MONEY Second Career

3 Secrets to Launching a Successful Second Act Career

Adele Douglass created the first U.S. humane certification program for farm animals raised for food Robert Merhaut

Adele Douglass built a non-profit that protects millions of farm animals and gives farmers a new marketing niche.

After a three-decade career in Washington devoted to animal welfare issues, Adele Douglass thought she knew a lot about how bad their mistreatment could get. Still, she was shocked when she began to look closely at the conditions of farm animals in the U.S.

She discovered chickens being raised in cages so overcrowded they couldn’t raise their wings, pigs unable to turn around in tightly packed pens, and animals left unsheltered against outdoor elements.

Douglass decided the best way to improve the conditions of livestock was to push for change herself. So in 2003, at age 57, she quit her job as a non-profit executive for an animal rights association and launched her own organization, Humane Farm Animal Care. “The more I knew, the more appalled I got, and the more I wanted to do something myself,” says Douglass, now 67. “Legislation was not going to solve the problem. It took 100 years for the Humane Slaughter Act to be passed.”

Douglass figured out a way to engage farmers and consumers on the issue—by addressing their growing concerns over eating meat from animals being fed antibiotics. She developed Certified Humane, which is the first certification in the U.S. that guarantees farm animals are treated humanely from birth to slaughter. To get this certification, farmers must allow animals to engage in natural behaviors, provide appropriate space for roaming, and food free of antibiotics or hormones. Farmers who are Certified Humane can market to natural food shoppers and get higher prices for their products, Douglass says.

Humanely raised food appeals to American families of all income levels. “Young mothers want to feed their families good food. Poor people don’t want to feed their families junk” says Douglass.” Following humane practices also improves the environment, since fewer animals raised on more space creates less pollution.

To fund the organization, Douglass cashed in her $80,000 401(k) account. Her daughter, who had encouraged her to make the move, gave her $10,000 and worked at the organization during its first few years. Douglass also received grants from the American Society for the Prevention of Cruelty to Animals and The Humane Society. In the first year of operation in 2004, 143,000 animals were raised under the organization’s standards.

Today 87 million animals are in the program, and the non-profit has three full-time employees and two part-timers. Fees for certification and annual inspections cover about 30% of the organization’s costs—the rest comes from donations and grants.

Douglass shares this advice for others hoping to launch a second act career:

Make a plan before you exit. Douglass spent years researching the issue before quitting her job. She was able to get off the ground in just one year because she modeled the certification program after an existing similar program in the U.K. called Freedom Food.

Leverage your contacts. Douglass has a deep list of connections, from animal scientists and USDA officials to fundraisers and academics, as well as contacts in the animal rights movement and veterinary profession. “I had the contacts, knowledge and experience which gave me confidence I could do this on my own,” says Douglass.

Cut personal expenses. Though Douglass’ salary isn’t much less than what she earned in her previous career, her compensation is a lot more volatile. She has willingly taken pay cuts in recent years. Douglass says she hasn’t had to change her lifestyle much. But she reduced her biggest expense—her home—by downsizing to a smaller place, which made it easier to adjust.

At 67, Douglass doesn’t envision retiring. Now living alone, with three adult children and five grandchildren, she says her family is one of her greatest joys. But her work remains an enormously satisfying part of her life too. “Sure, there are days when I am tired and frustrated. But I am doing something that benefits people, animals and the environment. I feel really good about that,” says Douglass.

Adele Douglass is a 2007 winner of The Purpose Prize, a program operated by Encore.org, a non-profit organization that recognizes social entrepreneurs over 60 who are launching second acts for the greater good.

Related:

How to Ace Any Interview and Land the Job of Your Dreams

The 9-to-5 Start-up: How to Launch a Business Without Quitting Your Day Job

How This Former Techie Gave Her Career a Jolt

MONEY Ask the Expert

How To Find Out What You’re Paying For Your Retirement Account

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Robert A. Di Ieso, Jr.

Q: How can I find out how much I am paying in fees in my 401(k) retirement plan?

A: It’s an important question to ask, and finding an answer should be a lot easier than it is right now. Studies show that high costs lead to worse performance for investors. So minimizing your expenses is one of the best ways to improve returns and reach your retirement goals.

