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On Balance – Editorial Calendar

A Newsletter for Retirees and Pre-Retirees

March 2018

Disappearing Pensions
In 2017, only 15% of workers in private industry were participating in a traditional pension plan. This chart shows the declining number of pensions over the past 30 years.
Income for the Long Run
Almost two-thirds of Americans ranging in age from 20 to 70 said they feared running out of money in retirement more than they feared death. This article explains how a longevity annuity can bring some stability to a retirement strategy by providing a steady income late in life.
Voluntourism: A Vacation That Makes a Difference
A volunteer vacation allows a traveler to give back, meet new people with similar interests, and experience a different culture with experiences that are not available to the average tourist. This article offers some tips and basic information about volunteer vacations.
Understanding the Roth Five-Year Rules
There are two separate five-year holding periods associated with Roth IRAs: whether a withdrawal of earnings will be tax-free, and whether a withdrawal of converted principal will be penalty-free. Both are explained here.
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February 2018

What’s Your Investing Style?
When assessing their own investing styles, U.S. investors consider themselves to be listeners, snoozers, instinctive investors, or pros. Accompanying chart breaks down these individual investment styles by retiree and nonretiree groups.
Phasing Out...or Practice Makes Perfect
Transitioning from full-time work to retirement can be challenging. Many people are attracted to a gradual approach, and more companies are offering phased retirement programs. Here are some ideas for arranging a phased program, as well as tips for trying a practice run.
Four Tips for Fighting Fraud
In a Stanford University study, half of the respondents indicated they had been victimized by one or more types of fraud. This article offers some guidelines that may help readers protect themselves and their families.
Do You Need an Umbrella?
Although the number of civil lawsuits has dropped in recent years, American society remains litigious, and some legal judgments may seem excessive. An umbrella insurance policy can provide additional coverage for personal liability as well as coverage for some situations that are not included in standard homeowners policies.
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January 2018

Who Owns U.S. Houses?
More than half of U.S. owner-occupied houses were owned by a householder age 55 and older in 2016. This is the highest percentage on record dating back to 1900. Accompanying chart illustrates the percentage of owner-occupied houses in 1986 and 2016 by age of head of household.
Taking Control of Your Retirement Savings
Leaving a job or retiring offers an opportunity to take control of any funds accumulated in an employer-sponsored retirement plan. This article focuses on four possible options, with an in-depth discussion of the rules for rolling over funds to IRAs.
The Social Security Earnings Test
Many people claim Social Security benefits when they leave the workforce, but others continue to work or return to work after claiming. This article explains how the retirement earnings test could reduce benefits for people who are receiving benefits and still working but haven’t reached full retirement age.
Why Hold Money Market Mutual Funds?
Even though there was a slight increase in 2016, returns on money market mutual funds are so low that it might not seem worth investing in them. This article explains why investors still hold about $2.7 trillion in these low-yield funds.
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December 2017

The Middle Class Is Back
In 2017, 62% of Americans identified themselves as middle class or upper-middle class, surpassing the 60% pre-recession level in 2008. Accompanying chart shows the percentage of Americans who considered themselves middle class in 2008, 2012, 2015, and 2017 by age group.
Strategic Giving with a Donor-Advised Fund
A donor-advised fund can provide a current-year tax deduction and a flexible structure for future giving. The article describes how delayed donations can be made and outlines the benefits and limitations of a donor-advised fund.
UITs May Provide Some Certainty
A unit investment trust is structured differently than a mutual fund and offers unique features that may appeal to some investors. UITs provide investors with a relatively clear picture of their holdings throughout the life of the investment. They can also be useful when laddering investments because of their defined termination dates.
End-of-Year Tax Planning
The end of the year is a busy time, but taxpayers may gain knowledge from reviewing their tax situations while they can still make adjustments for 2017. This article offers three ideas to consider.
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November 2017

