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Legislative Updates

With so much attention focused on the rifts among and between political parties and the news media, it may seem as if little actual legislation is making its way through our democratic process. However, while President Trump’s major initiatives – Affordable Care Act repeal, tax reform and infrastructure improvements – haven’t been enacted, Trump has signed more than 40 bills since taking office in January.1

Although the political situation may present frustration for people trying to make prudent decisions about their financial future, we remind you that finances are personal. Your financial decisions should reflect your own goals and timeline. We are happy to evaluate your retirement income strategy and make recommendations utilizing insurance products to help you work toward your objectives.

Here is an overview of some of the recent legislation Congress has passed:

·        Countering America’s Adversaries Through Sanctions Act (H.R. 3364) – This bill requires the president to submit any planned waiver of current sanctions on other countries to Congress, and details new sanctions on Russia, Iran and North Korea for a variety of violations.2

·        Securing our Agriculture and Food Act (H.R. 1238) – This bill authorizes the Department of Homeland Security to protect efforts related to food, agriculture and veterinary defense from acts of terrorism and other high-consequence events that pose a risk to homeland security.3

·        Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017 (S. 1094) – This bill gives the secretary of Veterans Affairs the authority to fire employees through an expedited appeals process, and it makes it easier to discipline employees by revoking bonuses. It also has provisions to protect whistleblowers who report wrongdoing.4

·        Public Safety Officers’ Benefits Improvement Act of 2017 (S. 419) – This bill revises requirements for the Public Safety Officers’ Benefits program, which provides death, disability and education benefits to public safety officers who are killed or injured in the line of duty, as well as to their survivors. The bill includes provisions to expedite the payment of benefit claims.5

Content prepared by Kara Stefan Communications.

1 Jennifer Hansler. CNN. Aug. 3, 2017. “President Trump has signed 43 bills into law. Here’s what they do.” http://www.cnn.com/2017/06/29/politics/president-trump-legislation/index.html. Accessed Aug. 18, 2017.
2 GovTrack. 2017. “H.R. 3364: Countering America’s Adversaries Through Sanctions Act.” https://www.govtrack.us/congress/bills/115/hr3364. Accessed Aug. 18, 2017.
3 GovTrack. 2017. “H.R. 1238: Securing our Agriculture and Food Act.” https://www.govtrack.us/congress/bills/115/hr1238. Accessed Aug. 18, 2017.
4 GovTrack. 2017. “S. 1094: Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017.” https://www.govtrack.us/congress/bills/115/s1094. Accessed Aug. 18, 2017.
5 GovTrack. 2017. “S. 419: Public Safety Officers’ Benefits Improvement Act of 2017.” https://www.govtrack.us/congress/bills/115/s419. Accessed Aug. 18, 2017.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Retirement Stages

What’s so difficult about planning for retirement? You save; you retire; you spend.

If only it were that straightforward. Today’s pre-retirees and retirees have so much more to consider. Longer lifespans mean longer exposure to the possibility of inflation eroding your purchasing power. And then there are these concerns:

– The global economy and its impact on everything from market volatility to interest rates to unemployment and wages
– The decrease in company pensions and greater burden for retirees to provide more of their retirement income
– The long-term solvency and viability of Social Security
– How future legislation and the political environment might impact Medicare

 

It’s a lot to think about. That’s one reason it’s important to work with a knowledgeable financial professional to help you consider the factors that might impact your retirement. The good news is that many retirees now have the time, thanks to a longer lifespan, to plan for and enjoy a longer retirement. When it comes to your retirement income planning needs, we may be able to help with that; just give us a call. As an independent financial services firm, we help people create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

Much as our younger adult life can be divided into stages — college, job, marriage, family and all manner of advancement rungs in a career — retirement can be broken into separate categories as well. It’s not all travel and country club parties, gardening and golfing, grandchildren and book clubs. In fact, those activities are generally characteristic of the first stage of retirement, when we tend to spend more time with family and friends, pursuing hobbies, travel and other “bucket list” items.1 

One of the best things about the first stage of retirement is that Mondays are no longer dreaded; they’re just another day of the week.It may take some time, but some retirees learn to replace their office wear for roomy, comfortable workout pants and soft tees. Put these on, and you can just feel the stress melt away.2

During the second stage of retirement, you might not travel quite as much. You may even think about moving closer to your children or to a community with other people your same age. These are good instincts because it’s important at this stage to stay socially connected. 3

During this stage, if you’re concerned about the possibility of outliving your income, it’s natural to cut back on expensive activities like travel. In fact, now that you spend more time at home, you might consider getting an easy, low-stress part-time job. Or you could join the gig economy, working from home.4 It’s important to remain engaged, and, of course, extra money coming in wouldn’t hurt.5

In the third stage, when retirees move past age 80 or later, they may need daily assistance.6 Again, it’s a good idea to set up some type of regular relationship to avoid isolation and stay connected — even if you remain quite independent. This could involve sharing meals with a companion on a regular basis. Have someone you can call to change a lightbulb, move furniture around for better mobility or help you bake an old family recipe — and share it over a cup of coffee.

