Core Insights - The article discusses the importance of regular income and principal preservation for retirement goals, highlighting the role of Distributing Ladder ETFs as innovative solutions for cash flow management [1] Group 1: Distributing Ladder ETFs Overview - Distributing Ladder ETFs are designed to provide recurring annual cash distributions, addressing challenges such as inflation and taxes that individuals face in retirement planning [1] - Northern Trust Asset Management offers various Distributing Ladder ETFs, including the Northern Trust 2055 Inflation-Linked Distributing Ladder ETF (TIPD) and the Northern Trust 2055 Tax-Exempt Distributing Ladder ETF (MUND), which cater to different investment goals over a 30-year period [1] Group 2: Investment Strategy and Benefits - The laddered structure of these ETFs allows for consistent income and principal distribution, with assets allocated evenly across the 30 years leading to 2055 [1] - These ETFs aim to mitigate interest rate risk associated with bond investing while providing potential inflation protection and tax efficiency, making them suitable for retirement planning [1] Group 3: Additional Offerings - Northern Trust Asset Management provides a range of Distributing Ladder ETFs covering various time horizons, including 5 years and 20 years, allowing for tailored retirement goal planning [1]

(And if you need help evaluating your investment needs in retirement, work with a financial advisor .)These questions shape everything that follows. Until they're answered, it's impossible to know how much your portfolio needs to return or how much risk it can responsibly take. A portfolio that is appropriate for someone with substantial guaranteed income and modest spending needs will likely look very different from one designed to fully fund a retiree's lifestyle. Without this context, investment decision ...

More workers are adding side hustles in their retirement planning for income and to maintain a purpose in life. These steps can help get them off the ground. https://t.co/dZPz4GCZ2X (Photo: Getty Images) https://t.co/leFxtKd1aR ...

Core Insights - Social Security plays a different role in retirement planning depending on age and income level, with each generation facing unique retirement realities [1] Generation Z - Generation Z should view Social Security as a secondary component of their retirement planning rather than a foundational element [2] - This generation expects flexible work, personalized plans, multiple income streams, and digital financial tools, moving away from traditional employer-sponsored pensions [3] - Younger workers comfortable with digital wallets will benefit the most from the evolving retirement system [4] Millennials - For millennials and Generation Z, retirement strategies should not be built around Social Security; instead, focus should be on controllable factors like saving, investing, and creating income streams [5] Generation X - Generation X needs to adopt a more conservative approach to Social Security as they are closer to retirement and potential adjustments could significantly impact them [6] - This generation often lacks clarity regarding their various retirement accounts and holds substantial wealth in real estate, but has limited time to enhance their retirement savings [6]

Core Insights - The article discusses the complexities of planning for retirement, emphasizing the need for individuals to assess their financial readiness and understand various factors that influence retirement timing. Group 1: Financial Readiness - Sufficient resources are crucial for retirement, as Social Security only replaces about 40% of income, necessitating additional savings or income sources to cover the remaining expenses [4] - Individuals should evaluate their life expectancy, as many may live longer than anticipated, impacting the amount of savings needed for retirement [5][6] Group 2: Social Security Considerations - Understanding how Social Security treats earned income is essential, especially for those retiring before full retirement age (67), as earnings above $24,480 will result in a reduction of benefits [7] - Any withheld benefits due to early retirement will be recalculated and added back once the individual reaches full retirement age [8] Group 3: Spousal Benefits - For married individuals, it is important to plan for spousal benefits, as a spouse can claim up to 50% of the primary earner's benefit at full retirement age, which can be affected by early retirement decisions [9][10]

Core Insights - The article discusses Lisa's financial situation as she transitions from a nursing career to pursuing her dream of working with animals, highlighting the challenges she faces in retirement planning [1][3]. Financial Assessment - Lisa graded her financial readiness as a B+, while Suze Orman assessed it as a C- due to potential changes in her financial situation after leaving full-time work [2]. - Lisa's financials appear solid, with $311,000 in retirement accounts, $87,000 in emergency savings, and $430,000 in investments, alongside a monthly take-home pay of $3,000 and expenses of $2,707 [6]. Income Projections - Orman calculated that Lisa's assets would generate approximately $2,000 a month after taxes, and with a part-time income of $20,000 a year, she would still fall short of her $4,000 monthly target by $750 [4]. - Even with potential relocation to Oregon and shared housing, Orman projected a monthly shortfall of $165 [4]. Recommendations for Improvement - Orman advised Lisa to continue working full-time until age 60 to maintain health insurance and avoid early withdrawal from savings [7]. - Relocating to Oregon could help reduce monthly expenses [7]. - At age 60, Lisa should begin collecting Social Security survivor benefits of about $700 per month, and take a part-time job limited to $15,720 per year to avoid penalties [8]. - At age 67, transitioning to her own full Social Security benefit and dropping the survivor benefit could provide a sustainable income of around $4,100 per month after taxes [8].

