Mutual Funds

There’s an old adage when it comes to building a seven-figure retirement account: “Save early and often.” Implicit in these four words lies the powerful concept of compound interest. You’ve heard the term “compounding,” you’ve probably grown numb to its true meaning. In case you need reminding, it refers to the fact that, over time,

By Chris Farrell, Next Avenue Increasing numbers of people have found themselves living on low and insecure incomes for decades, including many workers 55 and older. Following the trauma of the pandemic and the social unrest after the murder of George Floyd by a former Minneapolis police officer, addressing the problem of creating a more equitable

By Kerry Hannon, Next Avenue Job hunting these days is not for the meek, especially for those in their 50s or 60s. It’s challenging both in terms of time and emotional energy. But Steve Dalton, author of the new book “The Job Closer: Time-Saving Techniques for Acing Resumes, Negotiations, and More,” has some smart advice, which

A self-directed IRA lets you invest your retirement account in nontraditional investments. But a recent Tax Court decision shows the dangers of taking shortcuts and not setting up and operating a self-directed IRA the right way. In the case, the taxpayer had a SEP-IRA. The custodian was a national bank. The taxpayer set up a

Today’s column addresses questions about how Social Security survivor’s benefits are calculated if the record holder dies before filing for their retirement benefit, eligibility for benefits on the record of a first spouse after remarriage and taking spousal benefits before full retirement age. Larry Kotlikoff is a Professor of Economics at Boston University and the

Sometimes our political leaders have to hear the obvious. In mid-May, members of the United States Congressional Joint Economic Committee (which was constructed to be bipartisan in 1946)  heard testimony about why Black people have less wealth than white people. Chair Rep. Don Beyer (D-VA) introduced the hearing saying, “Much of the racial wealth divide

The backdrop Twelve million adults over age 65 live alone. That is 27% of the population–the highest rate in the world. The majority are women. By age 75, the rate of women living alone rises to 44%. With the mobility in today’s society, many family members live far away. Among boomer women, 19.4% never gave birth, so there are

More than half of Americans need to take action quickly if they’re going to reach their retirement savings goals, according to the most recent Retirement Preparedness Measure (RPM) calculated by Fidelity. The average RPM is 74, but 41% of Americans have an RPM of 65 or lower, placing them in the “poor” category when it

Looming over the nation’s workers and their families is the dread of being busted in retirement. The pandemic calamity of 2020 has hastened old-age poverty dread because those without work place retirement coverage lost one more year of savings, were left out of the stock market boom, and are one more step towards leaving or

How can Congress and the Administration get working teenagers to save by opening a Child IRA? This is a question that no one is asking. It is, however, the best question that everyone should be asking. You’ve probably seen many reports about the lack of retirement savings. Currently, there’s a debate regarding whether this is

Today’s column addresses questions about how spousal benefits are calculated after early retirement benefits when the record holder delays until 70, whether spousal benefits are 50% of age 70 benefits and when survivor’s benefits may become available to surviving spouses. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president

Nobody minds market volatility when it’s in the upward direction. But this week, we got plenty of the type of volatility that we don’t like so much as investors, the kind that inspires headlines with words like “plunge” and that end with exclamation points. It presents an opportunity, therefore, to remind ourselves of one of

A young woman pleads with her aging mother, “Mom, I think you should do it. Please do it for me.”  Looking down her mother quietly replies, “I don’t know, it just doesn’t feel right, I don’t want to lose my privacy.” Her daughter responds swiftly and sternly, “Mom! It’s for your own safety and my

When you are walking through the supermarket, you’re likely to see an array of financial magazines recommending that you wait until 70 to collect Social Security. You may infer from the articles that your full benefit grows by 8% annually until you reach age 70. In other words, the longer you wait to file, the

By Richard Eisenberg, Next Avenue Editor Remember the line “There’s an app for that!” Steve Jobs used to say? Well, that doesn’t seem to be the case when it comes to personal finance advisory apps for people over 50, especially for low- and moderate-income older adults. That’s my takeaway from the recent report by the nonprofit

