The Clinton Herald, Clinton, Iowa

Breaking News

Lifestyles

October 29, 2013

The numbers you really need to know for retirement

If you are one of the 78 million Baby Boomers rolling into retirement in the next 20 years, you might want to sit down and do a little math. Retirement is a lot more complicated than it used to be.

So, before you quit your job and venture into the next stage of your life, stop for a minute to consider a set of numbers that could make the difference between retiring comfortably and well, not so much.

1. What is a reasonable estimate of your cost of living? This should be obvious, but most Americans dramatically underestimate their living expenses. Be honest and thorough. What do you pay for housing, including property taxes and insurance? What about utilities? And what about medical expenses or insurance premiums not covered by Medicare? What do you spend in a given month on restaurant dining and entertainment, or on the grandkids?

Whatever total figure you come up with, tack on an additional 25 percent. No matter how thorough you are, I promise you will forget something. The total you come up with here is the single most important figure. It’s the dollar amount you’ll need to generate from your portfolio investments and/or pension and from Social Security.

2. How much can you expect to receive from Social Security? According to the Social Security Administration, 53 percent of married couples and 74 percent of unmarried beneficiaries depend on Social Security for at least half of their income. A shocking 46 percent of unmarried beneficiaries rely on Social Security for 90 percent or more of their income. Social Security matters.

3. How much do your other investments need to earn to meet your retirement expenses? Take your expense estimates from above and subtract the after-tax Social Security payout from question two. Also subtract any other fixed income streams you expect, such as from a traditional pension or a trust. The amount left over is what you’ll need to generate from your investment portfolio. This number is critical because it will determine what type of returns you need to generate and what type of risk you can take.

Text Only
Lifestyles
  • YWCA offers lifeguard training

    CLINTON — The YWCA will offer lifeguard training in August.The course will be held from Aug. 4 to 10 at the YWCA. This 30-hour class will meet from 5 to 9 p.m. for four weeknights and from 1 to 5 p.m. Saturday. A possibility of adding a class from 1

    July 25, 2014

  • The Clinton Herald Jim Miller Low-cost, free cellphone options for seniors DEAR SAVVY SENIOR: What are the cheapest cell phone options available today to seniors living on a shoestring budget? I only need it for occasional calls. — Seldom Calling SeniorDEAR SELDOM: For financially challenged seniors who only want a cell pho

    July 19, 2014 1 Photo

  • GPS race Teams race to complete challenges THOMSON, Ill. — A challenge in August will pit teams against each other to complete a series of challenges.The event will begin at 9 a.m. Aug. 16 at the Upper Mississippi River National Wildlife and Fish Refuge in Thomson. Armed with GPS units, teams

    July 25, 2014 1 Photo

  • Habitat for Humanity hosts fundraiser

    CLINTON — Habitat for Humanity will host a fundraiser in Thomson, Illinois.The Clinton County group will showcase Laid Back Luau from 5 to 8 p.m. Friday, Aug. 8, at Heirloom Cafe in Thomson. The event will feature games, prizes, music train rides for

    July 25, 2014

  • Fire departments undergo grain bin rescue training OMAHA — The Goose Lake and Lost Nation Volunteer Fire Departments each have received lifesaving grain bin rescue equipment through a donation from Farm Credit Services of America.Goose Lake received its equipment July 14 and Lost Nation on July 15. E

    July 24, 2014

  • ADM donates $75K for fire boat purchase CLINTON — Archer Daniels Midland Company has donated $75,000 to the city of Clinton for a new fire and rescue boat for the Clinton Fire Department.The boat will help the fire department respond to fires, administer emergency medical services and resp

    July 24, 2014

  • Students get first-hand look at non-profits CLINTON — An upcoming event will showcase Clinton area’s non-profits to incoming Ashford University students.The second Fresh START (Serving to Achieve Results Together) event will be held Saturday, Aug. 16. Students and staff members will serve at v

    July 23, 2014

  • Friend of the Fair Two honored as 'Friends' MORRISON, Ill. — The Whiteside County Fair recently announced its 2014 Friend of the Fair. Paul Vock and Dan Heusinkveld are this year’s honorees. The two men have been involved with the fair for decades.Vock started with the fair in 1971 as the Heav

    July 22, 2014 1 Photo

  • Bice Nurses earn Daisy awards

    CLINTON — Two Clinton nurses recently earned Daisy awards.Mercy Medical Center nurses Jodie Atkinson and Kristen Bice earned the awards that is rewarded to extraordinary nurses. Atkinson began her career in nursing at Mercy Medical Center in 1995 on

    July 22, 2014 2 Photos

  • Revolver goes for $400 at auction CLINTON — Selling in two locations on June 21 proved to be a winner. I was selling in the first location with my son Jon and we had a strong bidding crowd. The second location had Jeff Lohr and Bill McWilliams holding firm with a nice crowd of bidder

    July 19, 2014

Front page
Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Poll

Should the city of Clinton appeal the open records violation ruling that will cost taxpayers $40,600?

Yes
No
     View Results
AP Video
Olympics 2014
Featured Comment
Featured Ads
Blue Zones Project
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.