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6 Ways to Take Control of Your Retirement

By U.S. News & World Report

One of the most unsettling aspects of retirement is that you give up a lot of control in life. You no longer have a job with a paycheck and occasional raises and promotions, and you also lose the social network at work and maybe the responsibility for a department, project or a group of employees. Your kids are growing up, becoming independent and ignoring your best advice, and your friends may be slipping away due to illness, infirmity or perhaps they’re moving to a retirement mecca.

Suddenly you are cast out into the world alone, and you don’t know what the future holds. But you have more control over how your retirement will develop than many people think. Here are six key areas where you can take steps to improve your retirement.

[See: 10 Ways to Celebrate Your Retirement.]

1. When you leave work. Nobody knows your financial picture better than you and possibly your spouse. You know whether you enjoy your job or if your work schedule is grinding you down and making life miserable. Of course, the longer you work, the better off your finances will be, but that’s beside the point if your job is killing you. Only you can strike the right balance between the rewards and the costs of your career. Remember, it’s always possible to retire and take a less stressful job or a part-time job that supplements your retirement budget.

2. When to start receiving Social Security benefits. For most baby boomers full retirement age is 66. But you can start retirement benefits as early as age 62, or wait up until age 70 to let your benefits accumulate. The longer you wait, the more you receive in monthly benefits. If you expect to live into your 90s, then waiting makes financial sense. You will receive more money over your lifetime by waiting to claim Social Security if you live a long life. But if you need the money to cover your daily expenses, and especially if you have reason to believe your life expectancy is below average, it pays to start taking Social Security earlier.

[Read: 6 Social Security Calculators That Can Help You Decide When to Claim.]

3. When to tap into your savings. You can dip into your IRA without penalty starting at age 59 1/2. You will probably have to pay income taxes on the distribution. But you don’t have to start taking withdrawals until after age 70 1/2. You could begin taking money out of your non-retirement savings first, which lets your IRA continue to grow until you need the money later on and allows you to continue to defer paying income tax on that money. However, for some people with large IRA balances it makes sense to start withdrawals during your 60s to avoid being bumped into a higher tax bracket later on in retirement. Individual circumstances differ, so make sure you run the numbers about when to start taking withdrawals from your retirement savings.

4. Where you live. Some people are eager to relocate after they retire in search of better weather, a less expensive place to live or to be near friends or family. But don’t feel pressured to move to Florida or Arizona just because everybody else is doing it. Some people move to Maine or Michigan because that’s where they want to be. And most people don’t move at all in retirement. The majority of retirees stay in their own homes or stay close to home to be near old friends and familiar places. The choice is up to you, depending on your finances, family and preferences.

5. How you live. Some people dream of traveling the world and have a bucket list that comprises dozens of exciting adventures and exotic destinations. That’s fine, if that’s what you want and can afford. But you don’t have to travel when you retire. Many retirees find satisfaction in helping to raise their grandchildren, volunteering in their hometown, spending time with a social group or playing their favorite sport. There are also much lower costs and perhaps less stress if you stay put. Now it’s finally time to lead the life you love, which might mean seeing the world or staying at home.

[See: 10 Ways to Make Extra Money in Retirement.]

6. Whether to give back or hand down. If you’re confident you have enough money to carry you through retirement, you might want to leave an inheritance to your children or a legacy to your favorite charity. If so, consider giving away some money now when your children are getting started in life and could really use it. Similarly, if you have money earmarked for your church, alma mater or any other worthy cause, you might consider giving away the money sooner rather than later to take advantage of the tax deductions. Either way, it’s advisable to include your children in your planning process so they are aware of your desires and can plan their own futures.

Tom Sightings is the author of “You Only Retire Once” and blogs at Sightings at 60.

More from U.S. News

10 Retirement Rites of Passage

10 Places to Retire on a Social Security Budget

10 Tax Breaks for People Over 50

6 Ways to Take Control of Your Retirement originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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