The way we work and save for retirement has changed and the old rules no longer apply to every individual’s situation. There are many professionals with the resources to retire early, but continue working until retirement age just to avoid paying penalties to the IRS. However, there are ways to retire early that you might want to consider. You Can Pay the Penalty The most obvious solution is to bite the bullet and pay the 10% penalty for early withdrawal. Most people are motivated to avoid paying the early withdrawal penalty and will wait until the legal retirement age of …

In retirement it’s not always about the money you have, it’s about how much you are spending.  As you prepare or revise your retirement plan, one of the most important steps that you can take is to ensure that your projected future budget is accurate. Any oversights or poor estimations can unfortunately lead to financial shortage in retirement. However, the flip side of this is that overestimating expenses may lead to unnecessary financial anxiety. It could cause you to scale back your lifestyle so dramatically now that you cannot maintain a comfortable lifestyle. In some cases, it could cause you …

Achieving a high income and net worth is half the battle in the quest for financial security. The other half is trying to keep and grow your assets once you have them. While this latter half is perhaps a nice problem to have, it has been the cause of many a headache. One problem some people make is the proverbial “putting all of their eggs in one basket.”  In the investing world, even just putting too many eggs in too few baskets can be enough to sink a financial battleship. Too often, people make this mistake in a misguided effort …

If you are like many other hardworking adults, you may find yourself periodically dreaming about what life will be like after you leave the workforce and enter retirement. Regardless of whether you plan to simply kick back and relax close to home or you have grand dreams of traveling frequently in retirement, you will need to have enough cash on hand to live on. Unfortunately, a report released by Financial Engines indicates that almost one in seven adults who are at least 55 years old have stated that they procrastinated on saving for retirement. Why Adults Procrastinate on Saving for …

A common problem faced by insurance and annuity holders relates to a need to upgrade to a better financial option without paying taxes on gains earned on the old policy. There are many legitimate reasons for wanting to upgrade. AAFMAA recommends a 1035 exchange to accomplish this objective. A 1035 exchange has a complicated set of rules established by the tax code that must be followed to qualify this exchange as a nontaxable event. Based on the complexity of the tax code and limitations placed on these exchanges, it is highly recommended that you seek the advice of a tax …

Everyone should have a will; it ensures that your loved ones will receive the assets you wish them to have in the event of your death. To be clear, a will is a legal document that states how you want your property to be distributed and to care for any minor children. To ensure that your wishes are carried out as stated by you, a will must be written and signed by you and your witnesses. Keep in mind; even though you have set up a will for your family; you may have several reasons to update your will, especially …

“To know the road ahead, ask those coming back” is the famous Chinese proverb although for this article it may be more fitting to say, to know the road ahead, ask those looking back. Everyone has different ideas of what it is like to retire. However, their ideas may be based solely on what they assume or what they have heard. The only way to know for certain is to ask people who have gone through it. Here are several facts and myths that you should learn more about the retirement planning experience. Boredom A lot of people assume that …

The reality is that rising interest rates will likely continue through 2018.   This has been choreographed by the Fed Reserve for some time now, and even most of the talking heads on television agree that this is more likely to continue than not.  This begs the question of whether rising interest rates will harm your finances or benefit them. The answer is that they can affect your finances in both ways. A closer look at how interest rates affect you will help you to position your finances for optimal benefits. The Impact on Your Debts Interest rates directly impact …

Summer seems to be the time to travel and the best thing about retirement is that you finally have time to travel.  Whether you want to see more of the United States or explore foreign lands, the following list will help you find the perfect adventure. Go to Europe Europe is still an attractive destination, offering history and beauty everywhere you look. It is also a very connected place that is easily traveled by rail. You can begin in Tuscany, Italy’s wine country, and continue on to Germany and France, where luxurious hotels and old-world cuisine awaits you. When planning …

Social Security has been a hot button topic for political pundits for decades. Many younger Americans fear that by the time they get to retirement age, the program’s funds will be so depleted that they will receive little, if any, benefits. A recent announcement from the Social Security Administration (SSA) proves that these fears are well founded. At the current pace, the program will become depleted before today’s younger generation reaches 62. This makes retirement planning more important than ever. With the retirement trust fund being steadily drawn down, today’s working people need to make their own independent provisions for …