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...]
Why Long-Term Care Is Important
Even a well-developed investment plan can fail for reasons that have nothing to do with investments. It could fail because the family breadwinner dies prematurely and doesn't have enough life insurance to cover her loved ones. Or it could fail because of an auto accident that results in a large judgment, and there's insufficient liability insurance in the form of an umbrella policy. This is why it's critical to integrate an investment plan into an overall estate, tax, and risk management (insurance) plan. One area of concern that is all-too-often overlooked is the need for long-term care insurance (LTCI). According to a survey by Sun Life Financial (SLF), there's a major disconnect … [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...]
Midyear Budget Checkup: Are your current finances still healthy?
When you're halfway through the year, it's time for a fiscal checkup. Just as you do with your annual physical, you need to determine if your budget is healthy or if expenses are bleeding enough red ink to cause financial anemia. Are you shedding pounds of debt or are you over-stressed? Will you reach your goals for savings this year? Will you have enough to spend on splurges or holiday gifts? Examining your current financial health is going to take more than simply confirming that you have money in your checking account. We hope you are using some sort of online tool or spreadsheet software. If not, you need a complete physical. Like the familiar, "I'm going to lose 10 pounds" New … [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...]
How Much You Need to Save for Retirement
how much to save for retirementHow much money does a typical worker need to save every month in order to have a reasonable chance of financing a secure retirement? New analysis from the Center for Retirement Research at Boston College (CRR) came up with a broad overview of the rates needed by different age groups and income levels. To estimate necessary savings rates, the researchers first sought to determine what level of retirement income would provide an equivalent standard of living to a retiree's final year of pre-retirement income. After they took account of changes in various tax burdens, commuting expenses, housing costs and other factors, they estimated that a single worker … [Read more...]
A Primer on Medicare and Medigap Coverage
a primer on medicare and medigap coverageDespite all the public discussion about health care, very few people under the age of 65 understand the basics of Medicare, the federal health program for seniors and certain disabled individuals, or Medigap, the supplemental private coverage many buy to cover treatment that shortfalls what the federal program doesn't pay. Even if you have years before you qualify, why focus on Medicare and Medigap now? Because as big changes happen in our healthcare system, those who understand the programs and products ahead of time will not only be better equipped to plan for their post-retirement healthcare options, but they'll have a better understanding of … [Read more...]
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