Tag Archives: planning

What do you want?

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Many couples have not taken the time to ask what each other would like their retirement to look like. The first step is to write your own wish list with questions such as:
How long do you want to work?
Where do you want to live in retirement?
Do you want to work part-time?
Do you want to travel and how often?

Once each has written their list, it now is time to compare to see where your desires overlap or conflict. Many of the conflicting items will naturally works themselves out; others will require time and money to work out. Next, you need to take a clear view of just where you each have savings and investments. 37% of husbands and 21% of wives do not know the value of each other’s retirement accounts or what the potential pension might be. Now is the time to review these items.

So, pour a cup of coffee, pull out the statements, and review your investments. You will be able to see where you are going.

How much do my spouse & I need to self-insure for Long Term Care? Is $400k enough?

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A: You might need as much as $1,500,000 to self-insure for long term care. We are currently spending $1500/week for my Father-in- Law and his Wife. That is $390,000 over 5 years, $780,000 over 10 years in today’s dollars. Inflation for medical care is rising faster than for other goods and services. With a projected 37% of adults age 65 projected to need assistance, planning for this very real issue is important. There are many different ways to fund for Long Term Care. Feel free to contact me to discuss this issue. nancy@financialgroup.com or 407 869-9800.

Budgets are Sexy?

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I recently ran across this title while doing some research. Yes, I do think budgets are sexy. They are also a lot of work and are the path to freedom.

Let’s look at your budget as your new exercise program. It is summer after all and you want to look good on the beach. Nothing makes you look better than confidence and being fit. Financial fitness is just as important as physical fitness. So you are ready to walk into the gym for this first time in a long time. This decision takes commitment and planning but you know that the end result will be worth it. This first step is just that. You will be on a long road to fitness and it will require maintenance.

Planning and sticking to your budget requires the same commitment and maintenance. You need to look at all of your regular monthly expenses such as mortgage, power, internet, food, and transportation costs. Next, you need to look at the periodic expenses such as insurance premiums for your home and life as well as items such as property taxes. Don’t forget your regular savings. We look at savings as an expense whether it is long term savings to a retirement plan or short term savings into an emergency fund. I think it is important to add charitable gifting into the budget. Giving to your community is a wonderful way to spend money.

So stretch your muscles, sharpen your pencils, and get your financial and physical sexy going.

Very few things in a marriage are 50-50

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We just attended the first of the summer weddings we have been invited to. She is a new Doctor, he is a new Attorney. They should be on the road to financial security – after paying back the student loans. Here are a few more tips for newlyweds.

Keep credit cards separate:
If one spouse has good credit and the other not so good, one could drag the other down in the credit score game if you make your credit cards joint. It is not necessary to make your spouse joint on your cards.

Don’t split your costs 50-50:
Money is often power. This is very true in marriages. Splitting household expenses can breed resentment when one spouse makes a lot more money than the other. It may also create a sense that the person who pays more has more say in how money is spent.

Talk about spending:
Even after you have reviewed your finances, you need to find out how your spending habits match up. Beyond how much someone spends, there is a potential conflict as what you see as a must-have. You need to work on managing your differences that will lead to a long and happy union.

The Sibling Sinkhole

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Most of us are familiar with, or are even living, the “sandwich generation”. We fully expect to take care of our kids and realize as our parents age they may also need our help. But did you ever think you might have to add taking care of your sibling to the mix?

A number of my clients have been sharing stories about how a Brother or Sister has fallen on hard times and they have to step in and help. There are many circumstances that cannot be foreseen, some that we have seen our whole lives that may put us in the position of having to help. Clear rules, boundaries, and limitations need to come with the help if any type of relationship is to be maintained after the need passes.

If your Sib needs housing, try to put a time limit to the use of your guest bedroom. If the need is money, drawing up a repayment contract might not be a bad idea. You have to put on a business face as well as the compassionate face of a Sibling in order to keep the peace for years to come.

Do you have a Financial Dream Team?

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We can all handle our day-to-day finances ourselves but when it comes to the big stuff, we need a “Dream Team”. Here is how you can put yours together:

You need someone like me, a CFP Professional™. Ask those you trust for referrals and start interviewing. Look for someone who is independent, will match their recommendations to your needs, and provide a lot of service.

You need an Estate Planning Attorney. Estate laws are changing all of the time but that is not where this professional’s service ends. Everyone needs a will, living will, durable power of attorney, and many other legal documents to prepare for life’s emergencies.

You need an Accountant. During this election year there has been a lot of talk about taxes. Income tax, capital gains, estate, these are all in flux and subject to chronic change. You need an account that is up to date on all of these tax issues.

So go out there, interview, and ask a lot of questions. You to can have your own Financial Dream Team!

I am my own product

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Last week, a couple came to see me for a complimentary consultation. One of the comments they made was they assumed I had a group of products that I was connected to for their investment portfolio. As an independent Certified Financial Planner™practitioner, nothing could be further from the truth.

My first concern when working with anyone is planning. As the Daughter of a builder, I am used to blueprints. I put together the financial blueprint for my clients. Only after being comfortable with the planning do I move on to the investments. My firm does not hold or offer any “house” investments. I have the freedom to shop the market place for the lowest cost, best mix of investments available to help my clients achieve their goals.

After 29 years in business, I have learned that providing good, consistent service with no agenda but to make my clients successful in retirement, is the right path for me to walk on. All I have to “sell” is my years of education, experience, and a love of working with my clients to achieve their retirement goals. I proudly say “I am my product”.

My Grandfather lived with us most of my life.

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He was self sufficient and healthy until just before he passed and  a great addition to our daily family dynamic. Not all families are so lucky when a parent moves in. Generally it is because they can no longer take care of themselves. Here are a few tips for taking care of Mom & Dad:

Know what their needs are. By this I mean, prior to them moving in with you have you been seeing stacks of mail go unopened? Is there sufficient food in the fridge? Are they steady on their feet?

No one wants to lose their independence so pay attention to their frailties. Are they keeping track of money? How are they behind the wheel?

Do they need to move in or do they just need some light help? Many organizations have community care teams that will drive people to Dr. appointments and daily tasks. The roles may be reversing between you as the child and them as the parents, love and patience will make for an easier transition.

Tax time is always a stressful time of year; it is made worse if you are going through a divocre.

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I have a couple of friends in this situation and even the amicable ones are arguing over the tax issues. Here are a few key issues:

Do you file joint or single for the year of the divorce? Is filing as head-of-household better?

Who gets the exemption for the kids? Do we split the exemption?

How will you split your assets? Often, 50/50 based on dollar value is the basic but you need to look at cost basis; is an asset tax-free or tax-deferred.

Is there going to be alimony or child support? Make sure you know which of these will impact your taxable income for the coming years.

There is a lot of pain in divorce. By consulting a qualified tax professional your tax return can be less painful.