This week, I’m talking about gray divorce. Gray divorce refers to the skyrocketing trend of divorce rates among those age 50 and older. In fact, over the last 25 years, the divorce rate has doubled for Americans over 50 and tripled for Americans over 65. 

Today’s topic is the impact of gray divorce on women. 

One of the interesting and concerning pieces of evidence from the research on gray divorce is that gray divorce actually tends to be harder on women than it is for men. Women who divorce after age 50, faced a 45% drop in their standard of living, compared to a 21% drop for men. In fact, one study found that by age 63, the poverty rate for women who went through a gray divorce was 27%. That’s higher than widows and 9 times higher than couples who were married in the same age group. 

What’s especially interesting is that despite these hardships and a big drop in women’s standard or living following a gray divorce, ⅔ of gray divorces are actually initiated by women.

So how do women actually fare worse because of gray divorce compared to men? Well, several reasons that are unique to gray divorce. 

First of all, women more often choose to keep the house while the ex-husband keeps more of the retirement accounts and other financial assets. This can be especially problematic for women in gray divorce, since the house is not going to produce income as long as you’re living there. In fact, quite the opposite as there is upkeep, property taxes, house payments, and other expenses to consider. 

In general, women tend to have lower social security benefits compared to men. This is especially true if you took time off to stay home with the kids for several years, or worked part-time. In a divorce situation, women can still claim their ex’s social security benefits as long as they were married for over 10 years. But the catch is that if you do that, you’ll still only receive half of your ex-husband’s benefit amount. 

Lastly, in a gray divorce women and men alike can risk losing out on their spouse’s health insurance, and may experience sticker shock when trying to pay for health insurance on their own. 

Financially it’s a grim financial picture for many couples who get a gray divorce, but especially for women. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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This week, I’m talking about gray divorce. Gray divorce refers to the skyrocketing trend of divorce rates among those age 50 and older. In fact, over the last 25 years, the divorce rate has doubled for Americans over 50 and tripled for Americans over 65. 

Today, I’m talking about why Americans are divorcing later in life. A blog post by McKinley Irvin, a prominent family law firm, compiled the research on why and compiled it to identify some of the reasons behind this growing trend. They have some other great research findings and articles that go deeper on this topic as well, so if you want to know more, I’ll link to their resources in the show notes which you can find in episode 507 in iTunes. 

Here’s what they came up with and what the studies show is behind this trend: 

1. Multiple marriages. Couples in their 50s and 60s who are on their 2nd or 3rd marriage are the most likely to get a gray divorce. In fact, the divorce rate is 2.5x higher for people who have had more than one marriage, compared to those who have only been married once. 
2. No more kids. A lot of empty nesters find it difficult to hold together an unhappy marriage once the children leave. 
3. Lifestyle changes. Once one or both spouses retire, it can have a big impact on the lifestyle of individuals and couples, and can often cause friction if that vision for retirement isn’t a shared one.

Those are just a few of the reasons behind the gray divorce trend and something to be mindful of and on guard for, especially as the empty nest and retirement transitions approach. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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This week, I’m talking about gray divorce. Gray divorce refers to the skyrocketing trend of divorce rates among those age 50 and older. While the overall divorce rate has declined from 1990 to 2015, it actually doubled during that same time period for Americans over the age of 50. For those age 65 and older, the divorce rate has tripled, and that poses a big problem for your finances in retirement. 

Today, I’m laying the groundwork to talk about this growing trend and why it’s of special importance and significance for the over 50 crowd, especially since you are so close to retirement.

Among people in my own circle of family, friends, acquaintances, and clients, I have certainly seen an uptick in gray divorce over the last several years - something that seemed a lot more rare when I was growing up. If someone I knew was getting a divorce, it was always a couple in their 20s or 30s, but now the research backs up what I’ve seen anecdotally - and that is the prevalence of divorce rates among baby boomers. 

The main financial problem with gray divorce is that the asset split that happens in nearly every divorce cuts your wealth in half. Research from the National Center for Family & Marriage Research found that someone getting divorced after age 50 can expect their wealth to drop by about 50%. And unlike someone who divorces in their 20s and 30s, you’ve nearly run out of time to make up for that lost wealth since you’re so close to retirement. So unless you want to keep working until well into your 70s, it’s going to be very hard to regain your lost ground. 

Someone once told me that the secret to building wealth is: don’t switch cars and don’t switch spouses. And I think there’s a lot of truth to that, so tomorrow, I’m going to talk about what’s behind the trend of gray divorce and why so many 50 and 60-somethings are calling it quits. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Welcome to a new week and a new theme here on the One Minute Retirement Tip! 

