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Financial Planning for the Second Half of Life

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Financial Planning for the Second Half of Life

  1. 1. Financial Planning for the Second Half of Life https://learn.extension.org/events/1653#.U9-iT010yM8 Barbara O’Neill, Ph.D., CFP®, AFC, CHC Rutgers Cooperative Extension oneill@aesop.rutgers.edu
  2. 2. Webinar Objectives • Discuss common later life financial decisions • Discuss common later life financial errors • Discuss 15 later life financial planning topics • Discuss relevant research findings • Discuss personal finance resources for older adults and financial practitioners
  3. 3. “Street Cred” Extension Specialist in Financial Resource Management (former county FCS Agent) • Financial educator and author • Certified Financial Planner® • In the second half of my financial life
  4. 4. Question #1: What are Some Major Financial Concerns in Later Life ?
  5. 5. Why Focus on Later Life When 80% of PFMP Clientele are 18-34? • New topic….haven’t explored much before • You make better decisions if you “see” your senior self (Hal Hershfield research: http://hbr.org/2013/06/you-make-better- decisions-if-you-see-your-senior-self/ar/1) • Can inform cautions and warnings to young adults (e.g., save statements for future capital gains) • Information may be helpful personally
  6. 6. Question #2: What financial advice would your current self give your younger self earlier in life if you could have done so?
  7. 7. Age 50 (+/- 5 to 10 Years) • Financial “halftime” or “intermission” • Think about past accomplishments • Think about what you still want to do • New challenges and decisions • Increased interest in “giving something back” to family, community, charities • Many people want to simplify/downsize
  8. 8. No More Excuses !!! • I don’t have enough knowledge • I don’t have enough time • I don’t have enough money • I don’t have anyone to help me • I don’t want to make a mistake
  9. 9. Common Financial Errors of Older Adults: • Changing investment strategy drastically on a specific date (e.g., 65th birthday) • “Forgetting” about effects of inflation – 3.5% inflation will double costs in 20 years • Relying too heavily on financial salespeople • Assuming that estate planning is for “the rich” • Retiring without considering health coverage • Not planning for long-term care expenses • Improper asset withdrawals
  10. 10. Increased Financial Complexity and Major Decisions • When to start Social Security benefits • When to retire: how much money is “enough”? • Where to live in retirement • Taxation of SS and pension benefits; estimated tax payments • Purchase of health insurance • Long-term care planning • Required minimum distributions (RMDs) • Estate planning documents
  11. 11. A Tale of Three Retirees • http://www.njherald.com/story/26005492/2014/07/13/a-tale-of- three-retirees-how-to-maximize-your-nest-egg •Case #1- 80 and 78, just retiring, $10 million portfolio, $5 million in tax-deferred plans, no RMDs yet taken •Case #2- Early 70s couple, just retiring, $600k saved, even with 6% withdrawal, will take 40% income cut •Case #3- Mid 60s single parent, $10k saved and not saving, expects to never retire or move in with adult child
  12. 12. Question #3: What are Some of Your Later Life Financial Planning Stories (Good or Bad)?
  13. 13. Research: Wealth Declines • Overall U.S. median net worth fell 38.8% between 2007 and 2010 Survey of Consumer Finances (SCF) • $126,400 in 2007 and $77,300 in 2010 • Median household income fell 7.7% • $49,600 in 2007 to $45,800 in 2010 • Major stock indexes fell almost 50% between 9/07- 3/09 • Yields fell dramatically on liquid and time deposits • 3-Month CD: 5.46% in 9/07 and 0.28% in 09/10 Federal Reserve Study: http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  14. 14. Research: Median Net Worth • Americans' median wealth is $44,900 per adult -- half have more, half have less (average of $301,000 per adult) • U.S. median net worth is 19th place worldwide below Japan, Canada, Australia and much of Western Europe (4th for average net worth) http://money.cnn.com/2014/06/11/news/economy/middle-class-wealth/
  15. 15. Research: Lower Retirement Confidence • Americans’ confidence in their ability to retire comfortably is at a low level • Only 18% of workers are “very confident” • 64% of workers say they or spouse have saved for retirement • 60% of workers have savings and investments (excluding home & DB pension) < $25,000 • 33% of workers expect to retire after age 65; 49% of surveyed retirees left workforce unexpectedly 2014 Retirement Confidence Survey (RCS): http://www.ebri.org/surveys/rcs/2014/
  16. 16. Research: Increased Life Expectancy • More than half of people >45 underestimate how long they will live • Can result in inadequate provision for retirement savings needs Reference (Financial Advisor): http://www.fa-mag.com/news/society-of- actuaries-say-people-underestimate-their-life-spans--11480.html • Average life expectancy for man reaching age 65 today: Age 83 • Average life expectancy for woman reaching age 65 today: Age 85 Reference (Social Security): http://www.ssa.gov/planners/lifeexpectancy.htm BEST to use life expectancy calculators with lifestyle questions: http://www.msrs.state.mn.us/info/Age_Cal.htmls http://gosset.wharton.upenn.edu/mortality/perl/CalcForm.html
