The Complete Retirement Planner Blog

When using any financial planning tool, it is important to make sure that it is capable of considering as many variables as possible (or at least those that apply to your specific situation) so that it can generate the most thorough and accurate results. For the purposes of this post, we will discuss what happens if annual income exceeds what is needed to pay expenses (including taxes). Some planning tools, believe it or not, do not account for any excess income. The Fidelity planning tool (nothing against Fidelity, but their planning tool is a good example in this case) states...

We all know that life is full of risks and we typically do our best to mitigate those risks - we wear seat belts when driving, we have insurance for our homes, and we try to eat healthy food and exercise regularly to protect our health. But what are you doing to actively mitigate your financial risk as you age and prepare for retirement? The following are ten of the biggest risks to account for when planning for retirement:1. Longevity It's impossible to know how long you, or your spouse, may live. This makes it even more important to plan...

The advantages of having a Roth IRA are clear:• Since contributions to a Roth IRA come from after-tax dollars, those savings grow tax free.• Contributions and earnings can be withdrawn tax free after age 59 1/2 (if the account is at least 5 years old). • Contributions can be withdrawn tax free at any age.   Earnings withdrawn before age 59 1/2 (and before the 5 year holding period) will incur taxes and a 10% penalty.• A first-time home purchase ($10,000 lifetime maximum), qualified education expenses, birth or adoption expenses,   and certain emergency expenses qualify as exceptions to the...

A report by the National Financial Educators Council found that only 24% of American adults have a high level of financial literacy.Regarding financial planning for retirement in particular, recent studies and surveys from Charles Schwab, RBC Wealth Management and Schroders Wealth Management, found that:• Only 23% of households have a written financial plan. • 76% say it is too difficult or confusing to create a financial plan. • 56% believe that a plan is not useful because life is too uncertain. • 57% rely on friends and family for financial advice.• Only 53% understand how their savings and investments would...

The number one rule of financial planning for retirement - don't guess, don't hope, don't pay attention to generic advice or benchmarks. Be prepared with a reliable, detailed, written financial plan! You, and your unique financial situation and needs, are not generic and they require individualized attention. It may not be a task that's at the top of your to-do list, but it should be. Yes, it can be complex and confusing. Yes, it can be tedious to gather all of the information you need to do it correctly (in reasonable detail). Yes, you will need to try to predict the...