Today’s Prep:
Part of retirement planning includes taking care of family. After all, you’ll want to make sure your loved ones have what they need after you’re gone.
Equipping Points:
00:55 – How To Deal With Losing A Spouse.
- Losing a spouse is a tough reality in retirement, but with proper planning, you can take care of your spouse after you’re gone. Eric explains the financial implications of losing a spouse and why you should be ready for a change of income when that happens.
3:55 – How Do You Solve The Income Gap?
- Pensions and life insurance products are great ways to fill the income gap that presents itself when a spouse dies. Life insurance especially is a great tax-free tool for replacing income.
5:05 – Consider your 401(k) And IRA Withdrawals.
- When a spouse dies, the surviving spouse usually begins to withdraw more money from their tax-deferred accounts. When this happens, the IRS is ready to tax these withdrawals. If you find yourself in this position, prepare for the accompanying tax burden of an IRA or 401(k) withdrawal. Don’t be blindsided by taxes.
5:33 – You Need To Address Death As A Family.
- Nobody wants to talk about dying, but it’s an inevitability, and you need to be prepared. If you don’t discuss what you’ll do when your spouse dies, you could find yourself in trouble when the time comes. You don’t want to add financial stress to an already difficult time in life. Sort out the financial implications ahead of time, and free yourself to grieve appropriately when a death occurs.
6:55 – Long-Term Illnesses Can Wipe Out Wealth.
- Long-term care is expensive, and if all of your wealth is spent taking care of your spouse, you’re not going to be left with much when you’re on your own. You have to address the long-term care and healthcare elements of retirement planning together as a couple. While you still have your health, make a plan.
Today’s Takeaway:
“While you still have your health and your wealth, plan ahead with your spouse. Determine how you’ll take care of your family as you’re planning for retirement. – Eric Peterson“
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More
What Is Lazy Money?
What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.
Read More
Retirement Planning Today Is Harder Than It Used To Be
Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.
Read More
Social Security Variables That Impact Your Claiming Strategy
After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.
Read More
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 More
Healthcare in Retirement
One major (yet often overlooked!) expense in retirement is healthcare. Especially if you are retiring early, healthcare can be a huge expense as you bridge the gap between your working years and when eligible for Medicare. Not only will you have an increased monthly cost, but you may need to budget for additional medical costs as time goes on or even long-term care needs.
Read More
Family Matters When It Comes to Finances
Today we talk about what happens in a family, particularly when someone has passed away and the financial impact that can have.
Read More
Water 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 More