We changed from one FA to another, then later to ourselves. The first jump, the receiving FA did all the work. They were changing platforms, and of course had their own ideas of what was best. The second jump was also easy. FA simply changed the “advisor” relationship, and it became our responsibility going forward. We’re now trying to simplify the myriad of funds to fewer index funds. Inertia is our worst issue.
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I’m looking for recommendations on books for retirement planning. I have two that I’m reading: Emily Guy Birken, “The 5 Years Before You Retire” (very apropos because we are 59/60) and Wade Pfau, “Retirement Planning Guidebook.” The Birken book is helpful because it is very basic and gives you an actionable list of tasks to do at various times leading up to retirement. It explains deadlines for applying for Medicare, for example. The Pfau book is very comprehensive and technical, and I’m only about 1/4 in. However, what I appreciate is his description/enumeration of “retirement styles” based on peoples’ risk tolerance and goals. One quote that I read feelingly: “A retirement income plan must incorporate the unfortunate reality that many retirees will experience declining physical and cognitive abilities. Frailty and cognitive decline are risks that will impact most retirees to some degree over the course of a long retirement” (Pfau 52).
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Ooops, not book recommendations Deleted.
I would get a subscription for Kiplinger Personal Finance. It really gets one thinking about lots of things.
I would look to getting local advising by FA - see about a free session, or go to some of the dinner presentations or get a recommendation by someone. We found our FA when we signed up for a two evening “Retirement Planning Today” which is a licensed Financial Educators Network material about 11 years ago. We met several times over a period of some months pulling together our various IRA/ROTH IRA/Sar-Sep etc. funds. Our FA runs all our retirement moneys except for DH’s sizable 401k - which has great investment choices and his company pays some of the fees associated (we have a $50 fee with withdrawals, but otherwise there are only tiny fees with each fund choice). We have spun money off from this 401k (when it got too large, all stock fund groups) into annuities which our FA found. Neither DH nor I have retirement pensions and these annuities lower our overall risk while providing a monthly cash stream and retain bottom line balance. We didn’t take money out of annuities until after we were retired. I don’t like bonds, and we feel the annuities are a nice way to greatly reduce our portfolio risk. Our house is about 20% of our portfolio, and our area is pretty strong growth so our home value should be fine – and we have been doing improvements, along with a house in the best public school district and choice location.
You will have a transition from working to retirement - and you want to have things set up well before you turn the switch on. You do want to make sure you can plan the withdrawals during retirement and not run out of funds.
Certainly you can find a table to make sure about returns on investments and withdrawals - at what age would you run out of money. FA will have this to plug in your information.
A FA can do a risk assessment (series of questions) to determine what risk level you are comfortable with. The primary reason we got a FA was to help us lower our portfolio risk, as we were so heavy in stock fund groups.
We have been retired over 3 years and our overall balance sheet has not decreased in overall $$. Our 401k did the downtrend when everyone else’s stock funds went down, but they have recovered – and our overall balance sheet number didn’t go down.
We have not sold a house or purchased any vehicles in retirement. I want to figure out tax wise how to best do a sell house/buy another house in another location down the road in maybe 7 - 10 years – it would be ‘wisest’ to sell first and then buy later, so we have the cash from the first home sale. But ideally that would be with both of us still healthy - and we are not promised tomorrow.
We haven’t figured it all out yet - estate planning when we feel more compelled to dive in more, or if we get forced to do so like my friend whose DH had terminal cancer and they got their Trust and all their directives taken care of. If we both get taken out, then our single DD would have to do more ‘work’ on our estate (and it would cost lawyer fees, probate, etc.)
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Kiplinger also has a monthly Retirement Report (which has 24 pages in each issue) - they have an introductory offer for 12 issues $29.95 (regular price $59.95), with 3 bonus gifts. Toll free 1 877 339 0503.
I get a condensed issue once in a while, but don’t feel the need for this subscription.
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I was told I could edit my post but do not see how that is possible, so I will attempt to repost:
For those following the WEP/GPO repeal bill in the Senate, the vote is being held up due to amendments beng added by 2 senators who I’m not sure I can name. If not passed this session it may never be passed.
Let me know if this rewrite isnt apolitical enough.
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Yes, I’m following the crazyness and hypocracy and the influence of money from everywhere making policy.
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Yep. It’s pay for play, which has always been there, but now it’s completely in the open. There will be winners and losers, and one must figure out a way to fall into the winners category, though most of us here likely don’t have enough money to pay off the people who make policy.
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Please move the political conversation to the political forum. Further posts will be deleted.
Just heard that the Social Security Fairness act passed in the senate. The bill will repeal the WEP and GPO. This is great news for government pension workers who have also paid into social security.
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A little weird that this vote happened on basically my last day before retirement from a state pension job while I also have 20+years of paying into social security!
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I wonder how this is going to work?
It affects my mom who has never collected a dime of my dad’s social security and who own social security was reduced by her state pension.
My dad has been gone for 12 years. Will she have to make an appointment with SS to get her SS increased?
I worked for a municipality part time. I cashed in the money I contributed last year because I was so afraid that I would not get any survivors benefits. Which greatly affected my mom.
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At this point…I think it’s a wait and see. It’s December 21. There aren’t very many work days left in 2024.
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Absolutely! It was more of a I wonder how this new law will work.
But good news for you also?
Yes I think it’s a wait and see how things actually roll out - so many different situations
Of note one of the articles did mention the idea that SS is due to run out in 2038 (I think) and that this change would make date only move up 6 months.
I would just like to see exactly what the bill intended - fairness
I’d also like to give credit where credit is due in that this was co-led by Sherrod Brown of Ohio - one of his last tasks in congress (for now!) after sadly being voted out last month in a tight race. You did good sir.
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Hmm… tricky situation. Best of luck sorting through it. The good news is you are a great researcher. The bad news is nobody has a crystal ball for rollout of new stuff.
The other issue imo is will there be notifications for those affected or will people have to advocate for themselves?
I suspect my mom or my sibling have any idea that this was passed. My mom has been retired since 2000.
This may not have that much impact for some and a huge impact for others.
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I’m sure there are many of us who did retirement planning based on the WEP. I know my husband kept working at an SS paying job several more years than he would have liked to get as many years of substantial earnings as possible. He got the reduction down to around $85/month so it won’t make a big difference for us.
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