Money for Life

FEBRUARY, 2010

I'm excited to announce the launch of my new blog column on CBS MoneyWatch, titled Money for Life.

In my blog, I'll be advocating the use of simple retirement planning strategies for your money, health and lifestyle that should work through thick or thin, and are realistic and practical for most working Americans. I'll continue "telling it like it is" since I'm not paid to sell you insurance, investments or health products.

Important topics that I'll cover in this blog are:

How to generate reliable sources of lifetime retirement income
Methods for drawing down your 401(k) accounts and other retirement savings
Investment strategies for your rest-of-life
How to avoid being wiped out by bills for medical and long-term care expenses
Making every dollar count with your living expenditures

This blog column is an important step to realizing my dream of using my actuarial skills and experience to help people with important life planning -- to help you live a long time, be healthy and prosper in every sense of the word.

My blog column will be published three times a week. If you're interested in following it, you have three choices:

You can periodically visit the CBS MoneyWatch website to read my latest postings.
You can add the blog to your RSS feed.
You can register with CBS MoneyWatch and sign up for their biweekly Must Read newsletter which contains links to newly published blogs.

As a result of my new assignment, I'll have even more access to other personal finance writers and in-depth research and articles. To best use these new-found resources, I'm revamping the look and content of this newsletter. In the past, each issue has focused on one topic in depth, but the new format will look more like an online magazine. I'll provide links to helpful online blogs, articles and studies that will help you plan the best possible rest-of-life. The newsletter will continue to serve as a good monthly reminder to keep on track with your retirement planning, a nudge that most of us could use.

I hope you enjoy the first installment of this new look.

Avoid These Retirement Planning Mistakes

This article comes from my blog Money for LIfe on CBS MoneyWatch.

My actuarial training didn't include how to take confessions, but I've certainly received a lot of on-the-job training. Often people come up to me after my retirement-planning workshops with a chagrined look on their face, admit to their mistakes in hushed tones, and ask me how to correct them. (And maybe also ask for forgiveness!)

By planning ahead, you can avoid the Top 10 Retirement Planning Mistakes that I see, and they're described in this article. This will help prevent you from running out of money in your 70s or 80s, when you might still have some good years ahead of you.

Bad Timing Eats Away at Investor Returns

This article from Morningstar summarizes research on investor returns during the past decade, which had two severe downturns followed by roaring comebacks. Some investors panicked and sold out during the downturns; this created two setbacks for them: (1) they sold too late to miss the downturn, and (2) they didn't get back in time to catch the comeback. Investors who remained invested in the stock market did better, as did investors in balanced funds that constantly rebalanced their portfolios.

The takeaway for me: Think carefully about your investing strategies, and then stay the course when the market turns down. And stay the course when it returns to high levels--don't increase your stock investments when the market is high.

Recession Darkens Retirement Outlook for Women

Elderly women are the largest segment of Americans living in poverty. This article from RetirementRevised.com discusses the trends and what you should do about it.

And men--read this article! You don't want this happening to your spouse, do you?

Retirees Snared by Medicare: As People Work Longer, They Risk Penalties for Missing Deadlines

I've written about the necessity for people to work in their retirement years, both to make ends meet and to stay engaged with life. As a result, many people will work past age 65, the eligibility age for Medicare. If they decline Medicare and continue medical coverage from their employer, they will need to plan carefully for the day when they eventually retire from their employer and enroll in Medicare. This article from The Wall Street Journal tells you why it's important to plan ahead--and how to avoid penalties for missing the deadlines.

This Month's Video Highlight: Max Your Social Security Income

This clip comes from one of my workshops, where I discuss the advantages of delaying the start of your Social Security income. For most people, this strategy maximizes the income they will receive over their lifetime. Social Security benefits have powerful advantages:

They're payable for life, no matter how long you live
They're increased for inflation
For many people, income taxes on Social Security benefits are reduced or eliminated

No other financial resource has this powerful combination of advantages, so it's in your best interest to make Social Security income as large as possible.

Click here to view

For more informative clips, visit the Video Library on my website.

Thanks for your interest, and stay tuned for future newsletters which explore how to best live the rest of your life.

Best regards,

Steve Vernon
Rest-of-Life Communications

PS If you think this newsletter will help a friend, please pass it along.

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Recession-Proof Your Retirement Years

Simple Retirement Planning Strategies That Work Through Thick or Thin

My latest book provides a simple, step-by-step program that will help protect you against future meltdowns, which are inevitable if you'll be retired for 20 years or more. I've kept it short--under 100 pages--so it's easy to follow and easy to finish. By learning how to build reliable sources of retirement income that cover your living expenses, and by addressing the threat of large medical and long-term care expenses, you'll be able to confidently face your rest-of-life. The book is available for bulk purchases by employers and other organizations, or for individual purchase. Please see our website for details on all of my books and DVDs.

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Welcome to
Our Newsletter!

We fulfill a need for trusted, practical strategies that you can use to plan your rest-of-life (aka retirement). We rely on the latest research and analyses, and we'll keep it simple! And that's all we provide; we don't sell investments, insurance or health products, so we can "tell it like it is."

If you wish to see past issues in our email newsletter archive, click here.

Steve Vernon spent more than 30 years as a consulting actuary, helping large employers design and manage their retirement programs. Now he's president of Rest-of-Life Communications, where he specializes in providing unbiased, trusted information about retirement.

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For information on keynote addresses, workshops or presentations on retirement issues, visit Steve's website at www.restoflife.com, or email him at steve.vernon@restoflife.com

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Want to Learn More?

If you want to learn more about a topic, or if you have any ideas or thoughts on the topics in this newsletter, please send Steve an email at:

steve.vernon@restoflife.com

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