Jane and Steve were planning on retiring in five years. Now, a year after the COVID-19 pandemic, those plans have changed. When Steve’s business wasn’t doing well this past year, they couldn’t contribute to their retirement accounts, as they had every month in the past. A year of not being able to contribute and a […]
Wise Tips for Retirement from a 98-Year-Old
Dear Angel, I am thinking about retirement. I would love tips from someone who has “been there” for a while. Do you have any wisdom you can share from the people that you meet? I’d also like some practical tips when it comes to planning. Thanks so much! Ben Theere — Dear Ben, I meet […]
Are RMDs Back This Year or Will They Be Waived Again?
Q. I turned 70 in November 2019. I was planning on taking my first required minimum distribution (RMD) in May 2020 (when I turned 70½) until the government waived 2020 RMDs. Is my first RMD now due by May 2021? What about my wife, whose first RMD deadline would be April 1, 2021? Also, I […]
Understanding the Changing RMD Landscape in 2020
Q. I understand that the rules for Required Minimum Distributions (RMDs) from workplace retirement plans and individual retirement accounts have changed this year due to the SECURE Act earlier in the year and the recently enacted CARES Act. This brings several questions to mind. For instance, should I take advantage of the 2020 RMD waiver? […]
Retirement Risks faced by Millennials, Generation X, and Baby Boomers
Q. My husband, Glenn, and I are in our 50’s and deciding when to retire. We’re finding decisions about retirement (when to retire, where to retire, how much to save, etc.) to be some of the biggest decisions we have had to make. We were told that the best time to start planning is at […]
Top 10 Ways to Plan for Retirement
Dear Magic, I am hoping to retire in the next 10-15 years. Do you have any tips to help me plan ahead? Thanks Rhea Tyre — Dear Rhea, The U.S. Department of Labor recently released a helpful compilation of things you can do to plan for retirement. Below is a summary of some of their […]
Avoid Disaster: Update Your Estate Planning Documents in Light of New SECURE Act Provision
Q. I completed my estate planning with your firm five years ago and elected to have my retirement plans pass into a “conduit trust” or “pass-through trust” for the benefit of my daughter, Hannah. My understanding was that the conduit trust would pay out required minimum distributions to her, and that the money would grow […]
IRAs and Taxes in 2020
Dear Ernie and Jannette, As part of my retirement portfolio, I have IRAs. I’d like to make the most of these accounts and save money on my taxes both now and in the future. Do you have any tips that could help? Thanks! Ira Sentaxes — Dear Ira, As you likely know, IRAs are useful […]
Are NORCs the Future of Successful Aging?
Dear Magic, I saw in our community newsletter that our neighborhood is considering becoming a NORC. We have a large population of seniors and various resources to help with transportation, meals, home care and more. What is being a NORC all about? Isn’t it just people aging in place? Thanks for your help! Hae Jin […]
SECURE Act is Signed into Law: Five Ways it will Change Retirement
Q. I heard that the Setting Every Community Up for Retirement Enhancement (SECURE) Act was recently signed into law and that it includes taxpayer-friendly measures designed to boost retirement savings. What are some of the ways the SECURE Act affects retirement savings? A. Currently, 25% of working Americans have no retirement savings at all– including […]
Elder Index Measures the True Cost of Retirement
Q. My husband and I plan to retire in the next 5-10 years. We’ve been saving, but we’re not sure we have enough to retire comfortably. Is there any one place to look at all of the costs of retirement to figure out how much we will really need to retire in the DC Metro […]
Caregivers and Planning for Retirement
Dear Bebe, I stopped working full time when I was 45 to begin caregiving for my mother and it’s been fifteen years now. I have worked part time jobs here and there, but I have nothing that’s going to provide me any type of pension income (other than a small amount of Social Security income) […]
Retirement Expenses You May Not Think About
Dear Angel, My husband and I are planning for retirement and trying to figure out our expenses. We have considered fun expenses, such as travel and hobbies and many not-so-fun expenses, including health care, day-to-day bills, mortgage, and many other things. Are there any common expenses that seniors sometimes don’t think about when planning for […]
When Your Aging Parent Is Running Out of Money
Q. My mother, Rosie, is 97 years old. She is still mentally sharp and she pays her bills on time. She does need some help physically, ever since she broke her hip from a fall a few years ago. Besides the broken hip, she has survived a heart attack and pneumonia. We are fortunate that […]
What Does the Future of Retirement Look Like?
Charles and Laura, both 67, recently retired and decided to relocate from Northern Virginia to the Shenandoah Valley. They enjoy the slower pace, quieter neighborhoods, and natural beauty of the serene mountains. Their monthly income includes total gross Social Security benefits of $2,082 ($1,786 after Medicare Parts A, B, and D deductions). Charles and Laura […]
How Does the Tax Act Change Things for Seniors?
Dear Magic, I am working on my 2018 taxes now. I understand that the Tax Cuts and Jobs Act is in effect for this year’s taxes. How does this tax reform affect U.S. citizens ages 65 and older? Any financial credits still available for family caregivers? Thanks! Chan Jess—Dear Chan, The new tax laws are […]
Take Advantage of This Popular Social Security Claiming Strategy Before It Ends This Year
Fred is 68 and collecting Social Security. His wife Lisa will be 66 in the spring and plans to retire. To maximize her Social Security, Lisa is considering filing for spousal benefits at 66 and then delaying the filing for her benefits until her full retirement age of 70. She is wondering if this is […]
How to Prepare for Retirement When a Recession is Looming
The current bull market is the second longest in history. However, the excitement over tax reform is beginning to fade somewhat. Someday our long run of economic growth could end in a damaging recession, and the way things are going, it could be in the next two years. When this happens, jobs will disappear, paychecks […]
Are you Ready for Retirement? Advice from Warren Buffett
Mike has worked for the federal government since he graduated from college. He estimates that he will retire in ten years, and he wants to make sure he is prepared when he does. His wife, Lily, is a consultant, who does not have benefits through her job. Lily wants to ensure that she is prepared, […]
Mastering the Non-Financial Aspects of Retirement
Q. My husband and I are close to retirement age. The life we’ve known so far has included working at our full-time jobs, occasional social events with friends, visits and holidays with family, and the every-day things associated with being a working person in the DC area. This might sound silly, but when we are […]