  17. 17. Research: Health Care Costs • Even with Medicare benefits, a 65-year old couple retiring in 2012 will spend at least $240,000 on health care costs during their retirement Reference (Wall Street Journal/Fidelity Investments): http://online.wsj.com/article/SB10001424052702304543904577394543896250220.html • A man needs $187,000 and a woman $213,000 to have a 90% chance of having enough money to cover health care expenses in retirement Reference (EBRI): http://www.ebri.org/publications/ib/index.cfm?fa=ibDisp&content_id=4711
  18. 18. Research: Long-Term Care Needs • Americans spent $207.9 billion in LTC services in 2010 • 12% of Americans turning 65 will spend between $25,000 and $100,000 on LTC expenses and 6% will spend > $100,000 • 7 million LTC policies in force vs. 45 million Medicare enrollees Reference (Journal of Financial Planning): http://www.fpanet.org/journal/SeekingAlternativestoLongTermCareInsurance/ • Assisted living expenses vary considerably across the U.S. • $4,794 per month in New Jersey versus $2,617 in North Dakota Reference (Wall Street Journal/MetLife): http://online.wsj.com/article/SB10001424052970203937004578079184108523030.html
  19. 19. Other Interesting Research Findings • People with wealth and health are more likely to delay retiring than poor and sick people Reference (CRR, Boston College): http://fsp.bc.edu/healthy-wealthy-and-not-retiring/ • Couples lack communication on retirement goals • 62% on when to retire • 47% on whether to continue working • 33% on where to retire Reference (AAII Journal/Fidelity Couples Retirement Study): http://www.aaii.com/journal/article/couples-lack-communication-on- retirement-goals
  20. 20. Question #4: What Research Findings About Older Adults Have You Read Recently?
  21. 21. 15 Key Financial Second Half Issues • Financial basics • Investing decisions & asset allocation • Avoiding financial fraud • Creating a retirement “paycheck” • Required minimum distributions • Tax-planning strategies • Transferring untitled personal property • Communication issues about money • Getting help and hiring advisors • Social Security decisions • Health insurance • Long-term care insurance • Estate planning • Health-wealth connections • Leaving a legacy
  22. 22. 1. Don’t Forget “The Basics” • Net Worth Statement – Summary of assets and debts: http://njaes.rutgers.edu/money/pdfs/networthcalcworksheet.pdf • Specific financial goals – Include a date and cost: http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf • Cash flow statement – Summary of income and expenses • Emergency reserve • Financial Fitness Quiz (Check-up): http://njaes.rutgers.edu/money/ffquiz/
  23. 23. BRAND NEW: Personal Health and Finance Quiz http://njaes.rutgers.edu/money/health-finance-quiz/ • Believed to be FIRST combined online health and personal finance behavioral practice assessment tool; IRB approved at Rutgers • Provides an assessment of daily actions taken to improve health and personal finances
  24. 24. Assess Current/Future Insurance Needs • Life insurance • Disability insurance (if employed) • Health insurance (e.g., Medigap, work) • Long-term care insurance • Property insurance • Umbrella liability
  25. 25. 2. Follow Recommended Investment Strategies • Don’t invest if you don’t understand • Diversify (different asset classes and types) • Invest for long term goals: 5+ years • Have reasonable expectations • Buy low-cost investments • Don’t pay attention to daily market “noise” • Balance risk and reward – All investments have some type of risk
  26. 26. Ownership Versus Loanership Investments • Ownership Investments: – Variable Annuities – Stocks – Real Estate – REITs – Growth mutual funds • Loanership Investments: – Fixed Annuities – Corporate Bonds – Government Bonds – Ginny Maes – Money Market Mutual Funds – CDs – U.S. Savings Bonds
  27. 27. Later Life Investing Need-to-Knows • Historically, stocks have provided the highest return of any asset class over the long term • The trade-off is a higher chance of loss – Risk-Reward Relationship (pyramid graphic) • May want to gradually ramp-down stock % of portfolio asset allocation during retirement – Traditional guideline: 100 to 115 – age = Percentage in stock – New research: rising equity glidepath: http://www.kitces.com/blog/should-equity-exposure-decrease-in- retirement-or-is-a-rising-equity-glidepath-actually-better/ • Rebalance portfolio regularly
  28. 28. More Later Life Investing Need-to-Knows • Maximize catch-up contributions if age 50+ – + $5,500 ($23,000 total)- employer plans – + 1,000 ($6,500 total)- IRAs • Maximize employer plan matched savings • Assess your investment risk tolerance – See www.rce.rutgers.edu/money/riskquiz/ • Must complete plan rollovers in 60 days
  29. 29. Later Life Investing Action Steps • Consider hiring a professional adviser – See www.fpanet.org, www.cfp-board.org, and www.napfa.org for names of local advisers • Consolidate scattered retirement plans for easier minimum distribution calculations • Absent health issues, plan on living at least to early 90s • Take advantage of all savings opportunities before retirement
  30. 30. Question #5: What Other Investing Advice Do You Have for Older Adults?
