Retirement

In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002.1 As the Baby Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way.

Since there is no exact timeline on how long we will live or what our future may hold, it’s understandable to have questions and concerns about the road ahead. 

When it comes to making a decision surrounding where you will spend your retirement, the options are seemingly endless. Whether you enjoy the coast or have imagined relaxing in the mountains with only the concern of which hike to conquer that day, deciding where and how to spend your retirement years should be exciting.

Passive income is money earned in a way that doesn’t require much active effort, traditionally through investments or stake in a business. Active income, on the other hand, requires trading your time and participation or service for income.

Findings suggest that these relationships can make a difference for investors.

What is a relationship with a financial professional worth to an investor? A 2019 study by Vanguard, one of the world’s largest money managers, attempted to answer that question.

Navigating Your Required Minimum Distribution
Understand the IRS’s calculations and tables.

As much as you would like to, you can’t keep your money in your retirement account forever.

After you leave work, what will your life look like?

Should you withdraw and reinvest your retirement plan money while you are still on the job?

Do you need a life insurance policy in retirement?

One school of thought says no. The kids are grown, and the need to financially insulate the household against the loss of a breadwinner has passed.

What has changed for you in 2020? For many, this year has been as complicated as learning a new dance. Did you start a new job or leave a job behind? That’s one step. Did you retire? There’s another step. Did you start a family? That’s practically a pirouette.