By Seth Levine and Elizabeth MacBride, Next Avenue Entrepreneurs over 55 are among the most active new business owners in America, starting companies at rates that exceed their younger peers. In fact, 80% of small business owners are over 45, according to the New York Federal Reserve. With a wealth of knowledge gained over years of experience, older

By Mary Siobhan Brier, Next Avenue From 2001 to 2004, Bonnie McGowan found herself dealing with a lengthy discrimination lawsuit. She had purchased 157 acres in New Mexico with plans to build an LGBTQ-friendly retirement village and was promptly sued by the surrounding community. McGowan and her lawyers were able to demonstrate that a housing development

It’s been almost two years since the Centers for Medicare and Medicaid Services (CMS) introduced the new Medicare Plan Finder (MPF) in September 2019. I wrote nine posts during the last four months of that year, describing a variety of issues with this new tool. Most disappointing to me was that the new Plan Finder did not

It’s a tired story by now in Illinois: the graduated income tax state constitutional amendment on the ballot this past November failed because of a fundamental lack of trust by the people of Illinois in their elected officials. That’s not just my own claim; new House Speaker Chris Welch said as much, according to the

Today’s column addresses questions about whether it’s best to file at 70 ½ or 70, potential spousal benefits before retirement benefits and when excess spousal benefits might be available. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security

The Senior living industry needs to wake up and understand that Baby Boomers just don’t want what their parents and grandparents were offered. No matter how fancy the furniture, how many lakes and golf courses they install on the property, and how large the gym and swimming pool are, baby boomers want an entirely different

The federal agency that regulates nursing homes, the Centers for Medicare and Medicaid Services (CMS), will require facilities to publicly report covid-19 vaccination rates for staff and residents starting May 21. The rule is likely to press operators to boost staff vaccine rates to at least the 75 percent rate that industry trade groups have

While widely recognized, ESG is an umbrella term that often means different things to different people. But at its core, ESG references environmental, social and corporate governance factors that provide a framework for investors seeking to invest in companies that are creating solutions to the challenges we face in today’s world. The global pandemic has

As recounted on Twitter and the Illinois politics website Capitol Fax, Chicago’s Mayor Lori Lightfoot had some strong words on pensions at last week’s investor conference: “We’ve really struggled to get Springfield to pay attention to pensions. . . The problem is not going away, it’s only going to intensify. At some point it’s my

The signs of slipping can be very subtle at first. Mom forgets an appointment. Dad can’t remember how to get somewhere he’s been a zillion times. Your aging parent is just starting to seem a little off, a little more forgetful and it’s happening enough for you to notice. Should you do something or is

Today’s column addresses questions about whether Social Security spousal benefits might be available before their spouse takes their retirement benefits, why spousal benefits were terminated after filing for retirement benefits and how to determine when to file for maximum benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president

About a month ago, Illinois governor JB Pritzker signed legislation that boosted pension benefits for a group of Chicago firefighters, despite the urging of Chicago mayor Lori Lightfoot not to do so, because of the cost to the already-woefully-underfunded plan. As I wrote back in January, this change could drop the funded status from 18%

By Chris Farrell, Next Avenue Cynthia Murray, who turns 65 years this month, is a 20-year Walmart WMT associate in Laurel, Md. who puts in 32 hours in a four-day workweek. In February 2021, she got a 30-cent an hour raise boosting her hourly wage to $15.27. But even at that level, Murray can’t afford to

By Nancy Collamer, Next Avenue The freelance market is heating up. During the first quarter of 2021, the Freelancer.com platform posted over a half million jobs. And during the same period, FlexJobs.com reported a 10%+ jump in postings for freelancers in a variety of career categories. It’s a trend that’s unlikely to cool anytime soon and

A friend called me the other day to ask a question that I know many share and that many financial advisors are hearing, especially from those who are currently in retirement. Here’s how the conversation went, along with a few notes specifically for financial advisors to help in the similar conversations you’re having with your