Core Insights - The article emphasizes the often underestimated costs associated with Medicare, particularly healthcare expenses that retirees need to plan for, which can lead to significant out-of-pocket costs [4][9]. Medicare Costs - Medicare Part A has a deductible of $1,736 for inpatient hospital stays in 2026, an increase from $1,676 in 2025, while the average cost of a one-day hospital stay was $3,297 in 2024 [1][6]. - The average adjusted cost for an inpatient stay at community hospitals is $14,101, highlighting the financial burden on retirees [1]. Financial Planning for Healthcare - Financial experts warn that healthcare is the most unpredictable expense for retirees, as Medicare does not cover all medical needs, leading to additional costs for out-of-pocket expenses, deductibles, and long-term care [2][3]. - Fidelity Investments estimates that a retired couple will need approximately $345,000 to cover healthcare costs after age 65, underscoring the necessity of planning for these expenses [9]. Strategies for Managing Healthcare Costs - Recommendations include building a Health Savings Account (HSA) for tax advantages, setting up a dedicated health emergency fund, and considering long-term care insurance to protect against high costs [11][12][16]. - It is advised to obtain a robust Medigap policy to cover gaps in Medicare, as Original Medicare does not cover essential services like dental, vision, and hearing [7][8][21]. Income Management - Reducing modified adjusted gross income (MAGI) can help lower Medicare premiums, with strategies such as Roth conversions and charitable giving suggested for those nearing retirement [18][19].

Reed says it can be a challenge to be the only one left still working among her siblings and friends. They have to plan events around her work schedule.She also can’t afford the $6,000 per year it would cost to insure her home in New Orleans. She’s choosing to risk going without insurance, which means one hurricane could wipe out almost everything she has worked for (1).Today, Reed is on a firmer financial footing. She paid off her house and has income coming in from her two jobs. She receives $3,000 per mo ...

Quick Read SCHD invests in companies with strong dividend histories for steady income. JEPI writes call options against S&P 500 holdings to generate higher-yielding monthly income. MUB invests in investment-grade municipal bonds with federally tax-exempt interest payments. Investors rethink 'hands off' investing and decide to start making real money There's a reason a lot of people end up getting stretched thin financially in retirement. They expect Social Security to cover all of their bills onl ...

Core Insights - The age of Social Security eligibility is just one factor in determining retirement success, with financial sustainability, health care, and longevity being critical considerations [1] Group 1: Retirement Preparedness - 35% of pre-retirees report insufficient retirement savings to retire comfortably at their ideal age, while 34% fear outliving their savings [2] - Generation X, aged 45 to 60, is notably unprepared for retirement, with average savings of $6,000 for women and $13,000 for men, and only 14% having access to traditional pensions [3] - The ideal retirement age is considered to be 63, with the average retirement age currently at 62, which aligns with the earliest age for claiming Social Security benefits [4] Group 2: Social Security Concerns - Nearly 50% of Americans may be making significant mistakes regarding Social Security, which could lead to reduced benefits if they retire early [5][6] - The AARP indicates that 12% of men and 15% of women rely solely on Social Security for retirement income, raising concerns about the system's sustainability as the trust fund may deplete by 2033 [7] - The Social Security Administration warns that the OASI trust fund could be depleted by late 2032, earlier than previous estimates [8] Group 3: Longevity and Retirement Timing - The average life expectancy in the U.S. is 78.4 years, with many Americans living into their 80s and 90s, necessitating a larger nest egg for those retiring at 62 [9] - The ideal retirement window is suggested to be between 65 and 67 years old, allowing for additional savings and eligibility for Medicare, which reduces health care costs [21] - Retirement planning is not one-size-fits-all; individual circumstances such as health and savings levels can justify early retirement [22][23]