Creating a Retirement “Paycheck”

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Creating a Retirement Paycheck

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

As baby boomers (i.e. people born between 1946 and 1964) continue to reach retirement age, increasing attention is being paid in the financial services industry to the concept of creating a “retirement paycheck.” What exactly is a “retirement paycheck?” It is income received on a regular basis after someone stops working. A “retirement paycheck” makes it easy to pay monthly bills, which provides financial security and peace of …

Catch-Up Retirement Planning Strategies for Late Savers

Catch-Up Retirement Planning Strategies for Late Savers

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

There are several types of late savers who are trying to make up for lost time and accumulate an adequate nest egg for retirement. Are you one of them? Below are three common later saver profiles:

• Procrastinators with little or no past and current savings. This could be for any number of reasons including high monthly living expenses, overextended credit, poor spending habits, lack …

20 Tips for a Successful Retirement

Twenty Tips for a Successful Retirement

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

 

couple

Retirement planning today is very different than it was 30 or 40 years ago. It is truly not your father’s (or mother’s) retirement. In fact, many people don’t even relate to the word “retirement.” Phrases like “second act,” “third age,” and “refirement” have been used to describe the stage of later life where people transition from full-time work to other pursuits. Some people have even stated …

Monte Carlo Analysis in Retirement Planning: Will I Run Out of Money?

Monte Carlo Analysis in Retirement Planning: Will I Run Out of Money?

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

“Monte Carlo analysis.” The words make you think of a European gambling mecca, don’t they? It fact, where retirement planning is concerned, Monte Carlo analysis is actually somewhat related to gambling. It is a technique used to reduce the gamble that many people take when they decide to retire and live off of their savings. In other words, Monte Carlo …

Making the Right Move in Retirement: Where Will You Live?

Making the Right Move in Retirement: Where Will You Live?

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

 

family

Finding affordable, comfortable, and safe housing in later life is an important component of the retirement planning process. Along with health care, housing costs (especially property taxes) are often among the most expensive parts of a retired person’s budget. Are you planning to “age in place” and continue to live in your current home and/or community or do you want to move …

Making the Most of IRAs and Other Tax-Deferred Retirement Savings

Making the Most of IRAs and Employer Tax-Deferred Retirement Savings

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

 

packs

The best way to make the most of IRAs and tax-deferred employer retirement savings plans (e.g., 401(k), 403(b), and 457 plans) is to contribute to them regularly and set aside as much money as you possibly can. The more money you save, the better, because a larger sum will grow tax-deferred, sometimes for decades. The result is a higher account balance at …

How to Make Required Minimum Withdrawals from Retirement Savings Plans

How to Make Required Minimum Withdrawals from Retirement Savings Plans

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

“RMD.” What do those three letters mean to you? If you’re retired and in your seventies or older, they mean a lot. “RMD” is an abbreviation for “required minimum distribution.” This is the amount of money that investors age 70½ and older are required by the IRS to withdraw from tax-deferred retirement savings plans such as Traditional IRAs, simplified employee pensions (SEPs), …

Financial Recovery in Later Life

Financial Recovery in Later Life: Increase Your Resilience

Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu

It is more difficult to recover from financial setbacks as one gets older. There is less time available to invest for retirement, recover money lost in the stock market, or receive “payback” from investments in human capital (e.g., job training or a college degree). Therefore, it is wise to consider ways to cope with traumatic life events, in case something goes awry and to …