Raising your living standard

By JEFF OPDYKE

Hey, retirees: Looking for a way to bring in more money? Give back all the Social Security checks you have received so far.

But you had better do it fast, since this loophole could soon close.

An often-overlooked provision allows Social Security recipients to withdraw their original application for benefits and to refile. For many retirees already collecting benefits, the strategy—known informally as a "Social Security reset"—could sharply increase their monthly income. Larry Kotlikoff, a Boston University economics professor who has researched the strategy, likens it to finding tens of thousands of dollars or more "just lying on the sidewalk."

Be warned, though: Not all retirees will benefit, and those who potentially would will need access to a large stash of cash to start the process.

By Allison Linn Senior writer, MSNBC

Wracked by recession, choked with debt and uncertain about the future, more Americans are asking: Is college worth it?

The question is understandable. Private college tuition and fees have risen 70 percent over the past decade, according to the College Board. That is more than twice the rate of inflation. Public college tuition and fees have doubled in the same timeframe.

But while college debt has proven a financial chokehold for some people, a four-year degree is still great insurance, especially in a tough job market: The unemployment rate for people with a bachelor’s degree or higher was 4.5 percent in July, compared to 10.1 percent for those with only a high school diploma.

Perhaps the greatest lesson of the Great Recession isn't that you shouldn't go to college, but that you should approach it like you would any other investment: with caution.

Joe Mont
07/30/10 - 09:52 AM EDT
BOSTON (TheStreet) -- Are you saving too much for retirement?

You may well be if you rely on the advice typically offered by financial planners and the large firms they are affiliated with, according to Laurence Kotlikoff , an economics professor at Boston University.

Kotlikoff has made a name for himself as a critic and contrarian when it comes to the financial services industry.

By M.P. MCQUEEN
and Jodi Hilton for The Wall Street Journal

The Hornes of Holliston, Mass., sold this house for a smaller one nearby, but haven't enjoyed the windfall they expected.

Trading down to a smaller home is a retirement-planning staple. According to an April study by the Society of Actuaries, 20% of not-yet retirees say they plan to downsize after the last child leaves the nest.

But it is getting a lot harder to do, even for wealthier people.

A study by the Joint Center for Housing Studies at Harvard University, scheduled to be released on Monday, shows that while mobility has slowed across all age groups during the real estate bust, "mobility rates among seniors have posted the sharpest drop." Trade-downs in March comprised about 8% of total home sales, down from 12% in October 2008, the first year for which there are historical comparisons, according to the National Association of Realtors.

You shouldn't party today and starve tomorrow, says economics professor and author Larry Kotlikoff. But you don't want to do the opposite, either.

By Christine Benz

The Perils of Oversaving
You shouldn't party today and starve tomorrow, says economics professor and author Larry Kotlikoff. But you don't want to do the opposite, either.

Christine Benz: Hi. I am Christine Benz from Morningstar.com. I'm here today with Larry Kotlikoff. Larry is the author of a new book called "Jimmy Stewart is Dead," and he is also the author of another book called "Spend 'til the End," which talks about spending and saving in and before retirement. Larry thanks for joining us.

Larry Kotlikoff: My pleasure.

Benz: Let's start with "Spend 'til the End" and talk about the concept there because it's a contrarian idea. You acknowledge that many people are very under-prepared for retirement but also say some people are over-saving for retirement.

By Humberto Cruz

I keep the family financial records current and organized. Still, it took me nearly two hours to find and enter the copious and detailed information requested by the financial planning software I just tried.

It was by far the most exhaustive and at times exhausting personal finance program I’ve used. But it was also the most thorough, earning my faith and respect.

The program I used is developed by Economic Security Planning, Inc., a company headed by Laurence J. Kotlikoff, professor of economics at Boston University.

Unlike other programs that merely ask a few quick questions, ESPlanner software doesn’t assume we will spend a set percentage of our pre-retirement income in retirement.

Lord knows that with unemployment at 10%, there are lots of us looking for jobs in places to which we hadn't dreamed of moving. But even in good times, Americans are constantly changing jobs. Indeed, one-fifth of the work force typically switches jobs in a given year, many to different cities in a different state.

SENIORS CAN BOOST THEIR SOCIAL SECURITY BENEFITS BY 'RE-RETIRING'

People who began collecting Social Security at age 62 and restart their retirement benefits at 70 would get about 76% more a month. The catch is that they must repay what they had already received.

Kathy M. Kristof

Personal Finance

November 1, 2009

The Social Security Administration recently announced that retirees would get no cost-of-living adjustments this year -- and maybe not even next year -- because the inflation measure it uses to determine them has declined for the first time in more than three decades.

MONEY MATTERS
Nest-Egg Maneuvers

By KELLY GREENE

Editor's note: Our cover story in the June issue of Encore—a look at new rules involving Roth IRAs—prompted numerous emails from readers. What follows are answers to some of the most frequently asked questions.

By Sandra Block, USA TODAY

Darla Horn, 26, acknowledges she didn't give much thought to the cost of college when she enrolled at State University of New York in Purchase.

"My plans were to get out of Texas, and college became incidental," says Horn, who grew up in Nacogdoches, a city of about 32,000 near the Louisiana border. Because she didn't qualify for financial aid, she took out student loans, graduating in 2005 with a double major in journalism and anthropology and more than $80,000 in debt.

CRUNCHING THE NUMBERS: Does it pay to go to college?
BEST VALUE COLLEGES: Top 100 for 2009
COLLEGE BLOG: Beyond rankings: Curricula and censorship