Retirement May Be Better Than You Think
A survey of investors ages 55 to 75 in the United States and three other countries found that the financial satisfaction of recent retirees was higher than the expectations of those approaching retirement. This chart shows percentages for pre-retirees and retirees in each country.
Positioning Your Portfolio for Volatility
The U.S. stock market was unusually calm during the first half of 2017, but investors should not count on that kind of stability over the long term. This article explains that some stocks and funds tend to be more volatile than others, and presents beta as a measure of market sensitivity and a guideline for gauging volatility.
How a Pension Could Affect Social Security Benefits
Receiving a pension that was earned while not paying into the Social Security program could reduce Social Security benefits earned through other employment or a spouse’s employment. This article explores the Windfall Elimination Provision and the Government Pension Offset.
Why the Hubbub Over Holiday Spending?
Every year the retail industry looks nervously toward the winter holidays, hoping that this year’s shopping season will be better than the last. Here’s a look at holiday spending in a broader economic context.
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October 2017

Failing Grade in Retirement Income
Almost three out of four Americans ages 60 to 75 failed a 2017 financial literacy quiz about generating and sustaining retirement income. Accompanying chart shows the percentages of grades from A to F and offers a link so readers can take the quiz.
Too Late to Save? Think Again!
A 2015 GAO study found that 27% of households headed by someone age 55 to 64 had no pension and no retirement savings. It is disturbing that more than one out of four Americans may be facing retirement with no sources of income other than Social Security. This article offers tips to boost savings and provides examples to show how much could be accumulated over 5, 10, 15, and 20 years by contributing the maximum amount to an IRA or a 401(k) plan.
The Cost of Earnings
The price/earnings (P/E) ratio offers a helpful starting point when evaluating stocks. This article examines the two most commonly cited types of ratios, trailing P/E and forward P/E, and explains that ratios can vary widely by industry.
Medicare Open Enrollment
Each year between October 15 and December 7, Medicare offers an open enrollment period during which beneficiaries of Original Medicare and Medicare Advantage plans can make changes among coverage options. The article outlines the changes that can be made as well as additional opportunities available during two more annual enrollment periods.
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September 2017

Trillion-Dollar Revolving Door
In December 2016, U.S. households’ outstanding revolving credit — primarily credit-card debt — reached $1 trillion for the first time since January 2009. Higher credit-card debt may be a product of continuing improvement in the broader economy. Accompanying chart presents revolving credit data over the past decade.
New Life for Your Old Insurance Policy
Later in life, some people might think they don’t need to keep a life insurance policy in force. They might think they no longer need the coverage or it has become too expensive. This article explores options that could be more beneficial than surrendering a policy or letting it lapse, such as exchanging the old policy for a new one, or exchanging it for a long-term care insurance policy or an immediate annuity.
The State of State Pensions
The median funded ratio of state pension funds fell from 75% in FY 2014 to 72% in FY 2015, with a total shortfall of almost $1.1 trillion. This article looks at some of the challenges facing state pension funds and steps that might help improve the long-term outlook.
Baby Boomer RMDs
In 2016, the first wave of baby boomers turned 70½ — the age when distributions from tax-deferred retirement accounts must begin — and many more reach that milestone in 2017. This article provides information on required minimum distributions, including deadlines for older baby boomers.
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August 2017

Serious Thought
A surprising number of U.S. investors have given little or no thought about when they will retire. Accompanying infographic illustrates the most common steps taken by non-retired investors to help determine the “best” age to retire.
International Investing: Opportunity and Risk
Investing globally provides access to growth opportunities outside the United States while also helping to diversify a portfolio. This article considers the role of international and global mutual funds and ETFs, and explains some of the potential opportunities and risks of investing internationally.
New Math for Social Security
In 2017, Americans born in 1955 will become eligible to claim Social Security benefits at the earliest claiming age of 62. This is the first group of eligible beneficiaries affected by the gradual increase of the full retirement age from 65 to 67, which changes the benefits paid at different claiming ages.
Finding Unclaimed Property
In 2015, more than $3.2 billion in unclaimed property was returned to rightful owners by government agencies. This article provides information about how to look for lost assets and guard against potential scams.
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July 2017