  31. 31. 3. Avoid Investment Fraud 2011 AARP Study: 4 Behaviors that increase seniors’ risk of being a fraud victim: 1. Attending “free lunch” seminars 2. Entering drawings and contests for free prizes 3. Reading and accepting junk mail offers 4. Sitting through sales pitches References: http://assets.aarp.org/rgcenter/econ/fraud-victims-11.pdf http://www.givemebackmycredit.com/blog/2011/06/aarps-fraud-study- key-behaviors-that-make-seniors-more-likely-to-fall-victim-to-scams.html
  32. 32. Is It Too Good to Be True? • High yield often means high risk • Watch out for buzz-words: “guaranteed,” “limited offer,” “safe as a CD,” or “risk-free” • Beware of exotic, unusual products Warning: If it sounds too good to be true, it probably is! Get the facts in writing OR hang up/delete http://www.usa.gov/topics/consumer/scams-fraud/investment.shtml
  33. 33. Elder Investment Fraud Resources • Video: http://www.youtube.com/watch?v=2WfJfxajucM •Publications: –http://www.nasaa.org/1733/eiffe/ –http://www.kiplinger.com/columns/ask/archive/how-to- protect-parents-from-elder-investment-fraud.html
  34. 34. 4. Create a Retirement “Paycheck” (Income Stream) • Try to simulate regular income stream – Annual cash withdrawals (1/12 per month) – Automated monthly fund withdrawals – “Laddered” bonds or CDs – Post-retirement employment • Earnings limit under FRA: $15,480 (2014) • Keep tax-deferred investments and Roth IRAs growing as long as possible
  35. 35. How Much Money Can You Take Out of Savings? • Draft a budget before you start spending • Keep an eye on inflation • Two key factors determine how long savings will last: – Your withdrawal rate – The rate of return on your investments
  36. 36. Withdrawal Rate Consensus • Between 4% of principal, if 50% + in stock – $4,000 a year if $100,000 saved ($333 per month) • Lower (e.g., 3%) if conservative investor; also recent cautions (2.5% withdrawal?) due to low interest rates – http://www.onefpa.org/journal/Pages/The%204%20Percent%20Rule%20Is%20Not%20Safe%20in%20a%20Low- Yield%20World.aspx • Consider hiring a certified financial planner for 2-3 hours (go prepared with net worth and budget) • Do a Monte Carlo analysis for probability of not outliving money
  37. 37. You Need $300,000 Saved for Every $1,000 of Monthly Income $300,000 x .04 = $12,000 ÷ 12 = $1,000 of monthly income $600,000 for $2,000 per month $900,000 for $3,000 per month $1.2 million for $4,000 per month $1.5 million for $5,000 per month
  38. 38. That’s Why You Convert Percentages Into Dollar Figures • Dollar figures provide a much better “benchmark” than percentages (too vague) • More likely to get people’s attention • People often gasp (at classes) when they see this illustration • Did YOU gasp?
