Editor's Note: All three personal finance magazines -- Kiplinger's, Money and SmartMoney -- featured stories about making your money last in their October issues. However, New York Times columnist Paul B. Brown wrote in the October 7 edition: "Mary Beth Franklin does the best job at laying out the basics in Kiplinger's." Read Mary Beth's story below to see why her advice is winning praise as the best.
The oldest baby-boomers are nearing retirement's homestretch, yet many of them still don't know whether they are saving enough or how to convert those savings into a lifetime of income. If you're one of those 41 million boomers who are now 50 to 60 years old, the next five to 15 years will be critical. That's when you'll need to top off your retirement savings, focus your investment strategy and figure out how to maximize your income after your paychecks stop.
For many people, work remains an important part of their lives -- financially as well as personally -- even after they retire. Michele Sabatier's pension from the National School Boards Association, where she worked for 18 years as a graphic designer and art director, will buy her the freedom to pursue a new career as a teacher. After resigning from the association earlier this year, Sabatier plans to trade a two-year commitment with the Mississippi Teacher Corps for a free master's degree in education at the University of Mississippi. When the two years are up, she can apply to teach anywhere she likes. "I had reached an age where I wanted to do something different with my life," says Sabatier, 51.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
| Row 0 - Cell 0 | Kiplinger's Retirement Report |
| Row 1 - Cell 0 | Retirement Basics |
| Row 2 - Cell 0 | Am I Saving Enough for Retirement? |
Now that her only child has graduated from college, she's eager to move from northern Virginia to a less-expensive area. She plans to take her pension as a lump sum -- a wise move because she is divorced and a monthly benefit would only be passed on to a surviving spouse. "I can't imagine doing absolutely nothing," Sabatier says about her ambitious plan for the next phase of her life. "I think it's interesting how our retirement will be so different from that of our parents' generation." If you want your retirement to be ideal as well as different, these strategies will get you off to a good start.
As your priority shifts from accumulating money to shepherding it through retirement, you'll probably benefit from some financial guidance.
The possibility of running out of money is the main reason financial advisers urge you to limit your first year's withdrawals to 4% of your total retirement funds.
Before retiring, see if you can live on your projected retirement cash flow for two to three years.
The age at which you retire depends on several factors, including whether you will continue you to work.
An immediate annuity can guarantee you income for the rest of your life.
In most cases, you will be better off moving your 401(k) money to an IRA when switching jobs or retiring.
Here are two ways to balance safety and income with growth.
One couple share their secret for calling it quits in their thirties.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
457 Plan Contribution Limits for 2025Retirement plans There are higher 457 plan contribution limits for state and local government workers in 2025 than in 2024.
-
What Does Medicare Not Cover? Seven Things You Should KnowHealthy Living on a Budget Medicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
13 Smart Estate Planning Movesretirement Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money.
-
Medicare Basics: 11 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2024 and 2025SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 in 2024 and $70,000 in 2025..
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
SIMPLE IRA Contribution Limits for 2024 and 2025simple IRA The SIMPLE IRA contribution limit increased by $500 for 2025. Workers at small businesses can contribute up to $16,500 or $20,000 if 50 or over and $21,750 if 60-63.
