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## The Formula You Are Using To Determine How Much To Save For Retirement Is Broken

If you are trying to figure out how much money you need to save for retirement, there’s an easy rule of thumb that you can use: simply multiply your expected annual expenses in retirement by twenty-five.

For example, if you expect to spend \$100,000 annually once you’re retired, you’ll want to have a \$2.5 million portfolio saved up. If you’d like to play around with the numbers to estimate your own retirement needs, you can use this simple retirement calculator.

This retirement savings rule of thumb is based on the 1998 landmark study conducted by Carl Hubbard, Philip Cooley and Daniel Walz, in their seminal study known as the Trinity Study. They built on the 1994 work of William Bengen, who originally coined the ‘4% Rule’.

Today In: Money

The Trinity Study evaluated safe retirement withdrawal rates, and found that 4% was sufficient for the majority of retirees. A safe withdrawal rate simply refers to the amount of money that can be taken out of an account and allow you to reasonably expect the portfolio to not fail, or run out of money. In this case, the 4% withdrawal rate refers to the amount of money that will be withdrawn from the balance of the retirement portfolio in the first year of retirement. In subsequent years, the balance withdrawn will simply be an inflation adjusted number based on the total dollar amount withdrawn the year prior.

The Trinity Study has become so well-known, that it has been adopted by hopeful retirees from all walks of life, including those hoping to retire early. The FIRE movement (Financial Independence, Retire Early) is a lifestyle movement with the goal of allowing individuals to retire as early and quickly as possible.

However, one detail that the movement is getting wrong and completely missing, is the fact that the Trinity Study’s 4% rule of thumb was based on a 30 year retirement period. This time horizon was determined to be on the conservative end of retirements by the authors of the study. If you work until you’re 65, having a 30 year retirement seems pretty reasonable. I don’t think many would argue that living until the age of 95 is a short life by any means.

The problem arises due to the FIRE movement seeking a much longer retirement period. If you retire at 45 years old, you may need a portfolio that will survive another 45 to 50 years in order to avoid running out of money. In this case, making a judgement error could end up meaning re-entering the workforce at an advanced age. For this reason, relying on a 4% withdrawal rate is an extremely risky decision if you plan to retire early.

This begs the question of what a more appropriate withdrawal rate is if you plan to retire early. The answer is that it depends. In general, the study found that as the balance between stocks and bonds shifts towards equities, a portfolio is more likely to withstand the test of time. So inherently, your risk tolerance will need to be factored into the equation. If you are comfortable with 75%+ of your portfolio being in stocks (and stomaching the increased risk), you might be safe with a 3% withdrawal rate. If you prefer less volatile investments, a lower rate is more conservative.

This is bad news for a lot of you hoping to retire early.

For one, it would mean having to save an additional \$833,000 if you hope to spend \$100,000 annually like in the example above. Unless you are an exceptionally high earner, it’ll likely mean having to work for several additional years or having to continue to earn additional income even after retirement.

With the buzz surrounding the gig economy and the seemingly endless ‘side-hustle’ opportunities available, this seems like a surmountable hurdle. The deficit in retirement savings required also highlights the impact of having to save for retirement as efficiently as possible.

This means fully taking advantage of your 401(k), IRA, and other tax-advantaged accounts. It also means evaluating whether it makes sense to refinance your student loans or not. Avoiding credit card interest fees and other forms of high interest debt are a must. In addition, maximizing your earning potential will also help safeguard your nest egg from market turbulence and economic uncertainty.

Just as important, you’ll also want to avoid making costly investment mistakes. One that comes to mind is erroneously viewing your vehicle as a sound investment. Another pitfall is picking individual stocks in lieu of index funds or ETFs. To set yourself up for success, minimizing fees and diversifying your investments is the name of the game.

Does all of this mean that the 4% rule is futile and should be completely ignored? Absolutely not. The authors of the Trinity Study ran simulations to find what the safe withdrawal rate would be for varying time horizons. But at the end of the day, they were just that: simulations. Even if you only had an expected 15 year retirement and used a conservative withdrawal rate, there is always the chance that your portfolio could fail. The same is true in the opposite direction: there’s always the chance that a 4% withdrawal could be sufficient for a 50 year retirement.

The question you have to answer is whether you are comfortable taking that risk. I know I’m not.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

Camilo Maldonado is Co-Founder of The Finance Twins, a personal finance site showing you how to budgetinvestbanksave & refinance your student loans. He also runs Contacts Compare.

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## What Makes People Truly Happy in Retirement?

What makes people happy in retirement? That’s the question Michael Finke has been researching for many years now. He’s the chief academic officer of the American College of Financial Services, and was one of 16 experts who spoke on at TheStreet’s Retirement, Taxes, and Income Strategies symposium held recently in New York.

And he now has the answer.

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But first a little background. Finke has been researching the question of what makes people happy in retirement because he wants to know to what extent does what people do with their money make them happy in retirement. “Is it better if they have a lump sum? Is it better if they have a pension, or some kind of annuitized income?”

And what he found was this: There seems to be three pillars of happiness in retirement. The first pillar is money, which he says is good news for those of who are actually saving for retirement. “You are happier if you have more money,” Finke said. “So money is a pillar.”

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And it shouldn’t be any surprise, he said, that health is also a pillar of happiness. “You can have all the money in the world, but if you’re not healthy, you’re not actually gonna enjoy your retirement,” Finke said.

But most of his newest research is on social well-being. For instance, the extent to which you have good relationships with your spouse is is one of the strongest predictors of happiness in retirement. “So make sure you invest in that as much as you’re investing in your 401(k),” Finke said.

