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Whether to pay off a mortgage before or just after retirement is a topic I have addressed before. But, it is such a major decision, I get at least one email every few weeks asking my advice. No wonder. With nearly 30% of all those 65+ having monthly mortgage payments, it is important to make the best choice for you.  As I write this, the picture is anything but clear. Plans for a tax cut are bouncing around the halls of Congress. As of now, mortgage interest deductions would be protected. But, an increase in the standard deduction and a change in personal deductions might be coupled with the loss of real estate tax deductions, making house ownership potentially more expensive for some.  So, for purposes of this post, let's stick with how things are right now. After the dust settles in Washington and there is clarity (?) I might do a followup to adjust to the new reality. Retirement brings its own unique set of concerns and decisions. Near the top of many lists is a decision ab...

This isn't going to be a post where I pull out all sorts of scary statistics about our lack of savings and the problems ahead as millions of Boomers join the already-retired. I'm not going to give you a detailed plan for having a financially comfortable, satisfying ret irement. There are thousands of web sites, blogs, and books that can help you with financial planning if that is what you decide you need.  What I would like to do is offer some reasons why we simply can't seem to do what we know we must do: save enough for our post-working life. If we recognize what the obstacles are there is a chance that these problems can be minimized. I ran across an article by Jennifer Derrick from several years ago on her web site,  SavingsAdvice.com . She offered an interesting explanation of what may be part of the problem: "It’s only been in the last two hundred years or so that technology and medical care have evolved to the point where we now have the luxury to think about t...

I am not sure I have ever written about this subject before. Satisfying Retirement is not a financial blog, but our monetary resources are an important part of how well we live, so it is not a subject I ignore. If you search the archives there are plenty of blog posts about preparing yourself for retirement, managing your money, budgeting, and all the basic steps that help keep us financially afloat. But, what about after retirement...are we done investing new money? Do we take what we have and figure that is what has to last for the rest of our lives? I can only speak for me, but, yes, that has been my assumption. After all, I don't work anymore. I have no "extra" income do I? What would I use to invest? Actually,  the more I thought about it, the more obvious became the fact that I do have money to invest. Maybe my days of making fresh financial decisions are not over. Here are some of my thoughts: 1) In an earlier post I mentioned that my wife will begin receiving spo...

According to official figures, 53% of married couples and 74% of unmarried Americans count on Social Security for at least half of their retirement income. Almost half of those unmarried persons rely on Social Security for virtually all of their income. In real numbers that means probably living on less than $1,300 a month.  Enough has been written about the problems facing Social Security and the dwindling funds meant to support it. Demographic factors, government's use of the money intended for Social Security for other purposes, and the politics of it all could spell a shaky future ahead for something that virtually all older Americans receive. Various dates have been published, but most predict there will not be enough money to pay full benefits beginning in the next 12-17 years. Small Cost-of living adjustments were made this year, but disappeared for most because of an increase in Medicare Part B costs that matched the increase (strange how that happe...

Being human, we tend to look for simple solutions to complex problems. We accept "common wisdom" rather than do the hard work necessary to find answers for ourselves.  What follows are five myths about retirement: beliefs that are comforting and sound logical, except, they are not true. Ask yourself how many you have fallen for, how many affected your retirement planning and lifestyle. 1)  It will all work itself out This has to be the most dangerous of the untruths we tell ourselves. With the typical 50-something American having less than $100,000 set aside for retirement, the next 30 years of your life will not magically work itself out.  No matter how generous a pension might be, or how much Social Security is likely to pay you each month, you are not going to have a satisfying retirement on a savings account that produces less than $300 a month of additional income.  Think of your retirement as a complex machine with lots of moving parts, and ...

A week or so ago I noted the reasons why I blog. That made me think of all the very good people who are writing and publishing and freely available on the Internet. The ones I read on a regular basis are listed on the right sidebar. I encourage you to check them out if you haven't already done so. Every 8-9 months I update that roll call, adding some fresh ones, while removing those that no longer seem to be the best use of my time, or the blogger has stopped posting fresh content regularly. I decided it was time to search for some fresh choices for both you and me. Here is a list that may help you  discover some new blogs to add to your personal must-read list. Don't be surprised if some of these show up on my blog list, too.  I have grouped them by category to make it a bit easier. I hope you find them worthy of your consideration. Focus on Financial Iss ues The Retirement Cafe The Retirement Manifesto The Squared Away Blog Our Next Life A Wealth of Common Sense Focus on Li...