This week, I’m talking about gray divorce. The divorce rate among people in their 50s, 60s, and 70s has skyrocketed in recent years. It’s such a prevalent trend that there’s even a name for it - gray divorce. So this week, I’ll unpack this upswing in divorce rates among pre-retirees and retirees and what a gray divorce could mean for your retirement plan. 

Last September, I read an article in the magazine ‘401k Specialist’. The article highlighted the increase in divorce rates among Americans close to retirement, and the devastating impact that it can have on your retirement plans. 

After reading this article, I knew that it would be a worthwhile and important topic to cover on the One Minute Retirement Tip. It had confirmed a lot of what I had been seeing in my own life -  the uptick in divorces I was experiencing with my own clients who were divorcing in their 50s and 60s and how that was painful for them - both emotionally and financially. In addition, I’ve had several close friends whose parents divorced when their children had grown and moved out, even after staying in the marriage for decades. Those divorces later in life were so curious to me because I just assumed that if you could stay married for 20-30 years like many of these couples had, you were committed for the long-haul.

But as we’ll cover this week, despite staying married for decades, many couples are divorcing later in life, sparking this new moniker for the trend of gray divorce. 

The other thing I want to mention about this topic before we kick off the week is that I put off this topic for 6 months now since reading that article, because I didn’t know how to talk about divorce from a financial and retirement perspective while still being sensitive to the complexities involved in a divorce decision. 

And since divorce is such a contentious and emotional topic with strong extreme opinions on both sides of the issue, I want to be cautious in avoiding any land mines or alienating listeners while I cover this topic. 

My goal this week is to speak the truth and help you think through this difficult, painful, and emotional topic from the perspective of your finances. As I’m really not qualified to talk about the impact of divorce from other angles, we’ll look at the reality of divorce in your 50s and beyond, why there’s massive growth in gray divorce, how it is especially harmful to women, 5 ways that a gray divorce can impact your finances in retirement, and how you can calculate the impact of divorce on your retirement. 

For those of you who are struggling in your marriage right now or are contemplating divorce, I hope this week is especially relevant for you. 

That’s it for today. Before you go, though, if you haven’t already left a review in Amazon or iTunes for the One Minute Retirement Tip, can I ask a favor of you to go do that right now? It just takes a few seconds and it helps to spread the word, and raises visibility of this podcast to help others find it. And thank you to all of you who have taken the time to write a review. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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It’s Sunday, which means...It’s recap time! 

This week, I talked about the coronavirus and it’s impact on the economy, the stock market, and your investment portfolio. 

Here’s what we covered in each episode this week: 

• Coronavirus - what does it mean for your portfolio and the markets
• Will the coronavirus send the US economy into a recession? 
• Should you get out of stocks now? 
• A guiding principle for making decisions in times of fear and panic

Hopefully after listening to the One Minute Retirement Tip this week, you are well-equipped to make smart decisions and the news about the coronavirus develops - for better or for worse. 

If you missed any of these episodes or if you want to revisit any of them, you can find them on iTunes, Spotify, or Google Play by searching for the “One Minute Retirement Tip with Ashley”. 

Before I close out the week though, I want to offer a prayer for all those who have been sickened and all those who have died because of the coronavirus, as well as their families, and all the medical workers and scientists who are working diligently to find a solution. As rough as this outbreak has been for the markets, it’s nothing compared to losing your life due to the coronavirus. 

Almighty God, your only Son took upon himself the sufferings and weakness of the whole human race; through his passion and cross he taught us how good can be brought out of suffering. Look upon our brothers and sisters who are ill, whom we now remember in a special way. In the midst of illness and pain, may they be united with Christ, who heals both body and soul. We ask this through Christ our Lord. Amen.

Tomorrow, we are starting a brand new theme: Are FAANG stocks a good investment? FAANG (F-A-A-N-G) is an acronym referring to the stocks of the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google. This was actually the topic slated for this week, but after big drops in the stock market, I thought I’d better focus on something more timely and push out the FAANG discussion another week. 

You’d be quite happy with your returns over the last several years if you invested in the FAANG stocks. The results of these 5 stocks and tech companies in general continue to produce impressive results, so next week, I’ll talk about whether or not the FAANG stocks are a good investment. 

That’s it for this week! Thanks for listening and I hope you have a blessed Sunday! 

My name is Ashley Micciche and this is the “One Minute Retirement Tip”.

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This week’s topic is the coronavirus and its impact on the economy, the stock market, and your portfolio. 