The other predictors of happiness in retirement are, according to Finke, friendships and the depth of friendships and the number of friendships that you have with other people. “And even when we look at spending, what we see is that social spending is what really makes people happy,” he said.

Spending money on all sorts of other stuff that we think might make us happy in retirement doesn’t really make us that happy. “It is social spending that makes us happy,” Finke said.

So that’s the foundation of his research in life satisfaction in retirement. “You have to have all three of those if you’re going to be satisfied, and all of them are an investment,” said Finke.

What is an investment in retirement? According to Finke, an investment is anything that requires a sacrifice during your working years in order to build value. “When you save for retirement, it means that you’re living a little bit less well,” he said. “You’re setting money aside that you could have spent today, and you’re (going to) spend that money in retirement.”

Health is an investment, too, said Finke who recalled his early days as a food consumption researcher. “The whole reason I got into finance was because I took a doctoral class in investments because I wanted to understand investments theory, but my theory was that the same thing that motivated people to save money for retirement is the thing that motivated them to engage in healthy behaviors like eating better or exercising, and so that’s an investment in your future as well,” he said.

Relationships are an investment as well and it takes ongoing investment and time and resources to be able to maintain those friendships “so that you can actually draw from them in retirement,” said Finke.

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And if you haven’t made those investments — and men are especially bad at making investments in friendships — you’re not going to be as happy in retirement, he said.

Women, by contrast, invest more. “Women have more deep relationships than men do by the time they get to retirement,” he said. And that, said Finke, actually creates a big issue because very often women have friends outside of the relationship, and they want to spend time maintaining that investment with their friends.

A man’s social circle, by contrast, is at work. “And by the time they retire, they’re relying more on their spouse,” Finke said. “In an opposite-sex couple, they’re relying on their spouse for that, to spend time with them, to go on vacation with them and have lunch with them, and sometimes that creates a bit of friction in retirement.”

Finke also noted that married retirees, in general, are happier, but the happiest group is women who are newly divorced between the ages of 60 and 65. “That’s the happiest group,” he said.

Got questions about money, retirement and/or investments? Email Robert.Powell@TheStreet.com.

## What Is The Average Retirement Savings in 2019?

It costs over \$1 million to retire at age 65. Are you expecting to be a millionaire in your mid-60s?

If you’re like the average American, the answer is absolutely not.

## The Emptiness of the Average American Retirement Account

The first thing to know is that the average American has nothing saved for retirement, or so little it won’t help. By far the most common retirement account has nothing in it.

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Sources differ, but the story remains the same. According to a 2018 study by Northwestern Mutual, 21% of Americans have no retirement savings and an additional 10% have less than \$5,000 in savings. A third of Baby Boomers currently in, or approaching, retirement age have between nothing and \$25,000 set aside.

The Economic Policy Institute (EPI) paints an even bleaker picture. Their data from 2013 reports that “nearly half of families have no retirement account savings at all.” For most age groups, the group found, “median account balances in 2013 were less than half their pre-recession peak and lower than at the start of the new millennium.”

The EPI further found these numbers even worse for millennials. Nearly six in 10 have no retirement savings whatsoever.

But financial experts advise that the average 65 year old have between \$1 million and \$1.5 million set aside for retirement.

## What Is the Average Retirement Account?

For workers who have some savings, the amounts differ (appropriately) by generation. The older you are, the more you will have set aside. However there are two ways to present this data, and we’ll use both.

### Workers With Savings

Following are the mean and median retirement accounts for people who have one. That is to say, this data only shows what a representative account looks like without factoring in figures for accounts that don’t exist. This data comes per the Federal Reserve’s Survey of Consumer Finances. (Numbers rounded to the nearest hundred.)

• Under age 35:

Average retirement account: \$32,500

Median retirement account: \$12,300

• Age 35 – 44:

Average retirement account: \$100,000

Median retirement account: \$37,000

• Age 45 – 55:

Average retirement account: \$215,800

Median retirement account: \$82,600

• Age 55 – 64:

Average retirement account: \$374,000

Median retirement account: \$120,000

• Age 65 – 74:

Average retirement account: \$358,000

Median retirement account: \$126,000

For households older than 65 years, retirement accounts begin to decline as these individuals leave the workforce and begin spending their savings.

### Including Workers Without Savings

When accounting for people who have no retirement savings the picture looks considerably worse. Following are the median retirement accounts when including the figures for people with no retirement savings. The following do not include mean retirement accounts, as this would be statistically less informative than median data.

• Age 32 – 37: \$480

• Age 38 – 43: \$4,200

• Age 44 – 49: \$6,200

• Age 50 – 55: \$8,000

• Age 56 – 61: \$17,000

## How Much Should You Have Saved For Retirement?

So that’s how much people have saved for retirement, or more often don’t. Now for the more useful question: How much should you have saved for retirement?

The truth is that there’s no hard and fast rule. It varies widely by your age, standard of living and (perhaps most importantly) location. Someone who rents an apartment in San Francisco needs a whole heck of a lot more set aside than a homeowner in the Upper Peninsula of Michigan.

The rule of thumb is to estimate by income. Decide the income you want to live on once you retire, then picture your life as a series of benchmarks set by age. At each age you want a multiple of this retirement income saved up. Your goal is to have 10 to 11 times your desired income in savings by retirement.

