Q: I am 68 and retired. My pension, which is $610/month, has been sold. I was offered a lump sum of $100,000 or I can keep the $610/month. Which is better for me?

A: At $610/month you are receiving $7320/year. That is 7.32% based on the $100,000 offer, which is a very good annual yield – guaranteed to you. If you live longer than 13 years, which is very possible, you will have more money with your current monthly pension than the lump sum. I would keep the monthly pension.

disclosures:http://www.hechteffect.net/?page_id=31

Q: I am in a long-term, committed relationship. We own everything jointly. Is it better in the case of illness or death to be married? — D., 80, Leesburg

A: As long as all of your accounts are titled properly to pass without probate and you have all of necessary legal documents in place in the case of illness, then there is no legal reason to get married. — Nancy Hecht

disclosures:http://www.hechteffect.net/?page_id=31

This Saturday hear
Denise Kovach CFP®
and Nancy Hecht CFP®
co-host our program
“On The Money”!

They’ll be discussing . . .
• Habits That Can Ruin
Your Retirement

• Don’t Get Blindsided By This Scam
• Listener Question: Until I can build up a cash emergency fund, should I open a home equity credit line?
• THIS WEEK’S “On the Money 101”:
What is the Securities and Exchange Commission (“SEC”)?

Call or eMail
your questions:
407-290-0058 OR
1-800-328-5858
Denise@FinancialGroup.com
Nancy@FinancialGroup.com

Congratulations – you are finally retired! You deserve that vacation, those meals out 3 nights a week, and the car of which you have always dreamed. But what is the real cost? A common mistake many retirees make is living beyond their means. There is a “why wait” attitude that many retirees have that can lead to disaster. You still need to have a budget and spend modestly, not like the money is burning a hole in your pocket. If you live a modest financial life in retirement, you will reduce the risk of outliving your savings.

Disclosures:http://www.hechteffect.net/?page_id=31

So, we know that you have enough to keep yourself busy, and you have figured out what you are going to do with all of your time – now, we have to discuss the realities of aging.

You have arrived in retirement and the fun has begun, but you are also frustrated with the difficulties of aging. This frustration is something new. It is hard to prepare for something you have not experienced before. Prepare you must. You will move a bit slower, things won’t taste as good, your sight will be off, etc. As long as you maintain a healthy lifestyle, you will endure. Maintain a positive outlook and enjoy!

Disclosures:http://www.hechteffect.net/?page_id=31

Do you have enough to keep yourself busy?

Most of my clients say they have so much to do when they retire, but for many that only lasts a couple of months. After all of the “honey do” items have been completed, and you take that trip to visit your Grandkids, what is next? A little relaxing and doing nothing is fine for a bit. Often, too much free time leads to overeating and overspending. Try to find that perfect combination of things you enjoy doing, pursuits that are meaningful, and relaxing to establish a healthy balance for your time in retirement.

DISCLOSURES:http://www.hechteffect.net/?page_id=31

Most couples spend the bulk of their day apart; working, running, errands, or doing volunteer work. The separate lives we lead while working come to a screeching halt upon retirement. Can your relationship handle it? Whatever portion of your time you now dedicate to each other is very different from a 24/7 life together. You need to think now, before you retire, about how you will spend your time together and apart. Communication is key. Discuss your expectations as well as your individual and joint interests. Things will be a little strange in the beginning, but will smooth out as long as you consider the real changes that come to your relationship with retirement.

disclosures:http://www.hechteffect.net/?page_id=31

Q: I have $34,000 that I will not need to use for 8 months, and then I plan to use it to fix up my home. Why can’t I invest this so I can earn more than 0.20%?

A: If you need to use your funds in less than 24 months, you cannot afford to invest it. This is money you have set aside or saved specifically for a need, i.e., your kitchen. This type of money needs to stay liquid. A savings account or short term CD is your only option.

disclosures:http://www.hechteffect.net/?page_id=31

Thinking about retirement may become easier if you just ask:

Who? Who is most important to you? Your spouse, partner, kids? When you plan youR retirement, you generally are thinking about yourself and those who are important to you, their care and wellbeing, how they fit into your retirement picture,etc.

What? What assets do you have, or can you accumulate to make your retirement a reality? Look at where you are now and do regular financial checkups of what you have accumulated.

When? When would you like to stop working? Just because you reach full retirement with Social Security at age 66, does not mean you are ready to hang it up. You need to feel comfortable mentally as well as financially for your when.

Where? Where do you want to retire? I have no intention of moving but many others dream of moving. Do you want to downsize? Relocate? Have more than one retirement home? Determining where you retire may plan into your when you retire.

Why? Why do you want to retire? I often ask my clients if they know what they will do with their time in retirement. If you cannot answer this question, you may not be ready to retire.

These 5 W questions are ones we all learned as children. They are just as important for us to ask ourselves as adults.

disclosures:http://www.hechteffect.net/?page_id=31