Tax season is here. This yearly duty is something that a good portion of citizens put off until the last minute, with some even requesting an extension to file later. However, today I have 8 reasons for you to consider filing your taxes early. Listen in to discover why you might want to bite the bullet and file your tax return early this year.
This is a great list to encourage people to get started on their taxes. I’ve had my thoughts on tax planning for a while now that I’m cohosting the Retirement Tax Podcast with Steven Jarvis. Check it out if you are interested in tax planning strategies in retirement.
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You may be worried about money in retirement, but are you worried that you won’t spend enough of it? Today’s retirement headline comes from Neil Templin over at Barrons.com and it examines how people’s core spending and saving habits from their working years continue in their retirement years.
Listen to this episode to hear the author’s suggestion for how to rectify this issue and whether or not I agree with him.
Why do people continue to save in retirement when they are expected to be spending? Retirees Aren’t Spending Enough of Their Nest Eggs, Here’s Why, an article written by Neil Templin, examines the reasons why some people don’t plan to spend down their assets in retirement. These retirees' portfolios remain the same or sometimes even grow at a time of life when they should be diminishing. The author looks into why this phenomenon is happening.
One study even revealed that ¾ of participants had seen their assets remain the same or grow in retirement. There are numerous reasons why this could happen.
The robust stock market over the past ten years could contribute to a steady or growing portfolio. However, even with strong returns, some people may not feel comfortable enough to loosen their purse strings and spend their savings in retirement. Templin lists these reasons for reluctant spending habits in retirement:
It is difficult to change the core values that people have about spending. Saving is a habit developed over time and retirees are discovering that they can’t simply flick a switch and turn it off.
The author next examines research on retirees with pensions. The research showed that those who received more than half of their income in regular payments spent much more in retirement than those who received less than half of their income regularly.
The article concludes that creating a pension-style income or regular paycheck by using annuities could be a solution for retirees who are reluctant to spend in retirement.
My concern with purchasing annuities to solve this problem is that this solution eliminates the freedom to choose. With a flexible spending strategy, retirees can spend confidently. They understand that when the market doesn’t behave ideally that there is always a plan b to fall back on. This flexible spending strategy relies on education and knowledge to give retirees the peace of mind they need to spend confidently. Listen in to hear how Guyton’s Guardrails could inspire confidence in your retirement spending strategy.
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Do you know where you’ll live when you retire? Deciding where to live in retirement is one of the biggest retirement decisions that you’ll make. There are so many factors to consider that it can be overwhelming with the myriad choices.
On this episode of Retirement Starts Today, we’ll explore a headline from J.D. Roth at GetRichSlowly.org that reveals a new tool from The New York Times which helps people find places to live that suit their lifestyles.
You’ll also hear the answer to Frank’s question about the inflexibility of safe withdrawal rules for those who choose to delay taking Social Security.
If you have been considering moving in retirement, don’t miss out on this episode to discover how this fun tool could help you narrow down your choices.
Today’s retirement headline, A Useful New Tool to Help You Pick a Place to Live, comes from J.D. Roth’s blog GetRichSlowly.org. In the article, the author explores a new interactive tool from The New York Times that could help you decide where to live based on your lifestyle choices.
The interactive quiz uses 35 different factors which can help you narrow down the 17,000 cities and towns across the country they have to choose from. These factors include choices like population density, climate, racial diversity, political affiliation, the average cost of living, and many more. Users can even emphasize which qualities matter most to them.
After exploring a few options, users can compare their favorite choices in an easy-to-read table. Although the tool, isn’t the end all be all in deciding where to live, it may be able to accurately narrow down some areas for you to consider.
Since the tool comes from the New York Times, it is behind a paywall you may be blocked if you have already read your free articles for the month. If you haven’t, spend some time exploring the variables to see which places look good to you.
Many retirees choose to buy a second home in retirement, and I work with several clients that have considered this option. When purchasing a home in retirement, it is important to remember a few rules.
Oftentimes, people don’t realize that after leaving their career behind it can be very challenging to get a mortgage. Since qualifying for a mortgage depends on income rather than assets, many recent retirees discover that they may not qualify for a mortgage even when they have the assets to purchase the home outright.
One way to prevent this issue is by massaging your portfolio income to a level that the bank would approve to secure the loan. After closing on the mortgage, then you can reset your portfolio withdrawals back to normal.
If you are considering purchasing a second home or moving to a new area in retirement, don’t be afraid to rent first. By renting for several months in the city you would like to move to, you’ll be able to explore the town and understand where the desirable (and undesirable) areas are. Renting first could save you from a mistake that could cost hundreds of thousands of dollars.
Learn more about moving in retirement and how using Guyton’s Guardrails could help you set up flexible, safe withdrawal rates in retirement on this episode of Retirement Starts Today.
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