Each stage requires some degree of planning. Even during a “freewheeling, high-octane” first stage, you’ll need to lay some of the groundwork to help ensure your latter stages of retirement are enjoyable. This includes eating healthy, establishing an exercise routine that is sustainable throughout your lifetime and engaging in activities you can continue through old, old age. And, perhaps most important, work on strengthening relationships that will be with you forever.

 

Content prepared by Kara Stefan Communications.

1 BoomingEncore.com. “Three Different Stages of Retirement” http://www.boomingencore.com/three-different-stages-retirement/. Accessed Aug. 6, 2017.
2 Business Insider. April 16, 2017. “I retired at 52 with a $3 million net worth — here are 10 things that surprised me about early retirement.” www.businessinsider.com/early-retiree-shares-10-things-that-surprised-him-after-he-quit-his-job-2017-4. Accessed Aug. 6, 2017.
3 BoomingEncore.com. “Three Different Stages of Retirement” http://www.boomingencore.com/three-different-stages-retirement/. Accessed Aug. 6, 2017.
4 Mary Beth Franklin. Investment News. April 21, 2017. “Retirees embrace the gig economy.” http://www.investmentnews.com/article/20170421/BLOG05/170429976/retirees-embrace-the-gig-economy. Accessed Aug. 6, 2017.
5 Katy Read. Star Tribune. Sept. 4, 2016. “Get back to work! Working past ‘retirement age’ is beneficial.” http://www.startribune.com/experts-agree-working-past-retirement-age-is-beneficial/388305801/. Accessed Aug. 6, 2017.
6 BoomingEncore.com. “Three Different Stages of Retirement” http://www.boomingencore.com/three-different-stages-retirement/. Accessed Aug. 6, 2017.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Gender Disparities in Retirement

Everywhere we turn, it seems, there’s an article or newscast about how women are at an economic disadvantage, especially regarding lower wages. Just imagine how much more women could contribute to economic growth if such disadvantages were eliminated.

But we want to work toward counteracting some of those challenges, particularly where retirement income planning is concerned. Even married couples with their retirement savings on track may not be aware of different scenarios that could potentially leave a widow with an income shortfall during her retirement years. We’re happy to review retirement income strategies for your household and make recommendations tailored for your financial situation; just give us a call.

In the meantime, let’s take a look at some of these gender disparities and how they can impact a woman’s personal financial future. For example, women tend to borrow more for college undergraduate student loans than men and take longer to pay them back.1

Presumably, one of the reasons it takes them longer to pay back student loans is that women, on average, tend to earn lower salaries than men. For example, in the United States, white women are paid about 76 cents on the dollar relative to white men.2 Black women receive only 67 cents per dollar.3 This may seem like a woman’s issue, but it’s not. In theory, the longer it takes to pay off student loan debt, the less women can save for retirement, and the less women save, the more reliant they might be on Social Security for retirement income. A demographic that relies heavily on Social Security for retirement income could potentially cause an increase in FICA taxes, which can affect everyone.

One of the ways working women can improve their retirement income situation is by working longer. There are several advantages to this. First, for women who take time out of the workforce for raising children and general caregiving, working longer provides more tax years from which the 35-year calculation for Social Security benefits is drawn.4 Second, women tend to live longer, so they could feasibly work until an older age.5 And finally, researchers have determined that the average woman who works to age 70, rather than retiring at 62, can increase her monthly Social Security check by 12 percent.6

Another area in which women can improve is financial literacy. In a recent study, 18 percent of women ages 60 to 74 passed a 38-question quiz on retirement income topics, compared with 35 percent of men the same age.7 Fortunately, this is an area in which any woman can take the initiative to pursue on her own. It doesn’t require wage legislation passed by Congress; salary negotiation skills with employers; or shortening the time spent out of the workforce for caregiving.

The more women can learn about retirement income planning, the better prepared they can be for their long-term financial future. Planning for retirement is a skill that we believe should not be delegated to fathers, husbands, boyfriends and male children. At the very least, it’s a shared responsibility — but be aware that chances are good a woman will be managing money on her own at some point during adulthood due to divorce or widowhood.8

 

Content prepared by Kara Stefan Communications.

1 Kim Blanton. Center for Retirement Research at Boston College. June 8, 2017. “Is There a Student Loan Gender Gap?” http://squaredawayblog.bc.edu/squared-away/is-there-a-student-loan-gender-gap/. Accessed July 31, 2017.

