Archive for the ‘Retirement Planning’ Category

The Retirement Crisis: A Statistical Mirage?

Thursday, April 3rd, 2014

On February 21st Andrew Biggs was the moderator at the American Enterprise Institute in D.C. where they discussed policy changes for Social Security.

About the event:

Andrew Biggs

There is a widespread perception that many Americans are inadequately prepared for retirement. Some even call this a crisis. Policymakers have responded with proposals to expand the Social Security program and reduce or eliminate tax incentives for 401(k) and Individual Retirement Account (IRA) plans that many believe have served Americans poorly.

But some analysts question this perceived retirement crisis, arguing that official statistics significantly understate the benefits that retirees receive from 401(k) plans and IRAs. At this event, retirement experts discussed how proposed policy changes to Social Security or private pensions may be ill-considered.

Please join me Saturday morning, April 5th @ 8am on AM 930 WFMD by logging onto WFMD and clicking the listen live button! Can’t make it? Don’t worry, our shows are recorded and you can listen to them here (shows are generally posted several days after airing)

Also, check out his recent article: “Retirees aren’ t headed for the poor house

 

About our Guest:

Andrew G. Biggs is a resident scholar at the American Enterprise Institute (AEI), where he studies Social Security reform, state and local government pensions, and public sector pay and benefits.

Before joining AEI, Biggs was the principal deputy commissioner of the Social Security Administration (SSA), where he oversaw SSA’s policy research efforts. In 2005, as an associate director of the White House National Economic Council, he worked on Social Security reform. In 2001, he joined the staff of the President’s Commission to Strengthen Social Security. Biggs has been interviewed on radio and television as an expert on retirement issues and on public vs. private sector compensation. He has published widely in academic publications as well as in daily newspapers such as The New York Times, The Wall Street Journal, and The Washington Post. He has also testified before Congress on numerous occasions. In 2013, the Society of Actuaries appointed Biggs co-vice chair of a blue ribbon panel tasked with analyzing the causes of underfunding in public pension plans and how governments can securely fund plans in the future.

Biggs holds a bachelor’s degree from Queen’s University Belfast in Northern Ireland, master’s degrees from Cambridge University and the University of London, and a Ph.D. from the London School of Economics.

Experience

  • Principal Deputy Commissioner, 2007; Deputy Commissioner for Policy, 2006-2007; Associate Commissioner for Retirement Policy, 2003-2006, Social Security Administration
  • Associate Director, National Economic Council, White House, 2005
  • Social Security Analyst, Cato Institute, 1999-2003
  • Staff Member, President’s Commission to Strengthen Social Security, 2001
  • Director of Research, Congressional Institute, 1998-99

Education

  • Ph.D., government, London School of Economics
  • M.Sc., financial economics, University of London
  • M.Phil., social and political theory, Cambridge University
  • B.A., philosophy, Queen’s University of Belfast

 

5 key questions to maximize your Social Security benefits

Thursday, April 4th, 2013

Social Security is often in the headlines and is an important area of concern for our country.  The system is in need of reform, and the how’s and why’s of that are the subject of many debates.

History/Timeline:

In 1935, President Franklin D. Roosevelt signed the Social Security Act.  It was created in response to the ending of the Great Depression and numerous aging Americans were struggling.  Financing would come from workers and employers and be distributed to retirees.  After years of paying into Social Security, it is approaching the time that the largest generation ever will begin reaping their benefits…

 

 

A more detailed and extensive history can be found here.

So what do you need to know about Social Security for your own, personal situation?  Everyone has different factors and needs to consider when making decisions about their benefits.  Here are 5 key areas/questions to consider when planning for your Social Security benefits:

Click

  to play Understanding the Challenges of Social Security video

1.) When should I apply for my Social Security benefits (now vs. later)?

  • First, you should consider “Do I need the money”?  If you need it, then it’s a simple answer, but if you are not in immediate need, delaying may be more beneficial in the long run.
  • Secondly, you should consider your health and life expectancy.  Poor health may mean that it makes sense or is a necessity to begin taking your benefits as soon as you are eligible.
  • If you delay receiving benefits until age 70, your payment will increase for each delayed year.

2.) How do spousal benefits work?

