![Your Retirement Planning [2020]](https://i.ytimg.com/vi/zDDi7vynM1w/maxresdefault.jpg "Your Retirement Planning [2020]")
COVID-19 has affected just about every aspect of our lives: our jobs, our health, our family and social interactions, children’s education, and leisure time.
But what has it done to retirement prospects? Not surprisingly, it has hurt them.
According to a survey of American workers with qualified retirement savings accounts, “…almost half (49%) had experienced a reduction in work income through job loss, or decrease in hours and/or a pay cut”.
Also, “…workers who lost their jobs or experienced a drop in income due to the COVID-19 pandemic were at least twice as likely to take money from their qualified retirement savings accounts as those who weren’t impacted.”
Retirement plans for older workers are particularly stressed. Not only do they have less time to make up any shortfalls, but seniors are more at risk from COVID-19 than younger people, so returning to work is more problematic. According to the Urban Institute, the combined rate of unemployment and underemployment for workers over 65 was 26% recently, much higher than for those between 25 and 54, and the largest gap on record.
How can we improve our retirement plans to withstand the current shock of this pandemic and future crises, which will inevitably occur?
This week we’ll be joined by one of WEALTHTRACK’s long-standing and most popular guests, retirement expert Mary Beth Franklin. Franklin is a Certified Financial Planner, award-winning personal finance journalist, Contributing Editor at InvestmentNews, and Author of “Maximizing Social
Security Retirement Benefits.”
Franklin explains what the pandemic has revealed about the state of retirement planning in the U.S., and how to best manage your own retirement in the current situation.
WEALTHTRACK # 1711 originally broadcast on September 11, 2020
More Info:
Maximizing Social Security Retirement Benefits:
Surveys & Articles:
…(read more)
LEARN MORE ABOUT: Qualified Retirement Plans
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HOW TO INVEST IN SILVER: Silver IRA Investing
Hi I am 65 and tried to get my late husbands survival benefits and told I wasn't married long enough to collect survivors benefits.
I just did the calculation on annuity mentioned by the guest …she mentioned that it give good night sleep …with real inflation adjusted return it is negative return ..I am not sure what makes her sleep fine . it looks some sponsors to the program has vested interest on making money on the people who are vulnerable for safety … fear of unknown will make these kind of words (Safety ) helping ,but it is truly some one is making money in the process …please do your homework even your kids can help it is mathematics 101 …
Let us assume you are 45 put one time 20000 for 15 years and then taking the amount @ 60 age at the current MM account rate is 0.55 CI will be 21715 …if you divide 21715 for 30 years with out any appreciation itself you get $ 732 with annuity you get $949 ….
just say you get a 2.5 % yield for 20000 and CI for 15 years $28965 and divide this for 30 year with outany yield for 30 year it $965
who in the world with small amount of IQ will fell this is safety .May be the guest should be true to herself not promoting sponsor company ..if you look fed inflation rate (which is false) not including the home mortgage) it is 1.2 and if we deduct 2.5 % -1.2 % the real yield is 1.3 % what this will buy me in the 30 years from now .
I love people of retirements since they had done all the right thing till the end and I don't want people to slip just by getting some advice for free and then get in to challenge …..please do your homework and talk to your kids who can do the math for you in case it is above your expertise.
be aware of free advice
I have a question for Mary Beth, my apologies if I missed it, but can I start by collecting my SS at FRA while my ex-husband is still living, then if/when he passes away switch to survivor benefits? I've been hoping/planning to continue working until my 70's to collect my maximum benefit amount, but my ex-husband is collecting more than my maximum by about $1K/mo. He was a much higher earner with a much longer work history while I was a stay at home mom then had to start out at entry level wages after the divorce.
Love Your Show, Especially having Mary Beth as a quest.
7 yrs.widow He was much older .He got hit by a car.died 6 mths. After hospital care.Together 37 yrs. Moved toP.R..I was uneducated. COULDN'T SPEEK SPANISH BUT WORKED WITH HIM PHYSICALLY BUT HE NEVER PAID ME.I BECAME INCAPACITATED BUT WAS ONLY57 YRS OLD. WE LIVED POOR.WE ARE MARRIED. AS SOON AS HE DIED I STARTED SS. WHAT HAPPENS IF I REMARRY TO SOMEONE WHO RECEIVES MORE THAN ME BY 400.00 I ONLY RECEIVE LESS THAN 500.00 . HOW DOES THIS AFFECT ME? WILL I RECEIVE MY CK. SEPARATELY IN CASE THIS MARRIAGE DOESN'T WORK OUT? I STILL LOVE MY HUSBAND .