2 AAUW. Spring 2017. “The Simple Truth about the Gender Pay Gap.” http://www.aauw.org/research/the-simple-truth-about-the-gender-pay-gap/. Accessed July 31, 2017.

3 Casey Quinlan. ThinkProgress. July 31, 2017. “Black women’s ‘equal pay day’ reminds us how persistent the wage gap is.” https://thinkprogress.org/black-women-wage-gap-ca285791a371. Accessed July 31, 2017.

4 My Retirement Paycheck. National Endowment for Financial Education. 2017. “How are Social Security benefits calculated?” http://www.myretirementpaycheck.org/Social-Security/How-are-benefits-calculated. Accessed Aug. 7, 2017.

5 Social Security. “Calculators: Life Expectancy.” https://www.ssa.gov/planners/lifeexpectancy.html. Accessed Aug. 7, 2017.

6 Kim Blanton. Center for Retirement Research at Boston College. May 18, 2017. “Women Get a Bigger Social Security Bump.” http://squaredawayblog.bc.edu/squared-away/women-get-a-bigger-social-security-bump/. Accessed July 31, 2017.

7 Christopher Robbins. Financial Advisor. July 27, 2017. “4 Out Of 5 Older Women Flunk This Retirement Literacy Quiz.” http://www.fa-mag.com/news/4-out-of-5-older-women-flunk-this-retirement-literacy-quiz-33885.html?section=. Accessed July 31, 2017.

8 Susan L. Hickey. Newsmax. June 23, 2017. “Many Women Will Spend Their Later Years Alone; Are They Ready for That?” http://www.newsmax.com/Finance/Personal-Finance/older-women-alone-financially/2017/06/22/id/797691/. Accessed July 31, 2017.

We are able to provide you with information but not guidance or advice related to Social Security benefits. Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

 

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Making Friends, Strengthening Relationships

In the early days of childhood, we start picking up communication skills that are continually developed throughout our lives. We make close friends, stay in touch with them and make sure we’re there for the people we care about.

But during retirement, it may take more effort to maintain those friendships. It’s important to remember that while we don’t typically lose these skills, we might lose the motivation to use them. Here are a couple of good reasons to keep up those social connections in retirement:1

·       A study by the Rush Alzheimer’s Disease Center in Chicago found that highly social seniors had a 70 percent lower rate of cognitive decline compared to those who were less social.

·       Researchers at the University of Alabama Birmingham found that using the internet was associated with a 30 percent decrease in depressive symptoms.

As financial professionals, we work with retirees every day helping them create retirement income strategies using a variety of insurance products. We’ve seen firsthand how easy it is to become more isolated when you stop working. You might find that by attending a financial seminar or client workshop, you’ll meet people in the same situation as you. Even if you feel like your retirement income strategy is well-established, we encourage you to continue monitoring your finances and participate in events where you not only have the opportunity to learn, but to spend time with people who may share your same interests and concerns.

When pre-retirees were asked what they would miss most about not working anymore, 17 percent predicted they’d miss their daily social interactions. However, when actual retirees were asked what they missed most from work, that number doubled — 34 percent said they missed their social connections from work.2

Another thing that’s different about retirement is that you’re no longer competing for career opportunities, so priorities can change. Hobbies you might have pursued during your career, like golf and tennis, may have been important to expand your network. But retirement can be a time for careful reflection; recognize that your energy, health and financial resources may be more limited now, so it’s important to prioritize what you want to do irrespective of anyone else’s expectations.3

By the same token, you may want to explore a deeper relationship with someone who’s been right there with you for decades: your spouse. Find out what your partner is like now. As you spend more time together, you might be surprised at how they’ve changed since you started working, and maintaining your relationship with your spouse can enhance your journey through retirement.4

New research has found that friendships in retirement may be even more valuable than family relationships. The quality of friendships proved to be a predictor of whether someone would acquire a chronic illness as they aged, whereas the quality of family relationships was not.5

Another interesting aspect of senior friendships is that women are more likely than men to make friends with others who are either much younger or much older. Researchers hypothesize this is because men tend to bond over activities, while women create more of an emotional connection — they don’t have to plan an event to nurture their relationships.6

One reason this phenomenon is particularly important is because seniors tend to lose similarly aged peers as they grow older. By establishing relationships with people from a younger generation, you’re more likely to maintain those friendships throughout your life.

 

Content prepared by Kara Stefan Communications

1 NEA. 2017. “The Value of Maintaining Social Connections Throughout Retirement.” https://www.neamb.com/the-value-of-maintaining-social-connections-throughout-retirement.htm. Accessed July 13, 2017.