  • If you are married and have little to no earnings, Social Security can be received through spousal benefits
  • Two high income-earning spouses can also utilize spousal benefits.  The one claiming spousal benefits can receive Social Security payments while allowing his/her own benefit to continue increasing until the age of 70 (must then forfeit spousal benefit and receive their own).
  • Divorced, unremarried people may also receive spousal benefits based on the ex-spouse’s work history if they were married for at least 10 years and can produce documents to verify the marriage.
  • Widowed people may also receive survivor benefits as early as age 60 (before your full retirement age (FRA), you will receive reduced benefits, and after FRA, you will receive 100%).  There are other factors that may affect the amounts and what you are eligible to receive.

3.) Can I work in retirement and still receive benefits?

  • You can work and still receive benefits, but there regulations as to how much income you can earn before seeing a reduction in your benefit amount when you are working between age 62 and your full retirement age.
  • Once you have reached your full retirement age, there is no limit to the amount of income you can earn, and you will not have reduced benefits.

4.) Will I pay taxes on my Social Security income?

  • Depending on how much income you earn in retirement, your Social Security benefit may be taxable.
  • Income that counts toward your limits include: pensions, dividends and interest, and tax-free interest from municipal bonds.
  • There are two ways to reduce the amount of tax you pay on your Social Security:
    1. Reduce the amount of other income you are receiving.
    2. Change the type of investments you have that are paying dividends and interest.

5.) What is my plan to fill in the “income gap” if my benefits are not enough to meet my needs?

  • Go to the Social Security Administration’s website and click the link that will allow you to estimate your retirement benefits (you will have to enter personal information to verify your identity.  There are step-by-step instructions to walk you through the process.
  • Work with your financial professional to analyze your current financial situation and your future needs and goals.  It is never to early to begin to plan for retirement, and if you are already retired, it is not too late to take a look at your financial picture and plans.
  • There are a lot of things you can do on the SSA website, including applying for benefits, getting your statement, appealing a decision, finding out if you qualify for benefits, and changing your information and delivery options.

To find out more, listen to this Saturday’s Your Personal Economy segment on Your Financial Editor on AM 930 WFMD @ 8am.  You can also go to the MFG homepage and download the “Guide to Social Security”.

Source: www.socialsecurity.gov

The Fiscal Cliff Deal…what it means to you.

Thursday, January 3rd, 2013

What a huge disappointment.
Not only did Obama and Congress NOT reduce spending and the deficit, they increased taxes and will continue to pile on the debt!  In all the media hyped “noise” and grand standing by politicians one important component was left out…the American peoples’ desire for fiscal responsibility. Here’s a rundown of what politicians enacted, when they had the opportunity to achieve some very positive things for the United States and its citizens:

•    Taxes on income, capital gains and dividends on high earners increased

•     A 3.8% surcharge (tax) from the Affordable Care Act

•    Every American who works will see their payroll taxes increase by about 2%
 (See the Tax Foundation’s Tax Policy Calculator)  Once you’ve filled out the information, there are three columns showing your 2012 tax liability, what you will pay in 2013 (provided President Obama signs the compromise bill), and what you would have paid if we had gone fully “over the cliff.” Nearly everyone will see a slight increase from 2012 to 2013 because of the expiration of the payroll tax holiday, but everyone will pay less than if Congress had done nothing. The Tax Foundation’s Tax Policy Calculator is available here.

•    5% increase in the Estate Tax to 40%

 

Originally, the Simpson-Bowles deficit reduction committee (also known as the Super Committee) had a target of reducing the federal government’s deficit by $4 trillion over 10 years. Instead, the new legislation will increase America’s federal deficit by $4 trillion over the next decade according the congressional budget office.

Is something backwards about this, or is it just me?

In any event, as my previous email stated after the November elections, Obama and Congress ran out of time and still have to deal with the mandatory spending cuts that were suppose to go into effect on 1.1.13 (that was pushed out 2 months), and agree on whether to raise the government’s debt ceiling (we top out at about $14.6 trillion and are due to hit that level in one to two months.) Obviously, since politicians are against fiscal prudence, the debt ceiling will have to be raised, and we will have to borrow even more money from foreign governments to finance our spending.
Here are three things you can do to protect your personal economy now and going forward:

1.)    Make sure you have confidence in your wealth advisor, tax advisor and estate planning advisor and communicate with them regularly.
(A good resource to use to check out a new advisor is www.ethicscheck.com )

2.)    Vote smarter – check your representatives’ voting records and what their visions are for how our country should run and what government’s  role should be.