• By age 30: between half and the desired income in savings

• By age 35: between the desired amount and double the desired income in savings

• By age 40: between double and triple the desired income in savings

• By age 45: between triple and quadruple the desired income in savings

• By age 50: between five times and six times desired income in savings

• By age 55: between six times and seven times desired income in savings

• By age 60: between seven times and nine times desired income in savings

• By age 65: between eight times and 11 times desired income in savings

So, if you earn \$50,000 per year, by age 40 you will want to have between \$100,000 and \$150,000 in retirement savings set aside. The formula grows later in life for two reasons. First, as your savings accumulate they will grow faster. Second, as you approach retirement it is often wise to accelerate your savings plan.

## What You Should Do Next for Your Retirement Savings

Retirement is approaching a crisis. In the coming decades millions of Americans will get too old to continue working without the means to stop. Millennials, crippled by debt from graduation, will turn this crisis into a catastrophe in about 40 years. And Social Security, designed to prevent exactly this problem, covers less than half of an average retiree’s costs of living.

It’s beyond the scope of this article to discuss exactly how this happened, but if you’re one of the many people who have fallen behind on retirement savings, don’t panic. There’s plenty you can do. But… it might not necessarily be easy.

The key is to think about retirement savings like a debt. This is money you owe to yourself and it charges reverse interest. Every day you go without adding money to your retirement account is a day you lose investment income. That’s money that you’ll need someday and won’t have.

Next, take stock of where you are. How much will you want to live on in retirement and how much do you have saved today? Use our chart above. That will tell you how far behind you are compared to where you need to be. Are you a 40 year old with \$25,000 in savings who will want to live on \$50,000 per year in retirement? Then you’ve got \$75,000 you need to make up for.

Now, begin catching up. Chip away at that debt every week and every month. Pay into your 401k and IRA the same way you would whittle down a credit card. By thinking about it this way, as a specific goal, you can take away some of the fear of saving for retirement and turn it into an achievable (if large) amount. It’s not just some big, black hole you can never fill. It’s a number, and numbers can go down.

It won’t necessarily be fun. You might have to cut back on luxuries or take on some extra work, but even if you start late in life you can catch up on your retirement.

Now’s the right time to start.

By:

Dimensional Vice President Marlena Lee, PhD, explains how her research on replacement rates can help you prepare for a better retirement outcome. See more here: https://us.dimensional.com/perspectiv…

## Great Places To Follow Your Passions In Retirement In 2019

Want to be happy in retirement? Then cultivate relationships and spend more money on leisure activities—at least that’s what new academic research (as well as common sense) suggests.

To help you with the leisure part, Forbes presents its 2019 list of 25 great places to pursue seven retirement passions: arts, fine dining, lifelong learning, volunteering, outdoor activities on water, outdoor activities on land and (in its own category) golf.

Most are recommended for multiple passions and two—Seattle and Austin, Texas—excel in all seven categories. Our picks are spread across 21 states in all four continental time zones.

While our flagship Best Places To Retire list highlights locations that offer the best retirement value for the buck, our passions list doesn’t disqualify places simply because they’ve got high costs or taxes. Athens, Georgia, our most affordable passions pick, has a median home price of just \$178,000, while San Francisco, our most expensive, has a median home price of \$1.36 million. Although high costs (or high taxes) won’t keep a city from making this new list, we do take into account such practical quality of life factors as air quality, crime, doctor availability and how walkable and bikeable a city is. You can read more about our selection method here.

### Legend:

• Arts 🎨
• Fine dining 🍴
• Lifelong learning 🎓
• Volunteering ❤️
• Outdoor activities on water ⛵
• Outdoor activities on land 🍁
• Golf ⛳

## Annapolis, Maryland

### PASSIONS: ❤️ ⛵

#### MEDIAN HOME PRICE: \$428,000

Water on three sides, good air quality and a moderate climate make this charming historic Chesapeake Bay city an ideal spot for those who love boating, fishing or a waterfront view. For the newbie, the city offers lots of recreational boating schools and chartering opportunities. There’s a high rate of local volunteerism and the downtown area, which doubles as Maryland’s state capital (and was the U.S. capital for a year starting in 1783) is very walkable. Doctors per capita are at the national average. Elevation is 40 feet. On the downside, cost of living is 41% above the national average and the crime rate is above the national average. Taxes are on the high side, too; while Social Security benefits are exempt from tax, the top state/local income tax rate is 8.31% and the state has both an estate and inheritance tax.

## Ashland, Oregon

### PASSIONS: 🎨 🎓 🍁

#### MEDIAN HOME PRICE: \$462,000

Located 285 miles south of Portland, this cultural outpost offers art galleries and the nine-month a year Oregon Shakespeare Festival, all set amid scenic mountains and forests. Southern Oregon University hosts an Osher Lifelong Learning Institute and allows free auditing of regular college classes. The highly walkable downtown (elevation: 1,950 feet) is set in a moderate climate with little snow, good air quality, a low serious crime rate and a high number of doctors per capita. Nature trails are just outside town. But the cost of living is 40% above the national average and Oregon makes up for its lack of a sales tax with an income tax rate that hits 9% at just \$50,000 of income (with Social Security excluded). There is also a state estate tax.

## Athens, Georgia

### PASSIONS: 🎨 🎓 🍁

#### MEDIAN HOME PRICE: \$178,000

This affordable college town, just 70 miles east of Atlanta, has a vibrant arts scene. The  University of Georgia hosts an Osher Lifelong Learning Institute, plus offers seniors free admission to regular classes. Mild terrain and climate (the nation’s first garden club was founded here in 1891) and good air quality are all conducive to warm-weather outdoor activities at an elevation of 600 feet. The ratio of doctors per capita is sufficient. Cost of living is 7% below the national average and the serious crime rate is low. Georgia doesn’t tax estates or Social Security benefits and offers a generous additional break for other retirement income. Top state income rate is 5.75%. One notable downside: Not very walkable.

