Pensions, unlike property, can be inherited tax-free. That means savers are increasingly looking to pass on their policies, according to Morningstar’s recent article, “Why Pensions are Vital to Estate Planning.” Company pensions—whether defined benefit or defined contribution—have different rules as to who can inherit in the event of a member’s death, as well as how much can be passed on to the...
Continue ReadingDespite your best efforts to prepare for retirement, you have a good chance of being blindsided by some unanticipated expenses. A recent study by the Employee Benefit Research Institute found that 40% of retirees said their retirement expenses are higher than expected. A recent CU Insight article, “4 unexpected retirement expenses,” discusses some things that may not be on your radar, when it...
Continue ReadingMany of us in our late 50s and early 60s, start thinking about what retirement is looking like and often it’s not a rosy picture. Therefore, we scramble and hopefully increase our retirement savings. A reverse mortgage may serve as both a retirement tool and provide a senior with a degree of financial liquidity and flexibility. Here’s how it...
Continue ReadingAs Southcoast Today reports in the recent article, “Retiring after you sell your business? It may not be as simple as you think,” many business owners don’t have a sense of what their business is worth. The simple answer is that it’s worth what someone else is willing to pay for it. However, there are many factors that need to be considered when...
Continue ReadingAs Investopedia’s article, “Social Security Claiming Options for Singles,” explains, unmarried retirees need to be certain they understand exactly how Social Security defines “single.” It’s not limited to never-married beneficiaries, because those who divorced prior to their tenth anniversary are also considered single. If you are single due to the death of your spouse, you’re eligible for widow/widower benefits based on your spouse’s...
Continue ReadingSelf-employed individuals can establish a “solo 401(k),” which is a special type of retirement plan for someone who’s self-employed or a business owner with no employees (other than a spouse). A person can fund it with about 20% of net profits when times are good; you can skip contributions during lean years. As Kiplinger says in the article, “Retirement Savings Plans for...
Continue Reading“When we think of retirement, we often imagine ourselves exploring the globe and taking advantage of the seemingly limitless amount of free time we suddenly have on our hands.” Many people see retirement as the ideal time to travel, with all their work-related time constraints gone. However, because most seniors are on a fixed income, paying for those trips...
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