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“]
More From Eric:
The host: Eric Peterson - Contact - Call: (515) 226-1500
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Retirement Real Estate Decisions: Downsizing, Snowbirding, and More
One of the key discussions you may have in retirement is what to do about the house. Should you downsize your home? Pay it off early? Buy a vacation home and become a snow bird? Eric emphasizes the importance of considering not just the financial implications but also the lifestyle changes each of these decisions entail. Weighing out the pros and cons of each decision can highlight what is right for you (which isn’t always the same as what your neighbor is doing).
Read MoreWater Wheels and Retirement Planning
Have you ever wondered how a water wheel can relate to your retirement planning? It might seem like an odd comparison, but in today’s podcast, Eric breaks down this fascinating analogy and its significance in maintaining a stable financial future.
Read MoreNavigating Spousal Disagreements in Retirement Planning
Inside a marriage, retirement planning is a journey that ideally involves both partners working together towards a common goal. However, as with any significant life decision, disagreements can arise. Eric sheds light on some of the most common spousal disagreements regarding retirement and offers practical advice on how to navigate them.
Read MoreFinancial Wisdom from Ernest Hemingway
According to Ernest Hemingway, “In order to write about life, you must first live it.” Eric shares how his years working as a financial advisor have given him the experience to guide others through various market conditions and make a financial plan that is possible to follow. It’s not just about understanding the products and tools; it’s about knowing how people react to different financial stimuli and steering them accordingly.
Read More