Retirement Planning

Don’t Grow Old Without It. (WSJ)

By FJY Financial | Published: April 18, 2012

April 18, 2012 | Long-term-care insurance: It can make the difference between living out your life the way you want and becoming a burden to your family or a ward of the state. But it is becoming significantly more expensive, more complicated and harder to get with each passing year. Average premiums on new policies—which help pay for nursing-home, assisted-living and home care—have risen some 6% to 17% in the past year alone, according to the American Association for Long-Term Care Insurance, a trade group. Some insurers have even doubled their premiums on existing policies. The increases come as the industry grapples with low interest rates and policyholders who are living a lot longer than the actuaries said they would.

Research Supports Withdrawal Rate of 4% or Higher (Investment News)

By FJY Financial | Published: April 4, 2012

April 4, 2012 | Concern that future market performance won't match historical returns has some financial professionals questioning whether the 4% rule for retirement withdrawals still passes muster. But Cornerstone Wealth Advisors founder Jonathan Guyton, who has studied withdrawal rates, argues the 4% rule has been stress-tested under circumstances much worse than the nation is likely to face in the coming years, and that his own research supports a 5.5% withdrawal rate — with a twist. Mr. Guyton starts retirees with that higher withdrawal rate only if they are willing to accept a future reduction, should market conditions decline.

Congress Eyes New Rules for Inherited IRAs (WSJ)

By FJY Financial | Published: February 20, 2012

February 20, 2012 | A surprise proposal in Congress to drum up tax revenue from inherited IRAs is raising eyebrows—and making some financial advisers nervous. A Senate Finance Committee proposal floated this past week as part of a highway-funding bill would give heirs five years to empty inherited individual retirement accounts or 401(k)s, which would typically trigger income-tax payments. The rule change could raise some $4.6 billion in income taxes over the next decade, according to a statement by Sen. Max Baucus (D., Mont.), chairman of the Senate Finance Committee.

Retirement Rules of Thumb don’t always apply (USA Today)

By FJY Financial | Published: January 1, 2012

January 1, 2012 | You may have celebrated the new year in 2000 more worried about whether your computer would work than whether you'd have enough for retirement. After all, you'd been saving diligently, and returns from stocks and bonds were spectacular. The upcoming new year may find you far less confident than you were going into 2000. Stock returns have been wretched. You may be able to save less, either because you're squeezed by the cost of living, or because you've had to take a lower-paying job.

The Benefits of Retiring One Step at a Time (Fox)

By FJY Financial | Published: December 14, 2011

December 14, 2011 | Older Americans increasingly are working well into their 60s or 70s to better prepare for retirement. Some take a phased retirement approach, working fewer hours or changing careers altogether. Easing into retirement can take many other forms: buying a second home early, taking more frequent vacations while still working or living on a smaller budget -- a form of "practice retirement" -- to name just a few.

Boomers: Avoid these retirement pitfalls (Fox Business)

By FJY Financial | Published: December 7, 2011

December 7, 2011 | This year marked the first wave of aging baby boomers reaching full retirement age, and for many of us, things aren't going the way we had planned. Rising health care costs, selloffs on Wall Street and the drop in home prices have left many boomers in or near retirement worrying about their finances instead of spending time with their grandchildren, travelling and doing whatever other retirement activities they’ve been dreaming of.

New Rule Change to Social Security Benefit Options

By FJY Financial | Published: May 10, 2011

May 10, 2011 | Your retirement decisions just became even more important with a new rule change from the Social Security Administration. Due to the recent publicity surrounding social security strategies, the current Administration has decided that it will no longer allow someone to collect benefits at a lower rate and then payback those benefits to receive an increase in their payments at a later date. This strategy is often known as the “Do-Over” or the “Payback Method.”

Maximize Your Social Security Benefits

By FJY Financial | Published: August 19, 2009

August 19, 2009 | One of the most important decisions a retiree faces is deciding when to file for social security benefits. This decision will not only affect the retiree in his or her lifetime but it will also have a significant impact on a spouse throughout his or her lifetime. Many people have begun to refer to social security as “Longevity Insurance,” as it is arguably one of the best “annuities” available to an individual, with its cost of living adjustment and 100% survivor benefit.