Don't Let Retirement Be Scary

I have a love hate relationship with Halloween. As a child, I liked the candy but not so much the going door to door. I love haunted houses but not scary movies. Halloween, I saw in college because I went to with a friend who told me when to close my eyes! I love giving out candy to children – their smiles and enthusiasm. I skip the Halloween parties where people approach me and I do not know who they are – or worse, who they dressed up as! Too much for me.

Over the years, I have set my own traditions. There are friends I call because they equally dislike Halloween. And another I call and give out candy with - hundreds of miles from each other. We chat in between the doorbells and then describe the trick or treaters to each other – doubling the fun.

My most favorite Halloween was recently when friends had an outdoor bonfire on the full moon. The event was full of food, new people, old friends, fresh air, and no costumes. All perfect for the social distancing Halloween of 2020.

This year, I will mark the eve in a Celtic way by attending another bonfire. As you may know, the Celts started the concept of Halloween. This may be a nod to ancestors far gone and most recently passed. However, I will be home on the big night, so be sure to send your children to my door!

Much like Halloween, retirement can be a conundrum. You look forward to it. Retirement becomes a long-term goal. Then, it is here and there is more to know than how much you have put aside for retirement. And then there are changes you did not expect.

Understanding that this is a life transition that comes with the good and the bad and the indifferent. Most of all, it is a major change for you and those close to you.

Wherever you fall on the pre-retirement scale – fully ready to pursue your passions and make time is your own, Or faced with fleeting fears – will I have enough? Where should I live? What if my health fails? Or somewhere in between. Get ready by investing some time in the facts and details of this next stage in your life journey.

Preparation is critical. Much like the pending holiday there are so many decisions to make. And instead of costume? No costume?, these have long lasting implications. Whether you need to understand your changing income tax needs, where to pull income, or the estate issues if you move, you will be more ready to retire without surprises.

Here are some things to think about:

• Social Security Timing

• Rebalancing Your Investments

• The Implications of the RMD

• Understanding Health Insurance

• Considering Long-term Care Insurance

Appreciating the stages of retirement before they happen to you, will make your life easier and healthier.

Make your life better by learning about the nuances of the next stage of life. Retirement is a continuum. Some preparation will make your next steps less frightful and create a new path with ease.

Beyond Mourning: Your To Do List

Beyond the funeral, memorial service and figuring out the immediate tasks of handling the death of a love one, lies the void of a life without their caring presence.  In between these pieces is a wealth of activities and paperwork to manage the final affairs of someone close.  Many of these tasks can wait a few days or even a few weeks but knowing what they are will help take the stress away.  There will be less of a chance you will have something fall through the cracks if you have a list to refer to and know what you may be looking for in the personal effects of your loved one.

Here’s a list to work from when you need it:

• Death Certificates – The funeral home will often handle getting the initial document from the town. Be sure and request several original copies. I suggest ten so that you never have to wait for one when a financial or legal institution requests a death certificate.

• Write a list of Assets and Debts, including the estimated values - This list is good for the accountant, courts and lawyer for settling the deceased estate. Also, this is a reminder for you if you have included everything.

• Find their Will – If the will is not available, notify their lawyer who devised it in case they have insight into the trust or division of assets.

• Notify Social Security – Often the funeral home will do this. Social Security is most important for those who were collecting monthly income because:

  • Cancel future payments to deceased

  • Receive the $250 burial amount

• Notify Bank – The deceased checking accounts should not be used after death. So the two immediate issues are:

  • Close out accounts per will

  • Cancel any autopays

• Clarify the Car Ownership - Find the title to the car or other vehicles. No one should be driving them without proper insurance and ownership.

• Cancel Health Insurance – Seems obvious but someone has to take the step to do it. The estate may be entitled to a refund.

• Find Life Insurance Policies – If the deceased had insurance, someone needs to follow up and make sure the details are handled.

  • Notify company and update addresses and information

  • They will need a death certificate (as well as most contacts involving disbursements of money)

• Contact Retirement Accounts - They will want a death certificate.

  • 401(k) and IRA’s will distribute according to the beneficiary instructions

• Defined Benefit Pension Plans may or may not provide benefits to survivors

• Manage Real Estate - All taxes and bills must be paid on the property in a timely manner.

  • Find deeds if available so they can be changed to survivors per will

• Contact Investment Institution – Other investments will be distributed per the will or by state law if there is no will. The company will need to be contacted.

• Notify Credit Cards – All credit card transactions need to stop. For final estate numbers, a balance will be needed.

• Pay Bills - The estate is responsible for the bills and debts of the deceased (except for student loans). Notify the companies such as utilities, phone and others of the death and clarify that they will be paid by the executor. If there is not enough money to pay all the bills, the final accounting and court decides what happens. It is not the personal responsibility of the executor.

• Talk to the Accountant – Current year taxes will have to be filed. In addition, depending on the size of the estate, there may be estate tax forms to file.

• Keep A Paper Trail - Anything related to burial expenses, travel expenses for executor, and all paperwork and expenses related to settling the estate are important for a final accounting.

Much of this financial detail work is the same no matter how much or how little someone has.  All of it is time consuming.  But this needs to be done.   Being prepared is the best way to make this transition go smoothly.

Ready to Retire?

You want to finally retire from your job or your business? The end game is accumulate money and move on? Begin with the key points of what you want in mind.  Align with your values  - Why are you selling?  Why are you retiring? Two pieces remain to look at from your point of view.  First, the “Why now?” and second, “What are You Retiring to?”.

Feeling Overwhelmed with Retirement?

Retirement is a large concept.  Even retiring at 65 means you are probably planning for the next twenty-five years.  This is difficult to do.  Think about the past twenty-five years.  Could you have planned on everything that happened in your life? No one knows the future. 

However, when it comes to retirement, you can put money aside to build up the chances of a very good retirement.  Do not compare yourself to others.  Everyone is different.  Various needs, spending habits and dreams mean different money needs.

Also, do not compare your savings to others.  As you can see by the research, the average person nearing retirement has only $12,000 saved for retirement.  We all need to beat the average to have a retirement that has strong underlying financial support.  Start saving now. 

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