Yet most people don’t pay attention to fees in their retirement plans—in fact, many don’t even realize they’re paying them. Nearly half of full-time employed Baby Boomers believe they pay zero investment costs in their retirement accounts, while 19% think their fees are less than 0.5%, according to a new survey by investment firm Rebalance IRA.

Truth is, everyone who has a 401(k), or an IRA, pays fees. The average 401(k) investor has 1.5% each year deducted from his or her account for various fees. But those expenses vary widely. If you work for a large company, which can spread costs over thousands of employees, you’ll likely pay just 1% or less. Smaller 401(k) plans, those with only a few hundred employees, tend to cost more—2.5% on average and as much as 3.86%.

A percentage point or two in fees may appear trivial, but the impact is huge. “Over time, these seemingly small fees will compound and can easily consume one-third of investment returns,” says Mitch Tuchman, managing director of Rebalance IRA.

Translated into dollars, the numbers can be eye-opening. Consider this analysis by the Center for American Progress: a 401(k) investor earning a median $30,000 income, and who paid fund fees of just 0.25%, would accumulate $476,745 over a 40-year career. (That’s assuming a 10% savings rate and 6.8% average annual return.) But if that worker who paid 1.3% in fees, the nest egg would grow to only $380,649. To reach the same $476,745 nest egg, that worker would have to stay on the job four more years.

To help investors understand 401(k) costs, a U.S. Labor Department ruling in 2012 required 401(k) plan providers to disclose fees annually to participants—you should see that information in your statements. Still, even with these new rules, understanding the different categories of expenses can be difficult. You will typically be charged for fund management, record-keeping, as well as administrative and brokerage services. You can find more information on 401(k) fees here and here.

By contrast, if you’ve got an IRA invested directly with a no-load fund company, deciphering fees is fairly straightforward—you will pay a management expense and possibly an administrative charge. But if your IRA is invested with a broker or financial planner, you may be paying additional layers of costs for their services. “The disclosures can be made in fine print,” says Tuchman. “It’s not like you get an email clearly spelling it all out.”

To find out exactly what you’re paying, your first step is to check your fund or 401(k) plan’s website—the best-run companies will post clear fee information. But if you can’t find those disclosures, or if they don’t tell you what you want to know, you’ll have to ask. Those investing in a 401(k) can check with the human resources department. If you have an IRA, call the fund company or talk to your advisor. At Rebalance IRA, you can download templates that cover the specific questions to ask about your retirement account costs.

If your 401(k) charges more than you would like, you can minimize fees by opting for the lowest-cost funds available—typically index funds, which tend to be less expensive than actively managed funds. And if your IRA is too pricey, move it elsewhere. “You may not be able to control the markets but you do have some control over what you pay to invest,” says Tuchman. “That can make a big difference over time.”

Do you have a personal finance question for our experts? Write toAskTheExpert@moneymail.com.

More from Money’s Ultimate Retirement Guide:

How should I invest my 401(k)?

Are my IRA contributions tax-deductible?

Why is rolling over my 401(k) to an IRA such a big deal?

MONEY Ask the Expert

How Late-Life Marriage Can Hurt Your Retirement Security

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Robert A. Di Ieso, Jr.

Q: I am 66 and my partner is 63. We are thinking of getting married. How long must we be married for her to be eligible for spousal benefits based on my earnings? Neither of us have filed for Social Security yet. – Mark Sander, Indianapolis, IN

A: It’s wonderful to find love at any age. But for older couples, the decision to marry can have a big impact on your retirement finances, particularly when it comes to Social Security. Some experts say that may be one reason why co-habitation among older people is on the rise. According to the U.S. Census, nearly three million people age 50 and older live together, up from 1.2 million in 2000. “Many seniors live together instead of getting married because of money issues,” says Steve Vernon, author of Recession-Proof Your Retirement Years.

The good news is that if you do tie the knot, you only need to be married for one year for your wife to collect Social Security spousal benefits.

Still, it may not be a good idea for your wife to apply for benefits right away, says Vernon. At age 66 you are what Social Security deems full retirement age. But for your wife to collect full spousal benefits (50% of your full Social Security monthly payment) she will need to be full retirement age too.

