Although millions of Americans have been severely impacted by the coronavirus pandemic, the vast majority of retirement savers have refrained from dipping into their 401(k)s to cover their expenses.

During the first half of 2020, 2.8% of retirement savers made withdrawals from their defined contribution retirement plans, the most popular of which are 401(k)s and 403(b)s, according to recent data from the Investment Company Institute. This does not include individual retirement accounts and the percentage of savers making withdrawals is separate from those taking out 401(k) loans.ICI's data is based on information straight from plan providers and covers more than 30 million DC plan accounts, which is generally a type of tax-advantaged retirement account where typically both savers and employers contribute.

The level of withdrawals during the first half of the year is up only slightly from the 2.5% of retirement savers who took money out of their 401(k)s during the same period last year. About 2.2% of savers took a withdrawal during the first half of 2018, according to ICI.

Of the money withdrawn this year, about 1.1% of savers took the money as a hardship withdrawal, ICI reports. Those seeking this type of withdrawal must demonstrate financial hardship, such as the potential for eviction from your home or overwhelming medical debt, and generally many plan providers will still impose a 10% penalty on the funds taken out.

It's worth noting that the number of accounts taking withdrawals reported by ICI is far less than the roughly 14% of survey respondents with retirement savings who said in May that they had taken money from accounts such as 401(k)s and individual retirement accounts. That survey data was based on a much smaller pool of retirement savers and included all of types of retirement accounts, whereas ICI's data focused only on defined contribution plans such as 401(k)s and had a much larger data set.

Separate from withdrawals, ICI found that 2.9% of participants took the newly created coronavirus-related distribution during the first half of the year. In response to the sudden economic downturn, Congress passed provisions in the CARES Act that allow Americans to take a withdrawal of up to $100,000 from their retirement savings, including 401(k)s or individual retirement accounts, without the typical 10% early withdrawal penalty.

Referred to as "coronavirus-related distributions," they are available only in 2020 and can be repaid within three years to avoid any income taxes on the funds taken. When plan providers identify these new CRD options (some do not), they categorize them separately from straight withdrawals, says Sarah Holden, ICI senior director of retirement and investor research.

When it comes to 401(k) loans, 15.6% of plan providers reported they had outstanding loans at the end of June, according to ICI, which tracks loan data quarterly. That was down slightly from the 16.3% of plan providers who had outstanding loans at the end of March and the 16.1% reported at the end of 2019.

The introduction of the pentalty free conronavirus-related distributions may be contributing to the lower 401(k) loan activity, ICI reports. "Because policymakers have made these [CRD] withdrawals repayable, they've kind of made them a bit more like a loan," Holden says. Instead of taking out a loan, some savers may be opting for the new CRD option instead.

"We see a slight increase in withdrawal activity following the onset of economic volatility and hardship, but the increase is much smaller than you might expect, given the severity of the Covid-19 economic downturn," says Holden.

The low loan activity may also be due to Americans not hitting the point yet where they need to tap their retirement accounts. "We do see that more people have [401(k)] loans in the wake of financially stressful times, but not immediately," Holden says. Historically, people usually drain other accounts, such as emergency savings, before dipping into their retirement funds, she says.

In fact, many Americans have not even had to halt their savings levels amid the pandemic. Only 2% of plan participants stopped contributing to their plans in the first half of 2020, ICI's data shows. That's higher than the 1.3% of savers who stopped putting money away during the first half of 2019, but less than the 4.6% who ceased to contribute in the first half of 2009, during the Great Recession.

"These data reflect the long-term mindset of retirement savers," Holden says. "These assets represent a pot of money that savers have earmarked for retirement and they have consistently demonstrated that they generally stay the course to reach that financial goal, even during challenging economic situations."

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Only 2.8% of retirement savers made a withdrawal from their 401(k) so far this year - CNBC

Morgan Stanley private wealth adviser Mary Deatherage joins Barron's Roundtable to discuss what retirement savings options will help generate income in a low-yield environment.

Saving for retirement is a monumental task, requiring several decades of diligent effort. Some people hope to circumvent that by playing the lottery or trying to bet on the right investments, but these get-rich-quick schemes rarely pan out. That doesn't mean there aren't secrets to growing your wealth, though.

GERRI WILLIS: NUMBER OF AMERICANS BEING OFFERED EARLY RETIREMENT IS 'SKY HIGH'

Below, I outline three tricks to help reach retirement faster and hold on to more cash. To be clear, these "secrets" still require effort on your part, but they can help make the task a little less arduous.

The only good reasons to put off saving for retirement are if you need all your income to cover your living expenses or if you're using your extra cash to pay down high-interest debt or build anemergency fund. Once those are out of the way, retirement should be your top priority. Why? Because every month you delay, you're costing yourself money.

HERE'S HOW MUCH MONEY AMERICANS THINK THEY NEED TO RETIRE COMFORTABLY

Consider this: Your goal is to save $1.5 million for retirement and you hope to retire at 65. If you began saving once you turned 25, you'd only need to save about $627 per month, assuming a 7% annual rate of return. But if you waited just six months to start saving, you'd now have to set aside $674 per month, assuming the same annual rate of return, to hit your goal. That's an extra $47 per month.

Over the course of your working life, you'd end up contributing about $300,960 of your own money if you began saving at 25. But if you waited until 25 1/2, you'd have to contribute $319,476 of your own funds, all because you decided to put off saving for retirement for six months. And you could cost yourself a lot more than $19,000 if you waited even longer.

You might not be able to afford to make large contributions, especially right now, but even small contributions can grow into significant amounts over time. Set aside what you can for retirement each month, even if it's only a few dollars. This will get you into the habit, and then as you're able to free up more cash for retirement, you can increase your contributions.

