On this episode of Decoding Retirement, host Bob Powell discusses executive retirement with Amy Permenter, executive wealth strategist for Bank of America, revealing the essential steps to take to ensure your golden years are as successful as your working years. Amy speaks about the importance of understanding your company's benefits, navigating identity transition, and preparing for potential out-of-pocket healthcare costs. You don't have to be an executive to benefit from the practical retirement advice o ...

financial services, capital markets, I mean hundreds of years old. This company was really rooted in a lot of it. And and when you think about innovating in again old industry, it's no different than with TIAA.Like I said, we invented the annuity, but how do we make sure that that 23y old or 25year-old understands that they may live to 100 years old, right. How do you engage them to say, "Hey, you don't have to understand every nuance of the sharp ratio or what asset allocation means, but you better make su ...

I’ve received letters from the thrift savings plan (TSP) and from my IRA holder that I am subject to RMDs this year. I’ve also been advised that converting these qualified funds to annuities and beginning distributions (which would then be completely taxable) satisfies the RMD requirements, which would then no longer apply. What are your feelings about converting qualified funds to annuities? – Robert   Required minimum distributions, or RMDs. The much-maligned and largely unavoidable bane of retirees' exi ...

We analyzed income, sales, and property taxes nationwide to find six U.S. charming towns offering retirees the lowest overall tax burdens. https://t.co/D0R0zFAjfA ...

Core Insights - The individual is considering retirement at 65 with a total of $400,000 in savings and retirement funds, alongside a monthly rental income of $2,200 and Social Security benefits of $700 [1][2] - The monthly expenses for taxes and insurance on the properties amount to $1,200, leading to a net rental income of $1,000 after expenses [2][5] - Delaying retirement by one year could increase the monthly pension from $3,600 to $4,600, providing a significant boost to retirement income [2][6] Financial Analysis - Selling the rental properties could yield approximately $500,000, which if invested in the S&P 500 with an average return of 7% could provide an annual withdrawal of $20,000, or $1,667 monthly, for over 30 years [5] - The average monthly spending for individuals aged 65 and older is around $4,345, indicating that the current income may not sufficiently cover potential retirement expenses [6] - The decision to continue working, even part-time, is advised if there are concerns about affording desired retirement activities, as it allows for continued contributions to Social Security [7]

Core Insights - A significant concern for preretirees is the fear of outliving their savings, with 53% expressing this worry according to the Schroders 2025 US Retirement Survey [1] Financial Requirements - Experts suggest that individuals need approximately 80% of their pre-tax earnings to maintain their standard of living post-retirement, which for Darren translates to $4,667 monthly [2] - Darren believes he can retire comfortably with a combination of Social Security benefits and additional income, estimating he will receive nearly $1,700 monthly from Social Security and an extra $2,000 [2] Savings and Withdrawal Strategy - Using the 4% rule, Darren's $500,000 savings would yield about $1,667 monthly, which is insufficient for his needs, prompting the search for alternative income sources [3] Retirement Delay Options - Delaying retirement is a viable option, as nearly 25% of Americans choose to do so, which can help reduce the amount needed from savings and increase overall savings [4] - Contributing maximally to retirement plans, especially if employer matching is available, can significantly enhance retirement savings. In 2025, Darren can contribute up to $31,000 to his 401(k), or $77,500 including employer contributions [5] Social Security Benefits - Delaying retirement can also lead to increased Social Security benefits. If Darren postpones retirement until age 66, his monthly benefit would rise to approximately $1,850, and if he waits until 67, it would exceed $2,000 [6]