If your wife files for Social Security before she reaches 66, she will get less than she would receive than if she waited till full retirement age. How much less? If your wife files for spousal benefits at 63, she will get 37.5% of your Social Security. At 64, that rises to 42% and at 65, 46%.

Waiting to collect benefits also means a higher payout for you. You can boost your Social Security paycheck by 8% each year you wait until age 70. A method called file and suspend allows you to file for your Social Security benefits so your wife can start collecting spousal benefits but you suspend receiving your benefits till you are 70.

Also be aware that if either of you has been married before, remarrying could mean losing alimony or the survivor benefits of a pension. “You really need to think strategically about how to maximize your Social Security benefits,” says Vernon.

There are a number of calculators and advice services that can help you figure the claiming strategy that’s best for your situation. Earlier this year, 401(k) advice provider Financial Engines released a Social Security income calculator that’s free and easy to use. The calculator sifts through thousands of claiming strategies to come up with a recommended option. For $40, you can use the Maximize My Social Security online software to evaluate more detailed scenarios. You may also want to consult a financial planner who’s familiar with Social Security rules.

Marriage can have a hazardous effect on other parts of your financial life, says Vernon. You will legally be on the hook for your spouse’s medical bills, and there may be sticky issues when it comes to inheritance. In some cases, married couples also face higher taxes, depending on your income and tax bracket.

Whether you get married is a personal decision, but by choosing the right financial plan, you’re more likely to enjoy a happy retirement together.

Do you have a personal finance question for our experts? Write to AskTheExpert@moneymail.com.

More from Money’s Ultimate Retirement Guide:

How does working affect my Social Security benefits?

Will my spouse and kids receive Social Security benefits when I die?

Are my Social Security payouts taxed?

MONEY Ask the Expert

What To Do When Your Pension Is Frozen

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Robert A. Di Ieso, Jr.

Q: My company froze our pensions last year. I am 53. Can I take the money out and invest it myself? – Tim Shields, New York

A: You’re in the same boat as many private sector workers today. Hundreds of companies have frozen their pensions in the past decade in order to shed the cost of providing guaranteed lifetime income to retirees. The trend accelerated after the recession—more than 40% of the Fortune 1000 companies now have frozen pensions, according to one study.

Your employer can’t take away the benefits you’ve earned. But if you’re currently covered by a pension, also known as a defined benefit plan, your pension benefit will no longer increase. This trend leaves older workers like you vulnerable, especially if you have long tenure, says Bonnie Kirchner, a certified financial planner and president of Sea Change Financial Education. That’s because pensions are back-loaded, reaching their peak value in your last years before retirement. You’re losing what would have been a large income stream in retirement, so you’ll need to figure out different saving and investing strategies.

Whether you can take the money out and invest it yourself depends on your plan’s rules, says Kirchner, who also wrote Who Can You Trust With Your Money? You should contact your human resources department to find out the specifics.

Chances are, your employer will want you to take that pension money as a lump sum, says Kirchner. Many pensions are underfunded, and companies must make up any underfunded liabilities with additional contributions to their plans. “Your corporation may be very happy to get rid of that liability from their balance sheet,” says Kirchner.

In fact, more companies are doing so. In a move known as “de-risking,” companies are offering settlement payouts to employees, thereby moving the pension obligation off their books. Three out of four employers with pension plans said they are—or are in the process of—unloading pensions obligations, according to a report by Towers Watson and Institutional Investors Forum.

To do so, your company may offer to pay you a lump sum in place of a monthly pension payment, or it may replace your pension by buying an equivalent annuity from an insurance company. Motorola recently did both, buying annuities from Prudential Insurance to cover its current pensions and offering lump sum buyouts to plan participants. General Motors and Verizon replaced their pension obligations with annuities in 2012.

For most people, taking an annuity that guarantees an income stream for life is a far better option than a lump sum payout. “It protects you against running out of money,” says Kirchner. An exception might be if you are in poor health and need to tap those assets sooner. (If you do take a lump sum, be sure to roll it over into an IRA—otherwise you could incur penalties and income taxes.)

Granted, investing a lump sum does offer the potential for higher returns, so it may be a better fit for those who want to manage their own money. Still, few investors are capable of outperforming the market, as studies have repeatedly shown. And today a guaranteed stream of income is something that is highly sought after by retirees, says Kirchner, so think twice about rejecting an annuity.

