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BUSINESS Tuesday 18 June 2019
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Liz Weston: Make your money last in retirement

By LIZ WESTON spouse dies. ple who retire early or who
NerdWallet CONSIDER BUYING GUAR- want to be more conserva-
Associated Press ANTEED INCOME tive might start at 3% rather
Many people worry about Many retirement experts than 4%, or skip inflation
running out of money in say it’s a good idea to adjustments in years when
retirement. That’s under- have enough guaranteed markets are bad.
standable, since we don’t income to cover your ba- GET GOOD TAX ADVICE
know how long we’ll live, sic, must-have expenses. Your tax situation can be-
what your future costs If those expenses exceed come more complicated
might be and what kind of what you expect to get in retirement, especially if
returns we can expect on from Social Security and you were a good saver.
our savings. traditional pensions, con- You could be thrown into
There are several ways, sider buying additional a higher tax bracket by
however, to boost the odds guaranteed income by required minimum distribu-
that your money will last as purchasing an immediate tions from retirement funds
long as you need it. Among annuity. Unlike other types that typically must start at
them: of annuities that can be age 70 1/2. The higher in-
REDUCE YOUR ‘MUST HAVE’ complicated and expen- come also can cause more
EXPENSES sive, an immediate annu- of your Social Security to
Lowering your fixed ex- This April 2017, file photo provided by NerdWallet shows Liz ity can provide a stream of be taxable and raise your
penses — shelter, food, Weston, a columnist for personal finance website NerdWallet. income for life in exchange Medicare premiums. Some-
transportation, insurance, com. for a single lump-sum pay- times it can make sense to
utilities and minimum loan Associated Press ment upfront. start distributions earlier or
payments — can help you tirement funds to pay off a the “break-even point,” CHOOSE A SUSTAINABLE to do Roth conversions to
withdraw less from your mortgage. Such withdraw- where the larger checks WITHDRAWAL RATE reduce future taxes. The
savings, which in turn can als can trigger a big tax they get from delaying the Big withdrawals or bad math involved can get in-
help your money last lon- bill and leave you without start of their Social Security markets at the start of your tense, so consult an expe-
ger. One powerful way enough cash for the future. benefit will total more than retirement can dramati- rienced tax pro.
to reduce expenses is KEEP EARNING the smaller checks they by- cally increase the risk you’ll PROTECT YOUR HEALTH
to downsize to a smaller A study for the National pass in the meantime. More run out of money. Financial Many chronic health con-
home if you can reduce or Bureau of Economic Re- importantly, though, big- planners typically recom- ditions are associated with
eliminate your mortgage search found that delay- ger Social Security checks mend that people take no higher medical costs in re-
payment and shrink other ing the start of retirement serve as a kind of longev- more than 4% of their nest tirement, including diabe-
costs such as property tax- from age 62 to age 66 ity insurance. The longer egg in the first year of re- tes, high blood pressure,
es, utilities and insurance. could raise someone’s an- you live, the greater the tirement, increasing the high cholesterol, arthritis
Getting rid of a car could nual, sustainable standard chances you’ll run through withdrawal by the inflation and heart disease, ac-
save you nearly $9,000 a of living by 33%. Even if you your savings and depend rate in subsequent years. cording to a study by Van-
year, which is the average can’t continue working full on Social Security for most That means a retiree with guard and Mercer Health
cost of car ownership ac- time, income from a part- if not all of your income. $200,000 in retirement sav- and Benefits. Some health
cording to AAA. Eliminat- time job or side business It’s particularly important ings could withdraw $8,000 risks are beyond our con-
ing debt before you retire could help you withdraw for the higher earner in a the first year. If inflation is trol, but regular screenings,
is often a good way to re- less from your savings. couple to delay as long as 3%, the retiree would add proper medical care and a
duce expenses, but consult MAXIMIZE YOUR SOCIAL SE- possible to maximize the $240 (3% of $8,000) and healthy lifestyle may help
a fee-only financial plan- CURITY survivor benefit that one of withdraw $8,240 the sec- you reduce some of those
ner before withdrawing re- Most people will live past them will get after the first ond year, and so on. Peo- costs.q

Global shares mixed as investors look ahead to Fed rates

By YURI KAGEYAMA 0.1% to finish at 21,124.00. Market watchers are also
Associated Press Australia’s S&P/ASX 200 lost closely watching the results
TOKYO (AP) — Global 0.4% to 6,530.90, while South of the G-20 summit in late
shares were mixed Monday Korea’s Kospi edged down June, where U.S. President
amid a wait-and-see atti- 0.2% to 2,090.73. Hong Donald Trump and Chinese
tude about the direction of Kong’s Hang Seng gained President Xi Jinping could
interest rates and the trade 0.4% to 27,227.16, while the meet and try to negotiate
dispute between the U.S. Shanghai Composite was a deal on trade.
and China. up 0.2% at 2,887.62. “Sentiments around the
France’s CAC 40 added Earlier this month, U.S. Fed- ability to achieve a posi-
nearly 0.2% in early trad- eral Reserve Chair Jerome tive turn in U.S.-China trade
ing to 5,376.03. Germany’s Powell set off a market rally negotiations, should the
DAX fell less than 0.1% to after he signaled that the Trump-Xi meeting materi-
12,089.45. central bank is willing to alize at the sidelines of the
Britain’s FTSE 100 rose nearly cut interest rates to help G-20, remain tentative,”
0.2% to 7,356.56. stabilize the economy if the A man looks at an electronic stock board showing Japan’s said Vishnu Varathan of
U.S. shares were set to drift trade war between Wash- Nikkei 225 index at a securities firm in Tokyo Monday, June 17, Mizuho Bank in Singapore.
higher with Dow futures up ington and Beijing starts to 2019. “And the G-20 itself is mere-
0.1% to 26,162. S&P 500 fu- slow economic growth. Associated Press ly a stage to kick the can
tures were also up 0.1% at The Fed holds its next meet- Economists expect Fed of- to cut rates, after seeing down the road and a long,
2,898.50. ing of policyholders this ficials to wait until the sec- the next government re- long way off a complete
Japan’s benchmark Nik- week, but no action on ond week of July to indi- port on the jobs market retraction of global trade
kei 225 inched up less than rates is expected. cate whether they intend and other economic data. tensions.” q