When I retire do I need insurance is a  question that I am asked with some regularity.  Well, that should be simple.  You have retired. Your need for anything other than Medicare, auto, home or other health insurance is over, right? Not so fast.  There are at least five different insurance products that may be important to your retirement financial planning. Let's take a look at each one: Medicare Supplemental Insurance Medicare is a tremendous health insurance program for those 65 and older.  It is a blessing after years of dealing with the complicated mess that is the American health insurance system. Even so, you must be aware that Medicare does not cover some important expenses. The Original version usually covers only 80% of your expenses. While that seems quite generous, an expensive hospital stay or operation could means you are responsible for thousands, or even tens of thousands of dollars in costs. Medicare does not pay for most drugs. I...

Having a  Satisfying Retirement  without a budget is pretty much like jumping off a cliff without a parachute. You may survive but I wouldn't recommend it. I believe quite strongly that a budget is absolutely essential to a financially secure retirement lifestyle. Whether you are already fully retired, working part time, or still a few years away from leaving your job, it is never too early to build a retirement budget. You may hate the idea of keeping track of what you spend. You may think you know what you income and outgo are. But until you put in on paper (or in a software program) you are playing with fire. So, what goes into a budget? How different is a  retirement budget ? Are there categories that were important when you worked full time that can be dropped when you are retired?  How do you plan for retirement ? To give you some idea what might belong in your post-work budget, I will use mine as a sample. Since your situation is likely...

Retirement is a unique journey for each one of us. While there are basics that apply to everyone, it is the ability to shape this stage of life to meet our deepest desires and needs that make it so satisfying. If I had to simplify the process I suppose I could put retirement into two broad categories: the "reasonable, got it covered, done my homework" type of approach, and the "Let it roll, what will be will be, I will adjust as needed, it is all good" crowd. Neither of these are right...or wrong. That is what is so fascinating about writing a blog focused on retirement. Anytime I think I have it all figured out, someone leaves a comment, I read a new press release, or my own life kicks me in the shin and says, "Not so fast." Certainly, I fit much more comfortably into the first category. My career was decided at age 12. I fell in love with the life of a radio announcer and never wavered. Saving for retirement started at 24. I have experienced only two maj...

Retirement is about movement. Movement from employed to unemployed. Movement from restrictions imposed by others to restrictions imposed by you. Retirement is about change. Change in how your day is structured. Change in your relationships. Freedom. If you are getting close to retirement, or have recently taken the big step, it is natural to wonder "What have I gotten myself into? What happens now?"  Some of my earliest posts on  Satisfying Retirement  dealt with the  Three Phases  of retirement and some answers to those questions. I have reworked the original material a bit and present again for your review.  When I stopped working in June 2001 little did I know that just a few months later the events of September 11 would make what I had done for a living very difficult. While air travel had become increasingly unpleasant over the previous decade, 9/11 would make that unpleasantness close to unbearable. Those of us who flew for a living were suddenly...

Not everyone agrees that a financial advisor is necessary. Some of us are quite good at fiscal discipline, understand how investments work, and have the experience and temperament to handle our financial future on our own. For the rest of us (me!), having someone who can help us minimize mistakes and help us reach our goals is prudent. Just like we shouldn't self-diagnose ourselves when a funny-looking skin growth appears somewhere on our body, our financial health benefits from guidance.  In thinking about this post, I figured there are a probably two dozen questions or concerns I could come up with if I were hunting for a new financial advisor (which I am not).  But, that is a bit overwhelming. You might look at such an extensive list and assume that finding the right person is too difficult.  So, I have trimmed the list of key questions to six. The answer to each might lead you to another question or two, and that is good. Though not ...

2016 has been a year when we decimated parts of our budget. As someone who has lived with a strict budget since my first years in college (was that really 49 years ago?), I am a firm believer in knowing what I spend and staying within the lines.  Last year was when my share of my parents' estate started to find its way to into my accounts. By early this year I was feeling quite flush. With even more money to come over the next 4 years before the estate is closed down for good, additional cash flow was on the horizon. Betty and I have always lived well beneath our means. One of the reasons we were able to retire 15 years ago was the habit of carrying no debt beyond a mortgage, and saving 20-25% of our income each year. We have played it close to the vest; there have been plenty of splurges for vacations with the kids, but we never ignored the income/outgo realities.  Well, this year not so much. Call it pent up demand, a realization that if not now, then whe...

On Web sites FAQs are  Frequently Asked Questions . They are the inquires that occur often enough to be predictable. The questions are followed by short, to-the-point answers that sometimes actually answers the questions. Here are my responses to the most common  satisfying retirement FAQ over the past 6+ years. Each also has a link to a post that deals with that subject in more detail: 1) How much money do I need to retire?  Enough to live comfortably and handle most emergencies. You will probably end up needing more than you think. If you live in Scottsdale, La Jolla, or West Palm Beach, a lot more. Don't believe all the "rules" about how much you have to save or how little you can withdraw each year and not risk running out of money. Life is a constant adjustment to situations. No one can predict what the future will be like or how you will want to live. Stay flexible. But, I will say that the oft-used $1 million figure isn't necessary.  ...