Retirement
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X @Investopedia
Investopedia· 2025-09-20 12:00
Retirement Planning - The Midwest offers attractive retirement destinations due to a low cost of living [1] - Affordable housing prices are a key factor in the Midwest's appeal for retirees [1] - Retirement in the Midwest provides access to amenities and cultural activities [1]
X @The Economist
The Economist· 2025-09-19 08:00
Baby-boomers are keeping their bad habits into retirement https://t.co/Gk49oxqwAP ...
If I Could Tell Retirees 1 Thing About Social Security Right Now, It Would Be This
Yahoo Finance· 2025-09-18 10:45
Group 1 - Social Security serves as a safety net for retirees, aimed at preventing poverty rather than providing a luxurious retirement [3][4][7] - The Nationwide Retirement Institute's 2025 Social Security Survey indicates that approximately 52% of retirees have reduced discretionary spending due to inflation [4][5] - As basic costs rise, retirees are increasingly relying on savings to cover the gap between their expenses and Social Security payments, with about 30% of respondents dipping into savings accounts or retirement funds [5][6] Group 2 - The trend in retirement planning has shifted from company-provided pensions to 401(k) plans, placing more responsibility on employees to save for retirement [6][7] - Social Security payments are not sufficient to cover all living expenses, highlighting the need for additional savings and financial planning for retirees [4][6]
X @The Economist
The Economist· 2025-09-18 05:40
Baby-boomers are keeping their bad habits into retirement https://t.co/sl1cJesxl6 ...
I’m a widow with $4.5 million. I spend $20,000 a month. Can I afford to retire?
Yahoo Finance· 2025-09-17 17:18
Financial Position - The individual has a total net worth of approximately $6 million, with a home valued at $1.3 million that is fully paid off, and a low-interest HELOC of $190,000 [5] - The investment portfolio includes $4.5 million across IRAs, money markets, and a 401(k), along with a whole-life insurance policy worth $400,000 in death benefits [5] Income and Expenses - Current annual income ranges from $350,000 to $400,000, with monthly spending around $20,000, which includes expenses for college tuition and supporting children [2][8] - Anticipated financial relief is expected as college tuition payments will conclude in the next two years [8] Retirement Considerations - The individual is contemplating retirement at age 59, feeling well-positioned due to their financial status, but facing skepticism from others regarding this decision [7][8] - The 4% withdrawal rule suggests that with a $4.5 million portfolio, an annual withdrawal of $180,000 would be feasible, equating to $15,000 monthly, which is $5,000 less than current spending [9][10] Investment Strategy - The individual has a robust return on assets with a compound annual growth rate of about 17%-18%, although market volatility is acknowledged as a potential risk [1][13] - Caution is advised against higher spending in the early years of retirement, as it could deplete account balances sooner [11][12] Rental Income - A one-bedroom apartment addition to the home could generate rental income of $3,000-$3,500 monthly, though the individual prefers to reserve it for friends and family rather than becoming a landlord [4][14] Social Security - Decisions regarding Social Security benefits require personal reflection, with the earliest claiming age being 62, which results in reduced benefits compared to waiting until Full Retirement Age [15][16] Lifestyle and Future Planning - The individual expresses a desire to live life to the fullest following personal losses, indicating a shift in perspective towards retirement and lifestyle choices [6][8] - Suggestions for maintaining income while transitioning to retirement include part-time work or "mini retirements," allowing for flexibility and exploration [17][19]