Retirement accounts are treated differently, depending on whether they're tax-deferred or Roth accounts. Tax-deferred contributions, including contributions to most401(k)s, reduce your taxable income this year, but then you owe taxes on your distributions in retirement. This is the smarter way to go if you think you're in a higher tax bracket today than you will be once you retire. By delaying taxes until you're in a lower tax bracket, you'll owe a smaller percentage of your savings to the government.

RETIREMENT OPTIMISM HAS HIT A 7-YEAR LOW, SURVEY SAYS

Roth accounts work the opposite way. You pay taxes on your initial contributions, but then you don't owe taxes on your distributions in retirement. These accounts make more sense if you believe you're in the same or a lower tax bracket today than you will be once you retire. By paying taxes now, you'll lose a smaller percentage on a smaller amount of money, and then you'll get to avoid taxes on earnings.

The tricky thing about all this is that there's no way to predict how your income or the tax brackets might change between now and your retirement. All you can do is make an educated guess. Some people choose to hedge their bets by having some of each type of savings. If you do this, favor one or the other based on which you think will offer you the best tax benefits.

Most people don't think ofhealth savings accounts (HSAs)as retirement savings vehicles, but they're actually one of the best. Money you contribute to an HSA reduces your taxable income for the year, like contributions to tax-deferred retirement accounts, and if you use the money for medical expenses at any age, you won't owe taxes on it at all. Once you reach 65, you can use the money for nonmedical expenses, too, but you'll owe income tax if you do this. You can actually withdraw money for nonmedical expenses before 65, but you'll pay a 20% penalty.

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HSAs are not subject torequired minimum distributions (RMDs)like tax-deferred retirement savings andRoth 401(k)sare, so it's also a smart spot to park your cash if you want to be able to withdraw the money at your own pace. RMDs can force some retirees to withdraw more money from their retirement accounts than they want to, and this can raise their tax bill. You won't have to worry about this quite as much if you stash some of your savings in an HSA.

Not everyone can contribute to one, though. You must have a high-deductible health insurance plan, which is defined as one with a deductible of at least $1,400 for an individual in 2020 and $2,800 for a family. Individuals may contribute up to $3,550 to an HSA in 2020 and families may contribute up to $7,100.

No matter your age or retirement goals, you will have to save a lot of money if you ever hope to leave the workforce. But there's a difference between just saving and saving smart. Use the above tips to ensure that your dollars stretch as far as possible in retirement.

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3 well-kept retirement planning secrets you need to know - Fox Business

Retirement should be an enjoyable time in your life, but it won't be if you aren't financially prepared for it. Unfortunately, a substantial number of Americans are likely going to be in for a huge financial shock when they leave the working world -- and the surprise they're facing could leave them struggling to make ends meet in their later years.

For most retirees, there are two huge expenses that aren't optional and that can drain their nest egg. And, according to disturbing new research from Edward Jones, an estimated two-thirds of Americans planning to retire within the next decade have "no idea" what they are. Those two big expenses: Healthcare costs and long-term care costs in retirement.

Image source: Getty Images.

It's a major problem that these expenses are going to come as a huge surprise for most Americans, because it's all but inevitable that you'll be paying thousands (or even hundreds of thousands) of dollars for them.

After all, while most retirees can get insurance coverage through Medicare at age 65, it's common to retire before these benefits become available -- which means you could owe thousands of dollars in insurance premiums early in retirement. Medicare also doesn't cover everything you might need, and there are premiums and coinsurance costs to think about. The price tag for out-of-pocket care can be so high that seniors who claimed Social Security at 62 often end up spending as much as 60% of their monthly benefit checks on medical services. These bills are shocking if you aren't prepared for them.

It's also more likely you'll end up needing long-term care than many people realize, with around 70% of people who reach the age of 65 ultimately requiring some kind of nursing home or home healthcare services. Unfortunately, Medicare won't pay for any portion of this care in most circumstances. And while Medicaid covers nursing care, it does so only after you spend down a substantial percentage of your assets. If the high probability you'll need nursing home care, along with the price tag and lack of coverage for it, come as a surprise, this can lead to serious financial pain. That's especially true for those who are forced to drain their joint nest egg to provide care for a spouse, and who are then left with little to live on for the rest of their own retirement.

Covering both medical and long-term care costs can be difficult under the best of circumstances, but it can be devastating if the costs come as a shock, since only those who prepare in advance are likely to have the financial resources they need.

For those who are eligible, preparing could involve maxing out annual contributions to a health savings account, while for others it could mean investing more in a 401(k) or IRA after factoring in the costs when setting retirement goals. For still others, buying comprehensive insurance, including long-term care insurance and Medigap or Medicare Advantage plans, could make sense -- although premiums will need to be budgeted for.

The important thing is, you can't afford to be caught off guard -- so if you're one of the two-thirds of Americans with no clue what these expenses might cost, it's time to change that.

No retiree deserves to leave work and see the nest egg they've spent their whole life building disappear within months or years because of medical needs or long-term care costs.

You owe it to yourself to prepare for these expenses by making sure you have money earmarked to cover them and the right insurance to mitigate them. Now that you won't be surprised by them, you can start making your plans today so these huge costs won't derail your entire retirement and leave you struggling.

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Two-Thirds of Americans Are in for a Huge Financial Shock in Retirement - The Motley Fool

BULLHEAD CITY There have been drive-through testing initiatives, food distributions and graduation ceremonies during the COVID-19 pandemic.

Bullhead City is adding a retirement ceremony for Police Chief Brian Williamson to the list of creative, social-distanced celebrations.