  39. 39. Retirement “Paycheck” Need-to-Knows • Possible income sources include: Social Security, defined benefit pension plan, defined contribution plan (e.g., 401(k) and 403(b) plans), individual retirement accounts (IRAs), annuities, taxable account investments, post-retirement earnings, home sale proceeds, rental real estate, reverse mortgage • When making withdrawals, generally tap taxable and tax-free investments first, then tax-deferred employer plans and traditional IRAs (must start RMDs at age 70 ½), and then Roth IRAs)
  40. 40. Retirement “Paycheck”- More Need-to-Knows • Long-term capital gain rates if assets held > 1 year – 0% (10% and 15% tax brackets); 15% (25%, 28%, 33%, and 35% tax brackets); 20% (39.6% tax bracket) • Mandatory withdrawals required at age 70½ • No withdrawal penalty after age 59½ • Roth IRA withdrawals are tax free after age 59½ and if account is open at least 5 years
  41. 41. Suggested Investment Strategy for Older Adults • Set aside enough $$$ to pay uncovered excess expenses for 3-5 years in a money market fund or short-term CD – (e.g., $30k income - $15k from SS and/or pension = $15k uncovered expenses x 3-5 years = $45k to $75k in cash) • Remainder grows in stock & bond funds. Sell stock shares periodically and add to cash assets • If stock market tumbles -- hang tough. Tap cash and bonds and dividends first.
  42. 42. Retirement “Paycheck” Action Steps • Calculate when you can afford to retire and how much can be safely withdrawn annually – Check several online calculators – Use the “4% rule” as a benchmark – Seek assistance from a financial advisor • Save as long as possible in tax-advantaged investments – Roth or traditional IRAs – Tax-deferred employer accounts
  43. 43. 5. Take Required Minimum Distributions (RMDs) • Applies to distributions from: – Traditional IRAs (Roth IRAs are tax-free) – 401(k)s, 403(b)s, 457 plans, SEPs, TSP • Must begin distributions by April 1 of year following year one turns 70 1/2 – 70th birthday: 1/3/14; Age 70 1/2: 7/3/14 – Begin distributions by 4/1/15 (drawback: must take two taxable 2015 payouts if delay) • Employer plans: must start RMD in the year you stop working but can delay first RMD to April 1 of year after one retires (same drawback): http://www.theslottreport.com/2010/07/im-still-working-whats-my-rmd.html
  44. 44. How Much to Take Out • Required Minimum Distribution (RMD)= – Balance on Dec. 31 of prior year /Life expectancy (use factor in IRS uniform distribution table) – See http://njaes.rutgers.edu/money/ira-table.asp – Uniform table automatically recalculates life expectancy (1.9 years if you live to 115!) – Separate table if spouse > 10 years younger (joint life expectancy) • Failure to take RMD: Tax penalty of 50% of the required distribution (must match or exceed RMD) • Plan custodian will report account balance numbers to the IRS
  45. 45. Some RMD Examples • Retiring 80 year old, first RMD due to “Still Working Exception,” $5 million in tax-deferred employer plans: RMD divisor of 18.7: – $5,000,000 ÷ 18.7 = $267,379 taxable RMD •70 ½ year old, already retired, taking first RMD, $1 million in tax-deferred plans: RMD divisor of 27.4: –$1,000,000 ÷ 27.4 = $36,496 taxable RMD •Be sure to have taxes withheld or make quarterly estimated payments to the IRS!!!
  46. 46. 6. Practice Tax Avoidance (Minimization) • Tax-deferred investments – Employer salary reduction plans – IRAs – Annuities (look for low expense providers) • Age 50+ catch-up contribution • Long-term capital gain on investment profits • Good financial records (deductions, capital gains) • Tax preparer for a “good template”
  47. 47. 7. Consider Untitled Property Transfers • “Who gets grandma’s yellow pie plate?” – http://www.extension.umn.edu/family/financial- security/who-gets-grandmas-pie-plate/ • Consider interests of family members – Examples: coin collection, antique car • Make a written list of property and heirs • Share list with family and executor • Consider lifetime gifting of property • Annual gift tax exclusion: $14k per donee (2014) • Can transfer unlimited amount of property (or cash) to charity without gift/estate tax liability
  48. 48. 8. Communicate With Others • Ask executor, contingent executor, power of attorney designee, etc. to serve • Prepare/share a “financial notebook” • Share location of key documents • Discuss burial wishes with family • Discuss living will issues with proxy • Prepare letter of last instructions • Discuss/list personal property bequests • Discuss disposition of digital assets
  49. 49. 9. Get Help When Needed • CPA for complicated taxes • Financial planners: – 888-FEE-ONLY or www.napfa.org (NAPFA) – 800-282-PLAN or www.fpanet.org (FPA) – 888-CFP-MARK or www.cfp-board.org (CFP® Board) – http://garrettplanningnetwork.com/ (Garrett Network) • Go prepared to reduce time and fees – Bring financial statements, list of goals, questions
  50. 50. Question #6: What Other Financial Resources are Available for Older Adults ?
