One of the most significant decisions American workers must contend with is when (or whether) to retire from their jobs. Traditionally, retirement happens on a planned date of separation from a job. But what if you could retire in stages? Commonly referred to as Phased Retirement, this approach to separating from your job or career is becoming more common.
Weekly Focus
ARE BRICK-AND-MORTAR STORES DISAPPEARING?
The news about the economy has been so encouraging lately that it would be easy for us to forget that one major industry is in a state of flux. Retailing has been transitioning into e-tailing for several years now. It seems every week we read of more major retailers shutting their doors and moving online. Just last week, Macy’s announced it is closing 125 over the next three years and cutting 2000 jobs. Fortunately, the Louisiana stores are safe for now, but what does this say for the future of brick-and-mortar stores? This news follows in the footsteps of Sears, Toys R Us and JC Penney, among many other name retailers.
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Maybe you happened to catch the Robert DeNiro movie, “The Intern,” a few years ago. DeNiro played, Ben, a 70-year-old retired executive who joins a senior citizen internship program designed to help him re-enter the workforce. That was a light romantic comedy, but in real life, senior internships are a growing part of industry. More organizations than ever are beginning to recognize the value of retired persons’ accumulate skills and wisdom.
One issue on the minds of masses of Americans, year after year, is the ever-increasing cost of prescription drugs. Lost among some of the recent major headlines is the news that at the end of 2019, the U.S. House passed H.R. 3 , the Lower Drug Costs Now Act. The Senate now has the opportunity to make this one of the most significant pieces of drug pricing legislation passed in the last 20 years. This law would give Medicare the power to negotiate drug prices, a function that is now exclusively the domain of pharmaceutical companies.
If you are 50 years old or older, you should know that seniors have become a powerful economic engine in the United States. As usual, the numbers tell the story: Of the 327 million Americans, fully 111 million fall into your age group. By 2050, this number is expected to double. This age group is responsible for $7.6 trillion in economic activity, according to Oxford Economics, an economic forecasting organization. The products and services the senior age group consumes have become a major driver of the American economy, so much so that it now has a name: The Longevity Economy.
One of the biggest questions on most investors’ minds right now has to do with how this year’s presidential election year could affect the stock market. The truth is no one can definitively predict market activity. The best anyone can do is study the history of the market in other election cycles, and consider the economic, political and global variables that might affect stock performance. Although past performance does not guarantee future results, historical trends are worth watching, if only for useful statistics. Investors like a sure thing, but the savviest among them know that the stock market is often rife with uncertainty.
Raise your hand if you remember any of the resolutions you made last year at this time. Don’t feel too badly. Most of us don’t remember how determined we were to lose 10 pounds, or cut down on sweets, or go to the gym more regularly. That is why it may be worthwhile for you to bookmark this column and take a look at it from time to time through 2020. This year resolve to take charge of your finances. Here are some of the new resolutions we suggest that may make that a bit easier:
If there is one element of the internet that can cause users some confusion, it is the overkill on information. How can you know what information is credible? We took some time to study a number of personal finance blogs and decided on five that we know you can really learn from. As “they say, the more you know, the better you do. Here are our top five choices:
You have probably heard that old John Lennon quote: “Life is what happens while you are busy making other plans.” Some older American workers unexpectedly find out the wisdom of that statement when they lose their jobs late in their careers. Despite all the plans you make for retirement, and the financial strategy you put together for your post-career years, sometimes a premature loss of a job can force you to change course. The one thing you can control is how you prepare for a job loss, and what to do once it happens. Taking a proactive approach can save a lot of heartache later, but there are ways to navigate a late career job loss even if you have not prepared for it.
Financial News
Spring is just around the corner, and many of us are starting to dream big about possible getaways and vacation trips. But sometimes the monthly budget gets in the way of fulfilling those dreams. There are ways to turn those dreams into real plans. Here are a few suggestions on how to save enough to finance great summer trips:
Fitness News
If your doctor has that worried look when explaining your cholesterol numbers, the good news is you may be able to help yourself just by adjusting your diet. Some people still will need prescribed medications, but others may lower their numbers simply by making a few dietary changes. Here are a few foods that may surprise you with their cholesterol-lowering properties:
Giving Back
Here is a novel idea: This holiday season, instead of spending tons of money on gifts, a growing number of celebrants are using some of their gift money to support Louisiana charities. You may be surprised at how many non-profits and charitable organizations exist in our state. Just in case this sounds like an interesting idea to you, here are just a few of the worthy groups that need our help:
There are more than 850,000 Medicare recipients in Louisiana, and if you happen to be one of them, you need to know about the changes coming in 2020.