The city is conducting a drive-through retirement celebration for Williamson at 10 a.m. Wednesday in the Bullhead City Administration Complex off Marina Boulevard. It will be preceded by a private, formal retirement presentation at 9 a.m. with the event broadcast live on TV4, online at http://www.bullheadcity.com/tv4live and streamed on the Bullhead City Police Departments Facebook page.

The public is invited to join the farewell retirement drive-through celebration on Wednesday, said a news release issued by the police department. Vehicles may begin lining up at 9:30 a.m. on Hoppas Drive/Gary Keith Park (between Mohave High School and Public Works). The police departments traffic personnel will lead the vehicle procession through the drive-through route, which will head south on Alonas Way to the parking lot of the Bullhead City Justice Complex (the building that includes the police department). The chief will be located by the flag poles outisde the Bullhead City Council chamber.

We encourage people to decorate their vehicles for the celebration. After greeting Chief Williamson from their vehicles, the procession will exit the parking lot on Alonas Way toward Trane Road. The event will be limited to approximately one hour due to the extreme heat.

Participants must remain in their vehicles.

Williamson is retiring, effecting Sept. 1, after a 32-year career in law enforcement that began as a military policeman in the U.S. Army. After a stint with the Mohave County Sheriffs Office, he joined the Bullead City Police Department in 1998. He became acting chief Dec. 6, 2013, following the retirement of Rodney Head. The appointment was made permanent the following May.

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Drive-through ceremony planned to honor retiring police chief - Mohave Valley News

At 80 years old, I still wake up and go to work every day. I'm ageriatrician and it's a job that I've held for the past 55 years.

Theaverage retirement agein the U.S. around 64. I'm way past that, but I don't plan on retiring anytime soon. Why? For starters, I happen to be among the lucky few who love the work they do. (I know I'm in the minority with this, so I do feel extremely grateful.)

As a doctor who specializes in the care of older adults, I get a lot of questions from people about retirement, specifically in relation to health and longevity. Here's what I tell them:

A reporter once asked me, "Isn't working past retirement associated with longevity?" This was during the 2007 to 2009 financial crisis, when many people had to work past their anticipated retirement due to investment losses.

I replied, "People everywhere are revising their retirement plans. In fact, I came up with my own plan that's pretty simple and guarantees that I won't outlive my assets." The reporter took the bait: "Really? What's that?"

"I plan to die in the office," I said.

All jokes aside, based on my personal experience and from what I've seen in my long geriatrics career, I think it's fair to say that many people continue to work because it gives them pleasure or is financially necessary.

I find happiness in my work for a lot of reasons. Geriatrics health professionals like me and my colleagues are experts in the type of care we'll all need as we age. I get to work with incredibly talented and collaborative people, and what we do is rooted in change that benefits everyone.

Not always. Data behind whether or not later-life retirement is actually healthy are conflicting.

In a study of almost 430,000 people, an older retirement age was linked to a decreased risk of dementia. This was thought to be in line with the "use it or lose it" hypothesis, which suggests that cognitive decline related to age would be less likely to affect people who stay mentally active (in this case, working might help you stay sharp as you age).

Additionally, a2019 Swedish study reported that people who work past 65 have a 7% chance of enjoying better health compared to those who retire at 65. However, retiring later didn't mean better physical fitness, and participants didn't report improved well-being or fewer symptoms of depression, the researchers found.

On the other hand, a 2010 study on thousands of British civil servants contradicted those findings, and suggested that people who voluntarily retired early enjoyed better mental health and physical functioning.

"Voluntarily retired" are the key words there, as there is evidence that mandatory retirement is not good for your health no matter what your financial circumstances might be.

Common sense tells us of three scenarios that can erode happiness and longevity. You may be less likely to enjoy a healthy older age if:

Obviously, those who aren't healthy and active in their 60s or have lost some memory or thinking power may want to consider retiring earlier say, anywhere from their early to mid-60s if possible.

Many people do end up very unhappy in retirement. But those in the opposite group do something differently: They don't sit on a beach all day. Instead, they constantly engage in healthy activities.

A few examples I recommend:

Our understanding of what it means to pursue "healthy aging" is constantly evolving. We used to think exclusively about lifespan. But now, and even more important, we think about health span.

There's a big difference between the two: Lifespan is how long you'll live, while health span is how long you'll live while also being able to do things that are personally meaningful.Healthy agingis about much more than the absence of disease. It's also about our ability to live independently, safely and with a keen eye on what matters to us most as individuals, including when and how we "retire."

What that tells us is that retirement will look different for all of us; there's no hard-and-fast "date" to mark on your calendar, and there's no one right way to retire. You may need to continue working. Or you may not, but still want to, so you cut back to working just a few hours per week.

Supporting your health, safety and independence is really about striking a balance between what you want and what you need with you as the focal point for your choices.

Richard W. Besdine, MD, is a Professor of Medicine and Health Services Policy and Practice at Brown University.He is a member and former president of theAmerican Geriatrics Society.Dr.Besdineis a writer forHealthDay, and has also authored more than 125 publications on aging. He trained in internal medicine, infectious diseases and immunology at Boston's Beth Israel Hospital and Harvard Medical School.

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An 80-year-old doctor on why he refuses to retire anytime soon'I plan to die in the office' - CNBC

You might know where you'll live in 10 years and have a pretty good idea of the job you'll have, but could you predict the balance in your retirement savings? If the answer is no, you're not alone. Many American savers aren't even sure how much moneythey'll need to retire -- let alone forecasting their progress along the way.

Having the ability to project your retirement savings growth is a useful skill, because it allows you to recognize and fix contribution shortfalls proactively. The alternative is watching that account balance and waiting for the growth. You might set goals for yourself, such as amassing $500,000 by your 40th birthday. But you won't really know if you're on track until it's too late to adjust your strategy.

Image source: Getty Images.

