Getting a handle on health care in retirement

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Health care is one of the largest expenses most Americans will face in retirement – and it’s among the most difficult to predict. At the recent Morningstar Individual Investor Conference, I joined a panel discussion of strategies for meeting health-care funding needs using Medicare, Medigap, long-term care insurance health savings accounts – and the Affordable Care Act. […]

Deferred annuities getting some traction

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You’ve probably seen this attention-grabbing advertising message on television or on a billboard: “The First Person To Live To 150 Is Alive Today.” Not surprisingly, the ad comes from an insurance company–Prudential–and the pitch is for annuities. You may find the message optimistic, unsettling, or just plain disturbing–but it does highlight the insurance industry’s core […]

Why boomer balance sheets are a mess

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Conversations about retirement readiness usually focus on portfolios–how much you’re saving, your investment mix, and whether you’ll accumulate assets sufficient to last a lifetime. But those conversations are missing a bigger-picture question about retirement readiness: How are household balance sheets shaping up as families approach retirement? Research by the AARP Public Policy Institute provides answers. […]

How new reverse mortgage rules affect retirement plans

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The federal government has clamped down on reverse mortgages, issuing a new set of rules that make some loan amounts smaller, fees higher, and drawdowns less flexible What will the changes mean from a retirement-planning perspective? We’ll get to that in a moment. But first, here are some basics on reverse mortgages. Reverse mortgages allow […]

What does the Affordable Care Act mean for retirees?

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After much fanfare and controversy, Obamacare’s health insurance exchanges are open for business. What does the Affordable Care Act mean for retirees? It all depends on your age. If you’re 65 or older and on Medicare, there are no big changes for you to worry about. But the ACA offers important new options for retirees […]

How delaying your Social Security filing can boost portfolio longevity

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A delayed Social Security filing can boost your monthly benefit income substantially. But did you know that a smart Social Security strategy also can boost the longevity of your portfolio? My July column for Morningstar.com looked at an array of resources that can help individuals and couples optimize their benefits. That sparked a comment thread […]

Social Security: Finding your best filing strategy

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For most households, there’s no retirement resource more important than Social Security. And making smart decisions about when to file for benefits can make a difference of thousands of dollars during your lifetime–especially for married couples, who can take advantage of the program’s valuable spousal and survivor benefits. But many Americans don’t take the time […]

Half of all workers retire earlier than expected – and not by choice

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Just under half of all workers retire earlier than they expected – and not by choice – according to new research by LIMRA, the insurance industry research firm. The most commonly cited reasons included health problems, job loss or burnout and negative work conditions. The LIMRA numbers confirm annual surveys by the Employee Benefit Research […]

Retirement spending: Why rules of thumb don’t work

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We’ve all heard the rule-of-thumb: To retire comfortably, you need to replace 70 percent to 80 percent of pre-retirement income. Add a couple of percentage points for inflation every year, and you’ll have what you need to meet your expenses in retirement. But the rule-of-thumb never was meant as a way to think about spending […]