This is whyI decided to stick to trading under consultancy with an advisor/broker managing the affairs of asset allocation on my investment accounts over traditional investing and retirement savings.
I'm 67 Still working 45 Years working.. Planing to Get my Full Benefits . But Social Security why are they giving me a round around … I Need Help Who can I Talk to ….. How can I go by getting my money. .. do I need an attorney .
Annuity
Why would anyone buy an annuity?
The money paid to you by the annuity is taxed, I believe,
So you given up a huge amount of your retirement savings to purchase an annuity just for a portion of what is paid out to go to taxes.
I would not pay for anything that would result in me having to pay more taxes.
My social security will be taxed, RMD’s will be taxed, pension will be taxed. Rental property income taxed.
Every dime I make now either goes to ROTH 401k or to my whole life policies.
What are all these US debt slaves going to do when they reach retirement age? Most will have to work until 80.
Guest is very articulate. I appreciate her important points about financial literacy and the importance of saving cash.
There are folks who because of circumstances have not been able to be in a good financial place there are others who have chosen to be in too much debt and buy all the toys
to find out what you need in retirement is simple, take your NET take home ( after ALL deductions), and find out what you need to save/invest to keep or come close to that income…one key is to be debt free, you don't need millions in investments, that is a myth…if you work longer that is less time to enjoy in retirement, obviously if you have to keep working because you can't retirement thats on thing, but to keep working because your scared, just do the math
Like most things in life success comes from planning and timing. We are both 73, debt free, driving new cars and enjoying life. Am I concerned with my investments ? Sure I am, but I never lose sleep over it. We have always lived below our means so we can enjoy whatever years we have left. I have encouraged our children to invest and be judicious in spending. So far they are ahead of where we were at that age..
Planing?
Interesting video! We are in our 80's and feel better than ever! Still work for a strong body and a calm mind. Doing some research for our tiny new healthy-aging advice channel for people of all ages. Learned a lot. Keep it going!
many people do not believe in the delay gratification strategy and planning
What other annuity company you recommend?
The next 5 years will be HORRiBLE in performance. So if you're going to retire in the next 5 years, adjust your association wisely.
Love these types of conversations. I am targeting my retirement for 15 years from now and am binging on tax and retirement videos. The future isn’t guaranteed but at least I will have some financial literacy.
So our economy is a snake eating its tail. If the consumer is using money that the govt is giving them to prop up the economy.
Some very disturbing comments from the interviewee:
Social Security is many peoples only source of money in retirement. If that is true than you did a poor job planning; it was not created to be this.
Low income workers "can't" save for retirement. Wont save isn't the same as can't save. It is a matter of delaying gratification to achieve a goal. I don't have a cell phone, don't eat out and live below my means and save and invest everything I can.
Annuities are rarely a good option for anyone. An SPIA might make sense for a small group of lazy conservative people. Those esoteric annuities tied to investments are confusing and have a huge fee load.
Annuities are not an investment they are a bet by the insurance company that you are going to die before you recoup all the money you sunk into it. Guess what the insurance company ends up winning most of the time. Even a conservative balanced portfolio would outperform an annuity (and you don't lose access to the principal).
Spot on advice as usual. While painful to pay the tax, I’ve converted to my Roth the last 3 years and plan to continue until age 72. Each year I set my target dollars, wait for a dip in the market and initiate the conversation.
I think a good subject for them to cover is investment strategies like the All Weather and Permanent Portfolio approaches.
Excellent interview and information, but I'd think about annuities very carefully. They may be something to consider, but the best thing I heard was limiting investment in annuities. Staying active and healthy in your later years is another important thing to do.
I wish she was my financial advisor!
Great advices!
I love annuities. I have some of the newer financially engineered annuities. I'm younger but one thing about my annuities is I will collect a monthly annuity payment based off the total principle of my investments. I also get to collect my total principle and reinvest it. It is a great plan.
How much can most people live on in their retirement age requirement of 65 if they have no debt?
Thanks to easy money and the Fed/central banks is why the markets have recovered.
The American retirement dream was destroyed 30 years ago when globalism, these greedy global corporations, and Wall Street got rid of pensions and pushed these failed 401ks that do not produce enough wealth to retire
People do not make enough money to save for an emergency fund and 401k. This is reality. Since 1979 wages have fallen behind inflation 300%. Benegits are much worse while healthcare costs are becoming unaffordable. Retirements and pensions are going away. The middle class is being destroyed
During the period from the 1950's to 1980's the middle class owned 56% of all assets. Today the top 10% own 90% of the wealth while 90% own 10% if the wealth.
I always lived well below my means,…never spent money on frivolous junk and recently retired at 60. I don't have care in the world,….and I am not apologizing to anyone.