Retirement

For more than twenty years, I have advocated “Pay Taxes later, except for the Roth.” This applied in the accumulation stage when you are accumulating money for retirement, the distribution stage when you are deciding which assets to spend first, and even in the estate planning stage. I always said there were some exceptions to this bedrock
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You’ve had a successful career and you’re almost ready to retire. While still in your peak earning years, is there a tax efficient way to give back? During this time, when you’re in a high tax bracket, charitable giving can both benefit others and help you set yourself up for retirement. With some planning, everyone
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There is nothing like a crisis to illuminate the benefits of basic financial skills. A staggering number of households entered the pandemic unprepared to withstand any economic shock, let alone one of the magnitude of COVID-19. The consequences are reminiscent of the 2007–2008 US financial crisis when individuals were enticed to buy homes that exceeded
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Last week, I spoke with three individuals who discovered recently that they do not have the Medicare coverage they need. Each person’s set of circumstances is unique and their prior decisions, while understandable at the time, have turned out to be less than ideal. Consider Mick, Larry and Samantha. Mick turned 65 in December 2016.
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If you’re within 5 years of retiring, you have a window of opportunity. Don’t miss it. A little intentionality now can set the stage for a successful retirement.  Years ago, I planned a backpacking trip through the Grand Tetons in Wyoming. I started by casting my vision for my adventure: the trails I’d hike, the
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In recent articles, I have lamented poorly designed components of the Reconciliation Bill, from a poorly-designed “free childcare” program to a family leave plan that’s designed to be “free” rather than funded by the workers who benefit, to a Medicare drug benefit that’s planned to be implemented at the same time as Part A Medicare
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Today’s column addresses questions about how divorced spousal benefits are calculated, how state pensions can affect spousal benefits and whether COLAs apply to widow’s benefits taken years after the record holder’s death. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See more Ask
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In late September, Chicago Mayor Lori Lightfoot delivered her 2022 budget address to the City Council. It was filled with a long list of new spending programs, including $400 million for community safety/violence reduction plans, $52 million for increased mental health services, $240 million for subsidized housing programs, $20 million for artists, and the list
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By Kerry Hannon, Next Avenue Every once in awhile, while covering the older workers and personal finance beats, I run across a research report that stops me cold. “Hidden Workers: Untapped Talent” fits that bill, revealing the cruel underbelly of hiring. I’d even call it explosive. The findings of the 74-page “Hidden Workers: Untapped Talent” come
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Today’s column addresses questions about the potential effects of pensions on the availability of spousal benefits, statistics about what benefit amounts different people receive and potential effects of filing for survivor’s benefits early and while working. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning,
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As public pensions across the nation continue to spiral downward, pension trustees and participants, unions, and taxpayers in states including Alabama, California, Florida, Kentucky, Illinois, Ohio, North Carolina and Rhode Island are increasingly raising their voices to urge the SEC to stop rampant mismanagement of pension investments and looting by Wall Street. While the SEC
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As economic inequality continues to grow, Social Security remains a vital source of retirement income for most older Americans. In fact, a large portion of older Americans, 40 percent by some estimates, receive retirement benefits from Social Security, but lack income from a pension, 401(k) or IRA in retirement. Why? A big part of the
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Pauline, a local resident in Marin County, CA just turned 114. The local senior center she attends is celebrating her birthday along with many others. She is easily the oldest person in my county and one of the oldest in the entire U.S. She’s alert, active, healthy and happy. Is it some magical run of
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Today’s column addresses questions about whether and how public pensions could affect survivor’s benefits, the merits of delaying until 70 to file if possible and whether spousal benefits are available after long term separation. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See
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If you recently retired or are planning to, you likely have questions about how to position your investments going forward. Conventional wisdom suggests investors should change their asset allocation in retirement to be more conservative. However, depending on your pre-retirement asset allocation, income sources/needs, and long-term goals, that may not be advisable. Here are a
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A friend of mine, in an animated mood once declared, “everything is in flux; it’s fluxing more and more each day!” That’s how many feel about the back and forth pronouncements concerning proposed tax changes. In Congress, the revenue raising provisions (think “taxes”) to fund the physical and human infrastructure bills seem to be getting
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