Do you have a personal finance question for our experts? Write to AskTheExpert@moneymail.com.

MONEY retirement planning

8 Things You Must Do Before You Retire

sébastien thibault

Getting ready to retire? The moves you make in the months before you call it quits can smooth the way to a secure future.

After working diligently for more than 30 years—so you could set yourself up financially for your golden years—the glow of retirement is finally on the horizon. Alas, it’s not time to relax just yet.

Each day more than 10,000 baby boomers enter retirement. Yet only around one-quarter of workers 55 and older say they’re doing a good job preparing for the next phase, according to the Employee Benefit Research Institute. The last 12 months before you call it a career is especially critical to putting your retirement on a prosperous path. It’s time to get your portfolio, health care, and other finances in order so you can enjoy your new life.

THE TURNING-POINT CHECKLIST

12 Months Out:

Dial back on stocks now. You still need the growth that equities provide, but even a 15% market slide in the year before you retire can erase four years’ worth of income. Cap stock exposure to around 50% in your sixties, advises Rande Spiegelman, vice president of financial planning at Schwab Center for Financial Research.

Raise cash. Your paychecks are about to stop. So as you downshift from stocks, move that money into a savings or money market account to fund at least one year of expenses, says Judith Ward, T. Rowe Price senior financial planner.

Set a realistic retirement budget. Use the worksheet on Fidelity’s free retirement-income planner to list all of your fixed and discretionary expenses. Then use T. Rowe Price’s free retirement-income calculator to see how safe that level of spending is likely to be, based on the size of your nest egg and age.

6 Months Out:

Play out Social Security scenarios. You can claim Social Security at 62, but if you can hold off until 70 your checks will be 76% bigger. Tool around FinancialEngines.com’s free Social Security Income Planner to find the best strategy for you.

Figure out how you’ll pay for health care. Check if your company offers retirees medical, long-term care, and other insurance coverage. If you won’t get health insurance and aren’t yet 65 (when you qualify for Medicare), then compare plans offered via the Affordable Care Act at eHealthInsurance.com. Or use COBRA, where you can stay on your employer plan up to 18 months after leaving.

3 MONTHS OUT:

Begin the rollover process. In a small 401(k) plan, average fund expenses can run north of 0.6% of assets. You can cut those fees at least in half by shifting into index funds at a low-cost IRA provider. See if your plan provides free access to investment advisers to help you decide.

Sign up for Medicare. Nearing 65? You can enroll for Medicare up to three months before turning that age. Also, figure in supplemental plans to cover expenses that Medicare does not, such as dental care and prescription drugs.

Get a running start. Put your post-career itinerary into action. Research volunteer groups that you want to join, reach out to contacts if you plan to keep a hand in work, start a new exercise routine, or begin planning that big trip.

MONEY Ask the Expert

How to Live Well on Less by Retiring Overseas

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Robert A. Di Ieso, Jr.

Q: I hear a lot about people retiring overseas to make their retirement savings go further. My wife and I are pretty adventurous. But can we really save money retiring in another country?

A: Retiring abroad isn’t for everyone—but more and more people are doing it. Nearly 550,000 Americans receive their Social Security benefits abroad, up from nearly 400,000 in 2000, according to the Social Security Administration. That’s a small number compared to the 43 million people over 65 receiving Social Security benefits. Still, 3.3 million of America’s 78 million Baby Boomers say they are interested in retiring abroad, according to Travel Market Report.

The growing interest in overseas living isn’t all that surprising, considering the worries of many pre-retirees about making their money last. There’s no question that you can live well on less in many countries. But to make that happen, you’ll need to plan carefully, says Dan Prescher, an editor at International Living, which publishes guides on the best places to retire overseas.

For most Americans, the biggest savings are a result of the lower prices for health care and housing overseas, says Prescher, who lives in Ecuador with his wife Suzan Haskins. The couple co-authored a book. The International Living Guide To Retiring Overseas On A Budget.

Most countries have a national healthcare system that cover all residents, and monthly premiums are often less than $100. It’s relatively easy to become a resident of another country, which typically involve proving you’ll have at least a modest amount of income, perhaps $1,000 a month.