The good news is that you can easily learn how to project your investment growth confidently. Here's what you need to know.

Your future retirement balance is a function of your balance today, future contributions from you and your employer, your rate of return, and the timeline. If you know these values, you can plug them into a compound interest calculator for a quick gauge of where your balance will be at some future date. It seems simple enough, right up until you have to predict your rate of return. That's the tricky part, because it depends on how your money is invested and what's happening in the financial markets. There's also inflation to consider, which reduces your returns by shrinking the buying power of your money.

For projections of at least 10 years, you can use long-term historic averages in your calculation. If you've ever read a mutual fund prospectus -- and hopefully you have -- you know that historic returns are no guarantee for future results. But they are a better choice for projections than, say, a hopeful guess or a reading from a crystal ball.

So, what are those averages? Inflation has been running quite low in recent years, but the long-term average is 3% annually. The S&P 500 has historically grown about 10% annually. Net those two numbers and you get an inflation-adjusted, average annual return of 7% for large-cap stocks.

You can't just pop 7% into your investment calculator and call it a day, however. You might need to adjust that percentage down based on how you are invested. If your portfolio is comprised of 50% stocks and 40% bonds, for example, your rate assumption should consider that the long-term average of government bonds is lower than stocks, at about 5.5% before inflation. That puts your overall return closer to 5%.

On the other hand, you could also expect high growth rates because you're invested in some aggressive small- and mid-caps or leveraged funds. Know that it's risky to raise your expected return in that case, because those high-growth positions are also more volatile. You could make more on them, or you could make less.

As you start running the numbers, there are a few projection pitfalls to avoid. One is being too optimistic on your rate of return. If you're unsure, use 6% as a conservative starting point. Another pitfall involves your employer matching contributions in your 401k. You can't take those contributions with you if you leave your job and you're not fully vested. If you aren't sure of your future with your employer, don't include unvested contributions in your calculation.

It's also inappropriate to assume your projection predicts the future exactly. The unfortunate side of investing is that the market can be erratic. That's why it's less useful to project investment growth for durations shorter than 10 years -- there's just too much volatility from year to year. If you were investing back in 2008 and 2009, for example, you know that results in a single year can be wildly different from that 7% average. Even in a 10-year window, you might be on pace to reach your goal when a crash in the ninth year suddenly stunts your progress. Always recognize that as a possibility.

Use projections from an investment calculator to evaluate your annual contribution relative to your goals. Say you are contributing $6,000 annually and you expect a 7% return after inflation. Given those variables, you should have $88,702 after 10 years. If your 10-year goal is $250,000, you know you're not going to get there unless you can increase your contributions substantially. You can do that from the get-go, or plan on raising your contributions gradually over time. This calculator lets you test both options.

While that may not be the news you want, at least you know where you stand. It'd be a much harder problem to solve if you didn't realize until year five or six that you weren't contributing enough. And if you haven't even set a 10-year goal yet, at least use your newfound knowledge to find out where you want your retirement savings to be in 10 years.

More:
Where Will Your Retirement Savings Be 10 Years from Now? - Motley Fool

My wife and I had our photo taken standing in front of a 1,000-year-old Sitka Spruce tree, and this got me thinking about the impact of 1,000 years of growth.

I can barely get my mind around a concept of the time that tree began its life, presumably around the year 1020. What was life like back then? Did anybody notice that tree when it was young?

Most likely well never know.

Still, my curiosity was now aroused, and I found an online site with lots of information about inflation. That topic doesnt directly apply to a tree, but it certainly applies to investors.

When I came into the world as an adult, U.S. inflation was very low. To me, the 1953-1966 inflation rate of 1.5% was normal. Something that I could have purchased in 1953 for $1 (more than I usually had as a kid) would have cost about $1.21 in 1966. By then, my ability to spend money had escalated mightily, so it didnt seem like a big deal.

As a result, I was in no way prepared for the next 14 years. From 1967 through 1980, the inflation rate was 7.1%. By 1980, that mythical item which I could have acquired for $1.21 in 1966 would have cost $3.08.

From 1926 through 2019, inflation in the United States and other developed nations has been roughly 3%, so at the moment it seems to make sense to regard that as a reasonable long-term expectation for the future.

Read: Inflation is low now, but it still poses a big threat to retirees financial security

In many parts of the world, inflation is much higher than in the United States. For example, Venezuela (15,000% annual rate as of April 2020), Zimbabwe (319%), Sudan (81.3%), Iran (34.2%), and Libya (22.3%). And no, 15,000% is not a typo.

Theres also the phenomenon of deflation, a decrease in the general price level of goods and services.

Every month, the federal government calculates the Consumer Price Index, which can be translated into an inflation rate. If youre curious, you can find a table here with the inflation rate for every single month going back to January 1914 along with the annual rate.

Scanning the table, youll find some interesting data points.

Double-digit inflation was experienced in 1917 through 1920, ranging from only 15.31% (1919) to 17.8% in 1917. But in 1921, inflation turned into deflation, minus 10.85% to be precise. Even stranger, for seven straight years (1927-1932) year-end inflation was either zero (1929) or negative that is, deflation.

In my lifetime, the highest rates of inflation came in 1979 (11.22%), 1980 (13.58%) and 1981 (10.35%).

So far this century, annual inflation has ranged from -0.34% (deflation again, though slight) in 2009 to 3.39% in 2005. Last year, inflation was 1.81%.

Read: 10 things you should know about diversification

The online page of historical data to which I referred above also has interesting discussions about the nature of inflation, hyperinflation and deflation. You can dig into these topics as much as you wish, and the site has some practical ideas on dealing with inflation.

Theres this advice against holding large amounts of cash: In a world where moderate inflation is the norm, there is little choice but to spend, invest, or be willing to accept a degree of loss due to inflation.

