Market Analysis by covering: Adams Diversified Equity Closed Fund, General American Investors Closed Fund. Read 's Market Analysis on Investing.com ...

Core Insights - Suze Orman emphasizes the importance of understanding potential challenges as retirement approaches, highlighting three key issues that could impact retirement plans Group 1: Continuing to Work for Pay - The Employee Benefit Research Institute's survey indicates that 75% of working individuals expect to earn money during retirement, but only 30% of retirees are actually doing so [2][3] - The disparity may arise from age differences, as those still working are likely to be younger retirees compared to those who are not working [3] - Economic factors also play a role, particularly the impact of earning income on Social Security benefits, where exceeding a certain income threshold can significantly reduce benefits [4][5] Group 2: Social Security Considerations - If retirees begin collecting Social Security before reaching full retirement age, they risk losing a portion of their benefits if their earnings exceed $23,400 [4][5] - An example illustrates that a retiree earning $50,000 while collecting Social Security could see their monthly benefit reduced from $2,000 to approximately $891.67 due to exceeding the income limit [5] - Conversely, a retiree earning below the threshold can retain their full Social Security benefits, as demonstrated by another example [6] Group 3: Planning Implications - The key takeaways suggest that individuals may overestimate their ability to work for pay in retirement, necessitating careful planning [7] - It is advisable for those intending to work post-retirement to delay taking Social Security benefits until reaching full retirement age to avoid reductions [7]

Core Points - Collecting Social Security benefits does not require individuals to stop working, but earnings can impact the benefits received [1][2] - Understanding the earnings limits is crucial for balancing work and retirement income without unexpected reductions [2] Earnings Limits for 2025 - The earnings limit for individuals under full retirement age (FRA) in 2025 is set at $23,400, an increase from $22,320 in 2024 [3] - For those reaching FRA in 2025, the limit is $62,160 for the year of reaching FRA, up from $59,520 in 2024 [3] Impact of Earnings on Benefits - If earnings exceed the limit while under FRA, benefits will be temporarily reduced at a rate of $1 for every $2 earned over the limit [5][6] - For example, a 63-year-old earning $28,400 would exceed the limit by $5,000, resulting in a $2,500 reduction in benefits for that year [6] Recalculation of Benefits - Once individuals reach FRA, the Social Security Administration will recalculate benefits to account for any previously withheld payments [4][7] - For those turning 67 in September 2025, if they earn $70,160 before reaching FRA, they would lose $2,667 in benefits, equivalent to one month of payments [8] Strategic Considerations - Working while collecting Social Security can be financially beneficial, but planning is necessary to manage potential temporary reductions in benefits if earnings exceed the limits [9]

Core Viewpoint - Investors have various excellent options to grow their retirement savings and generate significant passive income streams during retirement [1] Group 1 - The focus is on retirement planning and the importance of passive income generation [1]

Core Insights - The article emphasizes the importance of creating a comprehensive retirement budget that accounts for both income sources and expenses, highlighting the variability of expenses such as healthcare and long-term care costs [2][3] Income Considerations - A couple planning to retire at age 65 may rely on $1.9 million in retirement accounts to generate investment-based income, with the potential for growth if retirement is delayed [3][4] - Waiting until full retirement age at 67 can increase Social Security benefits, contributing to a more solid retirement income [4] Withdrawal Strategy - The 4% rule suggests that a safe withdrawal rate from retirement investments is 4% annually, which translates to an initial withdrawal of $76,000 from a $1.9 million portfolio, adjusted for inflation in subsequent years [5][6] - If inflation is 3%, the withdrawal in the second year would increase to $78,280 [6] Total Income Projection - Combined Social Security benefits of $62,400 annually, along with the investment withdrawal, would result in a total income of $138,400 in the first year, providing flexibility for retirees [7] Spending Needs - An annual income of $138,400 is generally adequate for a comfortable lifestyle for many retirees, with a rule of thumb suggesting that post-retirement income needs may range from 70% to 90% of pre-retirement income [8]

Core Insights - An average of 69 million Americans will receive a monthly Social Security benefit in 2025, totaling $1.6 trillion, with 58.1 million people aged 65 and older receiving an average monthly check of $1,975, amounting to $102.3 billion in benefits [1] Group 1: Social Security Benefits - The Social Security Administration (SSA) projects that 69 million Americans will receive benefits in 2025 [1] - The total benefits distributed will reach $1.6 trillion [1] - Among recipients, 58.1 million individuals aged 65 and older will receive an average monthly benefit of $1,975 [1] Group 2: Strategies for Maximizing Benefits - Seniors can optimize their Social Security benefits by tapping into spousal benefits, potentially receiving up to half of the higher earner's benefit at full retirement age [4] - Divorced individuals may claim benefits from a former spouse if it is higher than their own, and those who are widowed can receive their deceased partner's benefit if it exceeds their current benefit [5] Group 3: Earnings Limits - For those who have reached full retirement age, there are no earnings limits; however, early retirees face a limit of $23,400 in 2025, with benefits reduced by $1 for every $2 earned over this limit [6] - In the year an individual reaches full retirement age, Social Security deducts $1 in benefits for every $3 earned above the annual limit, but only considers income up to the month before reaching full retirement age [7]

Global Retirement System Challenges - The world could face a $400 trillion shortfall in retirement savings by 2050 [1] - Every country's retirement system is unique, shaped by its specific development path [1] US Retirement System Analysis - The US retirement system has both strengths and weaknesses [4] - The US has a progressive benefit formula in its social security program, benefiting lower-wage earners [4] - The US saves more than most other countries and has among the highest retirement incomes globally [6] - The US has significant assets in defined contribution plans and some defined benefit plans [3] Potential Reforms and Considerations - Mandatory defined contribution systems may face resistance in the United States [2] - Instead of focusing solely on features, the US retirement system should be evaluated based on its results [5] - The pension index aims to facilitate understanding of what works and what needs improvement in retirement systems [5]

Company Information - Fidelity Brokerage Services LLC is a member of NYSE and SIPC [1] - The company's address is 900 Salem Street, Smithfield, RI 02917 [1]

Tax Implications for Retirement - Highlights 18 U S cities where 401(k) and pension withdrawals are not taxed by the state [1] Retirement Planning - Suggests relocating to specific U S cities to potentially save money on taxes during retirement [1]

Core Insights - Different financial goals at various life stages necessitate the ownership of different exchange-traded funds (ETFs) [1] Summary by Category - Financial Goals - Individuals have varying financial objectives throughout their lives, which influences the types of ETFs they should own [1]