As People near retirement, protecting themselves and their possessions takes on a new dimension. For example, health insurance becomes increasingly important. Although they may take fewer risks, they still need more insurance protection because accident and health problems tend to accelerate as they grow older.

Now that People have reviewed the strategies, options, and tax rules, what seems like the best approach for People? It’s unlikely that one of the strategies presented will be exactly right for People. Based on their comfort zone, People should be able to combine elements of two or more into a plan with which People [...]

Withdrawals from tax-deferred plans are taxed as ordinary income in the year received under federal and state income tax laws. A systematic withdrawal plan may reduce their tax liability in the long run by keeping People out of the top tax brackets in later years.

If People want to be sure something is left when People die, here’s a plan that will work for People. Harvard University’s endowment fund developed a spending guideline in 1973 to ensure a person wouldn’t prematurely run out of money. The rule assumes a balanced portfolio allocated half to stocks and half to bonds and [...]

If their preferred strategy includes spending capital, a plan for judicious spending will allow People to supplement other income to provide an enjoyable retirement. People must work with a couple of unknowns—how long People will need income and what future rate of return People can expect—but sufficient data help People make educated guesses on these. [...]

How long will their money last? Running out of money is perhaps the biggest fear retirees have. This is understandable. People are retiring younger, living longer, and dealing with continually rising living expenses. Uncertainty over future inflation and investment returns only adds to the problem. Here are two tools to help People implement whichever strategy [...]

Typically, in a sale-leaseback, People sell their home to someone at an agreed upon price but continue to live in it by paying monthly rent. The new owner becomes responsible for paying taxes, insurance, and maintenance. This arrangement gives People the value of their home to use for current living expenses without requiring People to [...]

A reverse mortgage is a home equity loan. It can be granted only on homes that are mortgage free. Rather than making payments to the mortgage company, the mortgage company makes payments to People. As a result, People receive monthly income based on the value of their home as long as People live, or, in [...]

The real estate market has changed to the extent that home ownership is not necessarily the best financial option. People may come out ahead by selling their home and renting either a house, apartment, or condo. This option frees all of their home equity for living expenses. To calculate a financial analysis of owning versus [...]

Many people approaching retirement have experienced enormous appreciation in their home’s value. Selling such a home and buying a cheaper one can leave a substantial sum of money to meet current living expenses.