Good News on Hump Day

Seems like all you hear is bad news…especially in regard to finances.

No one ever feels like it’s enough, but forward steps are a good sign. (Of course with RetirementView Software, you can KNOW if you have enough. You know we have to say it!)

Check out today’s good news in this article by Suzanne Wooley.

Companies Hope To Retrieve Knowledge

Companies across the country from defense contractors to General Motors and General Electric are scrambling to ensure that millions of younger managers are ready to step into leadership roles as baby boomers retire.

About 10,000 boomers reach retirement age every day, according to Bloomberg Businessweek. Companies large and small are often unaware of how much company knowledge the retirees will take with them.

Dorothy Leonard, Professor Emeritus at Harvard Business School, and her firm Leonard-Barton Group, have developed knowledge-transfer programs at several GM divisions.

Until last year, boomers made up the largest portion of the U.S. population, and Generation X represented the biggest share of the workforce. Now millennials lead in both categories. They hold 20 percent of all management jobs, up from 3 percent in 2005, according to U.S. Bureau of Labor Statistics.

“In the next 10 to 15 years, we’re going to have the greatest transfer of knowledge that’s ever taken place,” says Chip Espinoza, Director of Organization Psychology at Concordia University Irvine. He says to handle the shift, companies need to create relationships between the generations.

Multinational defense and aerospace company BAE has been preparing for the retirement cliff for several years. They adopted a NASA program developed when the space agency started to lose expertise from lunar landings as individuals retired.

When BAE learns that an employee with deep institutional knowledge plans to retire, even in a couple of years, a knowledge transfer group of about a half-dozen people working in the same area is formed. The teams meet regularly to talk and exchange advice.

Younger workers get tips and older workers learn how to gradually hand off duties to junior employees.

4 Questions to Ask Before Retirement


It’s an achievement to make it to retirement. Years of hard work pay off once you have saved enough and get to hand over a resignation letter to your boss. You say farewell, and there may be a few tears as you part ways with your former life. But there’s also the excitement of finally starting the new leisurely chapter of your journey.

The next day there’s no reason to get up before 10 a.m. You feel so grateful you no longer need to wake up early just to get ready for boring morning meetings. You get up and go downstairs, brew a morning cup of coffee and sit down at the table and ask, “Now what?”

The start of retirement is a time of exploration for some people. There is a new life routine to figure out. Here are a few questions to ponder as you enter retirement.

Do you plan to reduce stock exposure? It’s commonly accepted that you should gradually decrease the risk in your portfolio as you age and accumulate more assets to protect. Many people do this by adding bonds to their portfolio in order to reduce volatility during retirement. Unfortunately, there isn’t a simple asset allocation that fits everyone’s circumstances. Adding more bonds might help you sleep well at night because they reduce volatility, but you also risk outliving your money if you live a long life. You could add more stocks if you have a long time horizon, but a bad sequence of return at the beginning of retirement could cause your portfolio to be depleted prematurely. There’s no way to determine the optimum split between stocks and bonds unless you can predict the future, so the key is to be flexible with your spending and never follow any rigid rules. You also want to avoid staying away from stocks completely, because one of the biggest enemies for retirees is inflation. Price increases don’t seem like a huge problem now, but there will be a time when the eroding effects of inflation are noticeable again. Almost every retiree will need some stock exposure to fight off the wealth destroying power of inflation.

What is your strategy to withdraw money to meet daily expenses? You spent years accumulating the assets to retire and employing investment strategies to grow your nest egg. Most people spend too much time thinking about how to tweak their portfolio for maximum gains and too little time optimizing how they will withdraw their assets in a tax efficient manner. You need to give just as much throught to the withdrawal phase. Decide how much you need to spend regularly and where the funds will come from. Without a paycheck and with your assets spread between pre-tax, post-tax and taxable accounts, you want to know exactly how to take money out without paying more in taxes than is absolutely necessary.

What do you plan to do with your assets? The flip side of not outliving your money is the opportunity to leave money to your heirs once you pass away. You could leave it to your children or grandchildren, donate the sum to charity or something else. Put together a plan to make sure your cash gets used in a way you approve of. You may also want to start gifting while you are still alive so you get to see the fruits of your contributions.

What do you plan to do every day? Finances are an essential part of retirement, but this question may be the most important one to answer. It’s easy to start relaxing and slow down once you retire because no one is pushing you to stay active. However, those who don’t keep busy could see their health erode, and no one wants to age prematurely. By staying active, you will have the energy to pursue physically demanding activities, but leisurely ones will be more enjoyable with fewer aches and pains as well. Staying active can make even being a couch potato more enjoyable.

As you linger over that first coffee of retirement, hopefully you are off to your next activity with a perfectly clear idea of where the money to fund daily life is going to come from. You’ve already spent years contemplating retirement’s toughest questions. It’s now time to enjoy it.

2015 Budget Deal KILLS the Social Security Claiming Strategies

Many financial advisors and insurance agents have been going gang busters over seminars about Social Security.

Well that gravy train is now OVERRRR.  Thanks to our wonderful Congress they are calling the “Social Security Claiming Strategies” a loophole that needs to be closed.

And indeed in this disgraceful budget deal they are eliminating the loophole.  That means “claiming strategies” can’t be used in the future.  The final closure age and birthdates may change slightly.


Well you better go back to what has worked for the last 20 years… build their total retirement picture and focus on discussing it with the client.  That’s the 100% best guaranteed way to get their attention, engage them, and get them talking about their situation.  Of course the RetirementView program is the best way to do this….

To read the full story on Investment News, use the link below:

2016 IRS Contribution and Benefit Limits for IRAs and 401ks

Due to the government’s estimate of low inflation, most of the limits are NOT CHANGING for 2016.