### Passions: 🎨 🍴 🎓 ❤️ ⛵ 🍁 ⛳

#### MEDIAN HOME PRICE: \$369,000

Sunny capital of Texas offers scores of dining and entertainment venues (including the annual SXSW festival), plus learning opportunities at the University of Texas, all surrounded by dozens of golf courses. The city boasts a high number of physicians per capita, good air quality, a good economy and a high rate of volunteering. The impressive state capitol building is higher than the one in Washington, D.C. At an elevation of 300 feet, the city is very bikeable and somewhat walkable. While there is no state income or estate/inheritance taxe, the cost of living is 30% above the national average and the serious crime rate is slightly above the national average.

## Bend, Oregon

### PASSIONS: ⛵ 🍁

#### MEDIAN HOME PRICE: \$440,000

Lots of snow guarantees vibrant downhill and cross-country skiing in this scenic “Outdoor Playground of the West” 160 miles southeast of Portland. Other outdoor pursuits at an elevation of 3,600 feet around the north-flowing Deschutes River include fishing, tubing, hiking, rock climbing, bicycling and paragliding. Besides good air quality, a low serious crime rate and a high number of doctors per capita, the area boasts a strong economy. But Oregon makes up for its lack of a sales tax with an income tax rate that reaches 9% on just \$50,000 of taxable income (which excludes Social Security). There’s also a state estate tax. The town itself is not very walkable. Cost of living is 34% above the national average.

## Boise, Idaho

### PASSIONS: 🎓 ❤️ 🍁

#### MEDIAN HOME PRICE: \$299,000

The surprisingly mild climate in Idaho’s capital city, nicknamed “City of Trees,” is conducive to outdoor land activities, while Boise State University hosts an Osher Lifelong Learning Institute and offers free auditing of regular classes for seniors. Other pluses include a high level of volunteerism, a high number of physicians per capita, a low serious crime rate, good air quality and a good economy. With an elevation of 2,700 feet, the city is very bikeable, though not as walkable. Cost of living is only 7% above the national average. There is no state income tax on Social Security earnings, nor a state estate/inheritance tax. Idaho’s income tax rate for married couples is 6.925% on taxable income above \$23,000.

## Boston, Massachusetts

### PASSIONS:🎨 🍴 🎓 ❤️ ⛵ 🍁

#### MEDIAN HOME PRICE: \$604,000

This buzzy historic coastal state capital city of 685,000 offers a wealth of cultural. and educational activities. Not too surprising, considering there are more than 50 area colleges. Boston has good air quality, abundant doctors per capita, and a good economy. At an elevation of 140 feet, the city, named for an English town, is both highly walkable and bikeable. The top state income tax rate is only 5% and there’s no state income tax on Social Security earnings. On the negative side, there’s a state estate tax and a higher than average serious crime rate. But the big downside is the cost of living: 82% above the national average.

## Boulder, Colorado

### PASSIONS: 🎨 🎓 ❤️ 🍁

#### MEDIAN HOME PRICE: \$742,000

This city, 30 miles northwest of Denver, is at the center of a huge recreational open space abutting the Rockies at 5,400 feet of elevation, which can be enjoyed in 10 months of annual sunshine. It’s also the home the University of Colorado, which allows seniors to audit courses for free. Boulder is a walkable and bikeable city with a low serious crime rate, good air quality, abundant doctors and a strong economy. Volunteering is a way of life here. While there is no state estate/inheritance tax, the state income tax (a flat 4.63%) does hit Social Security benefits. One big downside is the cost of living: 87% above the national average.

## Chandler, Arizona

### Passions: ❤️🍁 ⛳

#### MEDIAN HOME PRICE: \$317,000

This Phoenix suburb, named for Arizona’s first veterinary surgeon, offers myriad outdoor activities, including 185 golf courses in the region. There’s a low serious crime rate, a good economy and a high rate of volunteering. With an elevation of 1,200 feet, the city is very bikeable, although not all that walkable. There is no state income tax on Social Security earnings and no state estate/inheritance. The sate income tax rate tops out at just 4.54% on a married couple’s taxable income above \$317,900. On the downside, the number of doctors per capita is below the national average and the air quality is poor. Cost of living is 23% above the national average.

## Chapel Hill, North Carolina

### PASSIONS: 🎨 🍴 🎓 🍁

#### MEDIAN HOME PRICE: \$376,000

The home of the University of North Carolina, which offers free auditing of classes for senior citizens, this college town has been called America’s “foodiest small town” for its range of culinary options. It also has a high number of physicians per capita, good air quality, a low serious crime rate, a strong economy—and quirky blue fire trucks. There’s no North Carolina income tax on Social Security benefits and no state estate/inheritance tax. The state income tax rate is a flat 5.499%. At an elevation of 500 feet, the city is somewhat bikeable, but not very walkable. Cost of living is 30% above national average.

## Charleston, South Carolina

### PASSIONS: 🎨 🍴 ⛵ ⛳

#### MEDIAN HOME PRICE: \$322,000

This historic coastal city brims with activities, both indoors and out. (The first game of golf in the U.S. took place here.)  Pluses include a high number of doctors per capita, good air quality and a good economy. There’s no state estate/inheritance tax, no state income tax on Social Security benefits and there are additional tax breaks on pension income. But the state income tax rate tops out at an above average 7% on taxable income of just \$14,860. At an elevation of 20 feet, the city is somewhat bikeable, but not very walkable. Cost of living is 22% above national average.

