Retirement Compass

Women have their own unique challenges when it comes to retirement, especially given that they outlive their partners or spouses more often than not. Proper planning can help assure a surviving spouse that they have the income to continue their lifestyle after a partner passes away.

Takeaways

• Health care concerns also play into this, especially long-term care
• Statistics show that women age 65+ are more likely than men to live below the federal poverty level
• Proper planning can help prevent this from occurring

Tim discusses tax rates and how possible coming increases could effect retirement planning and how a plan can make income distribution as tax efficient as possible.

Takeaways

• Importance of investing choices in 401Ks
• Importance of financial literacy
• Creating a budget to get a grasp on expenses

The concept of retirement planning is completely different than it was 30 or 40 years ago. Longevity risk – the result of people living longer – is forcing people to make sure what savings they have last for as much as forty years. Tim and Jeff discuss how it has changed and the different kinds of tools available to help in today’s environment.

Takeaways:

• Few of today’s retirees have pensions
• most have to rely on their 401K savings
• how that money can provide income

People are most worried about running out of money in retirement. Jeff and Tim talk about some ways that having a solid financial plan can help alleviate these fears and help put money where it is needed most.

The biggest concerns include:

• Rising costs of health care, especially long term care
• Inflation
• Having money on hand for emergencies

Inflation is an increasingly huge topic in the current news, as the U.S. is experiencing inflation rates higher than any seen since the late 1970’s. Today Tim and Jeff discuss why inflation has to be accounted for in a solid retirement plan to be sure there is enough growth potential to cover higher costs which are surely coming in any future years – not only for ongoing regular expenses but also for unexpected expenses and covering health care costs, which rise at nearly double the rate of everything else.

Legacy planning is the final piece to a solid retirement plan. But it is an important one in regards to what your loved ones final wishes are for having things properly distributed to whomever they want. Tim and Jeff discuss the process for a proper legacy plan, which includes taking into account tax implications for the estate. They also discuss other do’s and don’ts of retirement planning in the opening portion of the show.

We have all seen inflation skyrocket in recent months to the highest levels in years. And retirees on a fixed income feel it more than any other age group. Tim and Jeff stress the importance of planning around inflationary times, and making sure your income keeps up with the ever rising prices of everything, especially including health care which goes up at around double the rate of most other goods.

Tim and Jeff are now involved with the Dave Ramsey Smartvestor Pro program, this podcast and the next will discuss Ramsey's 7 baby steps toward financial independence. On this podcast, they dive into the first four steps.

Tim and Jeff discuss group retirement plans, such as 401Ks, Pension plans, and more. They also go through some specific situations that folks may be involved in when dealing with these accounts.

Tim and Jeff take a look at what could be on the horizon if President Biden’s tax proposals are passed.