2 Roger Whitney. The Retirement Answer Man. March 6, 2017. “One thing to do now to improve your social life in retirement.” http://rogerwhitney.com/social-life-in-retirement/. Accessed July 13, 2017.

3 Margaret Manning. Sixty & Me. 2016. “How to make friends as an adult in 4 simple steps.” http://sixtyandme.com/how-to-make-friends-as-an-adult-in-4-simple-steps/. Accessed July 13, 2017.

4 Emily Brandon. U.S. News & World Report. May 22, 2017. “7 Tips to Maintain Social Connections in Retirement.” https://money.usnews.com/money/retirement/aging/articles/2017-05-22/7-tips-to-maintain-social-connections-in-retirement. Accessed July 13, 2017.

5 Susie Neilson. New York Magazine. June 16, 2017. “In Old Age, Friendships Might Matter Even More Than Family.” http://nymag.com/scienceofus/2017/06/in-old-age-friends-might-matter-even-more-than-family.html. Accessed July 13, 2017.

6 Verena von Pfetten. New York Magazine. May 24, 2017. “When Your Best Friend Is Younger than Your Daughter.” http://nymag.com/scienceofus/2017/05/why-cross-generational-female-friendships-are-on-the-rise.html. Accessed July 13, 2017.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Retirement: The New Status Symbol

A lack of savings among many U.S. households could mean a change in the perception of retirement. It used to be a foregone conclusion that once you were too old to work, you retired. That’s not always the case anymore.

More than a third of U.S. households in prime earning years or later have no retirement savings and no access to a traditional pension.1 It’s become increasingly uncommon for people to retire in their early 60s, and those who fail to plan ahead for their future retirement income needs could end up with a retirement lifestyle worse than the one they had while working.

This doesn’t mean these middle-aged households are broke. Retirement income planning may just not be a priority yet. No matter your age, it’s never too late to start building strategies so you can enjoy your post-working years, and as financial professionals, that’s what we’re here for.

It takes diligence and focus to create a retirement income plan. Dwight D. Eisenhower once said, “Plans are worthless, but planning is everything.”2 This reiterates the point that planning for retirement should be strategic and committed, while at the same time fluid and flexible. Nobody knows what will happen in the future, but we can help you create a retirement income strategy designed to help meet your specific goals.

It can be difficult in the moment, but turning your back on pricey, impulse purchases, such as an expensive car, an outdoor kitchen or backyard pool, can help improve the prospects of your retirement down the road. Many people with good credit can borrow money to purchase these things, but good credit doesn’t fund a long retirement.3

Some workers might argue it’s not worth giving up indulgences today for a better (and earlier) retirement lifestyle. It’s a matter of examining individual priorities. One grandmother did just that when her 8-year-old grandson asked if she would be around when he got married. She had to rethink her priorities for what it might take to accomplish that goal. This led to a stronger pursuit of healthier living, including wholesome food, daily exercise and supportive social connections.4

While it may sound daunting to put in the years of hard work it takes to reach retirement, in some ways long hours at the office is a status symbol of its own. In Italy, the leisure class is perceived to have a higher status than the working class. But in the United States, there’s a certain prestige associated with working long hours and constantly being busy.5

Some people work 70+ hour weeks, not to earn more money and buy more things, but because that is what the working elite do.6 While this may not be the way all people wish to align their priorities, it does offer the distinct advantage of being able to save more money for retirement. For some, retiring is the ultimate status symbol.

Content prepared by Kara Stefan Communications 

1 Stan Choe. The Denver Post. Nov. 18, 2016. “Easy retirement for Americans? It’s only for a privileged few.” http://www.denverpost.com/2016/11/17/easy-retirement-privileged-few/. Accessed July 10, 2017.
2 Jonathan Look. NextAvenue. June 23, 2017. “What I Did to Stop ‘Awfulizing’ Retirement.” https://www.forbes.com/sites/nextavenue/2017/06/23/how-i-stopped-awfulizing-retirement/#1d5429451baf. Accessed July 10, 2017.
3 Holly Johnson. Club Thrifty. May 15, 2017. “My Plan to Achieve the Ultimate Status Symbol.” http://clubthrifty.com/my-plan-to-achieve-the-ultimate-status-symbol/. Accessed July 10, 2017.
4 Jane E. Brody. The New York Times. April 20, 2016. “Thriving at Age 70 and Beyond.” https://well.blogs.nytimes.com/2016/04/25/thriving-at-age-70-and-beyond/. Accessed July 10, 2017.
5 Lisa Tolin. NBC News. April 3, 2017. “The Busy Trap: How Keeping Busy Became a Status Symbol.” https://www.nbcnews.com/better/careers/busy-trap-how-keeping-busy-became-status-symbol-n742051. Accessed July 10, 2017.
6 Ben Tarnoff. The Guardian. April 24, 2017. “The new status symbol: it’s not what you spend — it’s how hard you work.” https://www.theguardian.com/technology/2017/apr/24/new-status-symbol-hard-work-spending-ceos. Accessed July 10, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

 


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The Longevity Revolution

How old do you have to be before you’re considered “old”? This number may change depending on the age of the person making the assessment. For example, a child or a teenager might think someone age 40 is old. That view is less likely to be held by a 39-year-old.