Different Generations, Different Concerns
Having enough money for a comfortable retirement is the greatest financial concern for baby boomers under age 65, and one of the greatest concerns for other generations. The accompanying chart illustrates the top financial concerns by age group.
Breaking Down Social Security Spousal Benefits
A recent survey focusing on knowledge of Social Security rules found widespread confusion over many aspects of the program. This article explains basic spousal benefits for currently married and divorced spouses, and how spousal and worker benefits work together. It also explains how some older married baby boomers may still be eligible to file a restricted application to enhance their lifetime benefits.
ETFs or Mutual Funds: What’s the Difference?
Mutual funds are still king of the investment world, but ETFs have become increasingly popular over the last few years. This article explains the differences between the two types of investment vehicles, with an emphasis on the potential cost and risk factors of ETFs.
Beware of Imposters
The Federal Trade Commission reported that imposter scams passed identity theft as the second most common category of consumer complaints in 2016. This article offers tips to help consumers protect themselves from imposters.
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June 2017

The National Mood
In early 2017, Americans were asked to rate their level of satisfaction with various aspects of life in the United States. Accompanying chart shows the percentages who were “very or somewhat” satisfied with such issues as the economy, overall quality of life, availability of affordable health care, and the federal tax burden.
Surprise! It’s Retirement Time
In 2016, 46% of retirees said they retired earlier than they had planned. This article offers suggestions that might ease the transition, as well as tips to be prepared to retire earlier than planned.
In the Red: Federal Budget Deficit
In FY 2016, the U.S. budget deficit increased as a percentage of GDP for the first time since 2009. This article looks at some of the factors contributing to the deficit that also make it challenging to balance the federal budget. Accompanying chart plots actual and projected annual deficits from 1967 to 2027.
Interested in Interest Rates?
Interest rates are expected to keep rising. This short quiz offers readers an opportunity to test their interest rate knowledge.
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May 2017

Employment Recovery
In 2016, the unemployment rate ranged from 4.6% to 5.0%, which is similar to pre-recession 2007 levels. The accompanying graph shows the unemployment rate since 2007.
Will You Outlive Your Money?
In a recent survey of workers age 50 and older, the biggest retirement concern was the fear of outliving their savings and investments. This article explains how fixed and variable annuities could be used to provide income that could last throughout a long retirement.
Student Loans Meet Retirement
The number of consumers age 60 and older with student loan debt quadrupled from 2005 to 2015. This article covers some factors that older Americans should keep in mind if they already have student loan debt or are considering a higher-education loan for themselves, their children, or grandchildren.
Moving to Medicare? Four Facts to Consider
Transitioning from employer-sponsored health coverage or other private insurance to Medicare could involve some surprises. This article explores four key differences with Medicare compared to other types of insurance, including out-of-pocket annual maximums and late-enrollment penalties.
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April 2017

Boomer Debt
More than three out of four middle-income baby boomers carry debt into retirement, and the percentage with debt is even higher for those who are still working. Accompanying chart shows the percentage of retired and working boomers who carry various types of debt.
Bond Funds and Rising Interest Rates
Falling bond prices due to rising interest rates can adversely affect a bond fund’s performance. Even so, there are good reasons to own bond funds during almost any market cycle. This article offers ideas to help investors evaluate bond funds within a rising interest rate environment.
Advance Medical and Legal Directives
Expressing wishes in advance could help loved ones feel more confident making medical or legal decisions. This article outlines three legal documents to consider: a durable power of attorney for health care, a living will, and a durable power of attorney for finances.
Measuring Inflation
Although consumers don’t look forward to higher prices, moderate inflation is a sign of a healthy, growing economy. This article explains two common measures of inflation: the Consumer Price Index and the Price Index for Personal Consumption Expenditures.
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