But quality of health services varies, so research carefully, especially if you have medical problems. Even in countries with well-rated health care systems, the best services are centered around metropolitan areas. “Larger cities have more hospitals and doctors. The farther out you go, the quicker the quality falls off,” says Prescher.

Though Medicare doesn’t cover you if you live abroad, it’s still an option, and one that you should probably keep open. If you sign up—you’re eligible at age 65—and keep paying your premiums, you can use Medicare when you are back in the U.S.

Home prices, property taxes and utilities can be significantly lower in Mexico and countries in Central and South America, which are popular with U.S. retirees. In Mexico, you can find a nice three-bedroom villa near the beach for as little as $150,000, says Prescher.

But you’ll pay a premium for many other needs. Gas and utilities can cost a lot more than in the U.S. And you will also pay far more for anything that needs to be imported, such as computers and electronics or American food and clothing. “A can of Campbell soup can easily cost $4.50,” says Prescher. “You have to ruthlessly profile yourself, and see what you can or can’t live without, when you are figuring out your spending in retirement.”

Then there are taxes. As long as you’re a U.S. citizen, you have to pay income taxes to the IRS, no matter where you live or where your assets are located. Even if you don’t owe taxes, you must file a return. If you have financial accounts with more than $10,000 in a foreign bank, you must file forms on those holdings. In addition, the new Foreign Accounts and Tax Compliance Act (FATCA), which requires foreign banks to file U.S. paperwork for ex-pat accounts, has made many of them wary of working with Americans. You may also need to pay taxes in the country where you reside if you own assets there.

Check out safety issues too. Use the State Department’s Retirement Abroad advisory for information for country-specific reports on crimes, infrastructure problems and even scams that target Americans abroad.

The best way to find out if retiring abroad is for you is to spend as much time in your favorite city or village before you commit. Go during the off-season, when it may be rainy or super hot. See how difficult it is to get the things you want and what’s available at the grocery store. Read the local papers and check out online resources. In addition to International Living’s annual Best Places to Retire Overseas rankings, AARP writes about retiring abroad and Expatinfodesk.com publishes relocation guides.

The most valuable information will come from talking to other ex-pats when you’re visiting the country, as well a through message boards and online communities. “You’ll find that ex-pats have to have a sense of adventure and patience to understand that things are done differently,” says Prescher. “For many people, it’s a retirement dream come true.”

MONEY workplace etiquette

What to Say to a Colleague Who’s Been Fired

Robert A. Di Ieso, Jr.

Q: What should I say to a colleague who has just been fired?

A: People often don’t know what to say, so they say nothing at all, says Judith Martin, the Miss Manners etiquette columnist and author of Miss Manners Minds Your Business.

No doubt it’s awkward, but by not acknowledging the situation you’re actually making it more awkward. “Getting fired is a traumatic experience but it’s even worse if your colleagues suddenly shun you,” says Martin.

Instead, offer your support with a simple “I’m sorry” or “Let me know how I can help.”

Don’t try to make light of the situation. Gratuitous statements such as ‘you’ll find something terrific’ or ‘you’re better off—we have to stay and now we’ll all have extra work’ aren’t helpful, says Martin.

You should also refrain from bad-mouthing the person who fired your co-worker or gossiping in the office about what happened. That won’t help your ex-colleague – or you. There may be a very good reason the person was fired, and you’ll only hear one side of the story.

If you had a good relationship with your former colleague, make plans to take her out to lunch and give her an opportunity to vent. If you feel confident in her work, offer to be a reference or write a letter of recommendation. Share names of contacts or recruiters who may be helpful.

“Who knows,” says Martin, “maybe the person will land a fabulous job and be able to help you down the road.”

MONEY Millennials

10 Places Millennials Are Moving For Bigger Paychecks

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With 5.1% unemployment and low-priced homes, New Orleans is a top town for millennials. John Coletti—Getty Images

Over the past five years, Gen Yers have decamped for some surprisingly pricey cities in search of a higher-paying job.

Millennials are on the hunt for high-paying jobs, and they’re moving to some unexpected places to find them, according to a new report out today.

Bruised by the rough post-recession job market, Gen-Yers are moving from lower-cost cities to places with a higher cost of living but more plentiful and lucrative jobs, a RealtyTrac analysis of Census data from 2007 through 2013 found.

