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.
(Click the featured times below to jump forward in the episode)
[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.
Check out some other recent episodes
Inside of a mutual funds, the actions of others can impact you. If a lot of people are trying to sell that mutual fund, the manager has to sell some stuff to meet the redemptions and that can negatively impact you.Read More
Some may think that retiring early is just a dream, but can you turn this dream into a reality? In this episode, Eric talks about the ins and outs of taking an early retirement. Find out when you can retire and whether you will actually want to stay retired.Read More
As you near the final months or years before taking the plunge into retirement, there are always a few details to work out and questions to ask. Eric answers a few questions from the mailbag about pensions, paying taxes in retirement, and deciding when to walk away from a retention bonus and just retire already.Read More
Some things are just out of your hands. In retirement planning there are a lot of things completely out of your control, but if you re-frame your thinking, there is actually something you can do about them. Eric talks through these four areas where you have an opportunity to prepare for the unpredictable.Read More