The Internal Revenue Service (IRS) highlighted the following limitations that WILL change in 2016 from 2015 levels:

  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $184,000 and $194,000, up from $183,000 and $193,000, respectively.
  • The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000. For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
  • The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,500 for married couples filing jointly, up from $61,000; $46,125 for heads of household, up from $45,750; and $30,750 for married individuals filing separately and for singles, up from $30,500.

Unchanged Limits

However, most limitations remain unchanged from 2015, including:

  • The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000, as does the limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3).
  • The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) remains unchanged at $265,000.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000.
  • The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500, and the additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
  • The limitation on deferrals under Section 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $18,000.
  • The limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) remains unchanged at $210,000. For a participant who separated from service before Jan. 1, 2016, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2015, by 1.0011.
  • The limitation for defined contribution plans under Section 415(c)(1)(A) remains unchanged in 2016 at $53,000.
  • The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan remains unchanged at $170,000.
  • The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period remains unchanged at $1,070,000, while the dollar amount used to determine the lengthening of the 5 year distribution period also remains unchanged at $210,000.
  • The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $120,000.
  • The dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer remains unchanged at $6,000. The dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over also remains unchanged at $3,000.

Compensation Limits

  • The annual compensation limitation under Section 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost of living adjustments to the compensation limitation under the plan under Section 401(a)(17) to be taken into account, remains unchanged at $395,000.
  • The compensation amount under Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $600.
  • The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $12,500.

A complete list of the changes from the IRS is available here.

Medicare Confusion

I was listening to a local Atlanta show today that stated 70% of Americans don’t understand Medicare.

Then came the nugget of gold: UnitedHealthcare has been working to make all the ins & outs of the program easier to understand.

Maybe you know just the client that could benefit from this easy to comprehend FREE resource.

Check out the “Show Me Guide” from UnitedHealthcare at or by clicking HERE.

Eating Bacon will help you reach Age 116?

Susannah Mushatt Jones just turned 116 and is now the world’s oldest woman!


The Secret Ingredient to Living Longer?

At age 116, she says that she eats  a steady diet of bacon, eggs and grits for breakfast. A sign in her kitchen reads: “Bacon makes everything better.”

She was born in 1899!

If you or your spouse live to be 116, will you be able to afford it?  Or will you be stuck on a “fixed income”?

Consider running some numbers using the RetirementView program.  You can download a free demo version from our website at:

Read the full article about Susannah at this location:

October Advisor Newsletter

Check out our Tech Talk Newsletter by clicking below.

You’ll find:

October FA

Retirement Calculator Paints Clearer Picture For People Looking To Retire Says Torrid Technologies

Miji Pearse, a spokesperson for the company Torrid Technologies, Inc., announced that their proprietary Retirement Calculator can help to paint a clearer picture for people that are thinking about retiring.

She said that too many people take a decision to retire, and then later regret the timing of that decision. She added that the reason for this is because they don’t consider the right factors. Torrid Technologies, Inc. said that the number one priority for people to consider is “when” they take their Social Security. Taking it too early could leave them in a financial shambles.

The company explains it with the following example, “Taking it early at 62 can reduce your benefits by thousands of dollars over your lifetime and that of your spouse. For each year that you delay taking Social Security you will receive 7 to 8% higher benefits. If one spouse dies, the other spouse can continue the higher benefit. Thus, extending the lifetime benefit of delaying taking Social Security.” Another factor to consider is the likelihood of being able to delay retirement. If a person owns their own business, there shouldn’t be any problem, as long as they stay in good health. However, if the company they work for has a mandatory retirement age, the employee has no final say in the matter, regardless of how healthy they are. Miji added that with people living past the age of 90 these days, there is a higher need to retire closer to the age of 70 then 60 in order to continue living a lifestyle they’re accustomed to.

Tim Turner, attorney and founder of Torrid Technologies says, “Determining the best age to retire requires analyzing many factors including healthcare, expenses, defined benefits like Social Security and Pensions, investment management, annuities, where you will live, longevity, inflation, and many other factors. When to retire is a big decision not to be made lightly.” Tim Turner explains that this is the reason why basic planning is critical for people to build their retirement. He said that a lot of people rely on hope, which is not a strategy. Instead, by having a good understanding of their retirement picture and knowing what they will need in order to make it possible is a better approach.

Torrid Technologies, Inc. said that their Retirement Calculator is a good tool to help people get a clearer picture. It does this by taking into account the income from Social Security, defined benefits, pensions, other cash infusions, and unlimited investments that are tax-deferred and taxable. They added that the retirement calculator can be used for people who are planning for their retirement and those who are already retired.

For over 20 years Torrid Technologies, Inc. has been providing easy to use financial planning software for websites, consumers, financial advisors as well as companies that need custom web calculators to showcase on their sites. Those who are interested in finding out more about the Retirement Calculator from Torrid Technologies are encouraged to visit the company’s website.

What? Retire Earlier?

You hear many conflicting ideas about when is the best time to retire: As soon as I’m able? On your 62nd birthday and get those early retirement benefits? At the full benefit time- 66-67 or should you just wait till age 70 or later? To whom should you listen?

A recent survey conducted by New York Life Insurance Company shows that retirees themselves wish that they had retired sooner…an average of 4 years sooner.  Why? They wanted the time to enjoy retirement life while their health was still good.

The survey showed that the people who responded in this way did have some moderate retirement savings. The problem is that many boomer who participated in the study, report having far less savings than that of the generation prior.

Have you made any plans for retirement? Do you have enough to retire a bit sooner? Let RetirementView Software help you see where you stand and what you can do to improve the outlook for your retirement.  Check us out at and let us help guide you to a more secure retirement.

You can read more of the details of the survey at

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