working after retirement

My husband and I met with our financial advisor last week to tweak some of our retirement savings. As an aside, our advisor mentioned it was unlikely that our generation — all three of us are currently in our mid-thirties — will retire at 65. Instead, he believed we will probably work until we’re 70.

Aside from the disappointing idea that we’re still in for another 30 years of working, the prospect of pushing retirement off a few years is not necessarily a negative one. Here are some of the reasons why a later retirement could be beneficial — or a major problem.
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Timeshares are vacation properties that several people share partial ownership of – usually over a time span of about 25 years. They’re typically located in exotic locations that are popular tourist destinations.

Starting in Europe in the 1960s, the concept of timeshares spread quickly to the United States. They became a huge trend with seasonal vacationers who liked the idea of “owning” property in an exotic area for a fraction of the price.

Today, timeshares are generally sold through high-pressure sales presentations that present them as a more financially responsible way to vacation.

COVID has decimated the timeshare industry for obvious reasons. Still, you know they are eventually going to come back and get people. In case you’re thinking about purchasing a timeshare now or in the future, here are some things you should know before you sign.
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Many of you know about the 4% retirement withdrawal rule, which claimed that a retiree can withdraw 4% from their nest egg each year, adjust the amount for inflation, and have it last for 30 years. The 4% rate is pretty much the gold standard when it comes to retirement planning since the Trinity report was published in 1995. You may also have heard many experts claim how 4% is no longer safe because the study was based on stock market history and how the stock and bond portfolio that the nest egg needed to be invested in won’t provide nearly the same return as what history has provided us. That can only mean one thing – a lower withdrawal rate.

I’ve spoken to many of you about this because the reasoning is undeniable. I mean, bonds used to provide good single-digit and at times double-digit returns in the past. The 10-year treasury is expected to return roughly 1% a year these days. Stock prospects aren’t faring much better. The vast majority of metrics people use to value the stock market is flashing warning signs of how everything is severely overvalued.

It’s scary, especially when some are now saying that 2.5% is the new withdrawal rate. Now 1.5% may not sound like much, but changing the withdrawal rate to the lower number means a 37.5% reduction in spending money in retirement. You can try to save more to keep the same retirement income, but we are talking about having to accumulate 60% more in savings. That’s working years if not decades longer.

So what are soon-to-be-retirees to do? Luckily, the situation isn’t nearly as dire as the doomsayers are claiming. Here are a few reasons why:
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You’ve been dating for six months now, and it’s feeling right. He gives you butterflies when he walks into the room. You think he could be “the one.”

The problem is that you’ve been withholding some information from him.

You’re not sure if you should even be bringing up such a topic so early on in a relationship – and quite frankly, this secret has the potential to make your new love interest run for the hills.

You have $90,000 in student loan debt and $45,000 in credit card debt. You’re not quite sure what his financial situation is, or if yours will scare him away. What do you do?
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The American Dream has always been based on the idea of homeownership and that bigger is better. If you need confirmation of this fact, then look no further than last year’s statistics that show how the average American home is 2,400 square feet. It averaged 2,000 during the housing boom years in the early 2000s and even less if you go back in history.

But even though average home sizes are increasing, there’s a small but growing trend in the opposite direction: tiny houses. Documentaries on tiny house dwellers highlight the incredible contrast between the average American home and the average tiny home, which is less than 500 square feet.

Although tiny homes still account for less than 1% of real estate sales, their appeal is increasing among many people who are tired of upside-down mortgages, the cost and time consumption of accumulating and maintaining 2,600 square feet of possessions. Some people just have a desire to live a simpler life. Who could fault them? Even if you’re content to keep living the American Dream, consider these financial advantages of living in a tiny home.
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I’ve been warming up to the idea of converting part of my 401k to a Roth for some time. The gist of the tax maneuver is to pay the taxes upfront on the conversion, and then the money that’s converted will be forever tax-free. There are several benefits of a converted Roth IRA for a younger investor like myself, especially if I’m not using any retirement account money to pay for the tax bill. Still, I want to make sure I cross all the “T”s and dot all the “I”s before I make the conversion.

Here’s a checklist I came up with for anyone thinking of converting as well.

Figure out ahead of time where taxes for the conversion will come from. Will you be paying for the tax bill out of your conversion, or will you be using outside funds? If you are planning to pay the taxes out of money inside your retirement account, then it’ll be pretty much a wash if your tax rate stays the same on the year of your conversion versus when you take out the money if you didn’t convert.

If however, you are paying for the tax payment with outside funds, then it could make sense even if you believe your marginal tax rate would be lower when you withdraw. That’s because paying for the tax bill when you convert with outside funds is similar to being able to contribute some of that outside funds into a Roth IRA.

Let me use an example to illustrate.
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