History indicates you have to reach a lot more birthdays these days to be considered old. One way to judge this is to look at pictures of your parents, aunts, uncles and grandparents when they were your age. Apart from the improved clarity of photographs in the modern era, many of us have fewer wrinkles and an overall healthier appearance than our ancestors.1

The data backs this up. A study by a Stanford University economics professor found that back in the 1920s, males were considered old if they were age 55 and up, whereas today that’s considered “middle age.”2

Of course, how we feel can change from day to day. Some days we might feel like a teenager, while other days we feel older than our years. We don’t want our clients to have similar feelings of uncertainty when planning for retirement. First of all, we like to help our clients work toward a well-prepared financial future. Second, it’s important to  consider that no matter how old you are, you’re likely to live longer than your parents and thus should plan for that eventuality. That’s why we work with our clients to create retirement income strategies for a retirement income that lasts as long as they do.

From a societal perspective, some of the reasons we’ve experienced a longevity revolution include universal access to clean water, sanitation, waste removal, electricity and refrigeration, as well as vaccinations and continued improvements in health care.3 At the individual level, people have their own take on why they’re living longer. One woman from Maine, 100-year-old Florence Bearse, claims the secret to her longevity is drinking wine. That, and people shouldn’t “take any baloney” if they want to live to old age.4

Another centenarian, Manhattan jazz saxophonist Fred Staton, is still playing professionally at age 102, which gives credence to the notion that creativity and passion lend themselves to a longer life.5 While a healthy lifestyle might be a strong indicator of longevity, it is by no means a definitive measure. Staton admits to smoking up until age 60, and rocker Mick Jagger — not exactly the poster child for a clean-living lifestyle — is still performing at Rolling Stones concerts at age 73.6

As for saving enough money to live comfortably throughout a long retirement, global analysts have noticed an interesting trend in spending among retirees. In wealthier countries, retirees appear to be aware of the potential for outliving their income, with many saving more than necessary.7

Content prepared by Kara Stefan Communications.

1 Steve Vernon. CBS News. June 29, 2017. “What age is considered ‘old’ nowadays?” http://www.cbsnews.com/news/what-age-is-considered-old-nowadays/. Accessed July 8, 2017.
2 Ibid.
3 Ibid.
4 Time. July 7, 2017. “Secret to 100-Year-Old Woman’s Longevity Likely Wine.” http://time.com/4849191/100-year-old-old-age-secret-wine/. Accessed July 8, 2017.
5 Corey Kilgannon. New York Times. June 29, 2017. “At 102, a ‘Triple-Digit’ Jazzman Plays On.” https://www.nytimes.com/2017/06/29/nyregion/fred-staton-jazz-saxophonist-plays-on.html. Accessed July 8, 2017.
6 The Economist. July 6, 2017. “Getting to grips with longevity.” https://www.economist.com/news/special-report/21724745-ageing-populations-could-be-boon-rather-curse-happen-lot?fsrc=scn/tw/te/bl/ed/gettingtogripswithlongevity. Accessed July 8, 2017.
7 The Economist. July 6, 2017. “Financing longevity.” https://www.economist.com/news/special-report/21724751-lives-get-longer-financial-models-will-have-change-financing-longevity. Accessed July 8, 2017.

 

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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The Changing Job Outlook: Challenges and Opportunities

The workforce in the United States is changing. Some long-standing professions are becoming obsolete, there are fewer manufacturing jobs,1 and some companies are moving their headquarters overseas for tax reasons.2 Then there is the increasing phenomenon of automation and robotics replacing jobs.

It’s interesting to note, however, that the job market is not fixed. It’s not as if people are being replaced by robots, but rather that the nature of work is changing and has different requirements. For instance, there is a steady transition from manufacturing to service industries. While a robot may be able to assemble products, it cannot develop software, health insurance policies or other intangible products and services that encompass so much of our income these days.3

As such, today’s job market offers unique opportunities for older workers. While some retirees need to work to supplement their income, others may simply get bored and want a new challenge. After all, retirement can go on for decades. That’s a long time for a career worker to be out of the workforce. By the same token, that’s a long time for savings to provide income. If you’re wondering how long your retirement income savings might last, come see us for an independent analysis. We can help assess your current financial situation to see whether it might be worthwhile to consider other retirement income strategies.

