Comments for Retirement Blog

Comment on Making Your Retirement Money Long by Andrea

Andrea — Mon, 22 Feb 2010 10:53:10 +0000

I agree that annuities can help retirees to avoid running out of money. It is very important to start saving for retirement as soon as possible. If you leave it too late or if you don’t contribute enough to retirement schemes, you may not be able to save enough to support yourself for the next 25 years. Many retirees have lost their investments in stocks because of the financial meltdown. However, if you start early and invest regularly in mutual funds, the risk of losing money can be much lower. You can reduce your exposure to the stock market as your retirement age approaches. The superior returns provided by mutual funds in the long run will help you to build a larger retirement fund. You can also do some part-time work after you retire to add to your income.

Comment on Click to Ask a question >> by Danny

Danny — Wed, 17 Feb 2010 02:10:15 +0000

After finally retiring and turning 62, I decided to start tapping my 401K which had remained with my former employer and was managed by Prudential. Now Prudential informs me that I have to pay a $35 processing fee each time I make a withdrawel! This was never disclosed to me and my former employer says the issue is between me and Prudential. Can Prudential do this?

Comment on Click to Ask a question >> by Keith

Keith — Tue, 02 Feb 2010 21:50:47 +0000

I have a 403(b) with my previous employer. I worked for them for one year and made monthly incremental payments into the account. When I left the balance that remained was less than $1000. Now, I have had this account for the past twelve years and the balance at this point is still low, less than $2000. My question is should I just leave this money alone in this account where it is or should I go ahead and remove it; possibly roll it over to my present employer retirement account? or is it really not worth worrying about, for lack of a better term, and just go ahead and have them send the check fo rthe funds to me?

Thanks

Comment on Click to Ask a question >> by DrShelby

DrShelby — Thu, 03 Dec 2009 21:51:21 +0000

Dear Joy,

Without knowing a lot more about you and your aspiration, I cannot give you investment advice. The important thing at your age is to save some of your income. The Roth IRA is a great idea because in effect you can save a larger amount since it is after tax and then grows tax-free. Systematic savings in a market based investment at your age generally make a great deal of sense since you are dollar cost averaging and have lots of time to weather market fluctuations. Tax advantaged savings include annuities, capital gains (risk) and dividend income (again paid by stocks and can be risky). Tax-free is limited to municipal bonds (lower interest rate than taxable fixed income) but suitability depends on your risk tolerance and tax bracket. If married or have dependents, you may want to investigate life insurance. Sorry I can’t help more but without some extended background I can’t really help you.

Regards, Dr. Smith

Comment on Click to Ask a question >> by Joy

Joy — Wed, 02 Dec 2009 21:04:28 +0000

I have a question regarding my retirement account. I am in my mid 20s and work full time for an employer that does not offer a 401k. I already max out my Roth IRA, but I am looking for additional investment vehicles beyond my Roth that may be tax advantaged, if any exist.

I earn $60k from my full-time job and make an additional $15k (approx) in freelance income. Would it make sense / would I be eligible to open an S-Corp for my freelance writing business so I can put my additional income straight into a retirement account? Or would I lose so much money from S Corp taxes that this doesn’t make sense? Would you recommend that I just put the remainder of my savings into Index Funds and ETFs (which will be taxed at both ends?)

Comment on Retirement Investing: Two Back and One Forward by Inflation – Robbing you blind! « Us Government « MyWhiteHouse.org

Tue, 06 Oct 2009 21:20:09 +0000

[...] Retirement Investing: Two Back and One Forward :Retirement Blog … [...]

Comment on Click to Ask a question >> by DrShelby

DrShelby — Thu, 01 Oct 2009 16:52:49 +0000

Dear Imani,

Without knowing a lot more about your financial situation we cannot give you solid advice about the feasibility of converting your $15,000 qualified account to a Roth IRA. If you think there is a good likelihood you’ll need the money in the next few years, it would appear that a Roth is not for you. We would advise you to consult with your financial advisor. Sorry we could not be of more help. Have a great day.

Comment on Click to Ask a question >> by imani

imani — Thu, 01 Oct 2009 15:56:41 +0000

I am single age 54.5 and no longer have a 403b or other retirement plan.
I also lost my income property 6/09. I only have a savings account totalling $15,000,and my job(i live in California)my end 2/10.

should this money go into a Roth Ira? what should i do?

Thanks

Comment on Retirement and Longevity Risk: The Solution by DrShelby

DrShelby — Mon, 28 Sep 2009 16:18:30 +0000

Bobby, We are in total agreement. The greatest fear of most retirees is outliving their money…and the insurance industry has the answer for those willing to consider all their options. The ISNHW provision for 401(k) plans is going to becoming a hot topic in 2010 when many high income workers want to convert all or some of their 401(k) money to Roth IRA but find out it is not available for transfer.

Comment on Retirement and Longevity Risk: The Solution by Bobby

Bobby — Sun, 27 Sep 2009 18:40:36 +0000

Having a policy that covers you for the length of your lifetime is important. People are living longer and healthier. Let’s face it, the older you get, the more security you need. Options become more and more limited as we age so the more guaranteed income the better. Th ISNHW provisions are another option that can help with retirement planning. It is good to know the all the facts before you make a decision.