APRIL, 2010

Health Care Reform: Don't Count on Retiring Early
by Steve Vernon, FSA
The high cost of retiree medical insurance and the barriers to coverage due to pre-existing conditions have long been a significant obstacle for most Americans who want to retire before age 65, the eligibility age for Medicare. Does the health reform bill help? For some people, yes, but the high cost of retiree medical insurance will still be a challenge for many Americans.
 
To learn more about how health care reform affects retirees, please read my recent CBS MoneyWatch post, Health Care Reform: Don't Count on Retiring Early.
 
As I mentioned in my February and March newsletters, I'm using a new newsletter format so I can share the most helpful blogs and articles I find in my research. Please continue reading for this month's selections, including another post below on the effect of health care reform.

Health Care Reform Provides Some Good News for Early Retirees

In spite of the challenges described above with obtaining affordable medical insurance, health care reform offers some good news for early retirees who don't have retiree medical insurance through their employer. Take a look at my recent CBS MoneyWatch post, Health Care Reform Provides Some Good News for Early Retirees.

Baby Boomer Job Hunt: 7 Mistakes You Can't Afford
I've previously written about the financial need to continue working in your retirement years--see my October 2008 newsletter, Baby Boomers Face Significant Retirement Challenges.  Nothing's changed since then.  And in a recent post at CBS MoneyWatch, I discussed the possible advantages of working longer with Does Working Longer Increase Your Lifespan?
 
Now get some practical tips with a blog post from fellow CBS MoneyWatch blogger Carla Fried with her excellent post, Boomer Job Hunt: 7 Mistakes You Can't Afford.

Roth or Traditional 401(k): Which is Better?

You've just finished preparing your tax returns, and it's likely your attention is now focused on reducing your income taxes.  If your employer recently added a Roth feature to it's 401(k), you might be asking yourself if you should switch to a Roth 401(k).
 
While much attention has been focused on the opportunities for Roth IRAs, the more important choice for many investors is whether they should use a Roth or traditional 401(k) account for their future retirement plan contributions. With decades to go before you retire, the 401(k) offers important tax planning choices. 
 
To learn more about the Roth 401(k) and whether it's right for you, read this recent post from fellow CBS MoneyWatch blogger Charlie Farrell.


How To Pick a Target Date Fund

There's a good chance you're offered a target date fund in your 401(k) plan investment lineup.  But you might have heard there's some controversy with these funds and that hearings are being held in Washington DC.  So are target date funds right for you?
 
I think target date funds can be a good investment choice for many workers, provided they're careful about how they select their specific fund. My recent post, How To Pick a Target Date Fund, provides some tips. You'll also see links in this post to two other good posts about target date funds from fellow CBS MoneyWatch bloggers: Linda Stern wrote about the popularity of target date funds in Target-Date Funds Surge 271 Percent Since 2005, and Carla Fried recently discussed the unwarranted criticism of these funds in
More Proof Target Funds Good Retirement Solution.

This Month's Video Highlight: Change Your Habits, Improve Your Retirement

Most people know what to do to improve their retirement years: Save more. Spend less. Eat better. Exercise more. Spend more time planning for the future.
 
Yet many people just don't get around to making these smart, healthy choices. As a result, their retirement years most likely won't be as good as they would be if they could figure out how to choose with their rest-of-life in mind. So it's a good idea to pay attention to how you make decisions and stick to them.
 
This month's clip discusses one idea for creating healthy habits, from an interview in The Quest DVD with Joe Piscatella, president of the Center for Fitness and Health.
 

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

P.S. If you think this newsletter will help a friend, please pass it along.
_______________
Just Released

The Second Edition of

Recession-Proof Your Retirement Years

Simple Retirement Planning Strategies That Work Through Thick or Thin

I've updated this popular book to include investment results through the end of 2009 and the latest changes to Social Security.  I've also added about 20 pages of content to cover topics that readers have requested.  It's still short--under 100 pages--so it's easy to follow and easy to finish.  And it still provides a step-by-step program to build reliable sources of retirement income that cover your living expenses and strategies to address the threat of high medical and long-term care expenses.  The book is available for bulk purchase by employers and other organizations, or for individual purchase.  Please see my website for details on all of my books and DVDs.

_______________

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 insurance, investments or health products, so we can "tell it like it is."

Here's an archive of past issues.

 
Hour Glass & Money

Steve Vernon has spent 35 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.  He also consults to Mercer's US Retirement, Risk and Finance business, and writes a regular column for CBS MoneyWatch titled Money for Life.

_______________



For information on keynote addresses, workshops or presentations on retirement issues, visit Steve's website at www.restoflife.com, or email him at [email protected]

____________

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:


Join Our Mailing List

We do not share our mailing list or send advertisements.  You will not receive any spam as a result of subscribing to this newsletter.


� 2010 Steve Vernon/
Rest-of-Life Communications
All rights reserved.