7 tips for people retiring in 2013

You've saved for retirement for years. But if you're considering retiring this year, here are 7 crucial moves to make before you take the next step.

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63Comments
Mar 5, 2014 11:35PM
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Max out you 401k your Roth IRA, and stock pile cash.. only retire if you can't work anymore or think you'll honestly be happy NOT WORKING.  Also, invest in a good whole life policy (for example - i pay 50/month for 2 million in benefits from LifeAnt.. and it pays dividends)... and also stay healthy (you don't want to be blasted with medical bills)
Feb 25, 2013 5:20PM
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I am retired at fifty-six .I spend thirty one years in the military. My personal experience retiring early was my calculation on my expenses, housing medical and food. My income for the next twenty was based on how much my retirement check would be. My medical is for life with the second insurance of medicare at sixty-five. My home and my vehicle is paid for,You should have at least forty thousand dollars a year to lived comfortable. To many folks was thinking that their social security would be enough to live without any additional income.
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I retired early at 23 with 100 percent disability from the Air Force. I'm 56 now and I still hAVE no IDEA what I'm doing.
Feb 25, 2013 3:40PM
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check social security break even age and decide chances of living long enough.  the break even for starting SS at 62 vs 66 is 85 yrs old.  each yr SS is delayed adds 8% - nice growth in current recession years. 
Feb 25, 2013 3:40PM
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So many of hte "younger generation" have been aborted....
Feb 25, 2013 3:10PM
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My in laws paid the house off only to be hit every year with sky rocketing property taxes and nothing to write off.  I don't know if I would advise paying off the mortgage.  Let that be the one item of debt because its the one item where mortgage interest can be written off.
Feb 25, 2013 2:19PM
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One step that needs to be considered if your financial health prior to retirment.  Before retirement, if you are struggling with debt then bankruptcy shoudl be considered so that you can start retirement with a fresh financial start.  Retirement funds are protected in bankruptcy and retirees should use their retirement they worked so long to obtain to enjoy their life not stress about finances

 

See  for more information on this topic!

Feb 25, 2013 2:02PM
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I've been retired since mid '95 and have maintained my economic status and actually gained somewhat.  The biggest items you have to deal with are 1) governmental spending at every level and the taxes these result in and, 2) the inaccuracy of the CPI and any income adjustments made using that number. For the former, if you attend township, city council, school board, etc. meetings, be prepared to hear the expression, "If you can't afford to live here, you should move".  Do your best to ignore the fools.  For the price increases, the only solution is to recognize that they will likely be closer to twice the quoted values.  Plan for it!

Basically, keep your investments conservative,  do not rely too much on financial advisors; you are the one responsible and many times they are no better than the proverbial dart board,  and watch your expenditures.  Is that new car, trailer, camera, etc. really wise?  Do you need that vacation home?

Feb 25, 2013 1:14PM
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Whhaaatttt.... If you do not take some $$$ out of your 401K at 70 1/2 somebody is going to steal 50% of what you should have taken for yourself???????????? Who made that rule???????
Feb 25, 2013 12:13PM
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I retired three weeks ago at 58 years of age.  I had been planning my retirement for many years and although I will not be living the rich life I will be comfortable.  My living expenses will be $2500.00 a month which will be covered by my pension.  My advice has always been to pay off all credit cards/car loan and stop buying all un-necessary items and do not keep upgrading your phone and cable.  I have basic cable but will give that up next month, a waste of time and my telephone is basic too with no apps, texting, etc.  I have kept my 401K in very conservative earnings since I do not like the ups and downs of the stock market and it has a nice growth which I plan to start drawing down in a few years so I can take a nice vacation once or twice a year.  I think everyone should know their life expectancy which is based on family history; however this is an estimate as no one really knows how long one will live.  As for mortgage, the interest will help will taxes but it might change if the government does away with the deduction.  All financial experts are only out to sell a product, their product. I do not trust anyone but myself when it comes to decisions on investing/saving my money.  After all it has taken me over 40 years of working to get to where I am.   Bottom line: Save and know what is needed versus wants to live.
Feb 25, 2013 12:09PM
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PROTECT YOUR ASSETS FROM THE COST OF A LONG TERM CARE ILLNESS.    Investigate your alternatives to shift the risk from self insuring everything to limiting the risk.   Possibilities include long term care insurance, hybrid life insurance with long term care riders, hybrid annuity with long term care multiplier.   Medicare and Medicare supplements limit long term care coverage to a maximum of 100 days.   These plans are underwritten based on health.  So find out what alternatives you may still have available.   

