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Asset Allocation
Often financial "experts" make asset allocation difficult to understand. My goal in this series of articles is for you to understand asset allocation thoroughly, in an easy to understand format.How to Conduct Financial Planning For Divorce
financialplanningdivorce.com
In these days of easy come, easy go, many people find themselves divorced and single. Even though most people intend to stay married to their partners, this crazy world we live in often does not allow for the best of circumstances. People who are divorced need resources to help them deal with the financial realities of their situation. Financial planning for divorce involves a special way of thinking and we have a valuable tool to assist you. For people who are divorced and have children, financial planning for divorce is especially important. If children choose to go to college, most parents want to be able to assist them financially. In order to help fulfill the desire to help your children go to college, financial planning for divorce requires another very valuable resource. We have the right tool for any circumstances you may find yourself in as a result of your divorce. Financial planning for divorce is also valuable for married couples who want to plan for possible negative scenarios. We know you don't plan to divorce your spouse, but sometime life's realities can blindside you. Our free financial planning tool can help you plan for the unmentionable as well. In addition, financial planning for divorce helps newly single people prepare for unexpected expenses that come from being divorced. Court costs often sky rocket, draining savings accounts. Also, those who are newly divorced must prepare for unfortunate events such as car accidents, house repairs, and medical occurrences. All of these expenses are encountered at one time or another by those who are divorced. Even if the medical occurrence is braces for a child, the events still happen and must be attended to. A final instance that needs financial support in the case of a divorce is retirement. Even though retirement may seem an unrealistically far-off time in the future, life goes by one day at a time. Just when divorced people think their situation will remain the same forever, they reach retirement age and often have financial regrets. Perhaps divorced people have been so wrapped up in being single parents that they have not had the time to devote to thinking about retirement. Or, maybe they believed that they only earned enough to get by and pay bills and that saving for retirement was not in the budget. Financial planning for divorce can help people who are divorced think through their financial situations and make plans for the future, including retirement. One of the most helpful tools is our free retirement calculator. Most divorced people do need to keep a close eye on the budget. So, when you do your financial planning for divorce, you need a tool that can help you see into future and explore the possibilities, both positive and negative potential outcomes. That is the basis for our free retirement calculator download. By clicking the red button, you can gain immense amounts of valuable information you need to know in order to plan your retirement. For example, the retirement calculator can help figure how much money you will have in a 401k account by a specific age by entering the amount you contribute to the 401k, the percentage your employer matches, the interest rate you expect to earn over an extended period of time, and how many years you have left before you expect to retire. In addition, divorced people can use the free retirement calculator to help determine how much money they can remove from retirement savings without putting their financial future in jeopardy. So, what are you waiting for? Click the red button today and prepare to arm yourself with necessary information that will help you plan for a successful financial future. |
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Analysis of the Economics of Early Social Security Withdrawal
Robert J. Phillips
Chief Retirement Consultant
Deciding whether or not to take the early withdrawal of social security at age 62 can be difficult. If you need this income at 62 to fund your retirement the decision is fairly straightforward. Take it early! On the other hand, if you have another source of revenue to fund your retirement your decision will be primarily based on lifestyle, health and investment preferences.
Several factors can affect your decision. First is your life expectancy. If you are in good health and have a family history of living beyond 90 then waiting for full benefits may be best. Two other factors impact this decision. First and most important is the value of money or your expected return from your investments. If you are using other investments instead of social security to fund your retirement you should use the rate of return of these investments as your value of money. There is another way to look at the value of money. If you do not require the social security money to live, you can invest the distributions for the future. The rate of return of this investment is your value of money. If your investments will make larger returns such as stocks this would favor taking the early withdrawal.
The last factor impacting your decision is inflation. Social security includes an annual adjustment based on inflation. You cannot control this variable but you should be aware of its impact. If future inflation is significant it will favor a later full distribution
FREE Social Security Calculator:
Find Out Your Breakeven AgeWe developed a calculator to assist in analyzing the impact of taking early benefits at age 62 or waiting for full benefits at age 66 to 67 depending on the year you were born...If you were born in 1960 or later your full benefits will begin at age 67 and your reduction for early benefits at age 62 will be 30%. If you were born between 1946 and 1960 your full benefits begin as early as age 66. We have included a chart that summarizes information.
To use the calculator you need to input your year of birth. You also need to input a value of money up to 10% and a projected inflation adjustment. The calculator analyzes income generated over time from both the early and full benefit investments. It calculates the age at which full social security will catch up and breakeven with the early withdrawal. If you were born before 1960 your breakeven age will be impacted by the year you were born. An early breakeven age favors waiting for full benefits.
The social security calculator is not the final answer whether to take an early withdrawal but it does give you additional economic data to assist in that decision. Ultimately you must balance income, investments and lifestyle to optimize your enjoyment during your retirement years.








