My parents are both almost retired, and they’re stressing out about having enough money. My dad’s been putting away the maximum amount allotted for his union’s retirement account, and of course they’re factoring in social security, but they’re both still worried that they won’t have enough to cover expenses. Recently, my dad even asked for my help to set up an individual retirement account (IRA) for him and my mom.
Knowledge = power. Many companies and unions have access to free financial planners, so take advantage of them. If they have money in 401(k), IRAs or other retirement accounts, those organizations often offers a free retirement plan. In my case, Vanguard and Fidelity offer free check ups, and also planning tools. Large financial advisor firms like Edelman Engines, Pure, and Allworth Financial also offer free retirement planning.
As you get older, I think you can contribute even more to those funds as well.
Start saving now, doesn't matter what amount, just do it you'll be surprised at the positive effects.
There are also cheaper countries to retire in, some good info here:
https://www.expat.com/
I, too, am worried about having enough in retirement. I started saving late and I'm only contributing enough to my 401(k) to get the match. I'm going to start putting in a higher percentage beginning at the end of the year and increasing yearly.
@Cat B.
I hadn't thought about retiring to another country. That sounds like it might be interesting. I'm going to check out those sites.
All of the above is really good advice.
People often use "geoarbitrage" as a means of making their retirement savings go further in a place that has a lower cost of living, but I think it's also important to consider the potential negative impact this has on the community. Here, Tanja Hester considers (early) retirement without harming others.
Also be sure to think about healthcare cost especially if you are retiring prior to reaching Medicare age. People tend to forget healthcare both regular and long term care when calculating necessary retirement expenses.
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My Edward Jones advisor helps keep me on track for retirement. I'm still behind the ideal that Edward Jones has laid out for the future, but my advisor tells me I'm doing well for my age and based on the incomes I have had (low), the student loans I have taken out, (and some I have paid off!) and the potential earnings I will make.
@Aaron G.
That is a really interesting article. Thank you for nudging me into looking at unintended consequences of the decision to retire in a foreign country. Things to think about….
@Aaron G.
That is a really interesting article. Thank you for nudging me into looking at unintended consequences of the decision to retire in a foreign country. Things to think about….
Thanks, @Gina H., for your consideration. Thinking about how our actions affect those around us is a step toward making the world a better place. I'm not saying people should or shouldn't take advantage of retiring in a foreign country with a lower cost of living, but they should consider the impact of that decision and act according to their own values. Decisions start with us, but they don't necessarily end with us.
I started saving for my retirement but when I lost my job I had to use it all.
Which is better - an IRA Roth account or Traditional account, and why?
Which is better - an IRA Roth account or Traditional account, and why?
The answer is that it really depends on your specific situation. Do you expect your tax rate to be higher now or in the future? This likely depends on how much income you have now versus how much income you expect when you begin making withdrawals from the account. However, it also depends on what tax rates will be in the future. Another consideration is the amount of income you have now and whether it phases you out of making contributions to a tax-deductible traditional IRA or direct contributions to a Roth IRA. Consider that if you are planning to max out your annual contributions to the IRA limit, doing so in a Roth IRA would effectively result in a greater contribution than a traditional IRA because they would be after-tax dollars. Considerations during retirement include whether or not you want to be subject to RMDs or if you plan to leave your IRA to your heirs. If you aren't sure about any of these, you may want to consult a financial advisor.
Cat B _ I'm going y check those websites. Good suggestion 
Retired @ 42!!! Answer to the universe!!!
I'm concerned about taxation at retirement age. I won't have the usual deductions that keep me in lower tax brackets. How do I structure my money so I don't end up in a higher tax bracket at retirement?
I'm concerned about taxation at retirement age. I won't have the usual deductions that keep me in lower tax brackets. How do I structure my money so I don't end up in a higher tax bracket at retirement?
You could establish accounts, like a Roth 401(k), Roth IRA, or HSA, where qualified withdrawals won't be taxed. You could choose to retire to a state that does not have income taxes.
I'm concerned about taxation at retirement age. I won't have the usual deductions that keep me in lower tax brackets. How do I structure my money so I don't end up in a higher tax bracket at retirement?
You could establish accounts, like a Roth 401(k), Roth IRA, or HSA, where qualified withdrawals won't be taxed. You could choose to retire to a state that does not have income taxes.
I max out a Roth IRA and HSA every year and contribute just enough to my 401k to get the match. After running the numbers on a 401k and a Roth 401k I found that a regular 401k will have a considerably higher balance even after taxation because we're investing 100% dollars. My biggest concern is deductions. No more mortgage interest and I'm not 100% sure but I don't think I'll be able to participate in cafeteria plans without an employer. I've got some research to do.
I'm concerned about taxation at retirement age. I won't have the usual deductions that keep me in lower tax brackets. How do I structure my money so I don't end up in a higher tax bracket at retirement?
You could establish accounts, like a Roth 401(k), Roth IRA, or HSA, where qualified withdrawals won't be taxed. You could choose to retire to a state that does not have income taxes.
I max out a Roth IRA and HSA every year and contribute just enough to my 401k to get the match. After running the numbers on a 401k and a Roth 401k I found that a regular 401k will have a considerably higher balance even after taxation because we're investing 100% dollars. My biggest concern is deductions. No more mortgage interest and I'm not 100% sure but I don't think I'll be able to participate in cafeteria plans without an employer. I've got some research to do.
You could consider establishing a donor-advised fund to assist with your charitable giving, which would allow you to make large enough contributions to the fund to qualify for the tax deduction while spreading out charitable giving over several years. You're focused on deductions, but you could also consider ways to reduce the amount of reported income you have in retirement to keep yourself in a lower tax bracket.
@ Aaron G for the win another great answer.
@ Aaron G for the win another great answer.
Too kind. Really. Thanks, @Micky H.
