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.

As people consider their retirement income needs, do not overlook the equity in their home as a source of income. There are four options for tapping the equity in their home. The first two require a move. The other two allow People to remain in their present home.

May be premature. Some retirees get carried away with their generosity and discover they have needlessly lost some freedom and control. May not be fully appreciated. If People give money and it is not fully appreciated, remorse can set in. May do children more harm than good. Giving money too soon can cause children to [...]