Skip to content

Making Home Renovations and Protecting Your Retirement Income

Today’s Prep:

Are you wondering how to pay for a home renovation in retirement? Or, are you concerned about the market volatility with retirement a few years away? Eric answers three questions from the mailbag all related to making wise decisions regarding money in retirement.

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

 

Equipping Points:

Should you move money into a safer place if you plan to retire soon? How do you protect pension benefits from a former spouse? When it comes to retirement planning, sometimes a situation comes up that has you asking for more information. We answer three questions from the mailbag in this episode of the Retirement Ready podcast.

Annie in Johnston writes in with a question about wanting to put in a screened in porch on her home. Should she pay for it by taking money out of her IRA or by getting a home equity loan? Assuming that Annie is retired, Eric says it can be difficult to get a home equity loan. In retirement, taking money out of the IRA may be the way to go. Ultimately, you’ll want to have a strategic plan that includes a tax analysis before you take money out.

Randall in Clive is considering his retirement timeline, especially in light of the current market fluctuations. He wants to know if it’s worth moving his money to cash now, knowing he plans to retire in the next few years. Eric says it’s important to consider liquidity, safety, and growth opportunity. While it’s helpful to have money in a safe place in retirement, you’ll still want to make sure to get growth opportunity in order to outpace inflation.

Finally, Tess in Ames will receive a portion of her ex-husband’s pension as long as he is alive. Should she take out a life insurance policy in case he passes on before her, resulting in a major loss of income? Eric says some of this depends on how it is set up with the company and may be worth a conversation with HR. A life insurance policy may require cooperation from the ex-husband, but could be a good plan if he is willing.

Listen to the full episode or click on the timestamps below to hear this week’s questions from the mailbag.

[0:47] – Mailbag: Should I pay for home renovations from my IRA or with a home equity loan?

[3:10] Mailbag: If planning to retire in the next few years, should I move my retirement savings to cash and wait until the market volatility blows over?  

[7:32] – Mailbag: What happens to my pension benefit if my ex-husband dies?  

 

 

Related Resources:

Retirement Decisions: More Than Just Investments

Lazy Money

Retiring Early: Is It Possible and Is It Right For You?

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

Should I Keep My Life Insurance Policy + Other Mailbag Questions

April 2, 2020

If your life insurance policy goes up after you turn 60, you may wonder if it’s still something
worth paying for. Or maybe you’ve just received an inheritance and don’t know what to
expect when it comes to taxes. Eric answers three questions from the mailbag this week.

Read More

Life Happens: How Will Your Financial Plan Be Impacted?

March 19, 2020

We all know at one point or another something is bound to happen that can throw off your financial plan. How will you address these possible scenarios when it comes to your financial plan?

Read More

Don’t Mistake Good Intentions for Sound Financial Advice

March 12, 2020

Can you tell the difference between good intentions and bad advice? Sometimes, even people who are truly trying to help can give you bad information and cause you to question your financial decisions.

Read More

Stages Leading Up To Retirement

March 5, 2020

Life isn’t just “before retirement” and “after retirement” when it comes to your financial plan. There are several stages leading up to and through retirement. Which stage are you in?

Read More

5 Frequently Asked 401k Questions

February 27, 2020

Do you have a question about your 401(k)? There’s a good chance you’ve wondered about at least one of these five frequently asked questions when it comes to your 401(k).

Read More

What You Should Know About Leaving an Inheritance

February 20, 2020

Estate planning is just one piece of a comprehensive retirement plan but it’s an important one because you only get one opportunity to get it right. The problem is many individuals have very little experience with inheritances and often make mistakes when handing them down or receiving them. Let’s try to change that today by informing you about inheritances and the steps you need to take.

Read More

Reasons Why People Don’t Retire

February 13, 2020

Why would someone put off retirement? Are there valid reasons to wait, even if you are of retirement age? Today we’ll look at the reasons that we often hear and the meaning behind what is said.

Read More

Financial Advisor Green Flags

February 6, 2020

How do you know if you’ve found the right type of financial advisor? What is most important when looking for someone to work with who will create the right types of financial strategies for where you are in life?

Read More

Understanding The SECURE Act, Part 2: Stretch IRAs

January 30, 2020

In part two of our series on the SECURE Act, we talk about some of the downsides to the changes. Eric explains the stretch IRA and what impact the SECURE Act made on it.

Read More

Understanding The SECURE Act, Part 1

January 23, 2020

What is the SECURE Act? And how does it impact your retirement plans? We’ll outline some of the major changes you need to be aware of in this two-part series.

Read More

Leave a Comment