Young workers under the age of 32 change their job on average four times in the first ten years out of college, according to a new study by the networking site LinkedIn. It seems this is a trend that is on the rise, but it isn’t a new phenomenon. The Bureau of Labor Statistics (BLS) reports that people born between 1957 and 1964 held an average of 11.7 jobs from ages 18 to 48. That’s one job change every 10 years.Today’s older workers are looking at a retirement that can span 20 to 30 years. What happens if you change your mind during retirement? Here are five common scenarios along with good investment moves that can help keep your financial plan flexible.
CHANGE YOUR RELATIONSHIPS
Julia watched her mother stay in a marriage that made her miserable for over 41 years. When Julia retired as a nurse practitioner, she wanted to travel, see the world, meet new people, and have new experiences. Her husband, Al, did not want to do any of those things. “We realized we had grown apart,” says Julia, “and at our age, we thought we deserved to be happy.”While the divorce rate overall has dropped, late-life divorce for people over the age of 65 has increased. The divorce benefits for Social Security were changed when the Bipartisan Budget Act of 2015 was signed into law, but that doesn’t mean you might not still be entitled to funds. Good Move: Find out if you are eligible for benefits as a divorced spouse on a former spouse’s Social Security record. Generally speaking, you can qualify for a benefit if you were married for at least 10 years, and you are at least 62, unmarried, and not entitled to a higher Social Security benefit on your own. Exceptions to this are those who were born before Jan. 2, 1954. If this is you, then congratulations – you still have access to a great benefit known as a restricted application. As long as you meet the above qualifications, you can file on your ex-spouse’s Social Security record, receive half their benefit, and suspend your own benefit so that it can grow, ultimately giving you a higher monthly income for life. If you’re looking to guarantee your income using your savings, we can help.
DOWNSIZE YOUR LIVING SITUATION
Nora realized she was unhappy during her retirement for a very silly reason: her garden was running her life! She worried constantly about watering, and weeding was getting harder and harder on her back. She also spent a lot of money on plants, fertilizer, and landscaping supplies that she would rather spend on her grandkids. Her yard was simply too big and too much for a 75-year old widow to take care of, but Nora owned her home and didn’t want to move someplace where she would have to pay rent.Good Move: Talk with your financial planner early on about your liquidity needs. Whether you want to take out $30,000 to buy an RV or $300,000 to buy that beach condo you’ve always dreamed about, having access to the right amount of money at the right time can support your lifestyle changes and make the transition smoother. Many people think that buying an annuity means you’ll never have access to that money again. Not true. You CAN have both a steady income stream AND access to your cash in the future. Ask us how.
STEP AWAY FROM MARKET CRISIS
Marjorie was retired, yet she was living check-to-check, month-to-month, and she was stressed. Her bills and expenses were consistent, but her dividend checks from her husband’s market investments were not. Marjorie was afraid to buy anything because she never knew how much her dividends would pay her on any given month. What if another 2008 happened? She hadn’t seen her grandson in over three years and her car needed so many repairs, she was afraid to go anywhere. When she finally broke down and went to see a financial professional, he told her, “Marjorie, you have over $1.2 million invested here. There’s no reason at all for you to be stressed!”Good Move: Study after study has found that retirees who have a steady income are happier than those who do not. Instead of throwing yourself at the mercy of the stock market, secure a portion of your funds into an investment that can pay out a steady income for your known expenses. If you still want to capture some of the market gains without any of the market loss, an indexed annuity might be the perfect solution for you. Find out more here.
PREPARE FOR HEALTH ISSUES
As an adult, Frank always had bad knees because as a youth, he’d always played football. Now at the age of 77, he was entering into what he thought of as the slow-go phase of his life. He was no longer in any hurry to get anywhere, and he’d enjoyed traveling during the early years of his retirement. What he really wanted to do with his money now was to hire somebody to come out to the house three or four days a week to take care of all the chores that he could no longer get to on his own. Could he afford that?Good Move: The U.S Department of Health and Human Services reports that 70% of people turning age 65 today can expect to use some form of long-term care during their lives. People like Frank who live alone are more likely to need paid care. Everyday care is sometimes called Instrumental Activities of Daily Living (IADL) because these activities are necessary in order to live independently. This is a long-term care service covered by today’s newer life insurance policies that use an asset-based strategy. Find out if you qualify for this strategy by going HERE.Don’t be bullied into a financial product that might not be in your best long-term interest. If you have questions about an annuity or life insurance policy that you’re considering, we’re here to give you free, unbiased advice. Give us a call at (888) 440-2468 or fill out our simple form. We look forward to helping you GET HAPPY!