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.
Boomers are bombarded daily with advertising messages that attempt to influence us. Recognizing some of their tactics can make us less susceptible.
Women are more likely than men to underrate themselves when it comes to investing. Yet women are usually in charge of household budgets, are more willing to save for the long-term and are better bargain hunters.
Although both men and women have access to the same retirement savings accounts, recent research has found that women are far less financially prepared to retire in comparison to their male counterparts. This isn’t only due to obvious reasons, such as the gender pay gap. Everyday reasons matter as well when it comes to saving enough for retirement.
In our parents’ days, people simply left the job they had held most of their lives and moved onto permanent vacation when they retired. But then, most of them never lived the additional 25 to 30 years anticipated for many of us boomers.
Many people say, “I’ll travel when I’m retired, then I’ll have the time and money to truly seek adventure.” The harsh reality though, is that a little over 3 million Americans are concerned that they will not have enough saved income to afford to retire in the United States, much less travel.
When I arrived at the gym, the electricity had been off for three hours. The treadmills were idle, and only people-powered-machines were raising heart rates.
So, you’ve said your farewells, rented out your apartment, packed your bags and landed in your new home. A new life is about to open before you.
Over the next decade 75 million Americans will retire. For couples, it may be surprising to learn that this transition may prove more difficult than for a single man or woman.