3.)    Avoid the media “noise”.  Limit your exposure to over-dramatic headlines and lead stories.  Instead, focus on the facts and the fact that you (and your advisor) have taken all necessary measures to put you in the best possible position to ride out volatility and uncertainty. (See this Forbes article for 8 good tips to protect your finances).

As always, our investment models will focus on our clients’ risk tolerance, time horizon, quality and diversification. It’s amazing just how well the best run companies have done whatever is necessary to focus on their earnings, cash positions, management team, dividends, etc.  Rest assured that at Murray Financial Group, we always strive to provide authentic leadership and knowledge resulting in conservative wealth strategies.

This columnist makes a great point…

The United States has now acquired an electorally powerful liberal bourgeoisie who are convinced, as their European counterparts have been for several generations, in spite of all evidence to the contrary, that public spending is inherently virtuous, and that poverty can be cured by penalizing wealth creation. and that government intervention can engineer social ‘social fairness.’ but just when some of Europe’s political class has begun to appreciate the dangers of this philosophy-that taken to its logical conclusion, it leads to economic stagnation and social division-America seems to have decided that it is the quintessence of enlightened sophistication.”
                                                                                                                                                         -Columnist Janet Daley, writing in the London Telegraph, 11/10/12

Now Money, Later Money, and Never Money…how do the three money types impact your life?

Friday, November 2nd, 2012

The way you relate to your money has a very real and tangible impact on your life, and the lives of your loved ones.  There are three “money types” that people tend to deal with:

1.) NOW Money – the money that is for your current and everyday needs.

2.) LATER Money – money that you save and invest for future income needs (child’s college tuition, retirement, vacation home, etc).

3.) NEVER Money – money that you don’t think you will ever have to touch.  In other words, money/assets that you would like to leave to children, grandchildren, charity, etc).

This post is going to focus primarily on your NEVER Money.  Never Money can take a variety of forms – stock portfolios, IRA’s that you and your spouse created and grew over the years, real estate investments, and many more.  Whatever it is, it is critical to take steps to ensure that it goes to the right person or organization, and in the right way.  Below are 10 common legacy/estate planning mistakes that people often make:

10 Common Estate Planning Mistakes

1. Procrastination.  Simply failing to get around to it.

2. Believing that estate planning is only for the wealthy.  When taking into account the people are often surprised at the size of their “estate.”

3. Not reviewing or updating your beneficiaries and will.  Life changing events such as births, deaths of family members, divorces, and changes in general in your family structure can have a significant impact on how your assets are distributed.

4. Not having a tax-planning strategy in place.  Current tax laws are complex and ever changing.  There are strategies available to help you minimize taxes and avoid estate tax penalties.  Sit down with your tax professional to implement advanced tax and estate planning strategies.

5. Take advantage of gifting.  The government allows tax-free annual gifting of $13,000 per individual or $26,000 per couple annually to as many individuals as you choose.  This is a means of giving away some of your estate tax free to family members.

6. Joint titling of assets.  It is true that joint titling of assets may allow you to avoid probate, but do not overlook the additional risks; misappropriation of assets by the joint title holder, exposing of assets to a divorcing spouse of the joint account holder, exposing assets to creditors of the joint account holder.

7. Failure to provide someone you trust with the location of important documents.  All of the work you have gone through in planning the distribution of your assets is worthless if nobody can find the documents.

8. Leaving everything to your spouse.  The government offers an estate tax credit (repealed for 2010) by leaving all of your assets to your spouse you are sacrificing their share of estate tax credit.

9. Doing it yourself.  Not seeking out expert advice.

10. Naming your estate as the beneficiary.  By directing your assets to be paid to your estate   “pursuant to the terms of your will” assets that would normally avoid probate-will become subject to probate which can be both time consuming and expensive.

As you can see, tax issues are mentioned in several of these 10 mistakes.  With a proper tax strategy, there are ways to leave money in a legacy that doesn’t include a huge tax bill for your heirs.  Life insurance is one option to consider when planning your legacy.  It is unique because it is designed to create a lump sum benefit when you pass away that is paid to your beneficiaries, and they don’t pay income tax on the benefit.  Properly designed and structured, it can be one of the most flexible and efficient financial tools you can use.

Ask these 6 questions before purchasing a term life insurance policy:

What are your income needs?
It’s important to consider your family’s income needs over the course of your policy, including expenses such as mortgages, college tuition, medical bills and funeral costs.