Yesterday, I answered a very important question - should you sell your stock market investments because of the coronavirus? 

Today, I want to give you a guiding principle to help you answer that question and others like it. So when the next crisis du jour occurs, you’ll know how to react and what to do. 

The principle is easier said than done, and it flies in the face of our natural tendencies to protect ourselves in times of trouble and crisis, but it’s a principle that will greatly enhance your ability to make good financial decisions, and if you’re capable of implementing it in your life across the board, it will no doubt bring more peace and calm into your life. 

Here’s the principle: Focus on what you can control and not on what you can’t. 

Focus on what you can control and stop worrying about what you can’t control. Do you have any control over the coronavirus outbreak and the spread of the disease? No. But you do have control over how you prepare for an outbreak. You can stock up on emergency food supplies and buy a medical face mask for everyone in your family. You can avoid travel to high-risk places and wash your hands. 

Do you have any control over the drop in the stock market and the drop in value of your investments? No. But you do have control over your reaction and what you do about it. You do have control over making sure you have enough in savings so you don’t have to dip into your portfolio if you need some cash. You do have control over how you invested in your portfolio leading up to the downturn. I talk often about the importance of a mix or stocks and bonds that is aligned with your age, income needs, and proximity to retirement. If you are disciplined and focusing on taking the right actions on the things you can control, a drop in your portfolio or a recession won’t derail your plans, so there isn’t too much you should worry about anyways. If you’re healthy, you can control whether or not you work another year or work part time in retirement to allow your portfolio to recover if you retire into the teeth of a recession. 

So focus on what you can control. Just like you can’t control your mother-in-law’s passive aggressive comments, but you can control your reaction to her comments, you can’t control world events and their impact on your investment portfolio, but you can control your reaction to them. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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This week, I’m talking about the coronavirus and its impact on your retirement and investment portfolio. 

Today, I’m answering an important question that has most likely flashed in your mind - should you get out of stocks because of the coronavirus. Certainly the closer you are to retirement, the more the recent drop in the stock market has you worried. 

The problem with changing your long-term strategy based on current events and a possible recession and bear market is that you have to be right not just once, but twice. You have to get out of stocks before the market drops and things get ugly, and I’m guessing that since the drop in the stock market was so swift, you probably didn’t do that. 

And you have to get back in before the stock market turns up again. And incur all the trading costs and potential tax liability for selling your stock market investments. 

My dad always used to tell me there are no billionaire market timers. Only billionaire long-term investors. Think about it. How many day traders do you know who are even millionaires due to their trading and market timing prowess. If there are, it’s due more to luck than skill. Warren Buffett, the richest man in the world who can credit his wealth to his investment acumen, once said: “When major declines occur, they offer extraordinary opportunities to those who are not handicapped by debt,"..."No one can tell you when these will happen. The light can at any time go from green to red without pausing at yellow.”

This time the light has definitely gone from green to red, with the market racing to a correction of more than 10% from the all-time high faster than ever before. 

But I do have an answer for that question I asked at the beginning of today - should you get out of stocks because of the coronavirus. 

It’s the same answer I give to clients that call me in a panic each time the market has a big drop. Don’t sell today. If you still want to sell in a week, give me a call and we’ll talk. I’ve refused to sell into the teeth of a downturn many times and asked clients to call me in a week if they still want to sell. Inevitably, clients calm down and decide to stick with the long-term plan we put in place, and that’s what I recommend to anyone who is seriously considering getting out of their stock market investments - patience is your friend, and one of the worst things you can do for your long-term success with investing is to react and make decisions based on fear and panic. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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This week, I’m talking about the coronavirus and the big question that is on everyone’s mind - will the coronavirus send the US economy into a recession and cause bigger drops in your retirement investments than we’ve already seen. 

My crystal ball is out of order, so unfortunately I can’t give you a definitive answer on that. But here are the relevant facts as I see them. The U.S. economy is growing at about 1 to 1.5% right now, at least that’s the estimate for the 1st quarter of 2020. When the economy is in slow growth mode, it doesn’t take much to push us into recession territory. So yes, it’s very possible that the coronavirus could be the straw that broke the camels back. 

However, it all depends on how the coronavirus spreads and how long it takes before the contagion can be contained. The longer this goes on the more likely it is to push our economy into negative growth. 

