According to a recent article published by the New York Times, an increasing number of retirees are taking advantage of a relatively new product known as a pension advance. These advances are typically offered by specialty loan professionals and are mostly–although sometimes questionably–legal in the United States. However, while they are legal, they are also dangerous and often strip retirees of a significant portion of their pension.
As a standard rule of thumb, many financial experts suggest that seniors be able to replace 70% of their income during retirement. This means that if your current household income is $70,000, you will need an income of $49,000 each year. Retirees typically draw income from Social Security benefits and retirement savings unless an individual plans to continue working through his or her golden years.
According to a recent American Housing Survey, a large number of homeowners would prefer to renovate rather than sell their home. In fact, between 2009 and 2011, American homeowners spent an impressive $359 billion on home improvements. While some of these improvements were made for aesthetic reasons, many renovations were dedicated to updating a home to meet the homeowners’ changing needs.
Many seniors have been given the same advice for decades. For example, in the past, investors were often told to subtract 100 from their age to determine how much of their portfolio should be made up of stocks. With today’s low interest rates and volatile market, this advice has become almost obsolete. To make sure that your assets last through retirement, begin avoiding these three common but outdated pieces of retirement advice.
Obama’s budget for fiscal year 2014 was received by Congress just a few days ago on April 10th. According to the President himself, this budget is designed to ignite economic growth by promoting a prosperous middle class. However, to do this, the President has proposed a number of spending cuts, several of which will affect seniors by impacting both Medicare and Social Security.
Life insurance was designed to provide adults with a way to protect their dependents after their passing. If your children are now adults with stable incomes of their own, you may be wondering if you still need your life insurance policy, especially since premiums increase as you age. Unfortunately, the answer to that question is not always simple. There are a few things to consider before discontinuing or cashing in on your policy.
Today, most consumers shop around for low prices before making many of their large purchases. While it would be considered irresponsible to purchase a car or TV without knowing its value, consumers commonly pay medical bills without question. However, unbeknownst to many seniors, it is possible to shop around for healthcare. Before undergoing an expensive procedure, use these tools to make sure you are getting a fair price.
In the past, experts have advised seniors to put off getting a reverse mortgage for as long as possible. Today, many experts, including Jack Guttentag, better known as the Mortgage Professor, are singing a different tune. Instead of waiting until retirement funds run low, it appears that many seniors may benefit more from getting a reverse mortgage in the near future.
For many seniors, moving into a retirement community sounds ideal. Never again will you have to deal with disruptive neighbors, and you will get to take advantage of convenient extras, like lawn care and possibly even a concierge service. Still, even with the benefits retirement communities provide, it is important to carefully evaluate retirement communities, not only based on price, but also according to these chief aspects:
According to a recent survey conducted by AARP, over seven out of ten participants have no idea what fees they are paying for their 401(k) or other employer-sponsored retirement plans. In fact, many didn’t know they were paying fees at all. This doesn’t come as a shock; the firms that back employer-sponsored savings plans have been hiding fees from both employers and employees for decades. It was only recently–in July of last year–that the Department of Labor began forcing firms to disclose some of their fees, including advisory and operating costs. Still, this only makes up about 10% of the total fees charged on the average retirement plan, meaning that 90% of fees are still hidden from account holders.