## Dallas, Texas

### PASSIONS: 🍴 ❤️ ⛳

#### MEDIAN HOME PRICE: \$217,000

Scores of public golf courses plus fine dining (far beyond the nation’s first drive-in restaurant, which opened here in 1921) and what is said to be the nation’s largest arts district distinguish the Big D. At an elevation of 430 feet, the city is somewhat walkable and bikeable and has an adequate number of physicians per capita and support for volunteering. Atop of a strong economy, there is no state taxation of income, estates or inheritances. Cost of living is only 8% higher than the national average. On the downside, the serious crime rate is above the national average and the air quality is poor.

## Fayetteville, Arkansas

### PASSIONS: 🎓

#### MEDIAN HOME PRICE: \$219,000

The University of Arkansas offers free tuition to senior citizens at its flagship campus in this Ozarks city 200 miles northwest of Little Rock. Besides a cost of living 1% below the national average, other pluses include good air quality, adequate number of physicians per capita and a good economy. At an elevation of 1,400 feet, the city (originally named Washington) is somewhat bikeable, although not that walkable. There is no state estate/inheritance tax and there’s no state income tax on Social Security benefits, plus there’s a small additional break for pension income. But the state income tax reaches 6.9% on a married-couple’s income above \$35,099. The serious crime rate is above national average.

## Las Vegas, Nevada

### PASSIONS: 🎨 🍴 ⛵ 🍁 ⛳

#### MEDIAN HOME PRICE: \$277,000

World-class entertainment centered around the hotels and casinos, famous chefs, and nearby water and land activities, including golf, grace this exploding desert valley. (In 1900, the population was just 18.) While summers are hot and dry, the other nine months are quite pleasant, and sun is year-round. At an elevation of 2,000 feet, the area is somewhat walkable and bikeable. A good economy is bolstered by no state income or estate/inheritance tax. Downsides include poor air quality, low ratio of physicians per capita and a high serious crime rate. Cost of living is 18% above the national average.

## Los Angeles, California

### PASSIONS: 🎨 🍴 🎓 ⛵ 🍁 ⛳

#### MEDIAN HOME PRICE: \$686,000

The City of Angels has multiple colleges and universities offering reduced-price programs for senior citizens, world-class restaurants, numerous performance venues, a wide range of outdoor activities and many golf courses. Pluses include 28 days a year of sun, sufficient physicians per capita and a strong economy. Despites its reputation as car dependent and congested, the city, with an elevation of 300 feet, is both very walkable and bikeable (despites safety concerns for bikers). There is no state tax on Social Security benefits, estates or inheritances. But the state income tax hits a hefty 9.3% on taxable income above \$150,000 per couple and goes up to 12.3% for the very wealthy. Among the drawbacks: poor air quality (although better than it used to be) and a serious crime rate above national average. Cost of living is 95% above national average.

## New York, New York

### PASSIONS: 🎨 🍴 🎓 ⛵ ⛳

#### MEDIAN HOME PRICE: \$682,000

Dozens of colleges, fabulous arts and dining, and even golf courses accessible via subway can be found in the country’s largest city. Pluses include a high number of physicians per capita, good air quality and a strong economy. With an elevation of 30 feet, the Big Apple is very walkable and bikeable, despite concerns about bicyclist safety. There is no state income tax on Social Security benefits, plus there are additional state tax breaks on pension income. But there is a state estate tax, the combined state and city income tax rate can reach a whopping 12.696% and the cost of living is 109% above national average.

## Pinehurst, North Carolina

### PASSIONS:⛳

#### MEDIAN HOME PRICE: \$281,000

Some 40 golf courses, led by famous century-old Pinehurst Resort, plus golf schools surround this scenic village 90 miles east of Charlotte. Pluses include an extremely low serious crime rate, above-average rate of doctors per capita and good air quality. At an elevation of 600 feet, the town, originally named Tuftstown, is somewhat walkable and bikeable. There are no state taxes on Social Security earnings, estates or inheritances. The state income tax rate is a flat 5.499% and the cost of living is 11% above the national average.

## Portland, Maine

### PASSIONS: 🍴 ⛵ 🍁

#### MEDIAN HOME PRICE: \$314,000

This coastal city offers a wide variety of water and land recreation, including boating, kayaking, rafting, cross-country skiing, hiking and bicycling. There’s a good restaurant scene, a low serious crime rate, a high ratio of doctors per capita and good air quality. The city—named after an island in the English Channel—has an elevation of 60 feet and is very walkable and bikeable.  There is no state income tax on Social Security earnings, but there is a state estate tax. The state income tax rate reaches 7.15% at taxable income above \$103,400 for a couple. The

## Portland, Oregon

### PASSIONS: 🎨 🍴 🎓 ❤️ 🍁 ⛳

#### MEDIAN HOME PRICE: \$426,000

City affords wide range of pursuits, including free senior citizen auditing of classes at Portland State University. Pluses include a high ratio of physicians per capita, good air quality, a high rate of volunteering and a good economy. At an elevation of 50 feet the city—named after Portland, Maine—is highly walkable and bikeable. The state makes up for its lack of a sales tax with an income tax rate that hits 9% on just \$50,000 of income (with Social Security excluded). There is also a state estate tax. Cost of living is 48% above the national average.