“Millennials are attracted to markets with good job prospects and low unemployment, but that tend to have higher rental rates and high home-price appreciation,” says Daren Blomquist, vice president of RealtyTrac. “It’s a tradeoff.”

In the 10 U.S. counties with the biggest increase in millennials, the average unemployment rate is 5.2%, well below the national average of 6.1%. The average household income is $62,496, vs. $51,058 nationally. The median home price is $406,800 (nearly double the U.S. median of $222,900), while a three-bedroom apartment rents for $1,619 a month on average, just over the national average of $1,550.

Riding the robust job market in the D.C. area, two counties in Northern Virginia with unemployment rates below 3.7% top the list. But not all places that the 69-million-strong millennial generation are flocking to are expensive. New Orleans, where the median home price is $140,000, edged out San Francisco, where tech jobs may be plentiful but the median home price is nearly $1 million.

New Orleans, where the unemployment rate is 5.1%, is a transportation center with one of the busiest and largest ports in the world, as well as tons of jobs related to the local oil refineries. Denver, Nashville, and Portland, Ore., all top 10 areas, offer median home prices below $300,000 and a diversity of jobs in technology, health care, and education.

Perhaps the most surprising millennial magnet: Clarksville, Tenn, the fifth largest city in the state behind Nashville, Memphis, Knoxville, and Chattanooga. Forty five miles north of Nashville, it benefits from spillover from that city’s strong job market, but Clarksville also has its own industrial base, plus nearby Ft. Campbell and Austin Peay State University. The unemployment rate: 4.7%.

Here are RealtyTrac’s top 10 destinations for millennials on the move:

Rank County State Metro Area % Increase in Millennial Population, 2007-2013 Milennials % of Total Population, 2013 Median Home Price, April 2014 Average Monthly Apartment Rent (3 beds), 2014
1 Arlington County Va. Washington, DC 82% 39% $505,000 $1,996
2 Alexandria City Va. Washington, DC 81% 34% $465,000 $1,966
3 Orleans Parish La. New Orleans 71% 30% $140,000 $1,190
4 San Francisco County Calif. San Francisco 68% 32% $950,000 $2,657
5 Denver County Colo. Denver 57% 33% $270,000 $1,409
6 Montgomery County Tenn. Clarksville 46% 31% $128,000 $1,016
7 Hudson County N.J. New York 44% 31% $330,000 $1,643
8 New York County N.Y. New York 43% 32% $850,000 $1,852
9 Multnomah County Ore. Portland 41% 28% $270,000 $1,359
10 Davidson County Tenn. Nashville 37% 29% $160,000 $1,131
MONEY Ask the Expert

The Right Way to Tap Your IRA in Retirement

Q: When I do my IRA required minimum distribution I take some extra money out and move it to a taxable account. Good idea or bad idea? Thanks – Bill Faye, Rockville, MD

A: After years of accumulating money for retirement, figuring out what to do with “extra” money withdrawn from your IRA accounts seems like a nice problem to have. But required minimum distributions, or RMDs, can be tricky.

First, a bit of background on managing RMDs. These withdrawals are a requirement under IRS rules, since Uncle Sam wants to collect the taxes you’ve deferred on contributions to your IRAs or 401(k)s. You must take your distribution by April 1st of the year you turn 70 ½; subsequent RMDs are due by December 31st each year. If you don’t take the distribution, you’ll pay a 50% tax penalty in addition to regular income tax on the amount that should have been withdrawn.

The size of your required withdrawal depends on your age and the account balance. (You can find the details on the IRS website here.) If you’re over 59 ½, you can take out higher amounts than the minimum required, but the excess withdrawals don’t count toward your future distributions. Still, by managing your IRAs the right way, you can preserve more of your portfolio and possibly reduce taxes, says Mary Pucciarelli, a financial advisor with MetLife Premier Client Group.

For those fortunate enough to hold more than one IRA, you must calculate the withdrawal amount based on all your accounts. But you can take the money out of any combination of the IRAs you hold. This flexibility means you can make strategic withdrawals. Say you have an IRA with a big exposure to stocks and the market is down. In that scenario, you might want to pull money from another account that isn’t so stock heavy, so you’re not selling investments at a low point.

