The opportunity to sell your family business might represent the pinnacle of your life’s work – and possibly the work of generations of family before you, as well. It can be an even more meaningful experience when you use the sale as an opportunity to achieve your philanthropic objectives, which is possible with proper business and tax planning.
So, you’ve made it to retirement – congratulations! Your many years of hard work, smart financial choices and proper life planning have paid off and you’re now enjoying the best years of your life. Or, are you?
Like many big life changes, retirement can bring with it some surprises. One that catches many retirees off-guard is just how difficult it can be to fill your days when you no longer have the obligation of work – or the natural social life that stemmed from daily interaction with coworkers. So, if you’re feeling bored or even daunted by the idea of so much free time on your calendar, rest assured you’re not alone.
Still, it takes thoughtful commitment to overcome boredom in retirement. It’s not just about keeping yourself busy, it’s about making sure you feel fulfilled. Read on to learn how to overcome this common retirement challenge so you can live the retirement of your dreams.
The United States is in the midst of a massive wealth transfer from Baby Boomers to Gen Xers and Millennials – to the tune of $30 trillion, in fact. In light of this, many parents are wondering how to ensure their children feel empowered by their inheritance, without adopting a dangerous sense of entitlement. Below we’ll explore four proactive strategies for avoiding uncomfortable family scenarios that can develop when adult children know there’s guaranteed money in their future.
The subject of money and inheritance can be seen as taboo in many families, whether there’s a great deal of money in the family or not. A 2015 survey by U.S. Trust (now Bank of America) showed that one-third of high net worth and ultra-high net worth adults intentionally did not discuss family finances with their children out of fear that it would create a negative work ethic. Additionally, a full 20 percent said they had been taught as children that it was not appropriate to talk about wealth. How, then, will these families address the very real concerns that arise when wealth transfers to the next generation? The four action steps below offer a place to start.
In the financial advising business, it’s fairly common to hear from clients who are concerned they haven’t saved enough for retirement. What’s surprising about this, though, is that many of these clients are actually in an enviable financial position. They have worked hard to save more than they are likely to need, and yet they still worry about becoming penniless in retirement. Why is that?
Let’s consider a gentleman we’ll call David. He is 65 years old, a military veteran with a $40,000 per year pension, and he has $400,000 saved. His home is paid off and he has no debt to speak of. He qualifies for both Medicare and Tricare for health needs, and he has a long-term care policy just in case. You don’t have to be a financial professional to see that David has his ducks in a row, yet he’s still terrified of retiring and outliving his money.
Do you remember the story about the grasshopper and the ant? The one where the grasshopper spends all day at play while the ant gathers food? Sometimes, we all need a reminder about how that story ends – with the ant prepared for a long winter and the grasshopper completely ill-equipped.
In this age of intense busyness, it’s easy to spend our time focusing on the day to day and ignoring the future, but this puts us at a disadvantage. Life has a habit of catching us off guard, and we would all do well to spend a bit more time like the wise ant did, preparing for a future transition we know is coming.
Research shows that 51% of Americans are stressed about their finances over the next few years.[i] If you count yourself among them, consider carving some time out of your hectic schedule to plan and prepare for your future. The advice shared below is meant to help you make this invaluable investment in order to provide financial and emotional peace of mind for you and your family.
Between the trade war heating up, and the recent market volatility, there’s no telling what kind of market we’re heading into. After enjoying a 10-year long bull market, there could be tougher times ahead in the near future, or down the road, after you’re retired.
If you’re traveling this summer, or plan to travel often in retirement, there are certain staples you can bring wherever you go. When packing for a trip, everyone immediately thinks of underwear and a toothbrush, but there are other essentials that don’t come to mind as easily. And besides, you can buy a new toothbrush or extra pair of underwear pretty much anywhere in the world. Here are 5 essential items to pack on your next trip.
Turning 65 means a lot of great things – you’re eligible for Medicare, you’re at or near your full Social Security age, and of course, you can get into some museums, buy Amtrak tickets, and eat at certain restaurants for a discounted price. Unfortunately, you may also be targeted by criminals trying to steal your Social Security number. It’s important to recognize what these common Social Security scams look and sound like so you can avoid them.
Even though finances are important, life isn’t just about money. Rather than have your finances dictate your retirement lifestyle, your retirement lifestyle can help dictate how you plan for your finances. After all, two people with similar amounts of money could have completely different concepts of what constitutes their desired retirement lifestyle. No matter if your priority is traveling, working part-time for fun, or just enjoying your free time, it’s important to have a comprehensive financial plan in place. Whether you’re a few years from retirement or adjusting to retirement, spend time thinking about your desired retirement lifestyle.
Retirement is a major event that can drastically change your day-to-day life, your financial strategies, and even your tax burden. Retirees may no longer receive taxable income from an employer, but they will likely receive income from other sources that can be taxed. This is why when it comes to taxes, it’s important to help plan for your future self.