  51. 51. 10. Understand Social Security • Reduced SS benefits available at age 62 • Full SS benefits at Full Retirement Age (FRA) – Age 66 if born between 1943-1954 – Age 67 if born in 1960 or later • Must be “fully insured” with 40 quarters of coverage (a quarter = $1,200 of earnings in 2014) • There is no earnings limit after FRA • Before FRA, $1 of benefits withheld for every $2 over earnings limit ($15,480 in 2014)
  52. 52. Social Security Need-to-Knows • It is usually wise to postpone SS benefits if: – You have substantial earnings – You are in good health – You do not need the money for current living expenses • Contact SS about 3 months before retiring (online) • See www.ssa.gov for general SS information • See http://www.ssa.gov/myaccount/ for SS benefit estimate
  53. 53. Social Security Action Steps • Download benefit estimate annually and review for accuracy: http://www.ssa.gov/myaccount/ • Estimate/calculate percentage of retirement income coming from Social Security (if retired) • Do a Ballpark Estimate retirement calculation (if working) See http://www.choosetosave.org/ballpark/ • Factor Social Security into divorce plans – Must be married 10 years to qualify on ex-spouse’s record • Go Direct (direct deposit of SS benefit check)
  54. 54. 11. Understand Older Adult Health Insurance • Medicare covers people age 65+ • Medicare has 4 parts: A, B, C, and D • Many beneficiaries buy Medigap policies • Retiree health benefits are increasingly scarce • Early retirees must cover health insurance “gaps” (e.g., between a job and Medicare eligibility) • COBRA can extend group benefits for 18 mos. OR those < age 65 can use ACA law exchanges – See http://www.medicare.gov/ and www.healthcare.gov
  55. 55. Health Insurance Action Steps • Apply for Medicare within 3 months of age +/- age 65 • Pay attention to 60-day COBRA deadlines • Safeguard health insurance documents • Inquire about employer retiree benefits, if any • Contact SHIP (State Health Insurance Assistance Program) for assistance with purchasing state-licensed Medigap (Medicare supplement) policies • www.shiptalk.org
  56. 56. 12. Understand Long Term Care Insurance • Potential cost of LTC is a big financial risk • Nearly half of Americans will need LTC at some point in their lives • LTC covers a wide range of services – Nursing home, assisted living, in-home care • Best time to buy LTC insurance is generally age 55 to 60 • Adult children help pay premiums?
  57. 57. Key LTC Insurance Policy Features to Look For • Amount of daily coverage • Length of coverage (e.g., 3 years, 5 years) • Types of benefits provided (e.g., home health care) • Elimination (waiting) period (e.g., 3 months, 6 months) • Number of activities of daily living or ADLs required to trigger benefits (e.g., bathing, toileting, eating, dressing) • Method of making an inflation adjustment, if any Resource: Financing Long-Term Care (eXtension): http://www.extension.umn.edu/family/financial- security/resources/
  58. 58. LTC Insurance Action Steps • Contact SHIP for assistance with purchasing LTC policies from licensed state providers • Explore LTC options, including: – LTC insurance – “Self-insurance” – Annuitized income sources (e.g., DB pension, SS, annuity) – Continuing Care Retirement Communities
  59. 59. LTC Resources • American Association for Long-Term Care Insurance: http://www.aaltci.org/ • U.S. Department of Health & Human Services: www.alzheimers.gov • Medicare: www.medicare.gov • Medicaid: www.medicaid.gov • eXtension/University of Minnesota (Financing Long-Term Care): http://www.extension.umn.edu/family/financial- security/resources/
  60. 60. Question #7: How Are You and/or Your Older Clients Preparing for Potential Long-Term Care Expenses?
