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Managing Debt in Retirement Takes Some Planning

“Mortgage debt, especially, can be a huge burden in retirement” writes The Associated Press for seattletimes.com. People also could consider downsizing to eliminate or reduce mortgage debt, Farinola says.If it would take over five years to pay off the debt, however, their debt load may be unmanageable.People with good credit scores, and sufficient discipline, can use zero-percent balance transfer offers to consolidate and pay off their credit card debt.Liz Weston is a columnist at NerdWallet , a certified financial planner and author of “Your Credit Score.” Email: [email protected] . Source: seattletimes.com…

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This neglected population could get some relief if proposed 401 changes happen

“Not everyone has access to a 401(k) plan, especially if they work for a small business — recently proposed legislation could change that” writes Alessandra Malito for marketwatch.com. Small business employees aren’t the only ones who miss out on a 401(k) or similar retirement account, Kelly said.Small business employers cited a few reasons for not offering a plan: expense, limited administrative resources and lack of employee interest.Bipartisan efforts include making 401(k) plans easier to use in the event of an emergency, simpler to convert to income in retirement and more…

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Target-date funds aren’t the retirement bull’s-eye they’re cracked up to be

“The difference, however, is that the target-date portfolio introduces an element of random chance” writes Nir Kaissar for latimes.com. Because it allocates more to stocks in the beginning, whether those early years happen to coincide with a bull or bear market has a lasting effect.During the 41-year period beginning in 1949, for example — just before the epic bull market of the 1950s — the target-date portfolio beat the static 60/40 portfolio by 0.6 percentage point a year. But during the period beginning in 1929 — just before the Great…

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Forget retirement, most older workers are looking for these jobs

“Other common second-act jobs are courier driver, shuttle driver, and parts driver” reports fastcompany.com. For this, knowledge of CAD is a must, as it is at some of the other top jobs like senior lead designer and electrical designer.Indeed’s analysts found that piping designer is the No. 1 sought-after job mostly found at oil and gas companies.According to Indeed, the most clicked-on job openings for workers over 62 (the earliest you can qualify to get Social Security benefits) are an assortment of construction and transportation positions, along with some surprising niche…

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This is the ideal age to hit every financial milestone, according to millennials

“In fact, Americans on average consider the ideal retirement age to be 61, according to the survey of 1,001 people” reports moneyish.com. Generation X (ages 38 to 53) had an even more buoyant outlook, suggesting on average that the ideal retirement age is 60, per the report published Wednesday.The millennial generation (defined as ages 18 to 37) believes that 61 is the optimal age to retire, according to a recent Bankrate.com survey of how Americans view ideal ages for financial milestones. Source: moneyish.com Share This:

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This is how much debt can sabotage your retirement

“As a retirement researcher, I am worried that debt may be eroding the long-term financial security of many workers who are nearing retirement” writes Catherine Collinson for marketwatch.com. Generation Xers, now entering their 50s, have even higher balances — including $231,774 in mortgage debt and $30,334 in nonmortgage debt.According to a 2017 study by Experian, EXPN, +0.39%   boomers have an average of $188,828 in mortgage debt and $27,513 in nonmortgage debt.The median retirement savings among those who have taken a 401(k) loan, however, is just $123,000.Older workers who are closer to…

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Maxing out your 401 might not be enough to have a secure retirement

“Saving for retirement in a 401(k) plan is a great choice” writes Alessandra Malito for marketwatch.com. A better idea is to have a financial plan to accompany that account.According to its study, participants with access to an online financial program in the workplace increased their contributions to retirement accounts by an average of 40%.The Boston-based financial firm has created a new feature for employers to incorporate into their managed account products for 401(k) and 403(b) plans. Source: marketwatch.com Share This:

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Retirement fund managers have made a huge mistake assuming 7% is an average return because 600 million workers are about to disappear from the global economy

“Seven percent is an important number, because if your personal retirement savings get less than that annually over the long haul you will not have saved enough for retirement” writes Jim Edwards for businessinsider.com. This shift will increase inflation and lower asset returns from 7% annually to roughly 4%, he theorises.Older workers with generous “defined benefit” plans typically received 23% of their compensation as a contribution to their retirement plan.He believes that the average rate of return will be cut by an epic global shift in demographics that is going…

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Retiring early doesn’t mean you’ll stop making money — here’s how one retired millennial made more than $60,000 in passive income last year

“When I was contemplating early retirement while working, I was very burnt out,” Livingston previously told Business Insider” writes Hillary Hoffower for businessinsider.com. Livingston started writing on the blog in August 2016, she said, covering everything from investing and saving to planning for early retirement.In fact, if she had known it was still possible to generate income while retired, Livingston thinks she would have retired even earlier than she did. Source: businessinsider.com Share This:

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Changing jobs midcareer? How to find fulfillment without going broke

“Another option for people who want a second-half career yet depend on a regular salary is to develop a downward mobility plan” writes Paul Mcginnis for marketwatch.com. It often involves renegotiating your working relationship with your employer so that you have blocks of time to invest in your second-half career. Source: marketwatch.com Share This:

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