Archive for the ‘Social Security’ Category

How to Retire Early – Part Two

Monday, July 6th, 2015

In part one of “How to Retire Early,” we focused on the need to reduce expenses and control debt.  Doing so can create the foundation for a retirement plan by making money available for investment.

What should happen next?  Here are a few suggestions:Retirement 4

Consider all sources of income.  Typically, retirement income comes from a combination of an employer pension, personal savings and Social Security income.  Compare what you are eligible to receive with what you will need.

If you have a shortfall, consider all of your options for making it up before you retire.  You may decide to work part-time.  It you have a marketable skill, you may even be able to develop a base of business that provides you with enough income to meet your needs without dipping into your retirement savings for a few years.  Or maybe you have space you can rent out to produce more income. (more…)

Only a Half Trillion Dollars

Thursday, July 24th, 2014

It’s a sign of how much trouble we’re in when a budget deficit of a half trillion dollars seems like fiscal restraint.

It is progress, given that annual budget deficits were running above $1 trillion a year throughout President Obama’s first term and have been as high as $1.4 trillion.  And it could have been worse.  Recall the effort made by President Obama to stop the automatic spending cuts that took place when sequestration was adopted.

But a half trillion dollars is still a mountain of money.  It helps to give the number some context.CBO Chart

To reach a half trillion dollars, you would have to spend $8 per second beginning with the year 0 and continue spending through today.  If you had a stack of $1 bills adding up to $500 billion and were able to put them one on top of another, the stack would be 34,000 miles high.

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How Baby Boomers Can Benefit the Economy – Keep Working

Friday, May 10th, 2013

If baby boomers decide to postpone their retirement, it may not solve all of the country’s economic problems, but it will help address most of them.

So it’s good news that a growing number of boomers are postponing retirement.  Today, almost 18% of people older than 65 are still working and the number is climbing.  In 1993, only 11% of people older than age 65 were still working, according to the Bureau of Labor Statistics.

Of course, many boomers will be forced to keep working, because they have not saved enough or because the performance of their retirement portfolio has not met their expectations.

Others, though, will keep working simply because they want to work.

So how will it help the economy if boomers keep working beyond 65?