Retirement

Property and casualty insurers are voicing concerns that longstanding tax exemptions for municipal bonds could be disrupted as part of a broader U.S. tax-code changes being considered by Congress.

A 65-year-old couple exiting the workforce in 2013 is estimated to need $220,000 to cover health care costs throughout their retirement, an 8% decrease from last year’s $240,000.

Guest blogger Adam Miloro maintains the issue concerning 401(k) loans continues to be the lack of education surrounding them. It’s true there are certain situations where taking a loan from one’s retirement plan could make sense, he writes, but for many employees loans signify a much larger problem: living beyond one's means.

“We may be jumping the gun,” says one expert. “While there is cognitive decline with normal aging, if we pull out people with brain disease, there’s not enough of a decline for us to worry about older peoples’ ability to make financial decisions.”

More than a third of Americans say they don’t feel financially secure, according to a survey from Unum. Moreover, the number of those who feel “not at all secure” is up from the last year. Women, meanwhile, feel more financially insecure than men.

In a scenario where retirement income and wealth account for 100% of an investor’s simulated retirement expenses, a model projects that around a quarter of baby boomers and Gen Xers who would have had sufficient retirement income under interest rates at historical averages would run out of money if the current low rates were taken as a permanent condition.

Making connections is as important as ever, though the process is changing considerably.

Wall Street banks collected $215.6 million that Denver’s public schools paid to unwind swaps and sell bonds since the district began borrowing to cut pension costs in 2008. That sum is about two-thirds of annual teaching expenses.

Detroit may run out of cash next month and must cut costs such as long-term debt and retiree obligations, according to emergency financial manager Kevyn Orr’s preliminary plan to improve services and keep Michigan’s largest city out of bankruptcy.

At the end of 2012, $1.3 trillion was held in the U.S. in ETFs, which got started 20 years ago by State Street Corporation. The ability to trade shares in the funds as if they were shares of stock has made them an increasingly significant part of equities.