To which I say Amen.

In fact, the U.S. stock market has a history of advancing (over long periods) at a rate that outpaces inflation, and in my opinion thats a more reliable way to keep ahead of inflation than through commodities, real estate, art, or antiques.

Now back to that 1,000-year-old tree.

If we assume a long-term inflation rate of 3%, then over the course of 1,000 years, $1 will grow to $6,874,240,231,169.63.

Thats very impressive, of course.

Read: Should I still use the 60/40 investing rule for retirement?

But now think about this: If you added just one-tenth of 1% to that inflation rate (making it 3.1%), that $1 would grow to $18,141,169,599,823.68 nearly three times as much.

Those numbers contain a powerful lesson for investors who can take a long-term outlook. Even a tiny difference in return (which can result from shaving expenses, for example) can make an enormous long-term difference.

An assumed rate of future inflation is one of the key numbers necessary for thorough retirement planning. Whatever number you pick will have a large effect on the savings you need to afford a given level of spending.

If you assume a higher rate, that suggests you should save more. If you assume a lower rate, the implication is you dont need to save as much.

Inflation is one of the key numbers that I highlighted in a chapter of my book Financial Fitness Forever. The chapter is called Moving to Action: 12 numbers to change your life. You can read that chapter free if you like.

Richard Buck contributed to this article.

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Inflation will have a big impact on your retirement - MarketWatch

Jeanne Butterfield stands up for her beliefs

Kyle Kotecki, kkotecki@pioneergroup.com

Jeanne Butterfield holds a sign outside of the Manistee Post Office Saturday during a rally she organized as "an expression of concern in support" of the U.S. Postal Service.

Jeanne Butterfield holds a sign outside of the Manistee Post Office Saturday during a rally she organized as "an expression of concern in support" of the U.S. Postal Service.

Photo: Kyle Kotecki/News Advocate

Jeanne Butterfield holds a sign outside of the Manistee Post Office Saturday during a rally she organized as "an expression of concern in support" of the U.S. Postal Service.

Jeanne Butterfield holds a sign outside of the Manistee Post Office Saturday during a rally she organized as "an expression of concern in support" of the U.S. Postal Service.

Meet the retired lawyer who organized the rally in support of the USPS

Manistee's Jeanne Butterfield is not one to sit idly by in the face of what she sees as malfeasance. Butterfield prefers a more proactive approach.

When troubled by changes in the U.S. Postal Service, Butterfield took action, organizing a rally held outside of the Manistee Post Office Saturday morning as "an expression of concern in support" of the U.S. Postal Service.

"We've seen several disturbing actions since (Louis) DeJoy was appointed Postmaster General: cuts in overtime, slowing down of service, dismantling of sorting machines and removal of actual mailboxes from some city streets around the country," Butterfield said. "That comes on the heels of statements by some of our political poobahs that the post office should be a profit-making venture. We're here to say it's not it's an essential service.

"It's critical to our small towns, and rural communities need it not only for personal mail but for prescription medicines, benefits checks," she continued. "And then looking ahead, during a pandemic especially, we need a reliable mail service to get our votes mailed in so we don't have to stand in line and expose ourselves on Election Day."

Butterfield has dedicated her life to making a difference, working as an immigration lawyer and continuing to stand up for various causes in her retirement.

"I was an immigration lawyer and I did national immigration policy work, mostly in Washington D.C.," she said. "I'm the former executive director of the American Immigration Lawyers Association. I've always been active on issues of concern to our communities."

Butterfield, along with husband Al Frye, is a member of the We the People Action Network of Northwestern Michigan, which is a local, non-partisan, grassroots network dedicated to education, advocacy and action around issues of concern to the local community.

"Al Frye is my husband and one of the co-organizers (of the rally)," she said. "We have had this little network called We the People Action Network of Northwestern Michigan. It's done a number of events over the years here and that was some of the impetus behind this."

Butterfield settled in Manistee after retirement and, not content to spend her days relaxing, continued advocating for worthy causes.

"I'm a born and raised Michigander," she said. "I came back to Manistee in my retirement and I've been active in the community here ever since."

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Meet the retired lawyer who organized the rally in support of the USPS - Manistee News Advocate

Ryan Ermey: Whether you're fantasizing about getting away for a couple of weeks or dreaming of a retirement on the road, an RV is seeming like a more and more viable option these days. RV Dealer Association president Phil Ingrassia joins the show for a discussion of the benefits, drawbacks, and costs of RVs in our main segment.

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Ryan Ermey: On today's show, Sandy and I tell a listener what to do after an issue that cut her credit limit in half and interest rates -- and the Fyre Festival feature in a new edition of Deal or No Deal. That's all ahead on this episode of Your Money's Worth. Stick around.

Ryan Ermey: Welcome to Your Money's Worth. I'm Kiplinger's associate editor Ryan Ermey joined as always by senior editor Sandy Block. And Sandy, we are recording today, I'm in a familiar situation, which is that a friend has texted me and said, You write for that financial magazine, don't you have answer for some question I have? And so the listener in question had her credit card limits slashed in half and was pretty livid about it. She says she puts at least $200 on the card monthly and pays it off in full. And she feels like she's somehow being punished for being financially responsible. She's trying to buy a house and is worried that her credit score may be dinged as a result of this, as well.

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Ryan Ermey: This is one that I reached out for some help for. I guess the number one thing, Sandy, is the reason that she's concerned about her credit score is this idea of utilization ratio, right?

Sandy Block: Right. If she's in the market for a house, one of the things that lenders will look at is the amount of overall... the ratio of the amount that she's borrowing versus the overall credit that she has access to. So if her credit limit has been cut in half, that's going to hurt her ratio, even though she didn't do anything wrong.