  61. 61. 13. Solidify Estate Planning • Spelling out your wishes (e.g., property transfers) is a gift that you give to others • Dying intestate (without a will) may result in unnecessary hassles and expenses • Three recommended documents: – Will for bequests to people and charities and to name executor(s) and guardian(s) – Living will for health care decisions with a designated health care representative – Durable power of attorney to handle financial affairs while you are alive
  62. 62. Estate Planning Need-to-Knows • The principal goal of estate planning is to make sure that assets are distributed as you desire with the least amount of taxes • Permanent $5 million inflation-adjusted federal gift and estate tax exclusion ($5.34 million in 2014) as of 1/13 tax law • Beneficiary and contingent beneficiary designations should be reviewed periodically • See http://njaes.rutgers.edu/money/pdfs/beneficiary-designations.pdf – Wills and trusts – Life insurance policies – Retirement accounts – U.S. savings bonds
  63. 63. Estate Planning Action Steps • Keep property information in one place • Let trusted persons know where estate planning documents are kept – Worksheet: A Record of Important Family Papers http://njaes.rutgers.edu/money/pdfs/importantpapers.pdf • See an attorney to draft or revise documents • Revise documents as life events require • Remember, peak decision-making age is 53: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=973790
  64. 64. 14. Appreciate Health and Wealth Cost Linkages • The “price” of good health is the need for more wealth: Good health raises (NOT lowers) a person’s lifetime care costs • Center for Retirement Research (CRR) projections of remaining lifetime health care costs of couples who reached indicated ages in 2009: Age Healthy Unhealthy 65 $260,000 $220,000 70 $266,000 $241,000 75 $265,000 $236,000 80 $259,000 $220,000 85 $244,000 $202,000 • More years of out-of-pocket medical bills and an increased risk of chronic disease (e.g., diabetes) and need for LTC Reference (CRR, Boston College): http://money.usnews.com/money/blogs/the-best-life/2010/05/12/good- health-raises-lifetime-care-costs
  65. 65. Take Care of Yourself! “The greatest wealth is health” Virgil See www.njaes.rutgers.edu/sshw for information about health and wealth connections SSHW webinar: https://learn.extension.org/events/1625#.U9_6GE10yM8
  66. 66. 15. Leave a Legacy- Give Something Back Many ways to “leave a legacy” – Children and grandchildren – Creative works (art, books, music) – Volunteer time helping others – Charitable gifting • Testamentary gifts via one’s will (less than 6% of Americans leave money to charities when they die; 20% of those who die with wills) • Outright gifts of cash, property, securities • Charitable trusts (see an attorney)
  67. 67. Helpful Online Resources • Rutgers Cooperative Extension – www.njaes.rutgers.edu/money – www.investing.rutgers.edu • Social Security Administration – www.ssa.gov • State Health Insurance Assistance Program (SHIP) – www.shiptalk.org • Planning for a Secure Retirement (Purdue Extension) – www.ces.purdue.edu/retirement
  68. 68. More Helpful Online Resources • Choose to Save Ballpark Estimate – http://www.choosetosave.org/ballpark/ • Financial Security in Later Life (USDA) – www.csrees.usda.gov/fsll • Retire Well (University of Illinois) – http://web.extension.illinois.edu/cfiv/eb141/ • Retirement Living Information Center – http://www.retirementliving.com/taxes-by-state
  69. 69. Still More Helpful Online Resources • Center for Retirement Research at Boston College • http://crr.bc.edu/ • Retirement Readiness Rating • http://www.ebri.org/pdf/surveys/rcs/2000/fact8-r3quiz.pdf • My Retirement Paycheck (NEFE) • http://www.myretirementpaycheck.org
  70. 70. Question #8: What Are Some Others Good Financial Planning Resources For Older Adults?
  71. 71. Don’t Make Assumptions! Puts people on the defensive; they will feel that others don’t understand them and tune out
  72. 72. Prevention Tips for Millennials and “Militaryennials” • Don’t forget the basics (cash flow, net worth, goals) • Contribute to tax-deferred employer retirement savings plans NOW (TSP, 403(b), SEP, etc.) • Select investments for the long term • Avoid frauds and predatory loans • Practice tax avoidance/minimization • Get help when needed (PFMPs, VITA, etc.) • Prepare basic estate planning documents
  73. 73. Prevention Resources for Millennials and “Militaryennials” Web Sites • NEFE-On Your Own: http://www.onyourown.org/ • PBS- Your Life, Your Money: http://www.pbs.org/your-life-your-money/ • Military Saves: http://www.militarysaves.org/ • Wi$eUp: http://wiseupwomen.tamu.edu/ • Books • Personal Finance in Your 20s for Dummies (Tyson) • Get a Financial Life (Kobliner)
  74. 74. Questions? Comments? Experiences?

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