Category: retirement

Tips and Thoughts on Retirement Planning—Beyond Retirement

Once you’ve settled down and don’t have to worry about finances, your business, or really anything else—what do you do with your time? You work your whole life investing and preparing for retirement, but what are you even going to do in retirement? Hey, Retired Person—Understand That You Hold the World in Your Hands. Well,…


Planning for Retirement: 5 Smart Savings Strategies when Inflation Looms Ahead

The Consumer Price Index (CPI) is often used as a standard way to follow inflation. It measures the average change in prices from one year to the next. When the CPI increases, it’s a sign that overall living costs are on the rise. In May 2021, the CPI for all items increased 5 percent before…


Rising Prices and Investments: A Close Look at How Retirement Accounts Can Be Impacted During Periods of Inflation

Inflation increased by 5 percent from May 2020 to May 2021, as reported by the U.S. Bureau of Labor Statistics. The projected inflation for the coming year sits at 2.26 percent. Still, those saving for retirement and considering their future are frequently feeling nervous. Perhaps rightly so. “While a moderate and consistent degree of inflation…


Saving by Choice, Not by Chance

A question that I answered in a previous column brought a small avalanche of mail, mostly from readers who were aghast that I would suggest they save such a significant portion of their paychecks for retirement. It was money they insisted they could not afford to save. I can only imagine that for a person…


It’ll Work Out Better in the Long Run

Dear Dave, My wife and I are having a financial disagreement. I would like to go ahead and fully fund our Roth IRAs, even though we have about $10,000 in car loan debt. She, on the other hand, thinks we should pay off the debt first. We can probably have either one completed by the…


Struggling With Retirement Savings? Uncle Sam May Give You Extra Credit

Dear Carrie: I work for a small nonprofit. I love my job but don’t make a lot of money, so saving for retirement is hard. The company offers a retirement plan that I contribute to, but there’s no match. How can I save more?—A Reader Dear Readers: This is a great question—and a great time…


Should I Take the Lump Sum Option From My Pension?

Dear Carrie: I’m about to retire, and I have to decide between taking a lump sum or lifetime income payments for my pension. I’m leaning toward the lump sum. Is this a good idea?—A Reader Dear Readers: My first thought is to say congratulations! A pension in any form—whether taken as a lump sum, as…


Seniors Obsess Over ‘Maximizing’ Their Social Security

“I want to make sure we maximize our Social Security payments.” “I am very concerned that we will make a wrong decision and leave Social Security money on the table.” “My wife and I both took our benefits at 62. We are now in our 70s. Everyone I talk to says we made a huge…


Retirement Funding Comes Before College Savings

Dear Dave, A friend told me about your Baby Steps program. I have one question, though. I noticed that according to your plan, saving for retirement should come before saving up a college fund for your kids. Why is this? Natalie   Dear Natalie, In short, college funding is not a necessity. Being able to…


Put a Little More Thought Into It

Dear Dave, I don’t like admitting this, but I absolutely hate my job. Last year I almost cashed out part of my 401(k) to start my own business or open a franchise, and doing something like this is still on my mind. Considering how I feel, do you think this would be a good idea?…