Individuals tend to have a natural bias toward optimism or pessimism. Experts believe that this bias is about 25% genetic but heavily influenced by your upbringing, relationships, and ease of schooling and other early successes and failures. It is also determined by age. A study found that optimism generally increases throughout younger adulthood, flattens out between ages 55 and 70 and then slowly decreases again after that. (Yes, it coincides roughly with the ages when you are happiest.)
Is this a glass half full? Or, a glass half empty?
No matter how you got to be the way you are, it is important...
Episode 61 of the NewRetirement podcast is an interview with Renee Schaaf — the President of Retirement Income Solutions at the Principal Financial Group. Given that our users have about 70% of their investable assets in qualified savings accounts (e.g. 401(k)s and IRAs), representing tens of billions of dollars in savings, we thought it would be interesting to talk with an expert about how company retirement plans are evolving over time.
Listen Now: Don’t miss out on future episodes: subscribe on iTunessubscribe on Stitcher And, join our private Facebook Group to...
Figuring out if you can retire securely is hard. (Haven’t solved this problem yet? Don’t worry. Use the NewRetirement Planner to create a plan for cash flow, withdrawals, taxes, legacy goals, where to live, and more.) However, for some, being retired is hard too with retirement boredom topping the list of problems.
Below are the top “hardships” of living in retirement according to a recent survey on the NewRetirement Facebook group and 14 tips for dealing with retirement boredom.
Too Much Time with the Spouse
After years of living mostly separate lives on most days,...
Saving for retirement is hard. However, when you are still working, creating a retirement investment plan can be relatively straightforward. The goal is to simply grow the money. But, when you retire, your investment goals become multi-faceted, layered, and downright complicated. You still want your money to grow, but you have a whole lot of other factors to consider. Competing Retirement Investing Goals Just like when you were working, a decent return on investment is important after you retire. However, here is a look at six competing priorities you need to balance for a solid...
Reaching retirement doesn’t have to mean that you’ll never work again. In fact, it might be a great opportunity to work on your own terms. Part-time work can help you improve your retirement income, keep you active, give you purpose and be fun all at the same time.
And, in case you haven’t heard, there is a massive worker shortage right now, so you might be able to command top dollar for your part-time retirement gig.
Do You Need the Income or Other Benefits?
While there are many reasons to work beyond money, you may want to know if you need supplemental retirement income.
It’s easy to assume that financial confidence increases over time. You make more money as you get older after all. However, the opposite appears to be true. Recent research suggests that financial stress — not confidence — increases as we age, peaks in mid life and then gets better through our 60s.
This financial stress may be the root of the midlife crisis.
The U Curve of Financial Confidence and Happiness
If you were to illustrate financial confidence across generations, you would see that the results are in the form of a U-curve. Confidence and happiness are highest at the earliest...
The tiny house movement may seem like a young millennial sort of thing, but it might just be an ideal solution for your retirement. That’s what a growing number of bloggers and retirement commentators seem to be noticing. In fact, tiny house experts estimate that about 40 percent of tiny houses are inhabited by older adults.
How Small is Tiny?
According to the U.S. Census Bureau, the typical new American home has been getting bigger and bigger. In 1973, the nationwide average house size was 1,660 square feet. In 2020, the average size has grown to 2,261 square feet. (And, Zillow says...
Tax deferred? Tax free? Tax advantaged? It might sometimes feel a bit taxing to think about the tax implications of a Roth conversion.
However, it is probably worth your brain power because a Roth conversion can be tremendously beneficial in the right circumstances.
What is a Roth Account?
A Roth account is a type of 401k or IRA.
The main difference between a Roth account and a traditional retirement savings account is tax treatment:
Money in a traditional 401k or IRA grows tax deferred, meaning that you pay taxes on the money when you withdraw the funds (and no taxes at all when you invest...
Death. Illness. Prejudice. Guess what? They aren’t all entirely bad. In fact, according to a recent survey on the NewRetirement Facebook group, these are some of the strongest motivations that propel people toward retirement and living life on their own terms. Just remember, there is no right motivation for retirement. In fact, not retiring is how some people are happiest. Retirement is an entirely personal decision. As Jeff wrote, “We all have to make decisions based on our circumstances. I remember being on the high dive board as a kid, deciding to make that jump. It is a deep...
Doing a Roth conversion — also known as a “backdoor Roth IRA” — is perhaps even more appealing in 2018 than ever before. Why? Low 2018 tax rates.
What is a Roth Conversion? Backdoor IRA?
A Roth Conversion is when you convert money that you have in a traditional IRA to a Roth IRA.
This is sometimes called a backdoor Roth IRA because instead of investing money in a Roth, you are converting money. With a conversion, you can get around both the income and contribution limits. It’s a “backdoor” way to get money into a Roth.
What’s the Catch?