Friends Talk Money

Recent research from the Employee Benefits Research Institute reveals that those most worried about financial security during retirement are Gen-Xers between the ages of 42 and 57 years old. With the market experiencing its worst start of the year since World War II, many are wondering whether the two-decade bull market is coming to an end. Others are worried that they’ll have to work longer than they planned. Or that the Social Security fund will be bankrupt when it’s time for them to start collecting. While there are actions Gen X-ers can take now to bolster their retirement nest egg, like maximizing contributions to 401(k) plans and IRAs and resisting the urge to reduce exposure to the stock market, many can achieve greater peace of mind by working with a fee-only financial advisor. These professionals can analyze Gen-Xers’ entire financial picture and recommend a plan to increase their chances of living the way they want to during retirement.    

If you want to work part-time in retirement, it's never been easier to find the kind of job you want. And it’s not just lower-paying, physically demanding jobs at retail stores and restaurants. With employers desperate to find workers, many are putting aside their biases against experienced and technically savvy older workers and allowing many to work at home or on their own schedules.  And if you’re still working full-time but would like to ease your workload, your company may offer a phased retirement program that lets you gradually reduce your work hours over time while still retaining your benefits. Even if you officially leave your full-time employer, you may have the opportunity to work for them part part-time or as a consultant. However, the key to remaining a coveted part-time worker is to keep up with the skills that employers find valuable, whether it’s learning new technologies and staying current with the business trends in your industry.  

Ric Edelman, author of the new book “The Truth About Crypto” thinks everyone should have 1% of their investments in cryptocurrencies, including retirement investors. But the U.S. Department of Labor has concerns about allowing crypto in 401(k) retirement plans, just as Fidelity says it plans to let employers allow employees to put up to 20% of their 401(k)s in Bitcoin. The “Friends Talk Money” hosts talk to Edelman about all this and weigh in with their thoughts on putting retirement money into crypto. 

Securities regulators estimate that at least 5 million elderly Americans become victims of financial fraud and other scams each year. With this kind of abuse only expected to increase, these regulators are strongly recommending that seniors formally appoint one or more children, relatives or friends as “trusted contacts” with their bank, brokerage company, financial advisor and other financial institutions. These trusted contacts can’t make transactions or even view their friends’ or parents’ accounts. They’re simply additional people the institution or advisor can reach out to if they’re unable to reach the account owners to inform them about suspicious activities or other account-related red flags.  

The S&P has been very volatile since January, after reaching many record highs over the past seven years. It’s hard for any investor not to feel overwhelmed and worried during these turbulent times. Watch nationally known financial commentators and co-hosts of the award-winning podcast Friends Talk Money, Terry Savage, Richard Eisenberg and Pam Krueger discuss how to stay focused during this market storm of inflation, the prospect for higher interest rates and global political and economic uncertainty in the aftermath of Russia’s invasion of the Ukraine.

Mental health studies have shown that those who do nothing after retirement increase their chances of suffering from clinical depression by 40%. That’s why many retirees are choosing to “unretire.” This doesn’t necessarily mean going back to work full-time. Instead, it’s about filling your day with activities that bring you satisfaction.  But to unretire successfully, you need to plan ahead, perhaps even before you retire.

When it comes to COVID tests, vaccines and medical treatments, the way traditional Medicare Parts A and B pay for these expenses is not always clear cut. For example, right now Medicare only pays for four at-home COVID test kits that you order directly through covidtest.org. However, the Biden administration recently announced that in early spring Medicare will cover the costs of eight free test kits per month, the same number covered by private health insurers. Medicare covers the full costs of vaccines and boosters and the costs of having a healthcare professional administer the vaccine in your home. And if you get infected and need medical treatment in a hospital, Medicare Part A will cover hospital-related costs but you’ll still be responsible for any deductibles, co-pays or co-insurance. In some situations, Medicare might cover some home care costs related to COVID-19 but the rules are complicated. And traditional Medicare offers limited coverage for telehealth services. That’s why if you’re not sure of what is and isn’t covered contact the Medicare administration or your State Health Insurance Assistance Program.  

If you think that the stock market has been going through extreme positive and negative price swings over the past few weeks, you’re not imagining things.  When volatility occurs, however, it’s important to resist the urge and flee to safety. Remember that, over the long term,  stocks have delivered better long-term returns than bonds and cash. The question is: What percentage of your portfolio should be invested in stocks when you’re still saving for retirement or after you’ve retired? If you don’t feel that you have the knowledge or confidence to make these decisions on your own, consider seeking guidance from a fee-only fiduciary financial advisor.  

Fifty-four million Americans are over the age of 65. And extended life expectancies, coupled with low birth rates, are moving us toward a “super age” where more Americans will be over the age 65 than under age 18. With higher percentages of people likely to live well into their 90s, your retirement nest egg may need to last 30 years or more. Depending on how much you’ve saved and how you plan to live during retirement, you may need to make some adjustments, like leaving your full-time job at age 70 rather than 65 or working part time during retirement. In this super age, employers in particular will have to adjust to an environment where younger workers will be in short supply. Many will have  to end ageist workplace policies and do what they can to retain experienced older workers or create attractive part-time opportunities for those who still have a lot to contribute professionally in their 70s and beyond.