Kiplinger's Personal Finance

I read with interest your article on the decision to take a lump sum versus a lifetime payout (“A Lump-Sum Payout Might Make Sense,” Dec.). I look at my asset allocation on what I call an “extended balance sheet” basis where my pension payout is a bond and my Social Security is kind of like a TIPS bond. When I look at this “global” picture, including my IRA and taxable investments, the refined asset allocation indicates I have much more room for more risky, equity-type investments. In addition, the “longevity insurance” represented by the lifetime payout allows a longer investment horizon and additional sustainable risky investments. Another issue to consider is time spent on investing activities. While I like to manage my own investments (that’s why I subscribe to Kiplinger’s!),…

A few of us on the magazine staff have been comparing notes on when we expect to die. I realize that sounds macabre, but it will make more sense when you read the cover story that starts on page 48. Senior editor Sandy Block writes about how to save for retirement when longevity is increasing, and one of the keys is estimating how long you (and your spouse, if you’re married) will need to tap your savings. To make that estimate, I answered the questions at www.livingto100.com. I asked my wife, Allyson, to answer them, too. They cover things you’d expect, such as family history of longevity and cancer. They touch on weight, exercise, diet, alcohol use, sleep habits, education and hours on the job. They also ask about stress and…

WHILE CONTROL OF CONGRESS received most of the attention during the November midterm elections, voters in more than a dozen states also voted on a smorgasbord of ballot initiatives that could affect your state tax bill. As was the case with many congressional elections, the results were all over the map, says Richard Auxier, senior policy associate with the Tax Policy Center. Some voters approved tax cuts, while others voted to raise taxes on high-income residents. Proposals to legalize cannabis—which could increase state sales tax revenues—were embraced in some states and rejected in others. And residents of the nation’s most populous state shot down measures to expand sports betting, bucking a trend that’s evident to anyone who watches sports on TV. Even if your state didn’t have a tax-related initiative on the ballot,…

Mariann Madden is the North America Fair Pay co-lead at WTW, a global human resources consulting firm. Under a new New York City law, companies that post a job that may be performed in New York City are required to include a salary range, even for jobs that are hybrid or remote. California also has a new salary-transparency law, and 15 other states have some kind of transparency requirement. What’s behind these initiatives? It’s twofold. One is to help reduce the pay gap among women and minorities. Studies have shown men tend to achieve higher pay in negotiating job offers than women, and that may happen because they don’t have access to information about pay. Given how small salary budgets are, if a new hire starts a job with a salary…

WHEN IS A SALE NOT A SALE? MOST of the time, according to Consumers’ Checkbook, a nonprofit consumer organization. After tracking prices at 25 major retailers over 33 weeks, Consumers’ Checkbook concluded that the same “sale price” was offered more than half the time. Worse, some retailers’ sale prices never changed, Consumers’ Checkbook found. Some of the worst offenders included Amazon, Nordstrom and Wayfair, which promoted sales that were usually misleading, Consumers’ Checkbook said. Walmart and Best Buy promoted sales that were often misleading, Consumers’ Checkbook found, while Target’s sales were sometimes misleading. Of the 25 retailers surveyed, only Apple, Costco, and Bed Bath & Beyond offered legitimate sales, Consumers’ Checkbook said. Consumers’ Checkbook tracked sales promotions at major retailers once a week beginning in February 2022. The researchers selected on-sale products…

WEDNESDAY, FEBRUARY 1 It’s Car Insurance Day. Shopping around for an auto insurance policy may save you hundreds of dollars or more, especially if you bundle your policies with one insurer. For the latest advice on how to reshop your auto insurance, see page 40. ▲ SATURDAY, FEBRUARY 4 Today is Take Your Child to the Library Day. If you’re a parent of young children, consider bringing them to the library to expose them to the joys of reading. It’s estimated that one in four kids in America grow up not learning how to read. Learn more about Take Your Child to the Library Day at TakeYourChildtotheLibrary.org. TUESDAY, FEBRUARY 7 It’s International Safer Internet Day. Fraudsters are getting more and more creative with online scams. To learn more about this day dedicated to internet safety…