R E T I R E M E N T I N S I G H T
Presented by Robert Nash, Financial Advisor
MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
“Our imagination is the only limit to what we can hope to have in the future.”
– Charles F. Kettering
Figure out where to bail out
On approach shots, think about where you want to be if you miss. Most greens slope back to front, so finishing short of the flag usually means an uphill chip or putt with at least a decent shot at a par. On older courses with relatively flat greens, it may pay to be long on the approach, as the traps and water on these layouts tend to be situated southeast or southwest of the pin.
O Brothers, Where Art Thou?
Mr. and Mrs. Kelso have six daughters. Each daughter has a brother. So what is the minimum amount of people in the Kelso family?*
DID YOU KNOW?
Election Day was made for farmers
Ever wonder why elections are held on Tuesdays? Congress made that decision in 1845, when the nation was largely agrarian. Farmers commonly went to church on Sunday and to market on Wednesday; they needed a travel day to get to the polling place in town in between, so Tuesday was chosen as Election Day.4
DOES MORE MONEY MEAN A BETTER RETIREMENT?
Is there a correlation between wealth and retirement well-being? Some recent research indicates that greater income does promote greater happiness – but only up to a point, with other factors just as vital.
CivicScience, a market research and opinion-gathering firm, has been polling Americans on their level of happiness for the past two years. It finds that retirees are among the happiest Americans, and that affluence is but one element in that happiness. It notes that satisfaction with life seems to peak when people have incomes of between $100,000-$125,000; people at that income level are 12 times more likely to say they are happy than unhappy, but people earning more don’t report being any happier. CivicScience notes that Americans aged 65 and up are 14 times as likely to say they are happy about their lives compared to those in younger age groups. Those describing themselves as “healthy” are 11 times as likely to say they are happy than those who feel they are unhealthy. Those who say they are “very happy” in their job are 21 times as likely to report being happy as those who dislike their job, perhaps an encouragement for pre-retirees who are considering working for a few more years.1
BRACE YOURSELF FOR A POSSIBLE MEDICARE PREMIUM INCREASE
Medicare Part B premiums may rise 52% next year for new Medicare enrollees, upper-income Medicare beneficiaries and those who receive Medicare without collecting Social Security benefits. Why?
With inflation being so minimal, Social Security is unlikely to receive a cost-of-living adjustment (COLA) for 2016. In years without a Social Security COLA, about 70% of Medicare beneficiaries are protected against Part B premiums rising. That leaves the other 30% to shoulder the burden of any rise in premiums. Those signing up for Medicare in 2016 and current Medicare recipients with a modified adjusted gross income (MAGI) of more than $85,000 (or more than $170,000, in the case of couples filing jointly) should prepare for a 2016 premium hike, under which monthly Part B premiums will rise to $159.30 from the present $104.90. Medicare recipients with very high MAGIs may end up making even larger Part B payments.2
ON THE BRIGHT SIDE
The Census Bureau’s Current Population Survey does not count Required Minimum Distributions (RMDs) from retirement plans as retiree income. As Forbes notes, U.S. retirees may receive up to $266 billion more in income per year than previously thought.3
Robert Nash may be reached at 1-866-528-4661 or www.rlnash.com
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
* TRIVIA ANSWER: Stumped? Contact me for the answer at www.rlnash.com
1 – cbsnews.com/news/is-more-money-the-key-to-a-happy-retirement/ [9/28/15]
2 – kiplinger.com/article/insurance/T039-C000-S010-big-price-hikes-coming-for-medicare-premiums-2016.html [8/15]
3 – forbes.com/sites/andrewbiggs/2015/07/09/good-news-retirement-income-still-being-undercounted/ [7/9/15]
4 – todayifoundout.com/index.php/2015/01/elections-held-tuesday-saturday-people-arent-working/ [1/6/15]