Archive | Sustainable Retirement

COS_09

How might you replace lost income as a survivor?

Most people don’t realize (or do, but don’t plan for it) that, as a couple, there is lost income from Social Security automatically built in. I discussed examples in a post titled “Social Security and Survivor Considerations.” In this post, the question is … How much money* is needed to replace that lost income? First, the […]

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Just where does the fear of outliving our money come from? Part II.

The foundation to answer where does fear of outliving money come from was laid in yesterdays’ post (Part I). Why is all of this important? The fear of outliving your money also (there’s another reason listed below) comes from behaviors of the present self not considering the impact of present actions on your future self. Chile’s […]

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Just where does the fear of outliving our money come from? Part I

You see the headline all the time that has something to do with basically these four words: Risk, Outliving, Longevity and Money. The viewpoint that you may outlive your money because of increasing longevity (people are living longer) is based on a faulty assumption! That assumption is built into calculations the profession uses when estimating retirement […]

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1 C Retirement Distribution Process

A Simple Retirement Income Process

Working or retired, the focus of most people is keeping their check book full of money for the monthly expenses they have. While working, the source of the money is obvious … it is from you working. While retired, the source of the money is less obvious … it is from your money working. So […]

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Social Security and Survivor Considerations

Did you know that Social Security for couples has a built in pay cut for survivors? How does that happen? Retirement has three basic phases for couples: Phase 1: Both are here – Retirement Plan. Phase 2: One is here as the survivor – Survivor Plan. Phase 3: Neither are here – Estate Plan. Most couples […]

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What about those Target Date Funds?

Target Date Funds (TDFs) – either you love them or you hate them. If you lack any tools within your 4o1k, or don’t want to use a qualified adviser, then I guess they’re better than nothing. However, they’re as arbitrary as where the International Date Line (IDL) is … more on arbitrary later in pros and cons … […]

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Reverse Mortgages

“What’s the Deal with Reverse Mortgages?”

On occasion I change my mind on a topic when the facts have changed. Reverse Mortgages are in that category. The program has undergone many improvements as a result of the Reverse Mortgage Stabilization Act of 2013. Home Equity Conversion Mortgages (HECM) are called Reverse Mortgages for short. “HECMs help seniors remain financially secure by […]

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Where did retirement at 65 come from?

Where did the idea of retirement at age 65 come from? Retirement is really a 20th Century concept since people worked on their farm until they passed away. “The story of retirement is ultimately a history of trends in labor force participation of older men (since women only entered the workforce in large numbers in […]

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How Should You Buy a Car in Retirement?

You are retired and need to replace your car. How do you do that? Buy it with cash? Or get a loan? The answer is not a simple as one might think – it depends on how old you are and how expensive the loan and/or car are. This question refers to those who are […]

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