 

Without a protection plan, someone could need long term care, has to pay the costs out of pocket and then recovers only to find that they are now short of funds to live on for the individual and/or spouse.    Remember, health changes that can leave folks uninsurable (temporarily or permanently) can happen anytime.   For some, such a health change occurs at the same time long term care begins - like with Christopher Reeves spinal injury.  Others have a health change which will result in the need for long term care a decade or more later - like Michael J. Fox   with Parkinson's disease.     As part of retirement planning, be sure to include protection the retirement nest egg from a long term care event.

 

Jerome Krasnow, MBA

Insurance agent , specializing in long term care insurance products

  

 

Feb 25, 2013 10:08AM
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Keep a connection with your old work force. If you mean read the Money Market on your TSP savings, yes anything else is just lonely and sad.
Feb 25, 2013 9:36AM
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I would add...

PAY OFF YOUR HOUSE BEFORE YOU RETIRE!!

My taxes and insurance per month are less than a 1 bedroom apartment and you have to live somewhere

PAY OFF ANY OTHER DEBT AND THEN DON'T GET ANYMORE!

Maybe a car payment but that should be it.

FRONT LOAD YOUR HOUSE MAINTAINENCE!

If you know you need new windows, roof, furnace, etc.  Get them done while you still have good cash flow.

LEARN ABOUT THE SERVICES AND DISCOUNTS THAT ARE AVAILABLE TO SENIORS IN YOUR AREA

Most cities have a senior center of some sort and can help with what is available to retired people

MAKE SURE YOU HAVE A PLAN TO FILL YOUR TIME.

Part time work, grandchildren, volunteerism, social clubs, hobbies, sports, etc to fill your time with meaningful activity that is free or inexpensive to help maintain yourself physically and emotionally

Feb 25, 2013 9:12AM
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Advice is all and good......but trust no one.....one truth.......the other truth is.....if you near retirement and you realize you did not save....do not expect some of Madoff''s cousins to do a miracle for you.....move to Bolivia.....nice and peaceful down there....shack up with a local....BE REALISTIC!!....no money man is looking for your welfare but for his!!
Feb 25, 2013 8:40AM
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Don't know if I did the right thing but I took the monthly annuity?..Didn't want to watch the stocks everyday go up and down? Not good at stocks!          
Feb 25, 2013 8:29AM
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Honestly, folks...if you had to read this article to know these "7 things," then you are doomed from the get-go...what a waste of internet space...90% of the people in this country don't even have anywhere close to what they need for retirement resources...stop worrying about Obama...the baby boomers will be living into their late 80's and going broke doing it (because they didn't save anywhere near enough) - well after Obama is gone...

Feb 25, 2013 8:16AM
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I retired last May.....did it at 62.....some told me to wait.....personally never been good a this financial business....so I go for the basics (MY basics).....for the past 13 yrs I've been saving heavily....NOT investing....just saving....I want come the time to be the one in control......not some unknown dude "managing" my money....For I believe.....in the end....the only thing you have control of , is what you keep.....the rest.....come some Madoff or another one fm the same tribe and ....ALPO from there....got enough to buy me cash or rent  the quarters I need and have some left for a rainy day,  and my pension.....nobody makes money of me......So far i'm doing just fine......jejejejej
Feb 25, 2013 4:55AM
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I strongly disagree with the statement to move all your savings from growth investments into low risk investments.  The money a retiree needs to access within the first 10 years of retirement should be moved, but other funds should remain in blended or Growth investments.  Remember, much of your savings won't need to be accessed for 10 to 40 years (depending upon age at retirement and overall health level).  The money to meet these long range needs should remain in Blended or Growth investments for another decade or two.
Feb 18, 2013 9:38PM
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Medicare monthly premium payments at 65?  I wonder how many current workers 30-60 years of age are aware of this 'premium'.  Everyone hears about receiving social security benefits at 62 or later but not much is said about this medicare premium.  How much is the monthly cost?  Is it mandatory?  Are there other 'premiums' out there that we are expected to pay? 
Feb 18, 2013 6:50PM
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Another thing about employer provided pensions, for those lucky enough to have them: note that most pensions are rear-weighted, meaning their value jumps a lot in the last few years before they become "full."  You can be "vested" in a pension after, say, 5 years but you don't get the FULL pension with that much time, you just get a small one.  And take the time to check out all the details.  I made sure I knew how much I was going to get in pension and Social Security.  And most retirees in my field retired on June 30th.  I retired on July 1st - because that's when the new fiscal year started and an increase in the pension calculation had been agreed on for anyone retiring in the new fiscal year.
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