## Salt Lake City, Utah

### PASSIONS: 🎓 ❤️ ⛵ 🍁

#### MEDIAN HOME PRICE: \$402,000

Mountains, lakes and rivers create a choice of outdoor activities, including skiing, bird watching and fishing around this state capital city. Indoors, the University of Utah offers courses a wide range of courses for seniors in concert with the Osher Lifelong Learning Institute. The city has a high rate of volunteering, a high rank on the Milken Institute list of best cities for successful aging and a strong economy. At an elevation of 4,300 feet, it is very walkable and bikeable. There is no state estate tax, but the state income, levied at a flat 4.95% rate, hits Social Security benefits. The cost of living is 27% above the national average.

## San Francisco, California

### PASSIONS: 🎨 🍴 🎓 ⛵

#### MEDIAN HOME PRICE: \$1.36 million

Surrounded by water, this scenic city is a mecca of culture and food, with 57 Michelin starred restaurants (compared to 76 in 10 times more populous New York). Opportunities for senior learning are offered at an Osher Lifelong Learning Institute at San Francisco State and at other venues. There’s a high ratio of doctors per capita, good air quality and a strong economy. Despite the famed hills, the city, with an elevation of 50 feet, is very walkable and bikeable, with both trails and protected bike lanes. There is no state estate/inheritance tax and no income tax on Social Security benefits, but the state income tax rate is a hefty 9.3% on income above \$150,000 per couple and goes up to 12.3% for the very wealthy. The serious crime rate is above the national average, but the biggest downside is the cost of living: a stunning 205% above the national average.

## Santa Fe, New Mexico

### PASSIONS: 🎨 🍴 🍁

#### MEDIAN HOME PRICE: \$397,000

Scores of art galleries, fine restaurants and museums, plus world-class skiing, distinguish this scenic state capital mountain town (elevation 7,200 feet), 60 miles north of Albuquerque. Somewhat walkable and bikeable, the city has a high number of doctors per capita, good air quality and a low serious crime rate. There is no state estate tax, but the state income tax does hit Social Security benefits. The state income tax rate is 4.9% on taxable income of married couples above \$24,000. The cost of living is 21% above national average.

## Sarasota, Florida

### PASSIONS: 🎨 🍴 🎓 ❤️ ⛵ 🍁 ⛳

#### MEDIAN HOME PRICE: \$261,000

Nearby beaches, fishing, boating, a big arts/cultural scene and 30 golf courses dominate this Gulf Coast city 60 miles south of Tampa. With an elevation of 16 feet, the area is very walkable and bikeable, with good air quality, a strong economy and an adequate number of physicians per capita. The cost of living is only 9% above national average. There is no state income or estate tax. One downside: a serious crime rate above the national average.

## Seattle, Washington

### PASSIONS: 🎨 🍴 🎓 ❤️ ⛵ 🍁 ⛳

#### MEDIAN HOME PRICE: \$730,000

Still-booming Puget Sound city offers all the passions, including an Osher Lifelong Learning Institute at the University of Washington. At an elevation up to 500 feet, the city is extremely walkable, bikeable and even boatable, with good mass transit. Other pluses include good air quality, a high ratio of doctors per capita, a very strong economy, and a good volunteering culture. There is no state income, estate or inheritance tax. But the cost of living is a whopping 104% above the national average and the serious crime rate is also higher than average.

## Traverse City, Michigan

### PASSIONS: 🎨 🍴 ⛵ ⛳

#### MEDIAN HOME PRICE: \$255,000

Frontage on Lake Michigan, the famed Interlochen Center for the Arts, 50 area golf courses and a reputation as a top foodie town all make his city, 250 miles northwest of Detroit, a top passions choice. There’s good air quality, above-average doctors per capita and a decent economy. At an elevation of 600 feet the city—center of the nation’s largest area for growing tart cherries—is very walkable and bikeable. Cost of living is only 2% above national average.  There’s no state estate or inheritance tax and no tax on Social Security benefits, plus additional breaks for pension income. The state income tax rate is a flat 4.25%. One downside: The serious crime rate is above the national average.

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A journalist for nearly five decades, I’ve written for Forbes since 1987. I’ve covered personal finance, taxes, retirement, nonprofits, scandals and other topics that interest me. I also am the author of a novel, OFFSIDE: A Mystery. Email me at: wbarrett.forbes@gmail.com .

The World’s Retirement Havens – Top 10 Best Places To Retire In The World For 2018. ============= ► Subscribe for latest video ! ► https://goo.gl/lOasu9 ► Follow me on Twitter: https://goo.gl/srKHao ► Facebook: https://goo.gl/yB9XvG ============= Today, retiring abroad is about launching a new life in a new country, starting over someplace sunny and exotic with white-sand beaches or Old World culture. But there is no one way to determine the best place to retire for every person. And with a seemingly endless amount of choices, how will you ever find the right one for you. International Living’s most recent Annual Global Retirement Index 2018 compares 24 countries that give you the maximum return for your money and promise to deliver a better quality of life. Overall, the Index is based on ratings in 12 categories: buying and investing, renting, benefits and discounts, visas and residence, cost of living, fitting in, entertainment and amenities, healthcare, healthy lifestyle, development, climate, and governance. Here are the 10 retirement destinations in the world for 2018: 1. Costa Rica – The World’s Best Retirement Haven 2. Mexico – Convenient, Exotic, First-World Living 3. Panama – Friendly, Welcoming, and Great Benefits 4. Ecuador – Diverse, Unhurried, and Metropolitan 5. Malaysia – Easy, English-Speaking, and First World. 6. Colombia – Sophisticated and Affordable 7. Portugal – Europe’s Best Retirement Haven 8. Nicaragua – Best Bang-for-Your Buck in Latin America 9. Spain – Romance, History, and Charming Villages 10. Peru – Low Cost Living, Vibrant, and Diverse. Thanks for watching this video. I hope it’s useful for you. (This article is an opinion based on facts and is meant as infotainment) ============= If you have any issue with the content used in my channel or you find something that belongs to you, please contact: ►Business email: truthseekerdailys@gmail.com Music by: Nicolai Heidlas (https://soundcloud.com/nicolai-heidlas) Title: 50 New Cities

## 60 Seconds: Yes, You Need a Will. Like Now. – TheStreet

From Aretha Franklin to Prince, so many famous, wealthy people have died without having a will.

