Why clients aiming for early retirement shouldn’t feel guilty about spending

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Clients aiming for early retirement shouldn’t feel guilty about spending
Clients who want to save aggressively for an early retirement should not feel guilty about spending on things that are valuable to them, according to an expert in MarketWatch. "The more we can be open about the things we choose to spend money on, the more inclusive we are as a movement, and the more free each of us feels in our own decisions, and both are very good things," writes a MarketWatch columnist and author who retired at the age of 38.

Americans are saving more for retirement but still risk falling short
Although Americans are saving 10% of their income in their retirement accounts, the percentage is lower than the 15% that experts recommend to secure their retirement, according to this Motley Fool article, citing new data from Fidelity Investments. Saving 10% for retirement may not be enough, as clients will need more retirement income to keep up with inflation and rising health care expenses. Social Security recipients have also seen their buying power drop 33% since 2000, but the cost-of-living adjustments have been dwindling in recent years.

How your clients can retire by 40
Clients need to make financial sacrifices today in order to leave the workplace early for good, according to a couple who retired by age 40 in this Yahoo Finance article. They need to decide whether they want to keep their retirement expenses low or pursue a more convenient lifestyle, according to the article. Clients also have to determine the amount of savings they need to retire by 40, set aside at least 50% of their income for retirement and keep their lifestyle in check.

The Social Security double tax bomb
Federal employees are advised to account for the possible tax consequences of their Social Security benefits when planning for retirement, an advisor writes in FedSmith. That's because up to 80% of their retirement benefits will be taxed if their combined income exceeds a certain threshold, the expert writes. "The first and best option is to use strategies now to lower your taxable income, but the next best option is to plan your saving habits now so that you can still have the retirement that you want despite the taxes."

From the Southeast to the Midwestern plains, here's a look at the 12 cities where first-time homebuyers can afford the largest share of houses for sale, according to First American.
December 12

Adjusting to retirement means adopting the right role for clients
Seniors who are in transition to retirement are advised to give up their reliance on their 'worker role’ and focus more on alternative roles, such as the role of a retiree, to have a meaningful and fulfilling life in retirement, according to a Forbes contributor. "Over time, as these alternative roles strengthen, retirees are more likely to pick up the patterns and responsibilities associated with these roles, thereby allowing them to feel more connected to the retirement world, and less to the worker world."

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