Federal workers and military personnel are offered a supplemental retirement savings plan to complement their pensions – the Thrift Savings Plan, or TSP. Just how well does it measure up to other forms of popular retirement accounts? Picture a 401(k) or 403(b) with five fund choices. In a nutshell, that is what the TSP resembles.…
Read MoreWhat kind of retirement do you think you’ll have? An outstanding one? A depressing one? What if it all starts with your outlook? Qualitatively speaking, what if the success or failure of your retirement begins with your perception of retirement? A whole field of study has emerged on the psychology of saving, spending and investing:…
Read MoreOn July 1, 2012, the Department of Labor implemented some rules changes for ERISA-covered defined benefit and defined contribution pension plans. These changes were made to improve transparency. Covered service providers (CSPs) must fully describe services & fees. Financial advisors, financial consultants or third-party administrators who expect to receive $1,000 or more in direct or…
Read MoreWhat does a good retirement look like to you? Does it resemble the retirement that your spouse or partner has in mind? It is at least roughly similar? The Social Security Commission currently projects an average retirement of 19 years for a man and 21 years for a woman (assuming retirement at age 65). So…
Read MoreQuestioning traditional assumptions about retirement planning can be illuminating. Some retirement planners and economists argue that they need to be reexamined. Does most retirement planning focus on the future at the expense of the present? One noted economist makes that case. Laurence Kotlikoff, the former White House economic advisor who writes for PBS NewsHour, contends…
Read MoreHow will you pay for long term care? The sad fact is that most people don’t know the answer to that question. But a solution is available. Many baby boomers are opting to make long term care coverage an important part of their retirement strategies. The reasons to get an LTC policy after age 50…
Read MoreHow will Wall Street fare if interest rates climb back to historic norms? Rising interest rates could certainly impact investments, the real estate market and the overall economy – but their influence might not be as negative as some perceive. Why are rates rising? You can cite three factors. The Federal Reserve is gradually reducing…
Read MoreAs you save for retirement, you also recognize the possibility of having to pay major health care costs in the future. Is there some way to plan for these expenses years in advance? Just how great might those expenses be? There’s no rote answer, of course, but recent surveys from AARP and Fidelity Investments reveal…
Read MoreWhat was once allowed is now prohibited. In 2008, an affluent New York City couple made a series of withdrawals and transfers among contributory IRAs, rollover IRAs and non-IRA investment accounts, all with the long-established 60-day deadline for tax-free IRA rollovers in mind. As esteemed tax attorney Alvan Bobrow and his wife withdrew and rolled…
Read MoreA tax break with an additional benefit. Did you know that, since taking effect in 2010, you are allowed to withdraw money from a certain kind of annuity without paying taxes as long as you use it to pay for qualified long term care coverage? A tax break for these important savings will be of…
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