CCH, a part of Wolters Kluwer and a leading global provider of tax, accounting and audit information, software and services (CCHGroup.com) takes a look at state tax rates, changes and compares differences across the nation. “Costs of living are obviously a huge consideration in deciding where to live or retire to,” said Sandy Weiner, JD, State Tax Analyst for Wolters Kluwer, CCH. “Retirees should really do their homework on the types of taxes they’d be responsible for paying and the rates they’d be taxed at when comparing different locations.”
An interesting study that shows how the switch from defined benefit plans (where you are guaranteed a monthly check for a specified amount of money) to defined contribution plans (where you set aside money into an account, then draw it down until it's gone, with no guarantee of how long it will last) is having a significant impact on retirement.
One reason many people are financially unprepared for retirement is that they tap into their retirement savings before they retire. They tap it when they lose their jobs, or at the onset of poor health, or to pay for a new home. A large percentage cash out retirement savings when they change jobs instead of rolling it over.
Throughout much of our lifetime, we receive income from a single source: our job. That changes when we retire. Most retirees receive income from a variety of places, including Social Security, retirement account withdrawals and increasingly a part-time job, according to a recent Gallup survey of more than 2,000 U.S. adults, including 636 retirees. "Obviously retirement these days is expensive, and you probably need to draw on as many different sources as you can," says Jeffrey Jones, managing editor of Gallup Poll. Here are 10 of the most common ways to pay for retirement:
Each week, I'll describe a few steps you should take during the week. The focus will be on actions that affect your financial security, although some will involve your health and lifestyle, since these topics are all related. The goal is to help you answer important questions such as:
It's sad to see someone get to retirement without enough money to make it through. It's even sadder to see someone save all their life and then lose it needlessly. Many Boomers realize that retirement may be the perfect time to start a new business, maybe that business you've always dreamed of owning. But Boomers have two things that make them attractive targets for schemes that may or may not be in their best interest: they may have a pool of cash that they saved up for retirement and some significant equity in their home.