The beginning of the new year will see Medicare Part B premium increase $9.50 to $144.60. Part B covers doctors visits, outpatient procedures, preventive care, medical equipment and lab and diagnostic services. If you already receive Social Security, this amount is deducted from your monthly benefit. Social Security will show a cost of living increase in 2020 of 1.6 percent, so most Medicare recipients probably not notice the increase to part B.
John’s Corner
JCN FINANCIAL NAMED TO TOP ADVISERS LIST
JCN Financial and Tax Advisory Group has been named one of the Best Financial Advisers in Baton Rouge for 2019. This honor is bestowed upon us by Expertise, the organization that uses proprietary research to find the best service providers across the country. We thank Expertise for this honor. If you are a current client of JCN, or a potential client, we encourage you to meet with one of our advisers whenever you are ready to discuss your finances. Let us offer you our expertise. Call 877-755-0488 for an appointment.
LSU CHAMPIONSHIP BOOSTS BATON ROUGE ECONOMY
Economists say LSU’s championship season has already put a little extra money in many of your pockets. Additionally, the school says it saw a five percent bump in applications during the middle of January, compared to a typical two-week period.
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AMAZON CENTER COMES TO BATON ROUGE
A site plan for the South Baton Rouge AMAZON Distribution Center received unanimous support from the East Baton Rouge Planning Commission. The plan calls for a 111,918 square foot distribution center off I-10 behind the Bethany Church crosses.
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WHY YOUR IRS REFUND MAY BE DELAYED
Did it take way too long for the IRS to issue your tax refund last year? It turns out it is not your fault – new filters and screenings the agency uses may cause certain refunds to be held up for months.
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WHY YOUR CREDIT SCORE MATTERS
Do you keep track of your credit score? If not, there are good reasons you should. Here is some good advice, and information on a new method that will be used to calculate your score, starting this coming summer.
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MEDICARE CHANGES FOR 2020
There are more than 850,000 Medicare recipients in Louisiana, and if you happen to be one of them, you need to know about the changes coming in 2020.
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HIGHER 2020 401K CONTRIBUTION LIMITS
How much can you save for retirement in 2020? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020: 401(k) contribution limits are up; traditional IRA contribution limits stay the same; almost all the other numbers are up.
Save more – earn more
HOW STOCKS PERFORM IN ELECTION YEARS
Election Day is a year away, and stocks are poised to keep rising over the next 12 months with an incumbent in office – that is, if history is any indication. Since 1952, the Dow Jones Industrial Average has climbed 10.1% on average during election years when a sitting president has run for reelection, according to the Stock Trader’s Almanac.
Bull market continues
Retiring Abroad
More Americans than ever are choosing to retire out of the U.S. The number of retirees who draw Social Security outside the U.S. jumped 40%, to more than 413,000, between 2007 to 2017, according to the Social Security Administration.
Why are retirees fleeing the U.S.?
Baby Boomers Real Estate Trends
There has also been a 31% increase in the number of older owner households. But renting seems to be trending more than buying in the last years, especially for the growing elder age group which is making its presence known in the real estate market.
The 60 and older generation is taking over the real estate market
Baton Rouge Named on Top Retirement Cities List
It comes as no surprise that Baton Rouge has been named one of the top 20 cities in the U.S. for retirees. As senior populations continue to grow, every part of the country will become more senior-dominated, but some more than others. Now the rest of the country is finding out what we already knew – Baton Rouge rocks!
Retirees Thrive in Baton Rouge
What You May Not Know About Social Security
Social Security benefits are based upon how much was earned during your working career. Choosing when to receive these benefits is one of the most important financial decisions you will make. If you choose to retire when you reach your full retirement age, you will receive your maximum benefit amount.
All About Your Benefits
