Writing about financial matters for retirees is certainly not my expertise. However I try to gather information from time to time that can help address one of the major worries of growing old – running out of money.  I would like to present some additional reading about some hot button topics.

Delaying when you have to start taking out money of your IRA, 401K.

It has been suggested by executive order that two changes occur. Some seniors or even pre seniors as I call them are not aware that you must take 4% (Required Minimum Distribution aka RMD) of your total  IRA/401K based retirement savings out every year after you turn 70 1/2.  If not, there is a hefty 50 % penalty and taxes to pay.  On the one hand this lets you save longer but if you have stopped working that is probably not an option anyway.  It keeps the money in fund managers hands for a longer time.  Which means more fees but hopefully more growth? 

Also they are proposing helping smaller firms set up 401K’s. Only 53 % of employees at firms of less than 100 are currently offered retirement plans.  This can be good, for people who will not save unless it is made an automatic deduction.

Read in full on Next Avenue: https://www.nextavenue.org/trump-retirement-security-executive-order-means/

Bankruptcy on the rise among older adults

Pensions have been evaporating for many years now, more people still owe on their mortgages because of loans taken out, parents have co signed educational loans for children who can not pay them back.  It is all on the bleak side.  But the real statistic that stand out is a 202% rise in bankruptcies in the 65-74 age bracket. That is still only 12.2% of all bankruptcies but it has grown tenfold since the 1990’s.  

So borrower beware. Paying off all your debts before retirement should not have to be a pipe dream.

Read at: http://www.glebaandassociates.com/wp-content/uploads/2018/08/Too-Little-Too-Late.pdf

And my last offering is more of a do you believe…?

The most and least expensive places to retire

I guess the trick is to live somewhere more expensive then downsize to somewhere less costly. I have seen many lists of desirable places to retire  but this one is unreal with the wide swing in the property values.  The truth is you have to sell your big house and use most of the proceeds to pay for what is a fraction of that space.   

https://www.realtor.com/news/trends/america-most-least-expensive-retirement-towns/?identityID=10351054&MID=2018_0907_WeeklyNL_WORKBOOK&RID=363362722&cid=eml-2018-0907-WeeklyNL-blog_1_cheapretiretowns-blogs_trends

Well, here I am again back at housing issues.  Its seems to be the central theme of trying to age independently in place. There has to be more ways of having affordable housing for seniors.  I think all the financial realities of the next generation of retirees will demand it.