The Complete Retirement Planner Blog

One of the main benefits of a comprehensive financial plan is that it can help to account for multiple factors that may influence your financial stability well into the future. You likely have a good grasp on many of these (e.g., expected income, everyday expenses, when you may retire, etc.), but a well-rounded plan should also be used to test unlikely, or unexpected, circumstances. For example, should your plan include the annual cost, and potential benefits, of life insurance? If you were to die prematurely, how would the loss of your income affect the financial security of your spouse (if married),...

According to recent Fidelity and Charles Schwab Retirement studies, the reason why a majority of households don't have a written financial plan is because they either feel that it's too complicated to create one or they just don't have the time (they obviously aren't familiar with TCRP yet!). Yet, of those who do have a written plan, 54% feel "very confident" about reaching their goals, and another 18% are "certain" that they will reach their goals. So, it's clear that having a tangible financial plan to follow can provide a great source of comfort to those who make the effort...

Required Minimum Distributions (RMD's) are often resented because they are seen as "forcing" you to sell securities from 401k/IRA savings and creating unwanted tax liability on the distribution. Perhaps a little planning and a different perspective might help. It is true that starting at age 73 (age 75 if born in 1960 or later) you are required to take a distribution from a Traditional 401k/IRA. However, there are three things to keep in mind that may make this transaction more palatable: • You know in advance how much the distribution will be, since it is based on an I.R.S. schedule.• There is...

According to this year's Fidelity Retirement Study, the difference between having a written financial plan, and not having one, magnifies a significant gap between those who have long-term financial confidence that their savings will support them during retirement (~81%) and those who either have ongoing financial concerns that they won't or who are completely unsure (~45%). A whopping ~31% have no idea how much they will even be able to save before retiring. For those without any semblance of a plan, not establishing at least a target savings balance, a Social Security claiming strategy, or a tentative withdrawal rate, only...

These are the basics regarding Social Security:Social Security Full Retirement Age (FRA) is age 67 for those born in 1960 or later, and age 66 if born before 1960. You will receive your "full" benefit (estimated on your S.S. statement) at your FRA (age 66 or 67). But once you reach age 62, you have the option to claim a reduced benefit (a "full" benefit is reduced by ~30% if you claim at age 62, or ~7% for each year that you claim earlier than your FRA). Whether you claim early, or wait until age 70 to claim (maximizing your...