But even if that did happen and we are on the brink of a recession, the factors fueling this recession are nothing compared to the recession in 2008. I think it’s all too easy to look back on 2008 and think that the next downturn will be just like it. The Great Recession was long and deep, and fueled by a credit crisis around the world. Credit, which is the underpinning of virtually all consumer and business spending, isn’t the driving force this time around. The world’s financial system isn’t on the verge of collapse and we don’t have any asset bubbles that are ready to pop. Bubbles are the drivers of big drops of 50% like we saw in 2008, and that’s just not present right now. 

The recent drop could just be a hiccup or it could be the catalyst for a recession. Frankly, it doesn’t really matter because you don’t want to abandon your long-term plans because of current events. I’ll talk more about that tomorrow when I answer the question, should you get out of stocks because of the coronavirus?

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Are you panicking yet about the coronavirus? The stock market is certainly infected as it reacts badly to the news of the pandemic. 

Today, I’m talking about the winners and losers with the coronavirus - at least in terms of sectors and the economy. Over the last week, some of the hardest hit sectors have been energy, consumer, transportation, and technology stocks have been the hardest hit. The stock market is bracing for less travel and less consumer spending if the world hunkers down for the coronavirus outbreak. A lot of individual companies that are closely tied with China, have been suffering as well. 

On the flipside, it shouldn’t be a surprise that some of the better performing industries include medical labs, grocery stores, tobacco, and paper products. Certain medical labs and healthcare stocks will certainly be some of the winners from the coronavirus if they can find a solution to curb the contagion. And in the meantime, the market is predicting that people will be stocking up on grocery staples, cigarettes, and toilet paper. 

Safe haven investments like US Treasury bonds and gold have also been doing quite well as fear grips the stock market. 

As I mentioned earlier this week, the stock market is down 12% in the last week as I write these tips because of the expectations over continued spread of the coronavirus. It remains to be seen if this is a short-term panic or the start of a more significant downturn in the economy and the stock market. 

My point with today’s tips is that no matter what is happening in the world, there are always both winners and losers and opportunity if you are able to shake off the fear to find it. I would encourage you not to panic and sell and abandon your long-term plan with your retirement because of a big market drop like we’ve seen. 

If it’s not the coronavirus, it’s SARS or a government shutdown, or natural disasters, terrorist attacks, a sovereign debt crisis, or a trade war. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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This week, I’m talking about the coronavirus and its potential impact on your investment portfolio and the economy. 

Today, we’re de-briefing on what’s happened so far to stocks and the stock market and what the likely impact is on stock markets. 

Let’s start by putting this recent drop into perspective. As I mentioned yesterday, as I write the tips for this week, the DJIA is down more than 12% over the last week due to concerns over the coronavirus. 2 of those days involved drops of over 1,000.

With China manufacturing and their economy being so important to the world economy, it will no doubt have an impact there and a ripple effect to other economies around the world, including here in the U.S. 

One of the other problems with the timing of this shock to the markets and the world economy is that most economies around the world are slowing down. Here in the U.S. 1st quarter GDP (otherwise known as the growth rate of the economy) is expected to be about 1-1.5%. Our economy has been growing, but growth has slowed, so the impact of the coronavirus on certain industries and the economy as a whole could be the straw that broke the camel's back. When the economy is growing at 3-4% it’s more resilient to shocks like this, compared to the current low growth. When we’re only growing by 1-1.5%, shocks like this can be enough to push the economy into a recession. 

I don’t have a crystal ball and my magic 8 ball told me to “concentrate and ask again” when I asked for it’s prediction, so I have no idea what this pandemic means for the economy or your portfolio long-term. 

It really depends on the severity of the pandemic. If life in China and around the world can return to normal relatively soon, then it’s unlikely to create any serious long-term economic or market impacts. But it’s also possible that the coronavirus could continue to worsen and if it does, you may not like what you see when you look at your 401k and investment account balances over the coming weeks or months. 

With that said though, shocks like this are actually very common and even though it’s tempting to sell everything and hide it under your mattress, if history is any indication, often shocks like this are just temporary and nothing to panic over. In fact in the 35 years from 1980 to 2015, despite finishing up for 27 of those 35 years, the stock market dropped during the year an average of 14.2%. That’s worth repeating. During a 35 year time period, you could expect double digit drops during the year, even though the stock market finished up the vast majority of the time. 

Because the reality is, if it’s not coronavirus, it’s SARS or a government shutdown, or natural disasters, terrorist attacks, a sovereign debt crisis, or a trade war. 

Hopefully when you realize that a shock like the coronavirus is nothing new and unlikely as of right now to send the economy and the stock market into a deep dive, you can better equip yourself emotionally for the ups and downs while the crisis du jour gets sorted out.

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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