Retirement & Estate Planning 2015

RETIREMENT & ESTATE PLANNING 2015 PAGE 5

BY BRIANNA BISHoP | MoRE CoNTENT NoW

Retiring is life-changing move for anybody. The decision of what to do with the years to come can be both daunting and exciting. What retirement really is, is a time to really imagine what is possible, said Colin Milner, CEo of International Council on Active Aging. But for retired couples, it might take some work to adjust to this new situation. Being prepared with expectations about the shifting dynamic of the relationship can help ease this transition and allow couples to really explore the possibilities of the future.

Changing goals For couples with children, retirement might be the first time both spouses have been together without kids around. Milner noted that while raising children, individual goals might have changed. Friction and resent can build if the couple doesnt find common ground. You want to feel that you still have something in common, and youre going in the same direction, he said.

Expectations for the future Retirement can mean starting over for some couples. Being on the same page will be important as the relationship enters this new phase. Its important that both spouses get on the same track on what their expectations are, said Tom Wetzel, president of Retirement Living. Wetzel cited whether to move as one of the biggest decisions that a couple likely will face upon retirement. other important decisions will be the hobbies and interests each spouse chooses to pursue, and whether one or both will reenter the workforce after retirement.

Health and your relationship Your health and your spouses health probably will be of greater concern upon retirement than before. Medical costs, including prescription medicine and hospital and doctor visits, can add up quickly. And while health problems cannot always be avoided, a sedentary lifestyle can create new problems or exacerbate existing ones. To avoid this, Milner said, spouses can exercise together and should be each others health advocate. Continued on next page...

START OVERA TIME To

Retirement is the time to revitalize and redefine relationships


Financial planning Talking about the financial future can be difficult for any couple. But as income likely will change after retirement, it is an especially pressing discussion for a couple to have before taking that step. Though it can be a tough subject, it is important to know what to expect if a spouse passes away as well as what to expect of your years together.

Aging patterns Retirement can put a lot of stress on a marriage as men and women have different ways of aging, according to an article from retirementjobs.com by Barbara Lawrence. Men become more inward; while women become more outward looking, ready to take on challenges on a broader plain, the article stated.

Ideas to reconnect TravelMany websites for retirees have tools to help plan a trip, either domestic or international, after leaving work behind. Checking out one of these options or planning your own trip could be an excellent way to begin this new period in your lives.

VolunteerInformation about volunteer work also can be found at many senior and retiree organizations. This type of work can be anything ranging from working at a community shelter to going abroad to volunteer.

Take a classColin Milner, CEo for the International Center for Active Aging, said many retirement and senior centers are being built around higher education centers giving retirees the chance to take classes. Find a topic youre both interested in and go back to school together a couple of nights a week. Youll be able to develop new skills and learn new things together.

Stay active togetherStaying healthy is important for everyone regardless of age. Help each other stay on track during this new chapter in your lives by finding an activity you can do together. Go to the community center pool, play golf or just go for a walk or jog at the end of the day.

Find a mutual hobbyHaving your own passions and interests is necessary for anyone, and upon retirement, you might have the opportunity to explore some of these. As a couple, you also could consider activities you can do as a unit.

The average life expectancy for women exceeds 20 years past age 65 and for men, about 17 years, according to the Administration on Aging. And with some Americans retiring before 65, this means that many retirees will have plenty of active, healthy years ahead, and there are a wealth of resources to help retirees prepare accordingly.

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Q Can overspending during the first few years be a problem for some people?A overspending can absolutely be a problem for some people especially those who are healthy and likely to live a longer retirement. The common rule of thumb used to be that using 4 percent of your portfolio in your first year of retirement was a good goal, but with lower yields of late, many experts are now recommending ratcheting that down to 3 percent.

Q Many people seem to consider retirement as hitting the goal line, but should people be concerned about simply coasting along on their portfolio?

A People should be wary of simply coasting along they should take particular care to shift their investments, usually to a larger focus on bonds and other safer investments, as they approach retirement age.

Q After retirement, should people wait awhile before taking money out of their 401(k) plans?

A Annual distributions are required by law from a 401(k) plan starting at age 70? (unless you

continue to work past that age). Folks should put off taking distributions as long as possible to allow that money to grow, up until the age when distributions are required.

Q Any other things people should do or avoid to keep their credit in good shape though retirement?

A Pay your bills on time, keep old lines of credit open, and keep credit card debt as low as possible.

Q Do you think retirees need to have a grasp of what inflation may be like in the future? How can they determine how much purchasing power they will have?

A Retirees should be cognizant of inflation rates. With an average rate of inflation of 3 percent, over the course of 20 years, purchasing power lowers by 43 percent if they have $1 million of uninvested funds and are spending it evenly over a 30-year period. Retirees should also understand that inflation rates in categories relevant to them, such as health care and travel, are currently outpacing the average overall inflation rate.

Youve saved for retirement now what?Reaching your financial goal

is only one step toward a cozy lifestyle

The baby boomer generation Americans born between 1946, the end of World War II, and 1964 is the largest in U.S. history. A celebrated and confident group, boomers need to take care in how they manage their finances as they head into their senior years. Money Crashers Personal Finance founder and co-owner Andrew Schrage offers some insight to the following retirement questions.

BY MELISSA ERICkSoN MoRE CoNTENT NoW

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Retirement & Estate Planning 2015