Part of retirement planning includes knowing how much you stand to get from Social Security, and how that may or may not be taxed depending on where you live. https://t.co/pRbZZK7Gwz ...

Core Insights - The partnership between Goldman Sachs and T. Rowe Price aims to enhance individual investors' access to private markets through alternative investment products by late 2025, with retirement account solutions to follow in 2026 [1][9] - This initiative is a response to an executive order that expanded 401(k) plans to include private credit and private equity, potentially unlocking access to approximately $9 trillion in U.S. retirement savings [2] - Goldman Sachs will invest up to $1 billion in T. Rowe Price to strengthen their collaboration and co-develop new offerings [3][9] Product Development and Rollout - The rollout of alternative investment products will occur in stages, starting with affluent clients and later expanding to retirement savers [7] - Retirement products will initially feature small allocations to alternatives, decreasing as investors approach retirement, while specialized portfolios will combine private credit, private equity, and traditional public investments for affluent clients [4] Liquidity and Transparency Measures - To address liquidity and transparency concerns, retirement products will include daily pricing and limited liquidity options, with alternative investments potentially representing 10%–20% of retirement portfolios in the long term [5] Management Perspectives - Goldman Sachs' head of Wealth and Asset Management highlighted the goal of making these products accessible to a broader audience beyond large institutions and high-net-worth individuals [6] - T. Rowe Price's CEO expressed confidence in having various products available by mid-2026, emphasizing the importance of liquidity and daily pricing for individual investors [6] Market Context - The initiative represents a significant step in integrating alternative investments into mainstream retirement and wealth planning, combining Goldman's expertise in private markets with T. Rowe's retirement planning experience [7] - Over the past year, Goldman Sachs shares have increased by 61.8%, outperforming the industry growth of 49.3% [8]

Core Insights - Kevin O'Leary suggests that $500,000 can provide a comfortable lifestyle through passive income, with potential returns of 5% from fixed income or 8.5% to 9% from equities [2][3] - The average American believes they need $1.26 million for a comfortable retirement, significantly higher than O'Leary's figure [5] - Median retirement savings are substantially lower than both O'Leary's and the average American's expectations, with households aged 55 to 64 having only $185,000 saved [6] Investment Strategies - O'Leary advises against investing in high-risk ventures or emotional decisions, emphasizing the importance of smart investment choices [3] - Options like Arrived allow for passive investment in single-family rental homes, providing income without the responsibilities of being a landlord [4] Market Context - The disparity between O'Leary's $500,000 figure and the average retirement expectation highlights a potential gap in financial planning among Americans [5][6] - The Federal Reserve's data indicates that many households are far from achieving the savings needed for retirement, with younger age groups holding particularly low amounts [6]

Core Insights - Generation X, aged 45 to 60, is approaching retirement, necessitating a focus on retirement savings, estate planning, and overall financial health [1] Group 1: Retirement Contributions - Increasing retirement account contributions annually is essential for building a solid foundation for retirement [3] - Financial advisors recommend contributing at least 3% to 4% of salary to employer retirement plans, gradually increasing by 1% to 2% each year [4] - Taking advantage of employer matching contributions and considering Roth options in 401(k) plans is advised due to historically low tax rates [4] Group 2: Investment Strategies - Maintaining a diverse investment portfolio is crucial for shielding assets from market volatility and reducing risk [5] - A well-diversified portfolio across all market sectors can promote long-term growth [5] Group 3: Debt Management - Paying off existing high-interest debt is vital to enhance financial freedom and increase available cash in retirement [6] - Implementing a debt reduction strategy is essential, as carrying debt can limit financial flexibility [6]

Core Insights - A significant portion of workers, 67%, express confidence in their retirement savings, while approximately one-third remain anxious about their financial readiness for retirement [1] Financial Assessment - Linda and Tom have total assets of $854,746, with a net worth of $833,178 after accounting for $21,568 in debt [3] - Their monthly income after taxes is $10,815, with average monthly expenses of $6,098, allowing for savings of $1,709 and discretionary income of $3,008 [4] - Estimated retirement expenses are projected to remain around $6,000 per month after taxes, indicating a favorable financial outlook [4] Income Sources in Retirement - Tom will receive a pension of $2,031 per month after taxes, while Linda earns $5,000 monthly and may work two additional years, resulting in a combined income exceeding their expenses [5] - After Linda's retirement, their combined monthly income from pensions and investments is projected to be $8,119, which is approximately $2,000 more than their estimated needs [5] Savings Breakdown - Retirement savings total $567,489, with an emergency fund of $59,954, investments of $41,303, and home equity valued at $186,000 [6]

