Today’s Hack:
For a long time most people have targeted 65 for retirement, which is older than most countries, but that might even go higher in the next few years. Those ages are already rising in countries like France and Spain as they move towards 67. Should you expect a later retirement date? And how does that impact planning? That’s what we’ll discuss today.
Other Retirement Facts:
We came across this CNBC article recently that talked about retirement ages around the world and a trend that countries are moving to an older age.
That caught our attention because that would significant impact the planning process. It’s obviously something we keep an eye on because Social Security might necessitate a change and because we are all living longer. It seems like we could see changes here at home sooner rather than later.
So we wanted to talk about how this would affect your planning on this episode of Phil’s Tax Hacks. We already see clients who are planning to retire beyond 65 or 66, and you might be surprised to see how different our conversations are from people that retire earlier. Those extra two or three years make a big difference and the planning reflects that.
Today we’ll talk about the article and discuss the trends in retirement age. We’ll also get Phil’s reaction to the news that contribution limits are increasing in 2020. Plus, we’ll answer a couple email questions on retirement date and trying to do your financial planning without professional help.
1:34 – Betty White turned 98 years old and attributes it to vodka and hot dogs.
2:40 – IRS increased contribution limits. What is Phil’s reaction to the news?
4:23 – Mailbag Question: I could sell the house for $500,000 and I only owe $100,00. I’m 57 and I’m thinking about getting a smaller place and using that cash to retire early. What are your thoughts?
8:07 – Let’s talk about this article in CNBC on retiring age.
8:45 – Countries around the world are already raising retirement age.
10:13 – Is Phil seeing this trend of working longer from his clients?
11:55 – Is there a major planning difference from 65 to 67?
13:28 – It might only seem like two or three years but there’s a bigger compounding effect longterm.
13:53 – Then there’s the Social Security factor to shifting age.
15:30 – Mailbag Question #2: I’d really like to hire an advisor but my husband wants to do it himself. Is it okay to do this without help?
18:40 – Getting to Know Phil: What’s your favorite TV channel?