5 Ways to Run Out of Money in Retirement Retirement is a balancing act. You want to spend enough to enjoy today, while preserving enough to take care of your needs tomorrow. If you keep things in balance, there is no reason you should run out of money. So what throws people off balance in retirement? Here are five things people do that puts them at risk of running out of money.
Why Rich People Feel Poor The rich aren’t poor, of course, whatever their tax burden. An adjusted gross income of $389,000 puts you in the top 1 percent of earners. High-earning Americans who haven’t found the right dodge, or who live in high-tax states, get socked. They contribute more or less like their compatriots in other developed nations, with few of the perks.
Retirement: The more you know, the more you save Do you ever wonder if all the sacrifice and delayed gratification associated with saving for retirement is really worth it? Wouldn’t you rather spend some of that money now on a nice trip to Hawaii, assuming that you don’t already live there?
Retirement: the benefits of staying on the job Working a few years past full retirement age can make the difference between living in relative comfort during retirement and scrimping to pay the bills. Some employers are eager to hang on to employees with senior-level skills and experience. Plus, benefits pegged to your salary will be all the sweeter if you continue working during your peak earning years.
Retirement: 7 tips to increase savings, investments To live comfortably in retirement, you need “to save until it hurts,” says financial adviser and best-selling author Ric Edelman. People give lots of excuses for not saving for retirement, he says. They may be procrastinating, think they can’t afford to save or fear losing money to bad investments, but they have to overcome those fears, because “a financially secure future will be up to them,” says Edelman, who has a new book on the topic,The Truth about Retirement Plans and IRAs.
Retirement at 50 – Not Just for the Financial Overachiever Often times, when talking to people over 50 years old, it can seem like their primary reason for working is to one day be able to retire. Many 50+ year olds have achieved most of their financial goals, and if they exercised financial discipline for long enough then they have probably obtained significant fiduciary benefits (like accrued vacation time, saved bonuses and annual pay raises), giving them a taste of the “good life” – life without having to go into the office.