What length of term do you want?
The length of your term will depend on your long-term income outlook. For example, if you’re working for 10 more years and then have retirement benefits and Social Security, a 10-year term may work for you.

Can you convert the policy?
If you outlive your term life insurance policy, you may want to convert it near the end of the term without needing another medical exam. Be sure to read the fine print on the conversion option, as there can be time limitations for conversion.

What other benefits do you want?
Riders – such as disability waivers that pay your premiums if you become disabled – are more common on whole life insurance policies than on term life insurance policies. But they are available, so look into them.

How applicable are advertised rates?
Even if you’re relatively healthy for your age, the rates promoted in online or newspaper ads may be based on an applicant with exceptional health. The price quoted may not be applicable to you.

Is the insurance company stable?
Life insurance companies are usually in excellent financial health, but you should still check out their rating. Agencies that rate life insurance companies include A.M. Best Company, Fitch Ratings, Moody’s Investors Service and Standard & Poor’s Ratings Services.

My last point relates to mistake #3 – not making sure beneficiary information is up-to-date.  A periodic beneficiary review  (video) is a critical tool to ensure that you leave the legacy that you want to the people you want to leave it to.

If you want to learn more about the three money types and how they impact your life, tune in to Your Financial Editor – this Saturday morning @ 8 on AM 930 WFMD.  Listen live @www.wfmd.com.

 

Don’t Blink!

Wednesday, April 4th, 2012

Have you ever heard the song “Don’t Blink” by Kenny Chesney?  It really sums up life’s timeline.

All I can say is Don’t blink, just like that you’re six years old
And you take a nap
And you wake up and you’re twenty-five
And your high school sweetheart becomes your wife
 Don’t blink, you just might miss
Your babies growing up like mine did
Turning into moms and dads
Next thing you know your better half
Of fifty years is there in bed
And your praying God takes you instead
Trust me friend a hundred years
Goes faster than you think, so don’t blink

Life goes by fast. You go to school, get a job (or 10), work hard, provide for your family and hopefully build your nest egg.  Before you know it, it’s time to retire and enjoy the things you love the most.

Sounds like a good idea to me.  However, there’s a lot of important planning that goes along with the “Golden Years.”  Lets take income planning for example.  The first and most important question I suggest you ask yourself is, “”Retirement Income, Will I Have Enough”?   If you know the answer is yes, retirement will be much more enjoyable.  If you don’t know if your investments, IRAs, pension, social security, etc will allow you to sustain the lifestyle you desire, your anxiety level may be elevated.

Income planning in retirement is affected by many factors - here a few that should be at the top of your list to consider:

1.)    The landscape of retirement has changed – people are living longer and many people are not just sitting on their front porch, but starting    new businesses, traveling, spending time with children and grandchildren.

2.)    Uncertainty about the future of Social Security – will it be around?  When should I start take it?  How do I maximize my benefits?

3.)    Flexibility – the ability to adjust income to fit changing needs during retirement is critical.  Make sure your advisor re-evaluates your strategy periodically and that your strategy is flexible and offers choices.  In other words, don’t put all of your  “eggs in one basket”.

The fact is even if you think your retirement is going to be spending 10 or 15 years sitting on the front porch watching traffic go by (versus the 30+ years of retirement skydiving, traveling, volunteering or reading to your grandchildren) you have to be confident that your income planning is what it needs to be.
So if you haven’t done so yet, I would suggest having an investment model and strategy in place that will provide the retirement income and confidence you need and want.

“Don’t Blink.” 

This week on our monthly Your Personal Economy segment on Your Financial Editor, I’ll be talking in depth about income planning for your retirement.  To learn more, tune in Saturday morning at 8 on AM 930 WFMD, or click here to listen from your pc.

Women and Retirement

Friday, February 10th, 2012

Last week on “Your Financial Editor”, I covered some of the pitfalls women face with their retirement planning.  It’s apparent that menand women have some very similar circumstances, both “pre” and “post” retirement date.  However, some of the issues that women face, if not taken into consideration and planned for properly, could wreak havoc on their golden years.

The Urban Institute is a think tank organization in Washington D.C. and I recently read their latest report about retirement issues for Baby Boomers and found it to be very interesting and informative.  The issue talked about:

  • Boomer women have worked more than ever before, boosting family incomes and retirement wealth.
  • The shift from pensions paying regular retirement income for life to 401(k) plans subject to market volatility adds uncertainty to Boomer’s retirement income.
  • 30 t0 40 percent of the youngest Boomers will replace 75 percent of earnings received in their early fifties, making it difficult to maintain pre-retirement living standards.

