What Retirees Wish They Would Have Known

Facebooktwittergoogle_plusredditpinterestlinkedinmail

 
PSI Newsletter and Website Header 10.2.15

By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

Your employees have hopes and dreams about what their retirements will look like. Right now they are following a retirement planning path they hope will lead to a better way of life when they are no longer working. Unfortunately, there are many stumbling blocks and wrong turns they can experience on their journey. Recent studies have uncovered some important retiree regrets that you can share with your employees in your 401k education sessions to help make their paths to retirement more successful. [Read more…]

What Should You Budget For Retiree Healthcare Costs?

Facebooktwittergoogle_plusredditpinterestlinkedinmail

MMM Newsletter and Website Header 10.2.15I hope you had a great weekend! The kids in my school district go back to school this week!

LRPC’s Monday Morning Minute for this week, “What Should You Budget For Retiree Healthcare Costs?” (presented below) comes to you courtesy of Charles Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short piece I believe everyone can read in less than 60 seconds.

Funding our retiree healthcare expenses is an important piece of the puzzle most of us forget about. Don’t. Read the piece below to get a better handle on what you can expect in retirement relative to healthcare.

Have a wonderful week!

_______________________________

What Should You Budget For Retiree Healthcare Costs?

By Carrie Schwab-Pomerantz,  Charles Schwab & Co., Inc.

Key points

  • Even a healthy person will have substantial retiree healthcare costs.
  • Premiums for Medicare and supplemental insurance alone add up quickly, not to mention out-of-pocket costs and services that aren’t covered.
  • Being realistic and planning in advance will help protect both your physical and financial health.

There’s only one thing certain about retiree healthcare costs — you will have them. Even if you’re lucky enough to be consistently healthy, you’ll have to pay insurance premiums plus possible co-payments, as well as costs for things that insurance doesn’t cover. So factoring retiree healthcare expenses into your retirement planning is smart — and absolutely essential.

For a dose of reality, consider this stat from a 2016 report from Health View Services, a company that provides detailed projections of retiree healthcare costs. For an average, healthy 65-year-old couple retiring this year, retiree healthcare costs including insurance premiums, deductibles, co-pays, and costs not covered by insurance could total $377,412 in today’s dollars. Factor in inflation, and the figures go even higher.

That might sound a bit over the top, but when you consider that this represents only an annual cost of $6,290 per person over a 30-year retirement, it’s probably realistic. Here’s why… [Read more…]

Four Scary Retirement Statistics

Facebooktwittergoogle_plusredditpinterestlinkedinmail


PSI Newsletter and Website Header 10.2.15 
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

Recently ThinkAdvisor shared some scary retirement statistics from a report by the National Association of Government Defined Contribution Administrators, Inc. (NAGDCA). These retirement statistics paint an alarming picture of most American’s state of retirement readiness. I have shared four of the more troubling retirement statistics below, and then outlined four quick, low-cost solutions you can implement to help your employees. [Read more…]

Hottest Executive Benefit

Facebooktwittergoogle_plusredditpinterestlinkedinmail

 
PSI Newsletter and Website Header 10.2.15

By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

Looking for an important, new executive benefit to share with your leadership group? Something that can really make a difference? If you offer a High-Deductible Health Plan (HDHP) to your employees, all of your executives should be maxing out their contributions to their Health Savings Accounts (HSAs). Read on below to learn why. [Read more…]

Using HSAs In Retirement Planning

Facebooktwittergoogle_plusredditpinterestlinkedinmail

 
PSI Newsletter and Website Header 10.2.15By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

If you offer a High-Deductible Health Plan (HDHP) to your employees, they probably have the ability to contribute to Health Savings Accounts (HSAs). I believe that nearly everyone eligible to contribute to an HSA should max out their HSA contributions before making any 401k retirement plan contributions. Here’s why. [Read more…]

Six Social Security Facts You Should Know

Facebooktwittergoogle_plusredditpinterestlinkedinmail

 
MMM Newsletter and Website Header 10.2.15I hope you had a great weekend. Do you have all your holiday decorations up?

LRPC’s Monday Morning Minute for this week, “Six Social Security Facts You Should Know” (presented below) comes to you courtesy of ThinkAdvisor. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short piece I believe everyone can finish is less than 60 seconds.

Each one of us should strive to be a Social Security expert since the annuity we receive from Social Security may be the biggest piece of our retirement pie. To help educate you about Social Security, below are some important Social Security facts that you should be aware of.

Have a wonderful week!

