Meadville Tribune

Breaking News

Lifestyles

September 24, 2012

Five ways to make retirement more secure

Retirement planning has undergone a radical change in the last decade. Times have changed and so has the way people are thinking about retirement.

Before 2008 many financial planners talked to their clients about buying a vineyard or opening a New England bed and breakfast in their golden years. After all, stocks would continue to gain in value and so would the equity in their home.

Then came the reality check of 2008. Now, it seems, the goal is to just have enough money to live the rest of your life above the poverty line.

Doubts about pensions and Social Security

In the past, many could rely on pension plans and Social Security benefits, but pension plans are increasingly rare and Social Security benefits should not be used as a sole source of retirement, financial planners now say.

Problem number one is Americans are living longer. Not really a problem except that if you stop working at age 65 and live to be 95, there's 30 years of living expenses you have to cover.

According to a recent Employee Benefit Research Institute study (EBRI), nearly 47 percent of early baby boomers, ages 56 to 62, are at risk of outliving their retirement savings. To make sure that doesn't happen requires a plan. A realistic plan.

A realistic plan

"To develop a sustainable strategy that meets your specific needs, some important considerations would be your age at retirement, life expectancy, living expenses and the rate of return you expect from your investments," said Dean Urbanski, Vice President, BMO Harris Financial Advisors, Inc.

A realistic retirement should include these steps:

  • Reduce living expenses
  • Develop a withdrawal strategy
  • Carefully allocate your assets
  • Choose a post-retirement career
  • Improve your health

While most planners begin their strategy on the income side, it may be best to look first at the expense side and housing is one of the biggest expenses. If your home is nearly paid for, step up efforts to pay it off early.

Text Only
Lifestyles
  • web_starbucks-cof_big_ce.jpg Starbucks sees more Apple-like stores after Colombia debut

    This week Starbucks opened its first location in Colombia — a 2,700-square-foot store with a heated patio, concrete columns, mirrors on the ceiling and walls of colorful plants.

    July 17, 2014 1 Photo

  • Are America's biggest alcohol brands targeting the country's underage youth?

    Underage drinkers - those between the ages of 18 and 20, most specifically - are more heavily exposed to printed alcohol advertisements than any other age group, according to a new study. And it's America's biggest booze companies that could be to blame.

    July 10, 2014

  • How professors are using Facebook to teach

    Technology is an established part of the lives of students. But university lecturers are becoming increasingly frustrated at how they must compete with tablets and laptops for students' attention in the lecture hall.

    July 10, 2014

  • Why does the Vatican need a bank?

    The Vatican Bank's history reads more like Dan Brown than the financial pages, but its worst -- and weirdest -- days may be behind it.

    July 10, 2014

  • Careful planning is the key to a successful Mother’s Day visit

    Are you planning to visit your mom at a senior living residence for Mother’s Day? Are you wondering what you should do or what you should bring? Our experience may provide you with some valuable insight.

    May 10, 2014

  • Which foods are the worst for the environment?

    As with most arguments about our food supply, though, it's not that simple. Although beef is always climatically costly, pork or chicken can be a better choice than broccoli, calorie for calorie.

    March 12, 2014

  • Old Spice attracting women in gender-bending win for P&G

    Young women are embracing Old Spice - long known as the brand dad kept in the medicine cabinet - even as P&G's marketing continues to focus on their male peers.

    March 12, 2014

  • news_planesearch.jpg Missing Malaysian jetliner confuses a world that's online 24/7

    The disappearance five days ago of a Malaysian Airline Systems Bhd. aircraft with 239 people on board is confounding search teams and a global audience used to around-the-clock connectivity and real-time updates.

    March 12, 2014 1 Photo

  • news_nycexplosion.jpg VIDEO: Aftermath of NYC building collapse

    Footage from the New York Daily News shows firefighters responding to a building collapse at East 116th Street and Park Avenue in Harlem. At least 11 minor injuries had been reported late Wednesday morning.

    March 12, 2014 1 Photo

  • news_google.jpg First Apple, now Google hit with kids' app lawsuit

    Last month, 4- and 5-year-old brothers in New York quickly spent $65.95 in real money to buy virtual goods in Marvel's Run Jump Splash game on the family tablet. They were able to rack up the charges without entering a password. And for that, the boys' mother has joined a class-action lawsuit filed Tuesday against Google, accusing the company of deceiving consumers about its in-app purchase system, which critics say makes it too easy for kids to spend money on their Android devices.

    March 12, 2014 1 Photo