I hope you find time to peruse the report.  I continually find it amazing to see how much health, wealth and family are intertwined with our clients’ retirement planning and wealth planning.

WELCOME 2012!

Friday, January 6th, 2012

Happy New Year! I hope you had a nice Christmas and New Year’s holiday! On a personal note, my hope and prayer for you is that your year will be filled with good health, increasing wealth and a strong family!

As far as the economy and financial markets go, 2012 won’t start off much different than where they ended. Unfortunately we still have the following issues right in front of our faces going into this new year:

1.  America has a huge pile of debt, some $15 trillion and the number grows higher.

2.  The Europeans seem to be frozen by indecision as their problems worsen.

3.  China’s actual economic stability and growth rate remain suspect.

4.  The Super Committee was a huge failure, and our prospects for reigning in government spending are dim.

5.  Unemployment continues to be extremely, and I might add, unacceptably too high

6.  The political battles are being planned for this election year…with the real losers (or should i say casualties) being the hard working silent majority in this great country.

Taking all of this into consideration you have a decision before you, a choice to be made.  You can either act or re-act when it comes to your personal situation.

On a different note, many of us have made New Year resolutions to improve our health this year. I thought you may enjoy the following article from the Wall Street Journal entitled “The 27 Rules for Conquering the Gym.”

Tune out the media hype and catch the launch of my new radio segment, “Your Personal Economy”, this week on Your Financial Editor!

Friday, September 30th, 2011

Today’s economic troubles and financial volatility are taking a toll on retiree’s across the nation.  Triple digit point swings in the market, sometimes on a daily basis, have created a new level of anxiety and stress for those who depend on the wealth they’ve created to see them through a successful and fulfilling retirement.  By tuning out the media hype and financial “noise”, investors can focus on what really matters – what I refer to as “Your Personal Economy”.  Structuring a wealth management strategy that is not only based on sophisticated models, but also one that is actively managed, provides you with opportunities and peace of mind that others can’t achieve because they find themselves caught up in the mainstream.

The inaugural “Your Personal Economy” segment will be about Retiring with Confidence.  I’ll be discussing some basic questions surrounding a successful retirement plan.  I’ll also analyze and review a report from the Federal Reserve regarding headwinds for Baby Boomers’ retirement.

As usual, I’ll breakdown the top stories of the week from  the world of business and finance.

Join me for the premier this Saturday, October 1st at 8am on AM 930 WFMD!

U.S. Credit Rating Downgrade NOT the Reason for Market Volatility

Tuesday, August 9th, 2011

The recent market turmoil has unsettled investors around the world. Many people say the credit rating downgrade of the USA by Standard & Poor’s is the reason for this volatility.

I disagree.

The stock market has been rising for the last couple of years without the economic health to support the gains. High unemployment levels, a softening manufacturing and service sector, continued housing problems and a lack of leadership out of Washington have, and continue, to weigh on financial markets here, and around the world.

The financial media’s “noise” has once again reached a deafening level. They have ratcheted-up the level of hype and anxiety to the point that many investors are letting their emotions take over and selling their investments. Murray Financial Group knows that the best defense against emotional reactions in the stock market is diversification and owning quality companies. Our strategies do both of these, among many other prudent philosophies.

So, turn off your TV. Don’t buy into that headline above the fold. Question the radio personality’s motives. Instead, ask yourself these types of common sense questions:

Will Exxon stop drilling for oil?
Will IBM stop providing computer services?
Will Coca-Cola stop making soft drinks?
Will Marriott close all of its hotels?
Will MGM quit making movies?

You get my drift?  By investing in quality companies, diversifying and maintaining a disciplined strategy, you greatly enhance your opportunities. This, and more, is what Murray Financial Group is focused on every day.

Caring For Aging Parents Will Cost Boomers $3 Trillion

Friday, June 17th, 2011
You would probably do anything for your mom and dad, but the cost of caring for them in their old age can be crippling.