Sandy Block: I think this always comes as a shock to people that credit card issuers do this, but I remember this happening a lot during the Great Recession and it's happening now. It's not because of anything she did, it's because of the economy. It's because lenders are much more risk averse now. They're worried that people are going to lose their jobs and max out on their credit. And we were always shocked when this happens --especially if, as was the case with this listener, they've done everything right. It's like you're being punished for nothing. The only thing I can say is, you're not alone.

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Ryan Ermey: Right. And so, as you say, Sandy, credit card issuers are doing this now in the same way they did during the Great Recession, just because they're trying to reduce their exposure a little bit. Little used cards are a common target for these kind of cuts because they represent some kind of liability for the credit card company. Plus, their credit card's is not making too much money from that kind of card.

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Sandy Block: Right.

Ryan Ermey: Same with any kind of account exhibiting some kind of distress. Like if someone's maxing it out or making late payments. Those are kinds of things. Or just having complete inactivity. Those are some kinds of things that make you a target for this kind of thing. But in my friend's case, it was just some bad luck, frankly.

Sandy Block: It's just random, yeah.

Ryan Ermey: I reached out to our friend, friend of the show, Ted Rossman from CreditCards.com and he said that something similar actually happened to him recently. I mean, you're in the same boat as a credit expert, if this happens to you. He said, first thing he did, he called the card issuer andasked them to reinstate the old limit and they did. So that is absolutely worth a shot, especially if you're kind of taking a look at what your credit utilization is. Generally, a good goal is to keep it below 30%, although below 10% is even better. And so if this is something that could possibly affect you, it's absolutely worth asking.

Sandy Block: Certainly if you've been a good customer and they want to keep you. Maybe they just did this across the board, but you call up and say, Look, I've paid my bills. I'm a good customer. I don't have a lot of debt. It's definitely worth trying.

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Ryan Ermey: Yeah. And it's not out of the realm of possibility on any credit account to call them and ask for a higher limit. Ted says that in more normal times in 2018 that CreditCards.com had found 85% of card holders who asked for a higher limit got one. They're generally happy to give it to you now. And this is something I wasn't aware of -- that you could run into what's called a hard inquiry, which means that someone is taking a look at your credit. And a hard inquiry is the kind that can temporarily lower your score by a few points. And so Ted suggestsbefore officially asking for a higher rate, that you can call customer service to ask if a hard inquiry will happen.

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Ryan Ermey: He says last year he asked for higher limits on his American Express, Capital One and Wells Fargo cards and there were no hard inquiries, but he avoid proceeding with Chase who would have in fact done a hard inquiry.

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Sandy Block: Right. The difference between... ahard inquiry is what happens when you apply for a new credit card. A soft inquiry is when you get all those solicitations in the mail and maybe they checked your credit before sending you a solicitation. That's called a soft inquiry. That does not hurt your credit score. But a hard inquiry -- and that's why we always tell people -- avoid taking out a bunch of credit cards at one time or taking advantage of a whole bunch of retail back when we were shopping. You know, retail credit cards to get the 10% discount. That can ding your score. So it's important to understand the difference.

Ryan Ermey: Right. And so for my friend, who is possibly trying to finance a home here soon, getting a brand new card certainly isn't a solution in the very short term in terms of lowering her utilization ratio. I think she's more or less fine. She's probably not putting... it doesn't sound like she's putting too much money on the card, unless she's got a very, very low limit. The amount of money, the $200 that she's paying off every month sounds like she's not even going to come close. And so even with the credit limit lowered, it's certainly annoying and it's certainly going to affect her ratio, but she still should have very good credit coming out of this.

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Ryan Ermey: Our advice to her... yeah, Ryan and Rianne, go ahead and call Chase. I think she did mention that it was Chase and see what they can do for you. Hopefully, they should be able to raise that back up for you without a hard inquiry. But otherwise, you should still be good and best of luck on the new house, girl.

Sandy Block: Yes!

Ryan Ermey: Coming up, if you're dreaming of retiring in an RV, consider the cost as well as the benefits. Our interview with Phil Ingrassia is next.

Ryan Ermey: We are back. And today, we are talking with Phil Ingrassia. He is the president of the RV Dealers Association. Phil, thank you so much for joining us.

Phil Ingrassia: Happy to be here.

Ryan Ermey: We talked with another colleague of ours recently, and her theory was that the pandemic has sort of re-birthed the great American road trip. Has there been heightened demand for RVs since the COVID-19 pandemic broke out? And how can people go about finding a place to rent or buy one?

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Phil Ingrassia: Right. Well, initially there was a lot of people who were looking to use RVs as isolation areas. We had a lot of first responders, medical personnel using RVs when they were coming back from work so that they could have them in their driveway and stay away from their family. That kind of has morphed into more people than ever, trying RV-ing for the first time.

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Phil Ingrassia: We've got a survey out this past week that showed like 55%, more than half of the people buying RVs in May through June were first-time buyers. So it's been an interesting spring to say the least, as people have discovered the benefits of RVs travel.

Phil Ingrassia: They kind of check a lot of boxes, right? You can be outside with your family. You can self-isolate in the RV. So you're not with a bunch of other people that aren't related to you. And so it's been a very busy summer as we've seen a lot of people try to find the right travel trailer or motor home for their family as they try to kind of save their summer.

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Sandy Block: Phil, even before the pandemic, there was a lot of appeal among retirees for RVs. I assume that hasn't changed. What are the advantages of retiring to an RV and seeing the country, particularly if you're say, you're retired and you're on a fixed income?

