The Tax Cuts and Jobs Act was approved and is now the new law of the land.
While the majority of the media has covered the proposals for the changes as being a boon for the wealthy, they have missed discussing how the new tax laws affect most retirees.
Having an honest conversation with your spouse or partner about how you envision your retirement – including each of your greatest concerns, fears, desires and wants – is an essential step during this stage.
Consider having each partner separately write down what their thoughts are about retirement, and make a list of what is really important. Afterwards, compare the two and see where there are common interests, concerns and feelings and where there are differences.
This presents a great opportunity for a constructive conversation that will help you enter the journey of retirement. If you are diabolically opposed, then maybe you will need a mediator!
Once you realize that all the years you spent saving for retirement now come down to making decisions that may affect the rest of your life, you may also realize you cannot go it alone – even if you’ve gone it alone up to this point. The reason is that everything you know or think you know is about to change!
When couples are transitioning into retirement – and as someone who’s evaluated people’s financial lives for his entire career – I can confidently say that in most instances, one spouse has a better grasp of the couple’s finances than the other.
Quite often, the knowledge gap is huge. In other words, one spouse knows everything about the couple’s financials while the other person is essentially financially illiterate.
If the spouse with the high level of financial knowledge outlives his or her partner, this will most likely result in a financially smooth transition from partnership to singlehood.
If, however, the spouse with less or no financial knowledge outlives his or her partner, this could result in stress and loss of money as a result of poor decision making. So, if you’re the one who has been mostly on the sidelines managing your family financial affairs, it’s time to get up and get into the game.
When a couple decides to get married, they are often lost in the moment and preparation for the “big event.” We have all heard about the let down when the honeymoon is over and reality sinks in.
For nearly 40 years, I’ve been providing financial guidance and advisory services to individuals, couples, multi-generational families and small businesses.
I have been dealing with the topic of the transition to retirement for the past 25 years. During this time, I’ve worked with clients considering retirement at many different times in their lives. Some have retired at the “normal” retirement age of 65 while others have retired by age 50 or deferred to age 75 and even 80.
The use of beneficiary designations is one issue that is not well understood and can lead to much confusion.
Most people think it is a simple matter of naming a person to receive certain assets by will or trust or naming them as a beneficiary of a retirement plan. I only wish it were that simple!
As we enter the holiday season, we grandparents find ourselves wondering what to get the grandkids. This year, here is a suggestion that will have a lasting impact!
One of the major concerns for those entering into retirement is no longer having a paycheck. In addition, there is a normal fear of running out of money and having to spend what we spent a lifetime saving. One of the primary issues is how to make withdrawals from the various accounts we have built up and the timing of withdrawing from these accounts, both personal and retirement.
Unfortunately, men and women rarely ask themselves two essential divorce questions as they begin the process or while negotiating the final settlement:
One of the most difficult and emotional times in our lives is making the transition to retirement. Sure, all of the ads make us think of freedom, buying a vineyard, going sailing or hitting the road in a Winnebago!