Newsletters

HEALTH CARE COSTS IN RETIREMENT CONTINUE TO RISE – AND YOU CAN SAVE FOR IT (YOU JUST NEEDED TO HAVE STARTED 30 YEARS AGO)

Last month I talked about the importance of factoring inflation into your retirement planning expenses, without specifically targeting any one area. This month’s article focuses on one specific post-retirement expense: inflation’s impact on health care costs. Fidelity has something called the Fidelity Retiree Health Care Cost Estimate and they use it to project out what health care might cost in the future. Read More

INFLATION & RETIREMENT

AT A 3% RATE OF INFLATION, WILL I BE OK OR IS MY NEST EGG BEING ERODED?

By:  David I Gensler, MSPA, MAAA, ACOPA, EA

 

For those at or near retirement, the topic of inflation is certainly a cause for concern. A study several years ago by the Society of Actuaries revealed that 71% of folks approaching retirement were “very or somewhat concerned about inflation risk.” Many baby boomers are now or will shortly face a very difficult decision. Will I beat inflation if I invest my retirement plan assets safely (say in CDs – FYI the answer is “no”) or should I take on more risk (should I invest some percentage of my retirement account in equities) and try to keep up with (or beat) inflation? Read More

BABY BOOMERS IN STUDENT DEBT?

ONE GENERATION OF AMERICANS OWES $86B IN STUDENT DEBT. ITS MEMBERS ARE ALL 60 YEARS OLD OR MORE

By:  David I Gensler, MSPA, MAAA, ACOPA, EA

 

Seniors with student debt? Surely that is some sort of a mistake. No, it’s not. A recent article in the Wall Street Journal (WSJ) shined a light on a little known and growing problem. Seniors that have taken on student debt. Some took out loans to help pay for their children’s college tuition and while the child may be out of school for years, the debt remains. Others, in the wake of the most recent recession, took out student loans while trying to reinvent themselves. They needed new skills to make themselves more attractive to potential employers. Many of those dreams withered on the vine but again, the debt remains. Read More

THE NOTORIOUS ESG

By: David I Gensler, MSPA, MAAA, ACOPA, EA

 

Environmental, social and governance investing – better known as ESG to those in the know (by the way, I was one of those not in the know) is a hotly debated topic in the 401(k) world. Read More

AMERICANS STILL HAVE HIGH HOPES OF RETIRING EARLY (hope being the operative word) & RETIREES UNDERSTANDING OF THE TAXES THAT THEY WILL PAY IN RETIREMENT

Findings from MassMutual’s 2018 “State of the American Family” illustrates that on average, respondents expect to retire at age 62, as opposed to age 64 when the study was last conducted five years ago in 2013. Surprisingly, 40% of the respondents from the study intend to retire before age 60, up from 32% from that same 2013 study. With all of this optimism, did any of the percentages go down? Well yes, actually. 22% of respondents now expect to retire after age 65, down from 30% from the 2013 study. So there was a decrease in the percentage of folks who expect to retire after age 65 and an increase in the percentage of folks who expect to retire before 65. Read More

401(k) Plans, Student Loans & the Private Letter Ruling AND The 2019 Maximums Are Out

David I Gensler, MSPA, MAAA, EA

401(k) Plans, Student Loans & Saving For Retirement

For many Millennials saving for retirement has become a binary choice. Either they choose to pay down their student debt or they choose to save for retirement. Either one or the other. As many Millennials are in the earliest years of their working careers, difficult choices about how to allocate their hard earned paychecks must be made. Therefore, for many Millennials, paying down their student loan trumps deferring into their company’s 401(k) plan. Read More

PICKLEBALL DIVIDES A RETIREMENT COMMUNITY & HIGHLIGHTS THE STRAIN OF NOT HAVING ENOUGH RETIREMENT INCOME

By:  David I Gensler, MSPA, MAAA, EA

A recent article in the Wall Street Journal (WSJ) highlighted the fact that many middle-class boomers are financially unprepared for their “golden years” and how this led to social tensions within a specific retirement community. Read More

WHAT IS THE TIMING FOR ADOPTING 401(k) SAFE HARBOR PROVISIONS?

Is It Too Late to Establish a 401(k) Safe Harbor Plan for 2018?

 

The answer of course is – it depends. If you currently sponsor a retirement plan that includes a 401(k) feature, to use either of the standard 401(k) safe harbor provisions, (the mandatory employer matching contributions or the non-elective contributions) you must adopt those provisions before the first day of the plan year (i.e., adopt the safe harbor provisions in 2017, effective for the 2018 plan year).

But there are some exceptions as indicated below: Read More

SAVING FOR YOUR KIDS’ COLLEGE vs. SAVING FOR RETIREMENT- IF YOU LAG BEHIND CAN YOU CATCH UP AFTER YOU BECOME EMPTY NESTERS?

 

When it comes to growing your retirement nest egg, conventional wisdom calls for us to start early and then to save 10% – 15% of your income. That’s great but for many of us, totally unrealistic. The day to day expenses of the child rearing years, coupled with the need to save for college can cause many of us to not save enough for retirement. A recent article in the Wall Street Journal (WSJ) suggests that all is not lost. By following a certain strategy and sticking to that plan, empty nesters can make up for the years where not enough was set aside for retirement. I do have some questions about their assumptions, but we will get to that later. Read More

FOR GOODNESS SAKES, PAY ATTENTION TO THOSE 401(k) STATEMENTS!

By: David I Gensler, MSPA, MAAA, EA

 

Pay Attention To Your 401(k) Statements

So here is the drill – You receive your quarterly 401(k) statement and you:

a)    Review it carefully so that you are reasonably comfortable that all of your deferrals have been posted to your account

b)    Review it carefully to see that the automatic rebalancing feature that you signed up for online is being done

c)     Review it carefully to see if it might be time to shift to a different investment strategy (more conservative or more aggressive), or

d)     None of the above Read More