Episode #26: Taking Care Of Family

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.

(Click the featured times below to jump forward in the episode)

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:

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The host: Eric Peterson - Contact - Call: (515) 226-1500

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