It’s nuts. Their heirs may have to spend an exorbitant amount of time fighting the courts – and each other – to determine who gets what.

Download Now: To be a profitable investor you first need to know the rules. Get Jim Cramer’s 25 Rules for Investing Special Report

You can’t take your assets with you. Get it? Everyone should have a will – and you don’t need to be famous or wealthy to need one.

Give me 60 seconds and I’ll tell you why.

Granted people often are uncomfortable talking about their mortality.  And rockstars Amy Winehouse and Kirk Cobain, who both died at 27, probably presumed they were way too young to even need one.  But they had millions at their death.

## Not Just for the Rich and Famous

Regardless of your age, net worth or level of fame, you are doing your heirs a HUGE favor by taking care of everything now, says Robert Westley, CPA/PFS member of the American Institute of CPAs Personal Financial Specialist, PFS, Credential Committee.”

(Unless, of course, you enjoy watching your heirs fight over your stuff rather than resting in peace.)

So start making a list of everything you have — include investment accounts, artwork, even those vintage cars in the garage.

And if you have young kids, don’t forget to pick their guardians. You don’t want your chronically unemployed brother to end up with them.

Creating a will doesn’t have to be a complicated process. You just need a few key documents and you most likely can get what you need from sites like Quicken WillMaker or LegalZoom.

If you have substantial wealth, then you probably are going to need an estate plan, maybe even a trust, and an attorney to help carry out your wishes.

## Beneficiaries Override Your Will

Big note here: A bunch of your assets are not even controlled by your will.  Anything with a beneficiary designation – like your 401(k), IRA or insurance policies – is dictated by those designations, says Westley.

They override your will. So if in your will you state that you want your kids to inherit your IRA but your ex-spouse’s name is still listed as the beneficiary because you forgot to update it, guess who’s coming in on a windfall?

So check all that now.

And drop the excuses. This is not just for old rich people.  We all know that you can get hit by a bus while you are walking on the street or even reading this.

## You Need to Revisit

And finally this is not a one-and-done, says Westley.

“Many individuals assume that once they’ve completed their estate plan and will there is no need to revisit it. The reality is, estate documents are static, while an individual’s life is dynamic and ever-changing,” he says.

People die, get divorced, buy new stuff, sell old stuff.  So your will needs to be revisited, often.

So get on it, and for more tips, follow me @tracybyrnes.

## Too Many Americans Will Never Be Able to Retire

Traditionally, Americans could look forward to a comfortable retirement. After four decades in an office or a factory, sometime in their 60s they would lay down their burdens and enjoy a final couple of decades with time to relax, spend time with family and friends, and reflect on their life. But since the financial crisis, older Americans have been increasingly staying in the workplace……

Source: https://www.bloomberg.com/opinion/articles/2019-01-23/america-needs-more-young-workers-to-support-aging-population

## Quit Your Job: 5 Countries Where You Can Live For Under \$1,500 A Month – Laura Begley Bloom

More Americans than ever are quitting their jobs and moving abroad or retiring overseas — 8.7 million, to be exact, according to State Department figures. And one of the biggest driving factors is the lower cost of living in other countries.

The editors at International Living recently came out with a list of the five best places where a couple can live on under \$30,000 a year, or \$2,500 a month. And guess what? If you’re single, it’s even cheaper. Take Cambodia, where you can live comfortably for just \$1,150 a month. The most expensive place on the list — which spanned from Southeast Asia to Europe to Latin America — came in at just \$1,500 a month for a single person.

Cambodia

Why It’s Great: For the third year in a row, affordable and exotic Cambodia claimed the top spot in the cost-of-living category of International Living’s Annual Global Retirement Index. “Cambodia may be far away, but that’s arguably the only downside. This is a place where you can instantly upgrade your lifestyle while you slash your cost of living,” says Jennifer Stevens, executive editor of International Living.

Top Spot: The place to be? Phnom Penh. “French colonial buildings, wide leafy boulevards, gilded pagodas and palaces — it’s beautiful,” says Stevens. “And it’s also a great jumping-off point for exploring the region.” There is a cool local vibe in Phnom Penh, with its vibrant arts community and chic shops. And there’s nothing like going to the street corner in the morning to grab a fresh coconut and a newspaper.

The Cost: While the cost of living in Cambodia may be one of the lowest in the world, the standard of living is high. In Phnom Penh, you can find a one-bedroom, one-bathroom rental apartment with a balcony in the center of the city for a mere \$250 per month. Utilities (water, electricity, garbage, cooking gas, drinking water) average around \$80 to \$100 a month. Dinner at a high-quality international restaurant costs \$10 a person. And \$200 a month will keep your fridge filled with food, fresh fruit and vegetables. A single person can live here for \$1,150 a month — or less. A couple can live well on a monthly budget of \$2,000.

