Inflation, death and taxes – all a sure thing.

When you’re talking about your retirement, inflation is one of those unsure elements that can make or break your sound planning.

Many Americans identify inflation as one of their greatest concerns. You know it’s coming. Is your retirement plan such that it is able to handle the expected or unexpected jumps?

FoxBusiness.com published this article recently outlining the Facts v. Myths you may find interesting in light of your retirement goals. Many people expect to handle any lapses by being more frugal, but will that cover the possible shortfalls?

FoxBusiness.com quotes  Deb Repya, VP of Consumer Insights for Allianz Life; “Although it may be an option for managing expenses, frugality is not a financial strategy that will mindfully and effectively address the rising cost of living throughout retirement, especially one that could last 30 years or more. There are many factors to consider when planning a long, comfortable retirement and addressing inflation is a critical piece of that puzzle.”

For more information, check out the full article here.

Do you have 90 seconds to enhance your retirement savings?

If you have 90 seconds to spare, I found some awesome information that can enhance your retirement savings if you are at least age 59 1/2!

There may be times in your life where you feel like you need to dip into that retirement savings, but by waiting until age 59 1/2, you can avoid hefty penalties when you include the taxes also due on the withdrawal. There are some exceptions though.

Check out this video from US News and World Reports for more details. The video is literally 1 minute and 14 seconds. That’s about how long it takes to ride the escalator to your office! 1 minute and 14 seconds that could save you a bunch of money – knowledge is power!

Do you have 90 seconds to enhance your retirement savings?

If you have 90 seconds to spare, I found some awesome information that can enhance your retirement savings if you are at least age 50!

Did you know that the closer you get to retiring, there are changes in rules regarding contributions and withdrawals from  your IRA and 401(k) accounts? Once you turn age 50 you can save more in your 401(k) account than younger coworkers. By maxing out your 401(k), you can save a significant amount in taxes. After age 50, IRA accounts also allow you to make larger catch up payments and to defer taxes on more money than younger investors.

US News and World Reports has a great recap of these rules in short video located here. It’s really just over a minute long.

Self Driving Cars – Good For the Elderly?

Is it really possible that self driving cars are within reach? Congress is even starting to expedite the introduction of these cars. The benefits could prove revolutionary to senior citizens as well as disabled individuals.

Melody Hahm of Yahoo Finance outlines how this could be a major win for the elderly as well as other benefits you could see. As our population is rapidly aging, more and more people could find themselves able to move about with freedom.

Check out the full article here.

Insurance Changes

Who doesn’t look forward to retirement and the greater freedom to choose your own schedule? Sounds great to someone who has worked for years. But with any change in life circumstances, you may need to make some insurance changes in retirement as well.

But with the tremendous changes that come with retirement come the need for changes in your spending and don’t forget – insurance. You may need more or less coverage than what you have now.

Barbara Marquand of NerdWallet suggests evaluating your needs in the following areas:

1. Ask about car insurance discounts. The fact that you are no longer commuting to work may allow for a decrease in your car insurance. Many states require companies to give discounts to drivers age 55+. Other organizations such as AARP and AAA provide discount opportunities as do completing drivers ed courses. But, if you’re planning to travel in rental cars, you may want to evaluate the amount and type of insurance you will require.
2. Contact your homeowners insurance. Because retirees are often home more, the likelihood of burglary is reduced which makes for a good reason to offer a reduction in homeowner insurance. However, if you’re planning to do a great deal of traveling, you may want to increase your spending in this area.
3. Revisit life insurance and long term care. Seems obvious, but health changes come with age. Your personal health may allow for decreases or require increases to maintain financial health.
4. Sign up for Medicare. There is a 7 month window where you are eligible to sign up for Medicare. It begins 3 months before your 65th birthday. Follow current regulations at medicare.gov.  Late enrollment may mean having to pay higher prices.

Everyone’s retirement will look different with the many factors in play. If you need assistance, please look for a reputable financial adviser in your area.

You can read the full article here.

One criticism of retirement planning.

If you had to find one problem with the whole business of retirement planning, it might be that it is staffed by advisers who have yet to retire!  That’s certainly not to say that professional advisers don’t know what they’re talking about. I happen to know there many top notch advisers out there. They work tirelessly to assist clients and to help them retire successfully.  I, quite often, hear them seeking solutions to improve the financial welfare of their clients. I talk to several of those great advisers almost every day here at Torrid Technologies!

Interesting perspective

I ran across this article today about three former advisers sharing the things they’ve learned in their own retirement.  I found it especially relevant.  Since I enjoyed it, I just had to pass it along.  Most noteworthy – one of them even hired 2 advisers for himself. Check out the article from Marketwatch to see why he uses two different folks. Maybe what they’ve learned can help you make a plan for your own retirement.

Can we hear from you?

So hey all you retired advisers out there, please give us your insight. Share the best lesson you learned in retirement that could help other advisers?

If you used one of those awesome advisors out there, please share the best advise you received?