Another aspect of today’s changing job market is the growing shortage of skilled workers.4 When you think about it, this shortage creates an opportunity for retirees who want to go back into the workforce and are willing to learn new skills. According to the World Economic Forum’s 2016 “Future of Jobs” report, 33 percent of the essential skills that will be needed in the workforce in 2020 are not considered important today.5 This may create a good opportunity for people re-entering the workforce.

In fact, it’s because machinery is automating many previous jobs that some experts believe human creativity is the coveted skill of the future. It is the one thing that cannot be replicated by machinery, and thus holds more economic value.6 Pair creativity with experience and knowledge of specific markets and industries, and this is an area where older workers may truly thrive.

The best occupations for retirees tend to be in the white-collar sector and require experience, coupled with the advantages of maturity, patience and wisdom. Some of the top job options for older adults include consulting, local government positions, substitute teaching and tutoring.7

Content prepared by Kara Stefan Communications.

1 Heather Long. CNN Money. March 29, 2016. “U.S. has lost 5 million manufacturing jobs since 2000.” http://money.cnn.com/2016/03/29/news/economy/us-manufacturing-jobs/index.html. Accessed July 13, 2017.

2 The Economist. Aug. 17, 2015. “What’s driving American firms overseas.” https://www.economist.com/blogs/economist-explains/2015/08/economist-explains-9. Accessed July 13, 2017.

3 Alanna Petroff. CNN Tech. March 24, 2017. “U.S. workers face higher risk of being replaced by robots. Here’s why.” http://money.cnn.com/2017/03/24/technology/robots-jobs-us-workers-uk/index.html. Accessed July 13, 2017.

4 Reuters/CNBC. July 20, 2015. “Survey shows growing US shortage of skilled labor.” http://www.cnbc.com/2015/07/20/survey-shows-growing-us-shortage-of-skilled-labor.html. Accessed July 13, 2017.

5 Stephane Kasriel. World Economic Forum. April 25, 2017. “Yes, our working lives are going through massive change, but that doesn’t mean we’re heading for a jobless world.” https://www.weforum.org/agenda/2017/04/as-long-as-we-have-problems-to-solve-we-wont-run-out-of-jobs. Accessed July 5, 2017.

6 Itai Palti. World Economic Forum. April 19, 2017. “Could creativity drive the next industrial revolution?” https://www.weforum.org/agenda/2017/04/why-creativity-will-drive-the-next-industrial-revolution. Accessed July 5, 2017.

7 Jennifer Lawler. Bankrate.com. Feb. 26, 2016. “10 part-time jobs for retirees.” http://www.bankrate.com/retirement/10-part-time-jobs-for-retirees/#slide=3. Accessed July 5, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

 

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3 Common Questions About Social Security

While Social Security shouldn’t be relied upon to be the sole source of income during retirement, it can play an important role in your overall retirement income strategy. But making sense of the basic ins and outs of Social Security can be overwhelming. Here are three questions people commonly ask as they approach retirement age:

When can I start taking benefits?
While full retirement age is 66 for people born between 1943 and 1954 and gradually increases to age 67 for those born in 1960 or later, you can start receiving Social Security benefits at age 62.1 Keep in mind, however, that there is a cost to early distribution; your benefits are reduced by about 0.5 percent for each month you receive benefits before full retirement age.2 For example, those born in 1955 with a full retirement age of 66 and two months who start taking benefits at age 62 will receive about 75 percent of the full benefit.3

On the flip side, delaying benefits past full retirement age, up to age 70, increases your distribution amount. If the same individual in the previous example waits until age 68 to take benefits, his or her benefit will increase 8 percent each year after full retirement age. This increase continues until you reach age 70 or you start taking benefits, whichever comes first.4

What happens to my benefits when I die?
It depends. If you are married and your spouse is age 60 or older, he or she may be eligible to collect a survivor’s benefit. The benefit amount remains the same as the deceased’s amount, although that amount is reduced if benefits are started before the surviving spouse’s full retirement age.5 A spouse cannot collect both survivors benefits and retirement benefits based on their own work record. They will collect whichever benefit is higher.6

If you have a minor child or children, your surviving spouse (regardless of age) may also be eligible for a survivors benefit until the minor child turns age 16. If you have no surviving spouse or minor children, your benefit remains in the Social Security trust fund and is not paid out to any other named beneficiaries, unless they qualify under the Social Security survivors benefits eligibility rules.7

Can I work while receiving benefits?
Yes. However, if you haven’t reached full retirement age, your benefit amount will be reduced if your earnings exceed the limit.Starting with the month you’ve reached full retirement age, your benefits will not be reduced no matter how much you earn.8 The earnings limit and reduced amount vary according to your age. To find out how much your benefits might be reduced, use the Social Security earnings calculator at https://www.ssa.gov/OACT/COLA/RTeffect.html.9

Understanding Social Security can be challenging, but you don’t have to go it alone. Contact us today to learn more about how to incorporate your Social Security benefits into your complete retirement income strategy. We may be able to identify potential retirement income gaps and may introduce insurance products as a potential solution.

