Retirement should require less income than was needed during working years because you no longer have to pay FICA taxes or will be diverting money to retirement accounts. In addition, retirement income is often taxed at a lower rate. Note, however, that social security benefit income can be taxed. Traditional IRAs and 401(k)s are taxed as ordinary income, and capital gains and dividends are also … [Read more...]
Tips for Dealing with Debt in Retirement
Understanding your debt is the first step to paying it off. A lot of retirees are entering retirement with a mountain of debt. This causes financial stress that affects all aspects of life. When someone has debt going into retirement, they likely won't have money laying around for an unexpected bill or for medical expenses. It is best to figure out what you owe as far as debt, and figure out how … [Read more...]
Which Quadrant Is Your Cash Flow Coming From?
Robert Kiyosaki's "Cash Flow Quadrant" identifies 4 ways we can generate income. Which quadrant do you receive your income from? Once you're retired, how will you receive your retirement income? Why do 41% of households in the 55-64 age group have no retirement savings at all? How is this possible? In the richest country in the world, how is it possible that so many people have not saved … [Read more...]
Retirement Planning: Where is Your Money Coming From?
Have you started planning for your retirement? What do you wish your retired life to be like? Take a minute to make a note of what your retirement feels and looks like. Write it out in complete and dazzling detail. What will your typical day in retirement look like? What will it feel like? What will it smell like? Don’t leave anything out. Be as descriptive as you can and detail... "A Day In … [Read more...]
Average Retirement Income 2020: How Do You Compare?
Even though the economy is doing well this doesn't necessarily mean that retirement will provide you with enough income. Some people will have enough to get by but others will come up short. The average retirement age is 75 and the income range for that age group is the lowest. The mean and median income provides information about how much other people are making in retirement and the lower of … [Read more...]