May 31, 2016

Retiring After 65 May Extend Life

          A study published by the Journal of Epidemiology & Community Health found retiring after 65 may help live longer.  The risk of dying from any cause over the study period was 11% lower among people who delayed retirement for one year until 66 and fell further among people who retired between the ages of 66 and 72.  Even workers who retired for health reasons had a lower risk of dying, compared with those leaving work at 65.  The benefits of remaining in the workforce occurred irrespective of gender, lifestyle, education, income and occupation, the analysis showed.

          Postponing retirement may delay the natural age-related decline in physical, cognitive and mental functioning, reducing the risk of chronic illness.  Mandatory retirement in the U.S. was abolished in 1986 except in certain professions and occupations, such as airline pilots and judges.

         Researchers at Oregon State University analyzed data from 2,956 people born between 1931 and 1941 who were employed at the start of a larger study in 1992 and fully retired at its conclusion in 2010.  Retirement ages ranged from 55 to 77 years of age of subjects, 33% retired at age 66 or older, 12% at age 65 and 55% before 65.  Just over a third cited health reasons for retiring.

90 Is the New 70         

          In a recent new release the LIMRA Secure Retirement Institute stated that a healthy individual should be prepared to cover costs into their mid 90s, “at a minimum.”  This is a far cry from 1955 when U.S. government statistics on average life expectancy was close to age 70.  Should we be surprised by this announcement?  We are surrounded by seniors who are going faster, living longer and doing more.  National Underwriter Life & Health February 2016. 
 
          The next question to ask yourself is, are you saving enough so you will have the assets and income to last your life span?

Death of A Spouse A Baby Boomer Reality            

          The unthinkable has happened.  Why him? What now? It wasn’t supposed to happen.  We thought it would last forever.  I have always felt bad for others who lost their spouse, now I do not know what or how I feel.

          These are words that are heard over and over from clients who suffer the unimaginable loss of their best friend, lover, and/or co-parent.  So, now what?

          People often tell me they feel numb, lost, emotionally drained, as well as abandoned, paralyzed and lonely.  Once the grief and mourning subside, the reality of life and time will help heal the pain.

Here are 11 steps that one should take following death:

1. Funeral and Memorial Arrangements  -  Select a funeral home and discuss the cost.  A family member or friend should attend to help.  Set a budget for the entire funeral, service, burial, clergy, and obituary.  Contact friends and family to help    with housekeeping tasks, caring for children and being there in case of emergency.  Have a system to record information to acknowledge cards, letters, and phone calls.
2. Organize Information  -  If not in place already, start a filing system for bank and credit card statements, bills, employer information (yours and theirs), estate planning documents, tax information, investments, life insurance policies, and    other assets.  Have a planner  to keep important due dates. 
3. Contact Network of Advisors  -  (attorney, tax professional, insurance agent, and financial advisor).  Talk with them about financial issues and current circumstances.
4. Consider cash flow and immediate need for cash.
5. Consult with healthcare and other insurance professionals  -  Contact human resources department.
6. Collect Benefits -  File claims with Social Security, life, and medical insurance companies.
7. Review Assets and Liabilities  -  Retirement Assets such as IRAs, 401(k)s, 403(b)s, 401(a)s  annuities, and other tax deferred investments.  Personal Assets    such as home, vacation home, furnishings, art, jewelry, antiques, boats, recreation vehicles, etc.  Other assets including  portfolio investments, real estate properties, and bank accounts.  Liabilities such as credit card debt, auto loans, mortgages,    education loans, and other debts.
8. Estate Settlements  -  Change title and beneficiaries on cars, insurance policies,    and investments.  Delay closing or changing bank accounts.  This will give the    ability to deposit any incoming payments until matters are cleared up.  Discuss with tax preparer or attorney when an estate tax return or final return needs to be filed.
9. Do Not Get Run Down  -  It is important to continue to take care of yourself so you can think through and make rational decisions.  Get rest and exercise and stay   in touch with family and friends.  Consider joining a support group or talking to a   counselor.  This will help when you feel frightened and disconnected.
10. Postpone Major Decisions  -  There is no need to rush when making big decisions.  As the grieving process continues, mistakes may be made until priorities are rearranged.
11. Focus on New Goals  -  After a period of mourning, start fresh by reexamining your goals and possibly set new goals in life, which may require a new financial plan.

            As always, if you have any questions about these or any other matters, do not hesitate to call us.

            Remember, We’re Here For You!