Content prepared by Amy Ragland. 

1 Social Security. January 2017. “Understanding the Benefits.” https://www.ssa.gov/pubs/EN-05-10024.pdf. Accessed June 21, 2017.|
2 Ibid.
3 Social Security. “Retirement Planner: Benefits By Year of Birth.” https://www.ssa.gov/planners/retire/agereduction.html. Accessed June 21, 2017.
4 Social Security. “Retirement Planner: Delayed Retirement Credits.” https://www.ssa.gov/planners/retire/delayret.html. Accessed June 21, 2017.
5 Joseph L. Matthews. Caring.com. Dec. 24, 2016. “What happens to the rest of a person’s Social Security money after they die?” https://www.caring.com/questions/social-security-benefits-after-death. Accessed June 21, 2017.
6 Ibid.
7 Ibid.
8 Social Security. June 15, 2017. “What happens if I work and get Social Security retirement benefits?” https://faq.ssa.gov/link/portal/34011/34019/Article/3739/What-happens-if-I-work-and-get-Social-Security-retirement-benefits. Accessed June 21, 2017.
9 Social Security. “Retirement Earnings Test Calculator.” https://www.ssa.gov/OACT/COLA/RTeffect.html. Accessed June 21, 2017.

Financial professionals are able to provide you with information but not guidance or advice related to Social Security benefits. We are not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

 

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Is Feeling Younger the Secret to a Longer Life?

 “You don’t stop laughing when you grow old, you grow old when you stop laughing.”

 

~George Bernard Shaw

While some people accept getting older as a natural part of life, many others are on a mission to fight the aging process and maintain a youthful attitude and appearance. Although we are often reminded to “age gracefully” – to accept our older selves just as they are – research shows those who stay young at heart may just be on to something.

If you’ve ever experienced the feeling that the image in the mirror doesn’t quite match up with how you feel on the inside, you’re not alone. In 2015, the Journal of the American Medical Association published the results of research conducted over an eight-year timespan.  The initial survey of about 6,500 people ages 52 and older revealed that almost 70 percent of respondents felt three or more years younger than their actual age.1

Eight years later, researchers went back and resurveyed the participants. They found 86 percent of the people who reported feeling younger than their actual age were still alive, as compared to 82 percent of the people who felt their actual age and 75 percent who felt older.2

What’s the lesson here? This study and a variety of others point to the idea that feeling young actually helps us live longer. It’s the idea to stay “psychologically young”: maintaining a positive outlook, staying active physically and mentally, and enjoying a life of quality even into our older years.3 But how can we feel younger? Here are four tips:

1. Eat right. Maintain a healthy diet, including plenty of veggies, fruits and protein. Also, make sure you’re getting plenty of omega-3 fatty acids, found in salmon, nuts and seeds. These help prevent inflammation in your body, which affects you both mentally and physically.4

2. Get some exercise – physical and mental. Feeling younger means moving more. You need to challenge not only your body, but also your brain. The Alzheimer’s Association suggests things like taking a college course, finishing a daily crossword and enjoying an occasional play or performance as ways to stay mentally active.5

3. Set goals for the future. Goals give us something to work toward and look forward to, no matter your age. Your goals can be related to health, family, career, travel or anything that sounds interesting to you!

4. Look on the bright side. A positive attitude can help you live longer. For example, a Harvard study of 70,000 female nurses found the most optimistic quarter of respondents had a 31 percent reduced risk of mortality.6 Sometimes keeping a positive outlook on life can keep you going, even when there may be negative external circumstances.

While it pays to think positive and keep a youthful mindset, lifespans of all people in general have gotten longer over the years. If you’re fortunate enough to live many years after retirement, you’re going to need a well-thought-out retirement income strategy. Using a variety of insurance products, we can help you create a strategy that helps you to live the kind of retirement you’ve worked hard for. Contact us today to get started on your retirement income strategy for a long life.

Content prepared by Amy Ragland.

1 Isla Rippon, MSc and Andrew Steptoe, DSc. American Medical Association.  February 2015. “Feeling Old vs. Being Old: Associations Between Self-Perceived Age and Mortality.”  http://jamanetwork.com/journals/jamainternalmedicine/fullarticle/2020288. Accessed June 8, 2017.

