Are we overdoing the idea of delaying retirement?
Maybe we are getting carried away with this work-till-you-drop rhetoric, according to an article on Money. Citing a recent commentary on CNBC that made the case for retiring early, a worker wrote that he was “expecting congratulations” and even “jealousy” when he told friends he was retiring after nearly 40 years in public relations. Instead, many seemed to think of him as “less worthy” and “flawed” for calling it quits. That’s how far the pendulum has swung, the article noted. Only 20 years ago, during the dotcom craze, the conversation was about retiring before age 50. Today, it’s about working until age 80. Much of this is driven by economics, of course, since overnight riches from IPOs have all but vanished. Still, the commentary writer made some good points. Those who are financially prepared, and want out, shouldn’t be sheepish about it. There are countless ways to remain engaged without a job, including mentoring, volunteering, traveling or going back to school. And there is enough time even for those who like to play golf. Indeed, retirees will have 2.5 trillion hours of free time over the next 20 years, according to a report from Bank of America and Age Wave.
Beyond the retirement fund: When to invest in the stock market
Clients stand to benefit from investing in securities outside retirement accounts, according to this article on U.S. News & World Report. For example, the money taken from an individual investment account is subject to capital gains tax rate, which is lower than ordinary income tax rate that applies to 401(k) and IRA withdrawals. While ETFs and mutual funds offer stability, a high quality company stock is an attractive investment option. Those who cannot afford to buy company stocks may opt to own fractional shares and receive dividends.
Is your retirement ready for a natural disaster?
Clients in disaster-prone areas are advised to include the possible impact of natural calamities when planning for retirement, according to this article on MarketWatch. The average frequency of "billion dollar" disasters has doubled to 10.8 between 2010 and 2015 from 5.2 between 1980 and 2015. These natural catastrophes could be more costly to seniors than other demographics because of their reduced capabilities and places where they live.