Panama

Why It’s Great: Panama draws a thriving international business community as well as expats who are attracted to its cities, beaches and ease of living. The currency is the U.S. dollar, and there are many English speakers, as well as a well-trained medical community. Plus, it’s convenient: The international airport offers direct connections to many other parts of the world.

Los Destiladeros Beach in Pedasi, Panama. (Photo courtesy of Shutterstock)

Top Spot: At the tip of the Azuero Peninsula, Pedasí is a small fishing town about a five-hour drive from Panama City.  “For tranquil, rural living and ocean breezes, lazy Pedasí on Panama’s Pacific is worth a visit,” says Stevens. “It’s relatively remote, but the small English-speaking community has a very friendly reputation and for beachside living, you’d be hard-pressed to beat this surf-town’s low prices.”

The Cost: The cost of living is a big attraction in all of Panama and especially in Pedasí. You can eat lunch out for \$3 to \$7 per person and dinner for \$6 to \$12 per person. A beer is \$1 to \$2 a bottle, car insurance is just \$600 a year and you can hire a housekeeper for just \$15 for a half day and handymen to help with your home for \$5 an hour. A single person can live on a modest budget of \$1,391 in Pedasí, while a couple can live on as little as \$1,665 a month.

Looking over Cuenca’s UNESCO-protected historical center and its surrounding mountains with a view of the towers of the Santo Domingo Church. (Photo courtesy of Shutterstock)

Ecuador

Why It’s Great: What’s your dream destination? Whether you’re in search of an unspoiled beach town, a bustling city or a quiet mountain village, you’ll find it in Ecuador. Plus, as part of the Land of Eternal Spring, you’ll enjoy good weather year-round.

A view of a street in Cuenca, Ecuador. (Photo courtesy of Shutterstock)

Top Spot: Looking for sophisticated living on a budget? You should have the colonial city of Cuenca at the top of your list. Cuenca is Ecuador’s third-largest city and one of the country’s five UNESCO World Heritage Sites. “Cuenca is rich with parks people really use, centuries-old churches, lots of restaurants and a seemingly endless supply of symphony, theater, dance and music offerings — often free,” says Stevens. “You can live right in the heart of the city center and it’s an easy place to get around without a car.”

The Cost: Living in Cuenca costs about 25% of what it costs in some parts of the United States. A single person can live on \$1,440 per month, while a couple can expect to spend \$1,680 per month, excluding travel. Real estate is affordable. Think: just \$500 a month for a two-bedroom, two-bathroom condo in the Puertas del Sol neighborhood. You don’t really need a car here: You can grab a taxi for just \$3.50 or take a bus to neighboring cities for just \$2.

A beautiful coastline with cliffs and sandy beach in Algarve, Portugal. (Photo courtesy of Shutterstock)

Portugal

Why It’s Great: “Long an under-the-radar destination for Americans, Portugal’s low costs, rich culture, slow pace, historic towns, warm weather and varied landscapes are attracting more U.S. retirees — and with reason: It’s home to the best-value living in Western Europe today,” says Stevens.

A public garden in Mafra village near Lisbon, Portugal. (Photo courtesy of Shutterstock)

Top Spot: One of the best places to move is low-key Mafra, located 21 miles northwest of Lisbon and 15 minutes from the breathtaking surfing beaches of Ericeira. The village has white-washed houses, narrow cobbled streets, tons of cafés and bars, as well as a wealth of outdoor activities. Next to one of the country’s largest national palaces is a huge park called the Jardim. In the former royal hunting grounds, Tapada de Mafra, you can go hiking and mountain biking.

The Cost: According to International Living, prices are low. You can expect to pay \$5 for a fast-food snack, about \$7 a person for a meal in a cheap restaurant and \$10 in a midrange restaurant. At the grocery store, a half liter bottle of local beer is \$1 and a bottle of nice wine is \$4. Taxis start at about \$4. Rent is attractive, too. A two-story home with four bedrooms, four bathrooms, a four-car garage and a small guest house, all within walking distance of the center of town, can be had for just \$1,000 per month. A single’s budget for Mafra is \$1,465 a month. A couple can live well in Mafra on a monthly budget of \$2,034.

Sunrise on a beach in Costa Rica. (Photo courtesy of Shutterstock)

Costa Rica

Why It’s Great: This country won top honors as International Living’s 2018 best place in the world to retire. “Costa Rica is a safe, good-value, beautiful country that offers a wide variety of climates and lifestyles amid what is really a natural wonderland,” says Stevens.

How about a house overlooking Lake Arenal, Costa Rica? (Photo courtesy of Shutterstock)

Top Spot: Where to live? Not far from the capital of San José, Costa Rica’s Central Valley is home to about two-thirds of the country’s population and is a flashback to a simpler era. “Quiet, lushly green, eco-friendly and long a haven for Americans seeking spring-like weather year-round, the villages scattered through Costa Rica’s Central Valley represent excellent bang for your buck,” says Stevens. Some of the most popular towns for foreigners include Grecia, Atenas, San Ramon, Sarchi, Escazu, Santa Ana, Puriscal and Ciudad Colon. Another draw is that expats can live comfortably alongside Costa Ricans. There are safe residential communities, excellent medical facilities, great restaurants and plenty of natural wonders — volcanoes, waterfalls, rivers, forests.

The Cost: A single person can live on as little as \$1,500 a month in the Central Valley, though you could get by on considerably less. A couple can live well on \$2,000 a month. Also part of its appeal: “The healthcare in Costa Rica is top notch and low priced, and from this area it’s easy to access, too,” says Stevens.

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