Retirement Income Center

If you’re planning for retirement and you want to receive sustainable lifetime income beginning at a future date, deferred income annuities (DIAs) and fixed index annuities (FIAs) with income riders are potential suitable choices. These are the two types of deferred fixed income annuities that are sold by life insurance companies. The question is which […] The post Deferred Income Annuities Comparing More Favorably with FIAs with Income Riders appeared first on Retirement Income Center.

Deferred income annuities, or DIAs, are one of the two types of deferred fixed income annuities sold by life insurance companies, the other being fixed index annuities, or FIAs, with income riders. DIAs are the simpler of the two products to understand and are often the most suitable choice in many situations. A DIA is […] The post Optimize Deferred Income Annuity Pre- and Post-Income Start Date Payout appeared first on Retirement Income Center.

A RetireMentors column of mine from July 2014 regarding a Social Security loophole’s huge windfall opportunity, discussed a relatively unknown application of the file-and-suspend strategy whereby single individuals could, in effect, insure their retirement benefits. The file-and-suspend strategy was effectively eliminated by the Bipartisan Budget Act of 2015 that was signed by President Obama on […] The post Social Security loophole’s windfall opportunity repealed appeared first on Retirement Income Center.

The Bipartisan Budget Act of 2015 that was fast-tracked (think bullet train) and passed by Congress last week and signed by President Obama yesterday includes provisions that will permanently reduce Social Security benefits for millions of people. The bill comes on the heels of Social Security Administration’s October 15th announcement that there will be no […] The post Social Security Benefits Take Another Hit appeared first on Retirement Income Center.

The Social Security Administration threw a wrench into a lot of retirees’ plans on last Thursday when it announced that there will be no cost of living adjustment, or COLA, for Social Security benefits in 2016. In addition to retirees’ Social Security income remaining flat, approximately 30% of Medicare beneficiaries will face an increase of […] The post Don’t let higher Medicare premiums derail your Social Security plan appeared first on Retirement Income Center.

Although the Dow Jones Industrial Average (DJIA), with its close of 16,472 on Friday, is up 1,000 points from its August 24th low of 15,370, it’s still down almost 2,000 points, or 10%, from its May 19th high of 18,351. Putting things in perspective, a 10% decline is an overdue correction given the fact that […] The post It’s a Good Time to Own a FIA with an Income Rider appeared first on Retirement Income Center.

What is the only tax-deductible and tax-free investment not subject to IRS’ minimum distribution requirements and income limitations? While several possibilities come to mind, you will see shortly that there’s one clear-cut winner. Candidates Let’s look at some candidates, starting with 401(k) plans. Traditional 401(k) plan contributions are deductible and grow tax deferred. Distributions are […] The post Investing in your health can be your best way to avoid taxes appeared first on Retirement Income Center.

It’s never too early to start planning for retirement. Even if you’re 30 years old, you need to start thinking about the fact that one day — whether it’s when you’re 60, 65, or 70 — you will be unemployed for potentially 30 to 40 years. How do you plan for something that may not […] The post Retirement Income Planning 10-Step Checklist appeared first on Retirement Income Center.

I was recently asked by CNBC personal finance writer Tom Anderson, who was writing a story on qualified longevity annuity contracts, or QLACs, “What are the biggest mistakes clients make when buying QLACs?” My answer, which was quoted in Tom’s September 9th An Option for Those Who Fear Outliving Their Money article, was not purchasing a […] The post Don’t Defer Your QLAC Purchase appeared first on Retirement Income Center.

Here we go again. I’m not talking about the Ray Charles country music standard that was popularized as a rhythm-and-blues duet with Norah Jones and earned them (posthumously for Charles) a Grammy Award for Record of the Year in 2004. I’m referring instead to the recent thrashing of the stock market. With its drop of […] The post Depressed markets provide opportunities for Roth IRA conversions appeared first on Retirement Income Center.

A new client recently asked me, “Do most of your clients reduce the equity allocation of their investment portfolio as they get older?” I began my answer with the proverbial, “It depends.” I told him that while many of my clients reduce the equity portion of their investment portfolio as they approach retirement, this isn’t […] The post How to design the ideal retirement portfolio appeared first on Retirement Income Center.

If you're approaching, or are in, retirement, or if you're more sensitive to loss than to gain, FIAs may be an appropriate choice for a portion of your investment portfolio. Don't underestimate the power of zero. The post Don’t Underestimate the Power of Zero appeared first on Retirement Income Center.

For individuals concerned about longevity who are looking for a sustainable source of income they can't outlive, fixed income annuities are an appropriate solution for a portion of a retirement income plan. The post Looking for a Deferred Fixed Income Annuity on Steroids? appeared first on Retirement Income Center.

When the Dow Jones Industrial Average closed at 18,000 last Wednesday, it marked the 12th time that the index traversed this level. Similar to most of the other events, it was short-lived, retreating to 17,899 on Friday. Unlike the previous two barriers of 17,000 and 16,000, which were overcome after eight and three traversings, respectively, […] The post Will 13 be the Dow’s lucky number? appeared first on Retirement Income Center.

One of the reasons that many people don't defer the start date of their Social Security benefits beyond their full retirement age is the belief that their increased benefits will get eaten up by Medicare premium increases. This is not true. The post Deferring Social Security Helps Pay Medicare Part B Premiums appeared first on Retirement Income Center.

With the Dow Jones Industrial Average closing at yet another record high on Tuesday, there are a lot of people wondering when the stock market is going to reverse its upward course. This is natural given the fact that the closing price of 18,312 represents a gain of over 11,700 points since the March 9, […] The post Retrofit your portfolio before the next market crash appeared first on Retirement Income Center.

When the Medicare Access and CHIP Reauthorization Act of 2015, commonly known as the “doc-fix” legislation, becomes law, some Medicare participants will pay 30% more for their Part B premiums. The legislation, which was decisively passed by the House on March 26 and the Senate on April 14 is expected to be signed by President […] The post Medicare Part B premiums increasing up to 30% appeared first on Retirement Income Center.

Make sustainable income a cornerstone of your portfolio beginning at 45. The post Make Sustainable Income a Cornerstone of Your Portfolio Beginning at 45 appeared first on Retirement Income Center.

If you want peace of mind when you retire, you need to have a plan that will generate sustainable income streams that will cover most of your fixed and discretionary expenses. The post Looking for a Pension with a Flexible Start Date? appeared first on Retirement Income Center.

One of the incentives for saving for retirement for self-employed individuals is the tax deduction for retirement plan contributions. A popular choice is the simplified employee pension, or SEP, plan. Deductible contributions of up to 25% of net self-employment income, with a limit of $52,000 for 2014 and $53,000 for 2015, may be made to […] The post 5 benefits of a capital gains retirement strategy appeared first on Retirement Income Center.