2 Heidi Godman. Harvard Health Publications. Aug. 5, 2016. “Feeling Young at Heart May Help You Live Longer.” http://www.health.harvard.edu/blog/feeling-young-heart-may-help-live-longer-201412177598. Accessed June 7, 2017.

3 Ibid.

4 Marisa Fox. Fitness Magazine. “10 All-Natural Ways to Stay Young.” http://www.fitnessmagazine.com/mind-body/feeling/10-all-natural-ways-to-stay-young/. Accessed June 7, 2017.

5 Alzheimer’s Association. “Stay Mentally Active.” http://www.alz.org/we_can_help_stay_mentally_active.asp. Accessed June 8, 2017.

6 Deborah Netburn. Los Angeles Times. Dec. 9, 2016. http://www.latimes.com/science/sciencenow/la-sci-sn-optimists-longer-life-20161208-story.html. Accessed June 8, 2017. 

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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How to Help Avoid Struggling with Caregiver Burnout

Serving as a caregiver for a loved one can be a wonderful thing. It often allows ill or disabled individuals to remain in their own home, surrounded by familiar surroundings. However, it can often take a toll on the person providing care, and can sometimes lead to the caregiver feeling depleted or exhausted. This feeling is commonly known as caregiver burnout.1

The National Alliance for Caregiving reported an estimated 43.5 million adults provided care for a chronically ill, disabled or aged loved one in 2014.The organization also reported the average caregiver spends nearly 25 hours per week providing assistance, the equivalent of a part-time job.2

While being a caregiver can be rewarding, it can also be emotionally, physically and mentally taxing. Burnout tends to happen when the caregiver neglects his or her own needs — often without realizing it’s happening.

If you are providing care for an ill or disabled loved one, it’s important to recognize the symptoms of burnout in the early stages. The ALS Association reports some of these patterns as signs of burnout for caregivers:3

  • Irritability and impatience
  • Overreacting to small things or comments made by others
  • Problems sleeping
  • Abuse of food, tobacco, drugs or alcohol
  • Feelings of isolation, alienation or resentment
  • Increasing levels of stress

The time and money dedicated to helping someone else can also be a drain on the caregiver. While retirees in particular may feel they have the time available to take care of a friend in need, it’s important they consider how that kind of time commitment could affect their own energy levels and financial resources.

How do you avoid caregiver burnout? Here are five suggestions from the Caregiver Action Network:4 

  1. Seek support. Providing care can be isolating. Reach out to family and friends, and tell them exactly what you need. Many of them want to help, but they aren’t sure how. Also explore online options. The AARP provides a list of resources for caregivers,5 including online communities where people can share experiences.
  2. Take breaks. Letting someone else provide care can be difficult, since others don’t do things quite the same way and it might be challenging for the person receiving care to adjust to someone new. Taking a break, however, is important for both mental and physical respite.
  3. Don’t neglect your own health. It might take some creativity, but find ways to work in activity, even if it’s taking a 15-minute walk. Pay attention to your own nutrition. Try not to let go of all the things that bolster your mental health; it can be easy to neglect your own hobbies and interests.
  4. Get the paperwork in order. Organize medical records, legal paperwork and other items so they’re easy to find. Introduce yourself to your loved one’s lawyer, accountant, financial professional and other service providers. Provide them with a copy of a power of attorney so you can have access to records if needed. If you have questions about how taking the time to care for someone else could affect you financially, don’t hesitate to reach out to your financial professional.
  5. Don’t be too hard on yourself. Caregiving is a tough job. Recognizing that you also have physical, mental and emotional needs will help you avoid burnout and continue to provide the best care to your loved one.

 

Content prepared by Amy Ragland.

1 Senior Helpers. “Caregiver Burnout.” http://www.seniorhelpers.com/resources/family-caregiver-burnout.  Accessed May 21, 2017.

2 National Alliance for Caregiving in Collaboration with AARP. June 2015. Pages 6 and 33. “Caregiving in the U.S. 2015.” http://www.caregiving.org/wp-content/uploads/2015/05/2015_CaregivingintheUS_Final-Report-June-4_WEB.pdf. Accessed May 21, 2017.

3 ALS Association. “Symptoms of Caregiver Burnout.” http://www.alsa.org/als-care/caregivers/caregivers-month/symptoms-of-caregiver-burnout.html. Accessed May 21, 2017.

4 Caregiver Action Network. “10 Tips for Family Caregivers.” http://caregiveraction.org/resources/10-tips-family-caregivers. Accessed May 21, 2017.

5 AARP. “Resources Caregivers Should Know About.” http://www.aarp.org/home-family/caregiving/info-08-2012/important-resources-for-caregivers.html. Accessed May 21, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

 

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