Kiplinger s make your money last article october 2020

It claims to be the first American personal finance magazine and to deliver «sound, unbiased advice in clear, concise language». It offers advice on managing money and achieving financial security, saving, investing, planning for retirement, [2] paying for college, and major purchases like automobiles and homes. Kiplingerfounder of the Kiplinger family of publications, said he founded the magazine because «The times will always be changing. Much of life and work consists of looking for the changes in advance and figuring out what to do about. Much like Forbes magazine, ownership of the Kiplinger’s franchise was kept in the family until the sale of Kiplinger to Dennis Publishing in February Kiplingeras the magazine’s editor-in-chief [6] until the sale to Dennis, and he currently serves as editor emeritus for Kiplinger publications.

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Like most people, I also have financial goals for I know that the experts are always touting new ways to save in the new year — but these have really worked for me and my family. As retirement approaches, most want to know how much they spend for essential needs compared to discretionary items. Making this distinction helps them gauge their ability to retire and the quality of their retirement lifestyle. One client who wanted to know these answers recently started going through his credit card statements. Before he knew it, his entire weekend was spent combing through months of statements attempting to categorize and spreadsheet his expenses in a post-mortem manner. There is a better way to understand how your money is spent. Instead of setting a traditional budget, my wife and I create a spreadsheet and a Google Docs form to quickly capture and categorize each purchase in real time from our smartphones. Each transaction takes less than 20 seconds to record. At the end of each month, my wife and I review how the family money is spent and discuss any changes needed. The simple act of tracking every purchase makes all of us more mindful of our spending and helps avoid impulse purchases. Prioritize what matters most by automating it. For many years, my wife and I attempted to save and give money to our favorite charities from money left in our accounts at the end of each month. Not surprisingly, there was seldom much money left. After being disappointed by our lack of progress, we decided to save and make charitable donations before spending. Our charitable giving is automatically deducted on payday, and the amount remaining in the checking account on payday is used to run our household. We no longer have to worry about capturing any leftovers. Retirement is a huge goal, and the amount of money needed to prepare for retirement is equally massive. In my experience, many executives get sticker shock upon seeing how much they need to save for retirement; they can easily become paralyzed instead of motivated. One couple I advise has substantial income, but very expensive hobbies as well. Instead of telling them to cut out these hobbies, I helped them quantify how much they need to save specifically in this calendar year to be on track to retire at age A specific plan helped bring them clarity and motivation. Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. Automate Savings and Giving.

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You’ve spent much of your career socking away part of each paycheck in your retirement accounts, carefully choosing your investments and faithfully sticking with your plan. Retirement is near — or perhaps you’ve recently retired. Now comes the complicated. How do you make sure your savings will see you through your retirement? And another big question looms: How do you protect your nest egg during a bear market — which will inevitably come roaring back at some point?

To help answer those questions, we take a look at three key decisions for new retirees: how much you can safely withdraw from savings each year, how to protect against having to sell investments in a down market, and how to supplement Social Security to lock in guaranteed income for life. How do you tap a nest egg without depleting it too soon? The math is tricky because you don’t know how long you’ll need the money or whether you’ll be hit with big medical or long-term-care bills.

And no one can be certain that the stock and bond markets will deliver predictable returns over the next three or four decades. Read on for more tips on how to navigate making withdrawals. The bucket system is extra insurance to help make sure you have enough until you kick the bucket.

Most people know that investing at regular intervals means you buy more shares when the market is low and fewer when the market is high. In retirement, you’re making systematic withdrawals, which is the evil twin of dollar-cost averaging: You’re selling more shares when the market is low and fewer when it’s high. Each withdrawal exacerbates the decline when a fund falls in value and reduces the gains when the fund rises. In a severe bear market, pulling money from a tumbling fund can be catastrophic.

Read on to learn more about how kiplinger s make your money last article october 2020 implement the bucket. Those who don’t have a traditional pension — and that includes most of us — are frequently envious of those who.

What could be better than a guaranteed paycheck that lasts as long as you live and is unaffected by the vicissitudes of the stock market? There’s another way: Create your own pension with an immediate annuity. Unlike the complex and usually high-cost indexed annuities that are sold at free lunches and dinners, immediate annuities sometimes known as single kiplinger s make your money last article october 2020 immediate annuities, or SPIAs are straightforward: You give an insurance company a lump sum and, in return, receive a monthly check, usually for life.

Read on to learn more about how to create an immediate annuity. Toggle navigation Menu Subscribers Log In. Search Close. Store Podcasts Log in Search Close. Toggle navigation Menu Subscribers. Store Podcasts Log in. Create a stream of income that will see you through retirement. Getty Images. SEE ALSO: 14 Retirement Mistakes You’ll Regret Forever To help answer those questions, we take a look at three key decisions for new retirees: how much you can safely withdraw from savings each year, how to protect against having to sell investments in a down market, and how to supplement Social Security to lock in guaranteed income for life.

Part 1: Set Your Strategy How do you tap a nest egg without depleting it too soon? Market Update.

2020 contribution limits — Roth IRA, Traditional IRA, 401(k)

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Written to help you do a better job of managing your personal and family financial affairs and to help you get more for your money. You get ideas on saving, investing, cutting taxes, making major purchases, advancing your career, buying a home, paying for education, health care and travel, plus much, much. Special issues cover the latest articcle about car buying December and Mutual Funds March articcle September. I have tried very hard to keep that pledge. But in the December issue, I unintentionally crossed the line. What got me into hot water with some of you was how I characterized the new tax law. A few readers noted that federal revenues following passage of the new tax law actually increased. The comments from Greg nicely and in…. In my experience, they end up with very little income once expenses are subtracted from their payments. As self-employed contractors, their small-business tax return Schedule C allows them to subtract expenses such as cell-phone charges, fees and mileage in support of their passengers. Articlle of those unreimbursed employee expenses will be deductible from their tax returns as W-2 employees. The result will be much higher reported incomes kipllinger much larger tax withholding, and thus a significant reduction in the cash they can spend. Not sure where you want to go?