Today’s Prep:
A financial plan should consider more than just where your investments are. Even though it’s uncomfortable to bring it up, do you know what your plan is following the death of a spouse?
Equipping Points:
While many don’t want to talk about it, it’s important to have a plan for when one spouse passes away. Have you run a stress test on your financial plan to see how things might be impacted?
Right now, under the CARES Act, you don’t have to take RMDs if you don’t want to. What about inherited IRAs? If the IRA was passed to you from your spouse, is that still considered an inherited IRA? Then ask, is there a reason to take your RMDs now even if you don’t have to?
Outside of emotions, from a financial standpoint, what is usually the top concern of the remaining spouse? Usually it’s a question of, where will I get my income? Income allows you to live your life and maintain your standard of living. If you’re retired and on Social Security, you’ll lose the lower Social Security benefit after a spouse passes.
A lot of times, people don’t realize how much or how little monthly expenses may change after a spouse passes away. It’s crucial to have a plan called the economic impact of losing a spouse, whether you are in retirement yet or not.
Make sure to stress test your plan to understand how things will be impacted. That way, instead of being reactive when the time comes, you can be proactive.
Listen to the full episode or click on the timestamps below to hear a specific segment.
1:11 – Regarding the CARES Act, what do you need to know about RMDs?
3:07 – Just because you don’t have to take RMDs, is there a reason to still get them?
5:45 – What is typically the top concern of the remaining spouse?
7:11 – When a spouse passes away, your expenses don’t get cut in half.
8:22 – Stress test: if something were to happen, what’s your plan?
Related Resources:
Retirement Decisions: More Than Just Investments
Retiring Early: Is It Possible and Is It Right For You?
Today’s Takeaway:
[spp-tweet tweet= “When a spouse passes, that’s a fundamental change for that surviving spouse in a lot of ways. –Eric Peterson“]
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
What 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read MoreBracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read MoreAre Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read MoreWhat Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read MoreMailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read MoreFinancial Planning Conversations for Couples
This episode is focused specifically on that planning we do with couples with insights on how we help them navigate tricky conversations about money and retirement.
Read MoreIs Your Retirement Based on Wishful Thinking?
Many people fall into the trap of wishful thinking when it comes to what they expect will happen in retirement, but a successful retirement isn’t built on hope and assumptions.
Read MoreSpending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read More