Better places to move

Here is a better list than last post: states that make sense to consider for relocating during retirement (again the list is from Chris Kahn at Bankrate.com and you can read the details by clicking on the word “here”):

1. Tennessee
2. Louisiana
3. South Dakota
4. Kentucky
5. Mississippi
6. Virginia
7. West Virginia
8. Alabama
9. Nebraska
10. North Dakota

Bad places to move

Here is a list (from Chris Kahn at Bankrate.com) of ten of the worst states to consider for retirement relocation (click on the word here above to read the reasons):

1. Oregon
2. Alaska
3. Washington
4. California
5. Wisconsin
6. Maine
7. Maryland
8. Vermont
9. Minnesota
10. Delaware

Next: ten better choices

The pension bill vs. the Illinois Constitution

Here is a pretty lucid analysis (from Reuters) of the bill and its constitutional ramifications.

My own take on this situation is that the bill is unconstitutional if it diminishes any benefits and everybody knows it. However the legislators who proposed it and supported it are totally behind it for the simple reason that it gets them off the hook: hey, we passed something.

It’s not always nice to live in Illinois.

Maybe you’re happier than you realize

Here are 22 happiness-puzzles from a new book on the topic of how to be happier and more satisfied with our lives:

1. Bad stuff is good for you?
2. Divorce is like a car crash?
3. New relationships are like drugs?
4. Pleasure interrupted is better than pleasure sustained?
5. Women have more sex needs than men?
6. The pleasure of touch is cultural?
7. Physical contact is a high?
8. Too much positive is negative for a marriage?
9. Talking alike helps relationships last?
10. Mountains are mole-hills when you have friends along?
11. Divorce harms some children but not most?
12. Divorced in-laws and poor health are danger signs for marriage?
13. For children, a miserable marriage is worse than divorce?
14. Unhappy marriages are like smoking?
15. Children are a source of joy and meaning in life–unless you’re female, unemployed, and young or unmarried?
16. Children bring satisfaction to one’s life, except when they’re born or they stick around?
17. Parents experience meaning when with their children?
18. A mother is only as happy as the least-happy of her children?
    
19. Someone who hurts us slightly is worse than someone who hurts us greatly?
    
20. Stay-at-home Moms spend more time with their children?
21. Marriage brings satisfaction but not pleasure?
    
22. Singles do friendship better?

Next post: who wrote the book?

Brandi Martin animation

Taxes in retirement

In honor of today (April 15 or “Tax Day,” when individual income taxes are due to be filed): a brief analysis of tax implications for retirees: go here. It’s from Wall Street Journal’s MarketWatch, by Andrea Coombes. Here are the headings of her  suggestions:

• Give yourself options
• Consider asset location
• Re-balance your way to tax efficiency
• Re-examine your bond portfolio
• Proceed slowly
• Consider the unexpected
• Manage Roth conversion taxes
• Don’t waste low-tax years

Getting ready

GETTING READY TO RETIRE

• Even if not sure of your retirement date it’s best to start finding information. You may need time for gathering records, especially if you have out-of-state credit or other types of additional credit to your employment record.
• Make a personal appointment with your retirement plan years ahead of retirement. They are most knowledgeable and will be your best advocate:
• TRS: Teacher Retirement System http://trs.illinois.gov        1-800-877-7896
• IMRF: Illinois Municipal Retirement Fund www.imrf.org      1-800-ASK-IMRF
• SURS: State University Retirement System www.surs.com     217-378-8800
• For teachers, the basic retirement formula works like this:
  • Add up Years of Service, including full-time and part-time teaching; reciprocal credit for time worked in IMRF  (e.g., park district job) or other state system; military service up to 2 yrs; accumulated sick leave up to 2 yrs.; out-of-state teaching; substitute teaching.  Time away for Maternity (3 yrs.) might be purchasable.
  • Multiply total Years of Service x 2.2%. E.g., 30 years x 2.2%=66%. (Years of service before 1998 may need to be upgraded to 2.2%). The maximum figure is 75%.
  • Find your Final Average Salary figure by averaging the highest four consecutive years of the last ten. E.g., salaries of $72,000 & $74,000 & $76,000 &  $78,000 would average to $75,000 as the Final Avg. Salary.
  • Multiply Final Average Salary x Years of Service %. E.g., $75,000 x 66% = $49,500. This is the annual pension annuity. Divide by 12 for monthly figure. E.g., $49,500 / 12 = $4,125 per mo.
  • Usually, the only deduction from your monthly check is federal taxes.
  • To retire, contact your retirement system, not just your district office!
  • Anticipate how to pay for medical insurance coverage.
  • If you anticipate receiving Social Security from the U.S.: you must decide when to start receiving your monthly benefits. The longer you wait (up to age 70), the larger the benefit. (Starting before your full retirement age reduces your monthly amount.) There are several schools of thought on maximizing your benefit depending on circumstances.
  • Keep in mind that retirement affects many aspects of your life, not just your finances. Things to think about:
    • Staying busy with meaningful activities
    • Social contacts with other people
    • Having a “reason to get up in the morning”
    • Thinking beyond recreational activities
    • Staying active and healthy
    • Feeling that you make a difference
    • Give thought to your life in retirement, so when the time comes you know that you will be Retiring To Something and not Retiring From Something!