Phil Ingrassia: Basically, they can budget in a way where they can figure out, okay, maybe they're selling their house and they're going to travel the country. They can be in the South in the winter time -- snowbird type --and then come back North. We have a lot of people that do that, but RV-ing is also something that you have to budget for. Certainly, you have to buy the unit and then you've got insurance issues and then you've got campground fees and things like that.

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Phil Ingrassia: So it's not exactly a free way to retire, but certainly for people who plan, it can be a very economical way to stretch their retirement savings.

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Ryan Ermey: Well, so let's talk a little bit about costs. Let's say I'm one of these people who kind of wants to dip my toes into this lifestyle. I want to take a vacation with the family at a safe social distance. About what would week-long RV rental run me? And consider some costs maybe that people might not always think about. And can I still come out ahead?

Phil Ingrassia: Right. Well, there's a couple different ways to look at it. Certainly, you've got a bunch of different units. So sort of like with hotels, you have different size rooms, you have different size RVs. Typically, your smaller RVs, you can rent for $200 a week on up. Larger RVs, you're getting into the motorized, which can be more expensive and they're larger, as well. So it really varies as far as how much it could cost. It basically depends on the type of RV you're renting. The other cost you have to consider, certainly gas, any additional insurance you might requireand then campground fees and things like that.

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Phil Ingrassia: Right now, the rental market is very, very tight. It's a supply and demand issue. If you can book further out, your rates are probably going to be a little lower. And the shoulder seasons are typically lower rates as well. And what I mean by that is when school is in session. Basically, the rates are lower in the fall and early winter. But again, it depends on the size of the unit and where you're going to. If you're going to a popular destination, such as Grand Canyon or things like that, the rates can be a little higher there than if you're doing a more Midwest swing on a trip.

Ryan Ermey: What do thetiers look like when it comes to different kinds of RVs? Because I think a lot of people think, "All right, I'm going to retire and I'm going to have the whole 'Meet the Fockers' like gigantic beautiful machine." But obviously, it kind of runs the gamut of different kinds of RVs. And you might want to start with something a little bit smaller to test it outto see if you like it.

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Phil Ingrassia: Absolutely. A lot of people think about RVs as motor homes. And certainly that's a very important part of the market. But over the last 20 years, the volume of sales has been driven by the tow-able sector. Basically travel trailers, campers. And so right now, the hot ticket is the entry-level camper that sells between $15,000 and maybe $35,000. And as you guys have probably noticed, the passenger car market has really evolved where people used to have a couple of sedans in the driveway, now they've got an SUV, maybe a light pickup or a crossover. So all those units are potential tow vehicles for the lighter weight RV travel trailers.

Phil Ingrassia: And so this has helped feed the desire for RV travel because people already have a tow vehicle in their driveway. So certainly the larger fifth wheel travel trailers and the motor homes are a big part of the market, big with the retiree and snowbird sector. But right now, the volume is in the entry level family type RVs that people can tow with pretty much what they have in their driveway now if they've got an SUV or crossover or a light pickup truck,

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Sandy Block: Phil, if you are interested in actually... maybe you've done the entry level, you're retired and you're interested in buying an RV and doing the whole lifestyle. What should people be thinking about? Do most people pay cash for RVs or is there financing available? Can you lease an RV? I mean, what are your options in terms of ownership?

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Phil Ingrassia: Well, most people buy an RV and will finance at least part of it. There are many options for financing. Unlike buying a car, if you go to an RV dealership, they'll say, Okay... You've made your selection and you'll talk to them and they'll say, Okay, do you want to finance it? Are you paying cash? What are you doing? So you'll go in and RV dealers have access to a lot of different lending sources, just like car dealers do. So you can finance through the dealership. There are also credit union programs and brick-and-mortar banks also have lending programs for RVs, as well. So there's no shortage of financing options if you want to finance the RV, and there's very attractive terms. And because it's something that's not necessarily used every day, you can lengthen the length of your term. So you can stretch it out over 7, 10, 12-year period of time.

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Sandy Block: And can you lease an RV?

Phil Ingrassia: Leasing is more of a long-term rental.

Sandy Block: Okay...

Phil Ingrassia: There really aren't leasing programs like you have in the car business where you would turn it in after three years or so many thousands of miles.

Ryan Ermey: Now, I imagine that there's some subset of the RV market who get in because the people are really excited. But they invest in a big piece of machinery like people do with a boat, and the joke for boats is always bust out another thousand, right? It's always comes with costs that you don't necessarily anticipate. Are there some cost associated with RV ownership and travel that the kind of bushy-tailed new buyers don't necessarily always consider?

Phil Ingrassia: Well, certainly when people buy their first RV, they really need to talk to their dealer about the maintenance schedule. I mean, really this is a house on wheels, right? So you've got plumbing systems, you've got electrical system, you've got water systems in there that need attention. Also, you've got a rubber roof on top of the unit, which needs to be serviced every once in a while. So it's not like a car. There are other things in an RV components that you don't have in a vehicle.

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Phil Ingrassia: So much like your house, where you'll have somebody take a look at the furnace every season, you still have those kinds of issues with an RV. So people need to consider the maintenance that needs to be done, to keep their RV ready to go when they want to go on vacation. There's nothing worse than you're all ready to go with a family camping, and then something's wrong. So you need to do that maintenance much like you have to do with a home.

Ryan Ermey: Nevertheless, the appeal of the RV is sort of more undeniable than ever.

Ryan Ermey: Phil, we want to thank you again for coming on. Before you go, where can people head to find more information about RVs and about where to possibly be able to procure one in their area?

Phil Ingrassia: There's a great website, GoRVing.com, that has all kinds of information on the RV types and terms that you need to know. It also has links to rental and dealers. So you can find a dealer at GoRVing.com and you can also go to our website, RVDA.org to find a dealer near you.

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Ryan Ermey: Fantastic. Well, Phil, thank you so much again for coming on. And until then, I guess we'll see you on the road.

