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Displaying items by tag: Retirement

Wednesday, 09 September 2020 01:00

Three Ways to Become a Millionaire

Many Americans say they want to be a millionaire, but it’s just a dream for most. Credit-Suisse reports that in 2020 there were 18.6 million individuals (representing 11.8 million households) that had a net worth of at least $1 million or more. This is 3% of the U.S. population.

Trillions are held in traditional IRAs and 401(k)s. However, this creates a ticking tax time bomb because any money withdrawn is taxed as ordinary income (think wages or profits from any small business you own). You got a tax deduction from your original deposit and your earnings were tax-deferred until you pulled money out (typically in retirement). If you had deposited $250,000 over the decades while working, and were lucky enough for it to be worth $1 million at retirement, all $1 million will be taxed as ordinary income when you spend it.

On March 7, 2020, all schools within the Elk Grove Unified School District in the Sacramento, CA area shut down after a case of the virus appeared in the city. On March 19, CA Governor Gavin Newsom issued a state-wide “stay at home” order, shutting down all non-essential businesses. CA was the first state to take this measure and it affects 40 million people.

Friday, 10 April 2020 07:20

Coronavirus Has a Valuable Retirement Lesson

On Wednesday March 18, 2020 the Dow-Jones stock market index had a steep drop briefly pushed the 30-stock index below the level where it closed on Jan. 19, 2017, the day before President Trump took office.

I’m submitting this article on morning, March 6, 2020 and the last 2 weeks have seen the U.S. stock market gyrate up and down with extreme volatility due to fear about the impact of the Coronavirus.

Wednesday, 09 October 2019 11:09

How Parenting Can Impact Retirement Income

“The Financial Journey of Modern Parenting: Joy, Complexity and Sacrifice” was conducted by Age Wave and funded by Merrill Lynch.

Wednesday, 18 September 2019 23:04

Powerful Tax Strategies Can Improve Retirement

On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) became law. Virtually all of the provisions take effect starting in 2018. This is the most sweeping tax legislation since the Tax Reform Act of 1986.

Wednesday, 28 August 2019 22:04

Health Professionals Can Face Retirement Challenges

On May 4, 2019, I gave a talk to the AZ Academy of General Dentistry Annual Convention on the topic “Dentists: Learn How to Retire 5-15+ Years Earlier!” Unfortunately, ¼ to 1/3 of all dentists are forced to retire early due to physical disability. Their normal work week is only Monday through Thursdays because they are continually leaning over the patient in an awkward position. However, the bulk of most medical professionals’ (whether dentist or physician) retirement savings occurs in the last 20 years of their working life. If they lose 10-15 years of income by not working until 70, their retirement future can be fairly bleak.

From a mathematical perspective, there are only a few key variables to the retirement financial equation: Earn More; Save More; Work Longer; Earn a Higher Rate of Retirement Cash Flow; and Reduce Taxes. This article will be the first of a series that covers these issues, including real-world case studies.

This article focuses on the majority of Baby Boomers who have not saved close to what is needed for a happy and financially carefree retirement. The previous article covering Part 1 was published in the 5/15/2019 Ahwatukee Foothills News. There was recent media attention about a recent study “Boomer Expectations for Retirement 2019”, released April 2019 by the Insured Retirement Institute. This study concentrates on Baby Boomers, born in years 1946-64. This age range is 55-73 and nearly half (47%) are already retired.

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