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Experiment before picking up stakes
Chris Farrell Apr 17, 2012
I'll be retiring in a few months and my husband is already retired. We are thinking of selling our home in Florida and moving to California to be closer to our children and grandchildren, who live in Los Angeles. Another option might be to keep the house in Florida, buy an RV and camp out in an RV park in California until we wear out our welcome. What are some of the pitfalls that we should try to avoid? Nancy, Milton, FL
Learning about reverse mortgages
Chris Farrell Apr 12, 2012
It's worth learning about reverse mortgages. The homeowner gets access to their home equity without moving.
Funding an IRA when retired
Chris Farrell Apr 11, 2012
My wife and I just retired last June. She just turned 60 and I will turn 59 soon. We own our home and cars, we have no credit card debt and our savings (not including retirement accounts) is almost $100,000. Our kids both finished college without accruing debt (thank you very much!). As I completed our taxes this spring, the amount owed is almost $2,400. If we open an IRA for $8,000, the amount owed drops to under $1,200. Does it make sense for us, at this point in our lives, to invest in the IRA for the tax savings? Part of me says it is a no-brainer; the other part says that investing in an IRA when you are already retired doesn't pass the common sense test. What do you think? Mike, Blue Earth, MN
Yes, participate in a 401(k)
Chris Farrell Apr 10, 2012
I have a Roth IRA, a retirement account from a previous job and a mutual fund. Shall I also begin a 401(k) with my new employment? Ivy, El Paso, TX
Baby Boomers choosing to retire earlier
Jeremy Hobson Apr 9, 2012
There was one tiny bright spot to March's unemployment report: 164,000 fewer people were looking for work. One particular demographic that has dropped out of the search -- Baby Boomers who are choosing to retire prematurely.
Parents and graduate school
Chris Farrell Apr 9, 2012
What do you suggest is the best way for middle-income baby boomers to support their children's post-bachelor's degree educations? Anne, Burlington, VT
Pension assets are coming back, sort of
Chris Farrell Apr 3, 2012
Yes, public pension plans are ripe for reform. But overhauling these plans is an opportunity to improve pension design for everyone.
To annuitize or not to annuitize -- with apologies to Shakespeare
Chris Farrell Mar 29, 2012
I am ready to convert my 401(k) into an IRA. I am 61 years old and want to start taking annual distributions. The current balance in the 401(k) is $562,000 and I would like to withdraw 4 percent annually. Fidelity Investments is recommending a Guaranteed Annuity of $400,000 and the remaining in a managed portfolio fund (balanced). The annual fee for annuity is 1.90 percent of the balance and the managed portfolio 1 percent. These are the only fees. There is a 2 percent penalty if withdrawn within the first 5 years. Is this a good option, or should I keep the money in moderate conservative index funds? Emma, Las Cruces, NM
Retirement and working longer
Chris Farrell Mar 29, 2012
"A steadily growing portion of the workforce will continue to work at least part-time well beyond the 'normal' retirement age of 65," says a senior research fellow at the New America Foundation.
Home renovation and retirement
Chris Farrell Mar 26, 2012
Middle-aged homeowners should think about adding features that make it easy to age in place with any home remodeling project.
