As you prepare your estate documents, along with the usual gifts of personal property and financial assets, there is another bequest you may consider that can be just a valuable. One of the most loving gifts you can give to your family is a clear and comprehensive written “Legacy”; specifically a life’s narrative to be handed down through the generations. When you share the story of your life, you open a window to past events and make them real for your children and grandchildren. Those who hear your stories gain a sense of continuity and knowledge about where they “fit in”. Stories provide a sense of history and roots, and they transmit your values. There are more than six billion … [Read more...]
Retiring to a College Town
Retirees are flocking to university towns, drawn by the intellectual life, health care, culture, and youthful vibes. They are looking to some of the nation's most dynamic college towns for intellectual stimulation, top-shelf medical care, and new homes. According to one Oregon couple, "Why not move to Austin, Texas?", and spend the time enjoying the "cultural stimulation of a university," a better climate, great restaurants, a music scene that is "off the charts," plus no state income tax. In the past, the great magnet for retirees was Florida, but today more of them are looking beyond the Sunshine State. Now, college towns, with their vibrant cultural scenes and intellectual … [Read more...]
Retired, But Not the Retiring Type
not retiring typeFor today’s generation of people who are nearing retirement or already there, the decision about whether to keep working isn’t as clear-cut as with prior generations. We live in an era where working during retirement is a viable option for people into their 60s, 70s and beyond, as findings from a 2013 study conducted by the Associated Press-NORC Center for Public Affairs Research make clear. The study found that 8% of people 65 or older are working in retirement now. Meanwhile, among those who are working and not yet retired, 47% said it is very or extremely likely they will work for pay to some extent; another 35% said it is somewhat likely. Just because a person has … [Read more...]
Eight Commandments of Building a Strong Financial Foundation
commandments financial foundation 1. Compare your monthly income versus your monthly expenses. Establishing a spending plan can help you get a hold of your financial situation. Live within your means and do not spend more than you make! 2. Pay off credit card balances each month. If you have current credit card debt, attack it each month by paying more than the minimum payment and go for the smallest balance first. When the first card is paid, add that amount to the payments on the second card. Repeat for the next card, and keep going until you've paid them all. 3. Create a "safe and sound" fund. Build a cash reserve of 6 months (or more) of your living expenses. It may be a … [Read more...]
Stretch Your Retirement Nest Egg So It Lasts as Long as You
During the month of May, Vermillion Financial Advisors work with their clients to review their retirement goals and work to make sure their retirement plans are on track. We would like to provide you, our readers, with an article to supplement your retirement planning process! Americans are living longer than ever before, with an average lifespan that, according to U.S. government figures, has increased from 73.7 years in 1980 to 78.3 in 2010 and a projected 79.5 by 2020. While that means more time to enjoy life, it also presents a dilemma: How are we going to make sure our money lasts a lifetime so we can keep living the lifestyle in which we're accustomed, whether we live until 70, 80, … [Read more...]
Ten Questions When Planning for Financial Security
questions planning financial securityIn February, Vermillion Financial Advisors review their clients' financial inventories and their cash-flow management. To supplement this work, VFA has chosen to provide you, our readers, with an article on how to decide what's important in your financial inventories. When thinking about how to protect your livelihood or build the financial resources you will need to live life as desired, answer these 10 questions first. 1. What is important to me? Before thinking about the right financial products for your needs, clarify what's truly important to you -- the people you care about, the aspirations you have, the things you want to protect, and the … [Read more...]
What Happens to My Retirement Assets in the Event of a Divorce
what happens to my retirement assets in the event of a divorceA document known as a Qualified Domestic Relations Order (QDRO), which is a part of a divorce settlement, specifies how retirement assets are divided. A QDRO specifies the amount or portion of a plan participant's benefits that are paid to a spouse, former spouse, child or other party. A QDRO typically governs assets within a retirement plan such as a pension, profit-sharing plan, or a tax-sheltered annuity. Benefits paid to a former spouse typically are considered income for tax purposes. If you contributed to your retirement plan, a prorated share of our investment is used to determine the taxable amount. Former spouses on … [Read more...]