One of the personal finance tasks that Mr. GoTo likes to complete at the end of each year is to establish and document a few financial benchmarks. These benchmarks can also be important milestones in a comprehensive retirement plan. [Read more…]
Archives for December 2008
There are sound financial reasons for waiting to your full retirement age to claim Social Security retirement benefits. Delaying Social Security until age 70 can enhance those benefits even more. Nevertheless, many baby boomers will determine that they must or should begin receiving benefits at age 62. Unfortunately, many retirees also decide to stop working as soon as they begin receiving Social Security. This decision is often based on an incorrect understanding of how other income will affect your Social Security benefits overall. [Read more…]
This is the fifth in Mr. GoTo’s brief introductions to college towns that may also be attractive locations for baby boomers to retire, either as part of an active adult community or a life care community.
This initial series of introductions to places to retire has focused on college towns in which I have lived or have visited. Ithaca, New York ranks at the top of my familiarity list because I lived there for eight years, four in high school and four more in college after my family moved to Florida. [Read more…]
In an attempt to remedy an extreme budget deficit, New York state announced significant changes to its public pension system. New York state is somewhat unique in that pension benefits for state and local public employees are primarily determined by state law rather than through negotiations with public employee unions. However, the state constitution prevents state government from imposing changes retroactively on employees who are already in the pension system. [Read more…]
Like many of you, I have quite a bit of down time between Christmas and New Year’s Day. I use some of my year-end downtime to think about any last minute moves I should make to maximize financial and tax planning strategies for this year and to prepare for the new year.
This is a list of money moves I have done or will be doing before the end of the year. [Read more…]
It is unfortunate to read about so many businesses cutting costs by reducing or eliminating the match of their employees’ 401(k) contributions. This is a particularly devastating blow to the retirement plans of baby boomers who have been depending on the employer match to rebuild dwindling 401k account balances. [Read more…]
The IRS has targeted vacation homes, second homes, and even rental homes with new rules that govern taxation of capital gains. These new rules go into effect January 1, 2009. Because ownership (or desire of ownership) of vacation homes is most common among baby boomers, it is an important issue to consider. [Read more…]
Congress recently passed legislation waiving required minimum distributions (RMD) from an IRA, 401k plan, and other qualified retirement plan for 2009. Based on that, some retirees age 70 1/2 and older who are subject to RMD rules waited to see if the Treasury would apply the RMD waiver for 2008 as well.
On December 18, the Treasury announced that the Required Minimum Distribution rules would apply for 2008. [Read more…]
Even though Tallahassee is not on Kiplinger’s Best Cities list, I decided to briefly write about its possible merits as a place to retire for three reasons. First, it is a college town which some baby boomers may find attractive in retirement. Second, I lived in Tallahassee for three years and now have relatives there. Third, Florida State University has associated itself with Westcott Lakes, a new active adult, life long learning, and life care community in Tallahassee. [Read more…]