Retirement in Sight – August 2018

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Monthly News and Information for Current and Future Retirees Presented by UPAL – August 2018 QUOTE OF THE MONTH “To me, old age is always 15 years older than I am.” BERNARD M. BARUCH THINK OF YOUR RETIREMENT IN THREE PHASES Phases, stages, acts, chapters, steps. Whatever you want to call them, consider that your retirement may unfold in a way many others have, in three successive financial segments. Your budget and income could see adjustments as you move from one phase into the next. In the first phase of…

Build Your Rainy Day Fund

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Like an emergency fund, it can come in handy. August 17, 2018 Sometimes, life gets expensive. A little bad luck or a twist of fate can hit us right in the checkbook and challenge us to live within our budget. An emergency fund may help us handle major financial disruptions. For the minor ones, a rainy day fund may suffice. A rainy day fund and an emergency fund differ in scale, but not purpose. Both funds are designed to fully or partly absorb sudden costs. An emergency fund contains enough…

Starting a Roth IRA for a Child or Grandchild

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This early financial decision could prove profoundly positive over time. August 17, 2018 Do you have a child or grandchild earning some income? Indirectly, that after-school or summer job might present a savings opportunity for that teenager. You could help your child or grandchild save for future goals by assisting them to create and fund a Roth IRA. So many people wish they had begun saving for retirement sooner. Imagine how your child or grandchild’s prospects for building lifetime retirement savings might improve by starting as soon as possible.     Here…

The Sequence of Returns

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A look at how variable rates of return do (and do not) impact investors over time.  Provided by UPAL What exactly is the “sequence of returns”? The phrase simply describes the yearly variation in an investment portfolio’s rate of return. Across 20 or 30 years of saving and investing for the future, what kind of impact do these deviations from the average return have on a portfolio’s final value? The answer: no impact at all. Once an investor retires, however, these ups and downs can have a major effect on…

Before You Claim Social Security

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A few things you may want to think about before filing for benefits.  Provided by UPAL Whether you want to leave work at 62, 67, or 70, claiming the retirement benefits you are entitled to by federal law is no casual decision. You will want to consider a few key factors first. How long do you think you will live? If you have a feeling you will live into your nineties, for example, it may be better to claim later. If you start receiving Social Security benefits at or after…

Retirement in Sight – July 2018

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Monthly News and Information for Current and Future Retirees Presented by UPAL – JULY 2018 QUOTE OF THE MONTH “Nothing is a waste of time if you use the experience wisely.” Auguste Rodin WHY TAKE ON DEBT TO HELP YOUR KIDS WITH COLLEGE? An unsettling trend is emerging among pre-retirees and retirees. Parents are picking up a greater share of college education costs, and in doing so, they may risk damaging their retirement prospects. A new analysis of higher education debt patterns by SavingforCollege.com finds that the average college loan…

Retirement in Sight – June 2018

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When It Comes to Retirement Savings, How Much Is Enough? While it is hard for any pre-retiree to determine an exact answer to that question, it seems some are just stumped. A Bankrate survey just asked working-age Americans how much they should save to have a comfortable retirement, and the most common answer (61%) was “Don’t know.” The average estimate of those 39% who ventured a guess was $650,000. One average, members of Generation X felt they would need $1 million, while baby boomers and those age 73 and older…

Tuning Out the Noise

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May 2018 For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the “lost decade”[1] can help illustrate several periods that may have led market participants to question their approach. May 1999: Dow Jones Industrial Average Closes Above 11,000 for the First Time March 2000: Nasdaq Stock Exchange Index Reaches an All-Time High of 5,048 April 2000:…

Set Goals as You Save & Invest

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Turn your intent into a commitment. June 11, 2018 Goals give you focus. To find and establish your investing and saving goals, first ask yourself what you want to accomplish. Do you want to build an emergency fund? Build college savings for your child? Have a large retirement fund by age 60? Once you have a defined motivation, a monetary goal can arise. It can be easier to dedicate yourself to a goal rather than a hope or a wish. That level of dedication is important, as saving and investing…

What Women Shouldn’t Retire Without

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A practical financial checklist for the future. June 11, 2018 When our parents retired, living to 75 amounted to a nice long life, and Social Security was often supplemented by a pension. The Social Security Administration estimates that today’s average 65-year-old female will live to age 86.6. Given these projections, it appears that a retirement of 20 years or longer might be in your future.1,2 Are you prepared for a 20-year retirement? How about a 30- or 40-year retirement? Don’t laugh; it could happen. The SSA projects that about 25%…