| How to make your money last until age 100
by Steve Vernon, FSA
| |
Let's suppose that you -- or your spouse or partner -- live to age 100. Will your money last that long? You don't want to experience "money death" before leaving this planet for good. And even if you don't live to be 100, it's smart to make sure your retirement income will last a very long time.
My first post on this topic covered how you'd plan your retirement if you thought you'd live to 100. My second post focused on making your money last that long.
Don't dismiss this exercise as a waste of time by thinking you won't live that long. Admittedly, the odds are against you living to age 100. But there's a good chance that you and your spouse or partner could make it to age 90 or 95.
How many Americans make it to age 100? Read here for a recent post on the topic from fellow CBS MoneyWatch blogger Aimee Picchi.
Please keep reading for this month's helpful articles and stories.
|
How much retirement income will you receive?
| |
Account-based retirement plans like 401(k)s have replaced traditional pension plans in America. As a result, it's critical that you understand how much retirement income your savings might generate, which will depend significantly on the method you choose for turning your savings into reliable retirement income. To help you with this task, read my retirement income scorecard series, which compares the amount of retirement income that can be generated by different retirement income generators (RIGs) with $100,000 of retirement savings.
It's well worth your time learning how to generate a retirement income that will last as long as you (and your spouse or partner) are alive.
|
|
More people are delaying Social Security benefits
|
It looks like people are now paying attention to the plethora of advice retirement analysts and writers -- including me -- have been offering about delaying Social Security benefits as a means of improving retirement security. The Social Security Administration's Annual Statistical Supplement for 2013 provides evidence of a slow but steady increase since 2004 - 2005 in the age at which Americans start taking Social Security benefits, reversing a prior trend of claiming payments at earlier ages. Read here for details.
Here's another recent post you can use to help you decide when to start your own Social Security benefits.
|
|
Invaluable investing advice for young people
| |
April is financial literacy month, at least according to the Jump$tart Coalition for Personal Financial Literacy. Jump$tart is a group of diverse financial education stakeholders who are working together to educate and prepare America's youth for life-long financial success. In this post, fellow CBS MoneyWatch blogger Allan Roth discusses five hurdles to overcome for successful investing. Hint: His column is great reading for people of all ages!
|
|
Study puts another nail in active management's coffin
|
An ongoing debate among investors is whether an active or passive investing strategy is most likely to give you the best results. Twice a year, Standard & Poor's releases its active vs. passive score card (officially called the S&P Indices Versus Active Fund report, or SPIVA for short.) In this post, fellow CBS MoneyWatch blogger Larry Swedroe analyzes actively managed funds against S&P index benchmarks.
|
Let's redefine what retirement means
| |
Retirement sure isn't what it used to be. Demographic trends and economic uncertainties are making the current definition obsolete for the next generation of "retirees." So, to plan more effectively for the last half of our lives, we need to embrace new ways of thinking about retirement that are supported by recent research, insights, and economic realities, as discussed in this post.
|
|
Can behavioral finance bolster your retirement?
|
Interested in learning how to improve your retirement security? You might be served well by recent developments in a field known as "behavioral finance" that addresses the damage that natural human foibles can cause to your retirement planning. My first post on this topic discusses the various quirks that people display regarding how they plan their finances, while my second post contains some suggestions for using behavioral finance to your advantage.
|
|
How Social Security subconsciously affects retirement planning
| |
Does the language that Social Security uses encourage poor retirement planning decisions? Behavioral finance research shows that the words used to describe benefits can significantly influence decisions, even if this influence is unintentional. Scientists call this phenomenon "framing." This post shows how you can use this power to your advantage.
|
|
Checklist for achieving a good life in retirement
|
Want to learn more about the things you should be doing to help achieve well-being in retirement? Let's take a look at what insights you can gain from a paper prepared by the Society for Industrial and Organizational Psychology , which summarizes 20 years of research on this topic. It can serve as your checklist for the ideal circumstances for retirement. Read here for details.
|
|
The key to happiness in retirement
| |
There's only one thing you need to do if you want to be happy during your retirement years. Plan for it. Yep, that's it. Plan for your retirement, and you'll be happier. Read here for details.
|
|
|
~~~~~
Thanks for your interest, and stay tuned for future newsletters that 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.
|
|
|
_______________ | |
Money for Life
Turn Your IRA and 401(k) Into a Lifetime Retirement Paycheck
My latest book, published in 2012, answers two of the most important financial questions you'll ever face:
How much money do you need to retire?
How can you generate reliable income from your retirement savings that lasts for the rest of your life, no matter how long you live and no matter what happens in the economy?
Addressing these questions is one of the most critical challenges facing the retirement industry today.
Money for Life is an easy-to-read, easy-to-understand book that outlines specific action steps and includes illustrations and graphs to reinforce the main points. It describes in simple terms the three methods you can use to generate a "retirement paycheck" from your retirement savings. It explains the pros and cons of these methods, as well as their many varieties and permutations. One critical element is the amount of the retirement paycheck you'll be able to generate, which can vary widely depending on the method you choose to generate retirement income.
This new book is available in both print and e-book format. It complements my other published works on retirement planning -- my book, Recession-Proof Your Retirement Years; my DVD, The Quest for Long Life, Health and Prosperity; and my retirement planning website, Money for Life.
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.
|
| | |
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 is a Research Scholar at the Stanford Center on Longevity, 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 steve.vernon@restoflife.com
|
____________
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:
|
| | We do not share our mailing list or send advertisements. You will not receive any spam as a result of subscribing to this newsletter.
|
|
| © 2013 Steve Vernon/
Rest-of-Life Communications
All rights reserved.
| 
|
|
|