Phil Ingrassia: Thank you.

Sandy Block: Thanks, Phil.

Phil Ingrassia: Bye.

Ryan Ermey: After the break, find out why news about the Fyre Festival had me wondering about deals on used cars. Don't go anywhere.

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Ryan Ermey: We are back. And before we go, Sandy and I are parsing, what are deals, what are not. It's Deal or No Deal. And Sandy, I have one that I really enjoyed. Every once in a while, you get one of these things that you just enjoy delving into.

Ryan Ermey: And so news broke this week that the U.S. Marshals Service was auctioning off seized itemsfrom the Fyre Festival. Now, for those of us who don't remember, the Fyre Festival was supposed to be a festival targeted toward beautiful young people, young Instagramand social media influencers. They flew them all out to an island, but it ended up being a humongous scam. There was no festival.

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Sandy Block: I think everybody got like a cheese sandwich and a...

Ryan Ermey: I mean by cheese sandwich, we mean two pieces of bread and a slice of cheese.

Sandy Block: It's not even good cheese. That's right.

Ryan Ermey: And they were supposed to be paying thousands of dollars for a beach side bungalows. And these people had set up FEMA tents.

Sandy Block: And there were all these supposed to be all these great bands, right? And there were no bands.

Ryan Ermey: It was really an epic disaster and a humongous scam.

Sandy Block: Epic.

Ryan Ermey: And a certain amount of schadenfreude that went into the whole thing that these people thought, these trust fund kids in New York, these club kids who are paying thousands of dollars to fly to the the Bahamas -- this is what they get. They don't, you know.

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Sandy Block: That's right.

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Ryan Ermey: Anyway, there's two fantastic documentaries, one on Netflix, one on Hulu. Go check those out. I mean, really, really tremendous stuff. So the Marshals Service was auctioning off a lot of their leftover merch that had been seized. So there was like hats and hoodies and t-shirts and wristbands and little tokens that I think you were supposed to be able to use to buy things there, which that obviously didn't really happen. But I'm talking, the hats and shirts are going for like $400 to $500.

Sandy Block: Oh my gosh.

Ryan Ermey: Well look, because people wanted a piece of that...

Sandy Block: Memoranda.

Ryan Ermey: ...that culture.

Sandy Block: Yeah.

Ryan Ermey: It was a really a moment in time. Obviously, I didn't want to buy any of that. But while I was there, there was all sorts of stuff being auctioned off. And I should say folks that as we record today on August 13th, the Fyre Festival stuff is closing today. So by the time you're listening to this...

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Sandy Block: You missed it.

Ryan Ermey: If you want to buy Fyre stuff, you can't. But...

Read the original:
The Pros and Cons of Buying an RV in Retirement - Kiplinger's Personal Finance

Social Security has been in the headlines a lot lately, and not necessarily for good reasons. As President Donald Trump continues to push for payroll tax cuts -- or eliminating payroll taxes altogether -- many experts are voicing their concerns about how that will affect the future solvency of Social Security.

They have reason to worry, too. Payroll taxes are the primary source of income funding the Social Security program, and without them, benefits could potentially disappear. Even if payroll taxes are reduced and not eliminated, that could still result in benefit cuts for retirees.

That's especially concerning to the 20% of baby boomers who have no other retirement income besides Social Security, according to a recent survey from Nationwide, but it can spell trouble for all retirees. While nobody knows for sure what the future holds for Social Security, it may be a good idea to plan for retirement under the assumption that you won't get much financial help from the program. Here are four steps that can help you to do that.

Image source: Getty Images.

As you're planning for retirement, one of the first steps is to estimate how much you'll be spending each year. With that number in mind, you can break that down into how much will have to come from your retirement fund versus other income sources, such as a pension or Social Security benefits. From there, you can run your information through a retirement calculator to determine your retirement number -- or the amount you should have saved by the time you retire.

Because of the uncertainty surrounding Social Security, it may be best to leave your future benefits out of the equation. You'll likely need to save more, which may be a challenge if you're getting close to retirement age, but it's better than finding out during retirement that benefits are disappearing and your savings aren't enough to cover your basic expenses.

If you suddenly need to save more than you'd planned, it may be tough to find that extra money in your budget. Money is especially tight right now for millions of Americans, and saving more for retirement might feel impossible.

Do your best to save whatever scraps you can, though. Start tracking your expenses, if you don't do so already, and see if there are any areas in your budget where you can cut back. Saving even a little now will add up over time, so no amount is too small to stash in your retirement fund.

Saving more is challenging, so to make it easier, try to think of ways you can reduce your expenses in retirement so you won't need to save quite so much.

If you're open to making major life changes, you may consider moving to a more affordable city or neighborhood in retirement, for example, or downsizing to a smaller home. For less drastic changes, you might think about finding new inexpensive hobbies or changing your travel plans to destinations that are less costly.

Stashing more in your retirement fund is only half of the equation; it's also important to ensure your investments are allocated properly to maximize your savings.

When you're still decades away from retirement, your portfolio should be allocated more toward stocks. This is inherently riskier, but your savings will grow faster and you have plenty of time to recover from market downturns. As you get older, though, your investments should shift toward the conservative side and more of your portfolio should be allocated toward bonds. You'll still want to invest some money in stocks so your investments continue to grow, but by investing more conservatively overall, your money will be more protected against market downturns.

Social Security benefits are an integral part of many Americans' retirement plans, but there's a chance they won't be as dependable as they once were. If payroll tax cuts are in the future, it could have an impact on your retirement. By planning for it now, though, you'll be prepared no matter what the future holds.

Read more from the original source:
4 Steps to Surviving Retirement Without Social Security - The Motley Fool