Showing posts with label financial advice. Show all posts
Showing posts with label financial advice. Show all posts

Retirement Related News for 12/23/2015

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From The L.A. Times: Your Retirement Prospects Are Bleaker Than Ever

The vast majority of Americans who expect to retire in the next decade can count on little income other than their Social Security. This is true not only for low-income workers, who have struggled most of their lives, but also for millions of middle-income workers. Although Social Security is a tremendously important program, and provides a solid base that retirees can depend upon, its $16,000 average annual benefit doesn't go very far. Many if not most can expect to see sharp reductions in living standards.

Illinois is developing a state-run retirement program that will make it easier and cheaper for workers to save. Many other states, including California, are studying this option.

The reason for such bleak retirement prospects is the disappearance of traditional defined benefit pensions and the failure of 401(k)-type plans to fill the gap. A recent analysis by the Employee Benefit Research Institute found that, in 2011, only 14% of private-sector employees participated in a defined benefit pension plan. The participation rate has been falling quite rapidly, so it was almost certainly lower in 2015.

From Financial Finesse: Top 10 Financial Articles of 2015

I’m a huge fan of lists: to-do lists (yes, I sometimes add things just so I can check them off), best-of lists, pros and cons lists and yes, top 10 lists. Want a reading list to take you through the end of the year? Without further ado, here are my top 10 favorite money-related articles of 2015:

10. How Many Times Has Your Personal Information Been Exposed to Hackers? (New York Times) This article gets the 10 spot not because I dislike it. I find it incredibly useful and I think everyone should click over and take the quiz. It’s just my least favorite topic.

From BenefitsPRO: Parents Spending Retirement Savings on Kids’ Holiday Gifts

The picture of the doting parent, sacrificing to give the kids everything, has just gotten a little crazier.

Not only do parents admit to overspending on their kids’ holiday gifts, they’re tapping their retirement funds to do so.

That’s according to T. Rowe Price’s 2015 Parents, Kids & Money survey, which not only found that 62 percent of parents agreed with the statement, “I spent more for my kids over the holidays than I should have,” but that 7 percent of respondents actually admitted to using their retirement accounts as holiday spending cash.

From Forbes: Millennials: Your Strategic Plan For Life

Life seems to just happen, doesn’t it? Days turn into weeks, weeks into months, and months into years. Ask any Baby Boomer about where the time went. They’ll tell you about their plans to save money, which were pushed off for more immediate concerns. The kids wanted summer camp, the car broke down, the boiler blew up, or they lost their job. There is always another pull for immediate cash; real pulls, not frivolous ones.

When it comes to retirement, a 2015 study from the Insured Retirement Institute says it all; “… half of all retired boomers are living off Social Security income, pensions, and other forms of recurring income, rather than retirement savings…” And, according to Employee Benefits Research Institute, Baby Boomers have only saved about $150,000 for their retirement. These are the more wealthy Baby Boomers, by the way. Now, they have to keep working to be able to live

From PLANSPONSOR: Illinois Idea to Tax Retirement Income Gets Pushback

With the state’s deficit growing, Illinois lawmakers trying to establish a budget are batting around the idea of taxing retirement income.

According to news reports, no formal legislation has been put in writing. And, some state legislators and lobbying groups are trying to preempt any such legislation.

A resolution was recently introduced in the Illinois House urging the legislature not to consider taxing retirement income. “With many retirees on a fixed income and worried about how they are going to pay for healthcare, the last thing we need to do is suddenly tax their income,” says State Representative Dwight Kay, a co-sponsor of the bill.
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