For many without employer-provided health care, the Affordable Care Act may offer the first opportunity to purchase affordable insurance. Those with an entrepreneurial spirit (but a family to protect) may be willing to step away from their employer’s coverage and take a chance pursuing their dreams. Even the gap between an early retirement (forced or otherwise) and eligibility for Medicare coverage may no longer be a period of high financial risk.
On October 1, your state’s Health Insurance Marketplace will open its digital doors to health care window shoppers. Whether you’re looking forward to the Affordable Care Act with anticipation, dread, or a shrug, every American will be impacted, whether directly or indirectly.
Safety is often thought about in terms of the present: keeping children out of harm’s way, protecting family, wearing a seat belt…the list could go on forever. But, how often do we ask ourselves, how is the safety of my financial future?
Employer sponsored 401(k) plans and other work site retirement plans have helped millions of workers save trillions of dollars. These dollars not only help create security, but also peace of mind that medicine can be paid for and unforeseen situations can be taken care of. And most importantly, these dollars help ensure quality of life can be sustained long after retirement. Read more
Among the many perils facing today’s workers and retirees, four in particular stand out: longevity risk, inflation, market volatility, and abandonment risk. I wrote a post on this topic in June.
In this post, I’ll take a closer look at longevity risk — one of the most common retirement concerns. In fact, the risk of outliving their savings is a worry that keeps about one-third of workers and retirees awake at night, according to the Principal Financial Well-Being IndexSM (third quarter 2011).
Your retirement could span two decades or more (knock on wood), but have you considered whether your retirement savings will last? Well, your answer will depend on three things:
- How much you set aside now.
- Your withdrawal rate during retirement.
- How you invest your savings once you retire.
To stockpile enough income for retirement, most experts recommend saving between 10-15 percent of your annual pay throughout your career. If you haven’t done so, don’t give up; but start saving as much as you can, as soon as you can.
Where a lot of people get in trouble is when they try to determine a safe withdrawal rate. They retire with what seems like a lot of money in the bank; but then they start spending it, forgetting that money has to last. This might seem like a no brainer, but it’s easy to kick off retirement with lots of celebratory spending (world cruise anyone?) Read more
What may be done at any time will be done at no time.
– Scottish Proverb
Plan sponsors utilizing an unbundled service arrangement may be unintentional procrastinators without even knowing it. Let me explain.
What’s one piece of financial advice that applies to everyone — young and old, rich and poor? Work with a professional.
Unfortunately, a lot of people think only the wealthy need professional financial advice. Let’s bust that myth once and for all.
In reality, it couldn’t be further from the truth. In fact, I would say that the less money you have, the more important it is to get good financial advice. After all, you have a lot less room for error.
If proposed legislation is passed it will mean two things: more opportunity and more participants!
The legislation under review is titled, Retirement Plan Simplification and Enhancement Act, and it aims to do just that: simplify rules surrounding existing retirement plans and make enhancements toward expanding who qualifies for retirement plans going forward. It aims to accomplish these lofty goals by expanding 401(k) and defined contribution plan eligibility, providing tax incentives to small businesses that start a plan and simplifying disclosures required from participants and government. All of these individual variables may or may not mean much to you, but together, they create two major impacts.