Retirement Security & Global Ranking - Norway ranks number one in retirement security, followed by Ireland, Switzerland, and Iceland [2] - The US ranks 21st with a C grade (70 average) in retirement security [2] - Smaller countries are perceived to have an easier time implementing programs that enhance retirement security [3] Concerns & Challenges - People are afraid of running out of money in retirement and are concerned about the future of social security and government benefits [5] - 67% of people believe inflation will erode the future value of their savings [5] - 20% (one in five) of people feel a miracle is needed for a secure retirement [5] Planning & Solutions - A retirement plan should involve saving more money, cutting expenses, and understanding long-term retirement costs [7] - Utilizing online calculators and professional services can aid in developing a retirement plan [7] - The "80% of income" rule is a goal to work towards, providing a benchmark for retirement income needs [8] Alternative Approaches - Some individuals are considering "mini retirements" or relocating to countries with lower costs of living [12][13]

Core Insights - The use of Sankey diagrams is gaining popularity among budgeting software companies as a tool to visualize cash flows, particularly appealing to younger users [1][9][17] - RightCapital has integrated Sankey diagrams into its software based on user demand, highlighting their effectiveness in illustrating complex financial scenarios [10][19] Company Insights - Monarch, a budgeting software company, utilizes Sankey diagrams as its primary marketing tool, indicating their effectiveness in engaging users [1] - RightCapital's vice president of marketing emphasizes the utility of Sankey diagrams in retirement planning, showcasing various income sources and their flows [2][3] - Boldin, a DIY retirement-planning software company, acknowledges the potential of visualizations like Sankey diagrams to enhance user understanding of financial data [9] User Engagement - There is a DIY movement on platforms like Reddit where users create and share their own Sankey diagrams for personal finance evaluation [7] - Users like Jake Lazaroff have taken the initiative to create custom Sankey diagrams to visualize their financial data, demonstrating a growing interest in personalized financial tools [8] Financial Planning - Sankey diagrams help users understand the flow of income and expenses, making complex financial information more accessible compared to traditional charts and spreadsheets [5][19] - The diagrams can illustrate different retirement scenarios, such as the impact of starting Social Security at various ages, aiding in strategic financial planning [12][15][18]

Seven years from retirement, Ellen and Charlie face a tempting choice: buy a Florida vacation home now, or wait until their finances are more secure. On the surface, the idea seems idyllic. The couple, both in their late 50s, dream of escaping harsh winters and creating a legacy property they can one day pass on to their only daughter. But the timing is complicated. Their primary mortgage still has $120,000 outstanding, and while they’ve saved $400,000 toward retirement, their nest egg will need to stretc ...

Core Insights - The article discusses the increasing interest in long-term care insurance (LTC) as people age and the associated costs of premiums [2][3][5] - It highlights the financial situation of a 64-year-old man considering LTC insurance, including his savings and income sources [1][7] - The article emphasizes the importance of applying for LTC insurance at a younger age and in good health to avoid higher premiums [6][8] LTC Insurance Costs - LTC insurance premiums rise significantly with age; for example, a 60-year-old man pays approximately $249 monthly, which increases to $676 by age 79 [2][6] - Women face even steeper premium increases, with average monthly premiums nearing $1,300 by age 79 [3][5] - Premiums are influenced by various factors, including age, gender, location, and health conditions [5] Financial Implications - The 64-year-old man's estimated LTC premium at age 65 is $313 per month, amounting to an annual cost of $3,756 [7] - This premium represents about 16% of his monthly Social Security income and only 0.02% of his 401(k) balance, indicating a manageable financial impact [8]

Core Viewpoint - The termination of Kodak's pension plan will further reduce the number of employers offering pensions, impacting approximately 35,000 participants who relied on it for retirement funding [1] Group 1: Impact on Employees - Employees who are mid-career will face significant savings shortfalls due to the pension termination, while retirees and near-retirees may not feel much immediate effect [2][3] - The accrual of pensions follows a "hockey stick" curve, meaning that if the pension is terminated early, employees miss out on substantial long-term increases in their pension benefits, potentially receiving only 10% to 15% of what they would have accrued [4] Group 2: Strategies for Retirement Planning - To mitigate the impact of pension terminations, retirees and near-retirees should focus on growing their savings at a rate higher than their withdrawals to build a nest egg that can cover inflation and long-term healthcare costs [5] - For those still years away from retirement, it is advisable to enroll in a 401(k) or other retirement plans as soon as possible and to create a retirement plan to determine annual savings and investment strategies [6] Group 3: Importance of Investment Growth - An example illustrates the importance of investment growth: saving $10,000 annually for 30 years in a savings account at 2% interest results in $405,500, while investing in a high-quality portfolio earning 7% yields $944,600 [7]