A recent survey for the Transamerica Center for Retirement Studies stated that there is a disconnect between baby boomers’ expectations for retirement and how they prepared in reality. There is a lack of savings, people are living longer, healthcare costs are on the rise, interest rates are at all-time lows, the stock market is volatile and then we have inflation. In this episode of “Your Money, Your Wealth” Joe Anderson, CFP® and “Big Al” Clopine share four critical risks to consider when planning for retirement and how you can better prepare you financial plan.
2:45 “Here’s the issue. We have lack of savings. People are living longer. Healthcare costs are on the rise. We have inflation. We got all-time low interest rates. & now we have a crazy volatile stock market to kick off 2015.
9:49 “When you start collecting Social Security benefits, you may need to pay taxes on up to 85% of your benefits”
11:50 “As interest rates go up and down certain investments go up and down as well…”
12:20 “With interest rates as low as they are, a lot of you could be in jeopardy of losing a lot of money in your bonds or fixed income”
15:30 “You have to be careful with bonds right now. We’re not saying to sell all your bonds because you need bonds. That’s safety in your portfolio, but you want to have high quality bonds, which means government bonds, or maybe high quality corporate bonds. You also want to stay very short-term because as interest rates go up, and they eventually will go up, then the shorter term bonds are not affected nearly as much.”
19:05 “A lot of individuals want to use their retirement assets to purchase real estate.”
22:13 “There’s a new IRA rollover rule that just came into law this year. It’s a 60-day rollover that you can take money out of your retirement account and you have 60 days to put it back in. That’s only a one time shot, before you could do it from several different accounts, from several different custodians. Not anymore..”
