best arrange a stream of income for the next three decades or so?
Among my friends, a common refrain was that they planned to spend more in their first decade of retirement. They thought their spending would fall during the second decade,

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That Losing Feeling

Richard Connor  |  May 22, 2022

LOSS AVERSION IS ONE of the most powerful behavioral-finance phenomena. It’s often defined as “losses loom larger than gains.” It’s been said that the psychological pain from a loss is about twice as powerful as the pleasure from an equivalent gain.
Boy, am I feeling that right now. This year’s market losses have many of us concerned. But this year is different for my wife and me. This is our first year with no consistent earned income.

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Five Years Later

Richard Connor  |  May 13, 2022

MARCH 31 MARKED the fifth anniversary of my retirement from fulltime work. Back then, I didn’t think I was retiring and I’m still not sure I really have retired. Instead, over the past five years, I’ve described myself as semi-retired. But a recent HumbleDollar article provided a better description of my situation: I’m in a “phased retirement.”
How have things gone, what have I learned and what would I have done differently?

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Rules for Retirement

Ray Giese  |  May 11, 2022

WANT A HAPPIER, more fulfilling retirement? You work your entire life to get there, and you want to make the most of the time you’re given. But how? Here are my 10 rules for retirement:
1. Have a purpose and a plan, but be flexible. You might have devoted more than 70,000 hours to your career, so it wouldn’t be a big surprise if your work has become a huge part of your identity.

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Paying Myself

Howard Rohleder  |  Apr 15, 2022

WHEN I RETIRED 10 years ago, I need to replace my biweekly paycheck. Because I was retiring early, and there would be no pension or Social Security for many years, my goal was to use savings to create a synthetic paycheck.
During my final few years of work, I prepared by channeling most of my paycheck into both taxable and tax-deferred accounts. My pay was much higher than what I needed for living expenses.

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Ready to Retire

Richard Quinn  |  Mar 28, 2022

IF THERE WAS ANYONE who should have been emotionally unprepared to retire, it was me. In the years immediately before, I was at the top of my career. I’d been promoted to vice president. I had virtual total control over my job. I was recognized by nearly every employee because of my extensive employee benefits communications and the fact that I’d negotiated benefits for decades. I was among the few who routinely met with the company’s chairman.

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My Time to Claim

Howard Rohleder  |  Mar 14, 2022

I’VE FINALLY DECIDED when to claim my Social Security benefit. Along the way, I realized that calculating the ideal start date is easy—provided you can predict your retirement income needs (doable), your investment returns (hard), the inflation rate (hard), your future tax rate (hard), your date of death (hard) and what Congress will do in the future (impossible).
This particular financial journey began when I was preparing a recent blog post on the knotty issue of when to file.

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Tough on Quitters

Mike Zaccardi  |  Mar 14, 2022

JUST HOW ROUGH HAS 2022 been for retirees? Vanguard Target Retirement Income Fund (symbol: VTINX) is down nearly 6% so far this year. Barring a strong comeback, this could be among the lousiest years for this conservatively positioned mutual fund since its October 2003 inception.
The pandemic led to a rash of retirements. Soaring stock prices, booming real estate values and flexible work arrangements helped change the employment landscape. Many Americans finally called it quits in recent months.

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Drawdown Drawbacks

Richard Connor  |  Mar 8, 2022

LOTS OF RESEARCH has been done on the best way to generate retirement income. It’s one of the most popular topics on HumbleDollar. I think this popularity is driven by two things: its obvious importance—and the fact that there’s no one right answer.
By contrast, figuring out how much we need to save for retirement is relatively easy. It isn’t hard to pick a future retirement date, or at least a range of years during which we’ll likely retire,

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What, Me Worry?

Richard Quinn  |  Mar 5, 2022

I’M IN THE HABIT of checking my investments every day. Since I consolidated them into one Fidelity Investments’ account, it’s easy to see the impact of market movements on everything I own. I don’t depend on my investments for income, but it still shakes me up when I see big drops, especially several days in a row.

If market gyrations affect me, what must they do to retirees who depend heavily on their investments for income?

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Fearing Fear Itself

Richard Quinn  |  Feb 26, 2022

SEEING YOUR IRA or 401(k) decline precipitously is bad enough. Locking in those losses is far worse. The good news: I’ve perused various Facebook retirement groups since the Russian invasion of Ukraine and have seen few signs of panic.

For instance, here’s some good advice from a prudent retiree: “Stay the course, but in the future make sure you have enough in a cash reserve for at least one year of planned withdrawals or RMDs,” meaning those pesky required minimum distributions that must be taken each year by those of us age 72 and older.

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After You Leave

Richard Quinn  |  Feb 20, 2022

VIEW ANY NUMBER of YouTube videos on retirement planning, and you’ll find advice on how much you need to save each month, how to invest, how much to accumulate and how to generate retirement income. The same is true for the experts who write blogs.
All this information relates to the retiree. Rarely—actually never—have I seen a discussion about survivor benefits. Even the 4% rule uses an assumed 30-year retirement period, apparently ignoring the possibility that retirement income needs to last over two lifetimes that may extend beyond 30 years,

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Building a Bridge

Richard Connor  |  Feb 19, 2022

WHAT IF WE MADE IT easier to delay Social Security, so more retirees ended up with a larger monthly check?
Last year, I wrote about a study from Boston College’s Center for Retirement Research (CRR) that detailed the value in claiming Social Security later. A new CRR paper examines the topic further.
The paper describes a survey of those nearing retirement. The goal: to gauge interest in using a 401(k) “bridge” to generate income while folks delayed claiming Social Security.

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