According to the just-released MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents, the nearly 10 million Americans who are providing care for their aging parents will lose an estimated $3 trillion in wages, pension and Social Security benefits to do so. The study, produced by the MetLife (MET)Mature Market Institute in conjunction with the National Alliance for Caregiving and the Center for Long Term Care Research and Policy at New York Medical College, reports that the average lifetime losses are $324,000 for women and $283,716 for men.
The implications are huge. The percentage of adults providing personal care and/or financial care to a parent has tripled since 1994, according to the report.
“Nearly 10 million adult children over the age of 50 care for their aging parents,” said Sandra Timmermann, ED.D., director of the MetLife Mature Market Institute. “Assessing the long-term financial impact of care giving for aging parents on caregivers themselves, especially those who must curtail their working careers to do so, is especially important, since it can jeopardize their future financial security.”
Though the report finds that sons and daughters mostly provide comparable care, daughters are more likely to provide help with dressing, feeding and bathing, while sons are more likely to provide financial assistance, which the report defines as providing $500 or more within the last years.
But the toll for caregivers isn’t just financial — the stress contributes to their own health troubles.

All this is yet more dreary news for Boomers, many of whom already face golden years far less shiny than they’d hope for, with retirements likely to be delayed, or in some instances, canceled entirely because they can’t afford to stop working, period.
 
Easing the Care-Giving Burden

Boomers need help. The report suggests employers can step up to the plate by making resources and programs available that can go a long way in mitigating stress. Doing so of course will ultimately benefit employers who have their eyes on productivity. Among the recommendations for employers: Provide retirement planning and stress management information and offer flex-time and family leave.
The question, though, is what can Boomers do to help themselves?
For starters they can ease the potential burden should they themselves fall sick. “Long-term care insurance is a smart, simple way for Baby Boomers to protect their assets and loved ones. And it isn’t necessary to spend a lot in order to have great LTCI coverage. A solid, basic plan does the job and provides many options for care. It’s better to apply while you are in relatively good health, too, in order to get the best rates,” says Brian Gordon, president of MAGA Ltd., an insurance agency that specializes in long-term care planning.
“Flexible long-term care insurance policies can help mitigate financial and emotional costs and provide options for boomers to provide the best care possible for themselves and their families,” he adds.
Three out of four people will need more than regular health care, says Marion Somers, Ph.D., author of Elder Care Made Easier: Doctor Marion’s 10 Steps to Help You Care for an Aging Loved One. “The high costs of long-term care add a financial strain to the physical and emotional toll that caring for an aging loved one already brings,” she adds. When it comes to figuring out the best insurance plan, she says to be sure to determine what is covered and the level of coverage. “Ask questions and comparison shop where appropriate. Eliminate all excess and/or overlapping insurance,” she adds.
To get going on your research about long-term care, check out the nonprofit Life and Health Insurance Foundation for Education.

More Advice for Care-Givers

  • Get help. Call your loved ones’ Medicare insurance carrier to see if they offer any additional caregiver support programs or additional help for the member such as diabetes management classes, suggests Ross Blair, CEO of PlanPrescriber.com. Ask if care management is available. Also, reach out for support from friends, family members, and other caregivers who can provide insight to similar situations. There may also be caregiver support groups or agencies in your area, he adds.
  • Take care of yourself. Preserving your own health is just as important as caring for someone else’s. Take control of your own life by balancing care-giving with your personal needs. Don’t be afraid to take some time out to nurture your interests and tend to your health — mental, emotional and physical. Know the caregiver’s bill of rights.
  •  Find out if you qualify for financial assistance.If you’re one of the more than 70 million people who provide unpaid caregiving for a family member or friend, it might be possible for you to get a small but regular payment from the government for your caregiving work, says Blair. If the person you’re caring for is eligible for Medicaid, a program called “Cash and Counseling” might be available in your state. Call or visit Medicaid to find out. The same holds true if the person you are caring for has long-term care insurance that includes home-care coverage. Call the insurer to ask about this benefit and any possible restrictions.
  • Explore all possibilities. You might want to consider deducting your parent’s medical expenses on your taxes. Talk to your accountant. “If you are providing at least 50% of your parent’s financial support, this might be an option,” explains Herb White, a certified financial planner with Life Certain Wealth Strategies. Expenses can include your unreimbursed medical expenses and in-home health care, among others.
  • Save, save, save. Peter Maris, a certified financial planner with Resource Financial Group puts it simply, “Save more now — begin earmarking more money for retirement. Save for longer — remain in the workforce for a longer period of time and spend less now. Take away from discretionary spending or ‘fun money’ to have more money to stash away in retirement funds.” Just get it done.
    See original article from DailyFinance: http://srph.it/jR8c6M

 

See full article from DailyFinance: http://srph.it/jR8c6M