Core Insights - Companies are increasingly offering student loan repayment matching programs to enhance employee loyalty and assist millennials in managing their debt while saving for retirement [1][2] Group 1: Millennial Concerns - Millennials are facing significant financial pressures, with an average student loan debt of around $40,000, which often hampers their ability to save for retirement [2] - A survey by BlackRock indicates that 72% of millennials would remain with their current employer if their 401(k) plan included matching for student loan payments [2] Group 2: Gen Z Challenges - Gen Z workers express a lack of understanding regarding investments, with approximately 63% admitting they do not feel confident managing their own savings [4] - The gap in financial literacy among Gen Z is critical, as early investment decisions significantly impact long-term wealth accumulation [4][5] Group 3: Gen X and Baby Boomers - Gen X is the most likely generation to save consistently for retirement but feels uncertain about their financial future, with nearly 75% believing they won't have the same retirement savings certainty as previous generations [6] - For baby boomers, the need for secure income streams in retirement has become increasingly important, with 85% stating that guaranteed income is more crucial than they initially thought [9] Group 4: Retirement Products and Solutions - Annuity sales reached a record high of $385 billion in 2023, reflecting a 23% increase from the previous year, driven by market volatility and rising healthcare costs [10] - A gold IRA offers a way to invest in precious metals while enjoying tax advantages, providing a hedge against inflation and market volatility [7][8] Group 5: Unique Challenges for Women and Independent Savers - Women are particularly concerned about outliving their retirement savings, with 65% expressing this worry compared to 57% of men, influenced by factors like longer life expectancy and the gender pay gap [13][14] - Among independent savers, 56% reported holding retirement savings in cash, which may not keep pace with inflation, highlighting the need for smarter investment decisions [15]

Core Insights - The article discusses the importance of Health Savings Accounts (HSAs) for long-term investment and retirement planning, highlighting their tax benefits and the growing trend of investing HSA funds [1][6][4] HSA Overview - As of December 31, 2024, over 59 million Americans had an HSA, with the expansion of HSA eligibility due to recent legislative changes [3] - HSAs provide triple-tax benefits: contributions are tax-deductible, funds grow tax-free, and withdrawals for medical expenses are tax-free [6] Investment Trends - Despite the tax advantages, most HSA participants do not invest their funds, with only 20% investing in 2024, an increase from 18% in 2023 [8] - Two-thirds of employers offered investment options for HSA contributions in 2024, but minimum balance requirements hinder participation [8][7] Retirement Costs - The average healthcare cost for a 65-year-old retiring in 2025 is projected to be $172,500, reflecting a more than 4% increase from 2024 [4] - The rising costs of medical expenses in retirement underscore the importance of utilizing HSAs for long-term savings [4]

Core Insights - The average retirement duration is increasing, yet many baby boomers are not adequately planning for long retirements, with 57% intending to retire between ages 60 and 69 and 46% expecting to live to age 90 or older, but only 9% planning for a retirement lasting over 30 years [1][2] Group 1: Retirement Planning - Failing to prepare for a long retirement is identified as a common mistake among baby boomers, which could lead to financial difficulties [2][5] - The risk of running out of money in retirement is significant if longevity is not considered in financial planning [3][4] - Many Americans lack a basic understanding of longevity, which contributes to insufficient savings for retirement [5][6] Group 2: Longevity Risk - Longevity risk is one of the four major risks threatening retirement security and can be mitigated with proper planning [6] - The increase in life expectancy by 17 years since the introduction of Social Security necessitates strategies that ensure retirement income lasts as long as individuals do [8]

Core Insights - Current spending habits can predict retirement financial needs, emphasizing the importance of planning based on present expenses [1][2] Group 1: Retirement Planning - To create a retirement budget, individuals should accurately track monthly spending, excluding work-related expenses and including retirement-related costs like travel and healthcare [3] - A general guideline suggests needing 25 times the current annual expenses in investments to retire comfortably, with a Safe Withdrawal Rate (SWR) of 4% [3][4] - Adjusting current spending for inflation is crucial, with a recommended rate of 3% for planning purposes, particularly for healthcare and lifestyle expenses [5] Group 2: Spending Patterns in Retirement - Spending patterns in retirement typically follow a "retirement smile," where initial spending is higher due to fulfilling bucket list items, tapering off, and then increasing again due to long-term care costs [6] - Certain expenses are expected to decrease in retirement, such as work-related costs, mortgage payments, and child expenses, while travel, healthcare, and leisure spending are likely to rise [7]