You can minimize RMDs by converting one or more of your traditional IRAs to a Roth IRA. Roths don’t have minimum distribution requirements, so you can choose when and how much money you take out. More importantly, you don’t pay taxes on the withdrawals and neither will your heirs if you leave it to them. You will owe taxes on the amount you convert. To get the full benefit of the conversion, consider this move only if you can pay that bill with money outside your IRA. Many investors choose to make the move after they’ve retired and their tax bill is lower. Pucciarelli suggests doing the conversion over time so you can avoid a big tax bill in one year.

Up until this year, you could avoid paying taxes on your RMD by making a qualified charitable contribution directly from your IRA to a charity. The tax provision expired in December. It’s possible Congress will renew the tax break, though nothing is certain in Washington. Meanwhile, if you itemize on your taxes, you can deduct your charitable contribution.

As for the extra money you’ve withdrawn, it’s fine to stash it in a taxable account. If you have sufficient cash on hand for living expenses, you can opt for longer-term investments, such as bond or stock funds. But be sure your investments suit your financial goals. “You don’t want to throw your asset allocation out of whack when you move the money,” says Pucciarelli. Consider a tax-efficient option, such as an index stock fund or muni bond fund. That way, Uncle Sam won’t take another big tax bite out of your returns.

Do you have a personal finance question for our experts? Write to AskTheExpert@moneymail.com.

MONEY workplace etiquette

How to Work With a Boss You Can’t Trust

Trophy with "Best" in "Best Boss" engraving crossed out
Scott M. Lacey

Q: My EVP is a serial liar. He never takes the blame when something is wrong, and instead, he completely throws people under the bus. If something goes right, he takes the majority of the credit. What can I do? – Brad, Atlanta

A: As infuriating as your boss’ behavior is, you want to be measured and strategic in your response.

“There are people like this in every company,” says Stacey Hawley, founder of Credo, a compensation and talent management firm and author of Rise to the Top. “If you complain about your boss to someone else, you just look like you can’t handle the situation. If you want to be in leadership position, you have to know how to deal with people like this.”

Four tactics that can help:

Make it tougher for your boss to lie

When sending emails or memos with important updates and accomplishments related to a project, copy all of the key people involved. Let everyone know that if there are questions, you’d be happy to be the point person. Ask other team members to submit updates, too.

“It’ll be harder for your boss to take credit if everyone is in the loop on what’s going on,” says Hawley.

Address mistakes head on

When a problem crops up—and your boss complains to a higher up, or blames you or a team member for the mistake—avoid the temptation to clear your name.

“The boss has egg on his face and is trying to manage his reputation by casting blame elsewhere, ” says Hawley. “You’re not going to improve things if you make an accusation. Some things you just have to let go.”

She suggests scheduling a meeting with your boss for the sole purpose of discussing the error: how it happened, how you can fix it, and how you can keep it from happening again. Your boss may have legitimate reasons for thinking you caused the error and you can clear that up, says Hawley.

The key thing, no matter who caused the error, is to make sure that you focus on solutions.

Play to the boss’s ego

Should your supervisor take credit for your work in a meeting or in front of others, speak up. “You need to make it clear you played a role, but be sure to give him credit, too,” says Hawley. “Your boss may be acting this way because he perceives you as a threat, so you want to take the threat off the table.”

You might say something like, “Bill, that was a great idea you had to do X. I was glad that it gave myself and the team an opportunity to do Y.” This also allows you to acknowledge other people who contributed to the project, so that you don’t end up being perceived as a credit thief by those who report to you!

Make friends in high places

Your boss shouldn’t be the only one who knows about your work. “You need to develop relationships with other higher-ups who can advocate for you,” says Hawley.

Build these relationships by asking senior people for advice on a project you are working on, sharing with them positive feedback from clients and customers, or inviting them to lunch or for a coffee to discuss ideas you have to advance your company’s goals.

Best case scenario, you’ll be on the corner office’s radar when it comes time to replace your slimy supervisor. But at the very least, you’re ensuring that your bad boss doesn’t sink your future prospects at the company. “You can turn this situation around and make it a chance to grow your own career,” Hawley says.

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