_______________________________

Six Social Security Facts You Should Know

By Dan Berman, ThinkAdvisor

Social Security is based on a simple idea: pay for retirement benefits through payroll taxes levied on workers and employers. But that’s where the simplicity ends. Prospective retirees need to consider how to maximize their benefits and those of their spouses. Even the age when benefits are first collected has a great impact on how much is received each month. Here are a few Social Security facts from the Social Security Administration website and Shepherd Financial Partners. [Read more…]

Four New And Surprising Facts About Retirement

Facebooktwittergoogle_plusredditpinterestlinkedinmail


MMM Newsletter and Website Header 10.2.15
I hope you had a great weekend and for those of you who are dads, a wonderful Father’s Day!

LRPC’s Monday Morning Minute for this week, Four New And Surprising Facts About Retirement (presented below) comes to you courtesy of LifeHealthPro. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. If you are short on time, make sure you take a look at each of the four facts in bold.

I think that all of us hope to retire someday. You may be surprised at the information shared below. Hopefully one of these facts can help you or your employees with the planning process.

Have a wonderful week!

_______________________________

Four New And Surprising Facts About Retirement

By Emily Holbrook, Editor in Chief, National Underwriter Life & Health

We’ve heard it all before, retirees and pre-retirees are financially ill-equipped to make their savings — if any — last throughout their golden years. With more and more businesses cutting pensions, and health care costs and longevity continuing to rise with no foreseeable end, truly having enough savings for retirement can seem out of reach for many.

As LIMRA’s Secure Retirement Institute recently noted in their “Informing the Debate: Facts About Retirement Security” report, the biggest risk to Americans’ retirement security is their lack of savings. Half of baby boomers have less than $100,000 saved for retirement and more than a third have less than $25,000. These numbers are a terrifying wake-up call.

The following are a few more surprising retirement security facts revealed in the aforementioned LIMRA report: [Read more…]

Adding A Leg To The Three Legged Stool

Facebooktwittergoogle_plusredditpinterestlinkedinmail


PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

You probably have heard about the three legged stool approach to retirement planning. Historically financial planners had advised that retirees could expect to derive their retirement income from three sources: Social Security, corporate retirement plans and personal savings.

It was generally understood that each source of funds was responsible for providing 1/3 of the total living expenses required in retirement. Hence the three legged stool concept. Over the years the three legged stool approach was modified a bit as a result of: [Read more…]

Three Myths About Retirement Income Strategies

Facebooktwittergoogle_plusredditpinterestlinkedinmail


MMM Newsletter and Website Header 10.2.15
I hope you had a great weekend! Believe it or not, Thanksgiving is next week!

LRPC’s Monday Morning Minute for this week, “Three Myths About Retirement Income Strategies” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. If you are short on time, make sure you review the Key points section below.

All of us are hopefully saving for our retirements. What we invest in as we get closer to retiring becomes a key part of determining how long our money will last. Read on below to get some hints on how to structure your investments as you age.

Have a wonderful week!

_______________________________

Three Myths About Retirement Income Strategies

By Rob Williams, Charles Schwab & Company

Key points

  • We list three myths about retirement income strategies and explain why they’re not true.
  • Yield is not the most important factor to consider when building your retirement portfolio.
  • Individual bonds are not inherently better than bond funds.
  • Annuities are not necessarily bad for you, and can make sense as part of a larger retirement plan.

Investing for income in retirement is a challenge even for sophisticated investors. The path to a more secure retirement can be littered with stumbling blocks and pitfalls, and it can be hard to differentiate sound advice on retirement income strategies from red herrings. Here are a few myths about retirement income strategies and how we think about them. [Read more…]

Ten Ways To Save More For Retirement

Facebooktwittergoogle_plusredditpinterestlinkedinmail


MMM Newsletter and Website Header 10.2.15
I hope you had a great weekend. The leaves are at their peak color here in Wisconsin!

LRPC’s Monday Morning Minute for this week, “Ten Ways To Save More For Retirement” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short piece that I believe everyone can finish in less than a minute.

We all struggle with retirement savings. None of us is probably saving enough. Maybe one of these suggestions can help you save more.

Have a wonderful week!

______________________________

Ten Ways To Save More For Retirement

By Rande Spiegelman, Charles Schwab & Company

Key points

  • If your risk tolerance is conservative to moderate, consider aiming for a portfolio that’s approximately 25 times as large as your withdrawal during the first year of retirement.
  • If you’re behind on your retirement savings, your options include saving more now, spending less in retirement, retiring later or working part-time after you retire.
  • Avoid ramping up your portfolio risk or assuming your investments will produce an overly optimistic rate of return.

[Read more…]