10 Updates

The Worst Retirement Roadblocks: How to Avoid Them

May 12 2014, 12:54pm CDT | by

A sound retirement can get derailed any number of ways. You can run out of money, be hit by unforeseen expenses or just fail to plan for emergencies. Here are the most common roadblocks and how to...

Filed under: news

 
 
 

10 weeks ago

The Worst Retirement Roadblocks: How to Avoid Them

May 12 2014, 12:54pm CDT | by

A sound retirement can get derailed any number of ways. You can run out of money, be hit by unforeseen expenses or just fail to plan for emergencies. Here are the most common roadblocks and how to avoid them:

* Failure to Anticipate Healthcare Expenses. For those retiring prior to 65, this is more of a problem since they won’t qualify for Medicare.  But even if you apply for Medicare, there are still significant out-of-pocket expenses.

Fortunately, early retirees have access to employer-sponsored plans or the state and federal insurance marketplaces under the Affordable Care Act, which has resulted in covering more than 8 million Americans. See what kinds of policies you qualify for and how much policies will cost.

Even if you wait to retire at 65, keep in mind that Medicare doesn’t cover everything, so you should also price Medicare Supplement Insurance, also known as “Medigap .”  Premiums on these policies vary, depending upon the amount of coverage desired.

* Failure to Recognize Long-Term Care Costs. Medicare will only cover limited stays in “skilled” nursing facilities. Most long-term care facilities are considered to be semi-skilled or “custodial” in nature and are not covered.

If you’re incapacitated for long periods of time, you have several options, but almost none of them are cheap. Here’s a sampling of median annual costs from my home state (Illinois), as surveyed by Genworth:

Nursing Home (private room) $77,000

– Nursing Home (semi-private room) $62,000

– Home Health Aide $47,000

– Assisted Living (one bedroom) $46,000

Adult Daycare $17,000

You can buy long-term care insurance, which is both complicated and expensive for middle-aged buyers, or consider the family option. Do you have relatives who could provide in-home care or supervise your care management? Staying at home is usually the least expensive mode of care, but it requires careful monitoring.

* Failure to Consider Tax Issues. Withdrawals from nearly all 401(k) and individual retirement plans involve paying taxes at your marginal rates.

You can have a certified financial planner figure out a tax-efficient withdrawal strategy or create one yourself. Two easy ways of reducing taxes are to invest in a Roth IRA or Roth 401(k). These vehicles require that you pay taxes on contributions, not withdrawals.

Another tax-friendly strategy is to create a portfolio of dividend-paying stocks. The top federal rate on dividend income is 23.8 percent — a 20-percent rate plus 3.8 percent for the Affordable Care Act tax. Note: States may impose additional taxes on dividends and retirement income.

The best defense against a poorly executed retirement is to plan ahead. A qualified financial planner can craft a strategy that takes into account all anticipated expenses plus a cushion for rainy days.

John Wasik is the author of Keynes’s Way to Wealth and 13 other books. He writes and speaks all over the world on investor protection, personal finance and financial planning./>/>

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

New Zealand All Blacks Squad Announcement
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was brok ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat to ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Ser ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last m ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensation. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramada ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Forget injection, pills to cure hardest-to-treat hepatitis C
London/Mumbai, July 28 (IANS) On this World Hepatitis Day, there's good news for patients, particularly from India, for those suffering from hepatitis C.
 
 
Lenovo to take on Google Glass
New York, July 28 (IANS) Lenovo is developing a wearable smart glass similar to Google Glass with an external battery to be worn on the neck.
 
 
New genetic risk factors for Parkinson's discovered
Washington, July 28 (IANS) In what could lead to new treatment for Parkinson's disease, scientists have identified 24 genetic risk factors involved in the disease, including six that had not been previously identified.
 
 
Device to help neuroscientists analyse 'big data'
New York, July 28 (IANS) In the era of unprecedented quantities of information via web, mobile and other internet-based operations, here comes a new device that can help neuroscientists make sense of the "big data".
 
 
 

Latest from the Network

Forget injection, pills to cure hardest-to-treat hepatitis C
London/Mumbai, July 28 (IANS) On this World Hepatitis Day, there's good news for patients, particularly from India, for those suffering from hepatitis C. Two new pill-only antiviral drug regimens could provide shorter...
Read more on Business Balla
 
Lenovo to take on Google Glass
New York, July 28 (IANS) Lenovo is developing a wearable smart glass similar to Google Glass with an external battery to be worn on the neck. The device will have a five-megapixel camera, voice recognition and gesture...
Read more on Apple Balla
 
Piper Perabo weds
Piper Perabo has gotten married. The 37-year-old actress tied the knot with director-and-producer Stephen Kay in New York City on Saturday (07.26.14), after getting engaged in September. The 'Covert Affairs' star - who...
Read more on Celebrity Balla
 
Simon Cowell celebrates girlfriend's birthday
Simon Cowell splashed out on jewelry for his girlfriend's birthday. The 'X Factor' star - who has five-month-old son Eric with Lauren Silverman - treated the US socialite to an expensive gift before enjoying some family...
Read more on Celebrity Balla
 
Chatty Ed Sheeran annoys pals
Ed Sheeran has reportedly annoyed his friends by ''spilling secrets''. The 23-year-old singer is incredibly open about his life, and though he hasn't shared anything ''malicious'' about pals including Courteney Cox and...
Read more on Celebrity Balla
 
Stop violence in Saharanpur, says Pakistani daily
Islamabad, July 28 (IANS) The communal violence in Indian town of Saharanpur should be halted at once before it spreads and becomes uncontrollable, a Pakistani daily said in an editorial. The violence was a result of...
Read more on Politics Balla
 
New genetic risk factors for Parkinson's discovered
Washington, July 28 (IANS) In what could lead to new treatment for Parkinson's disease, scientists have identified 24 genetic risk factors involved in the disease, including six that had not been previously identified...
Read more on Apple Balla
 
16 killed in Philippines in Islamist militants' attack
Manila, July 28 (IANS) At least 16 people were killed and 13 injured Monday in an ambush staged by members of the militants group Abu Sayyaf in the Philippines, an official said. The official said the victims were...
Read more on Politics Balla
 
Device to help neuroscientists analyse 'big data'
New York, July 28 (IANS) In the era of unprecedented quantities of information via web, mobile and other internet-based operations, here comes a new device that can help neuroscientists make sense of the "big data"....
Read more on Apple Balla
 
Commonwealth Games medals tally
Glasgow, July 28 (IANS) Australia continue to lead the 20th Commonwealth Games medals tally ahead of England at the beginning of the fifth day here Monday. India's rich haul of medals Sunday helped them leapfrog New...
Read more on Sport Balla