Let the Sun Shine in on Your Retirement

Age of aquarius"This milestone birthday for the Woodstock crowd is a good time for a financial tune-up."

Money's recent article, "Happy 70th Birthday, Boomers!" says that if you're on the leading edge of baby boomers, those Americans born from 1946 through 1964, you're probably not feeling old.

That may be true: researchers say that your generation—which came of age in the 1960s—is healthier and more mentally agile than others previously were at your age.

This good fortune has some financial implications, too. The oldest boomers, who are turning 70 this year, will more likely than not be able to celebrate their 85th birthdays, where their grandparents at 70 had only a 28% chance. More than one in 10 of the oldest boomers will reach age 95—compared with fewer than three in 100 of their grandparents. You've plenty of time left to invest, protect, and enjoy your money. So, Roll Over Beethoven! Here's a financial to-do list that rocks!

To keep from pulling money out of a declining market for living expenses, have at least 12 months of cash on hand to cover day-to-day costs. Also, you should be taking Social Security now, since there's no upside to delaying once you hit 70. However, you shouldn't assume that you need less risk in the rest of your portfolio. If most of your everyday costs are covered by Social Security and other guaranteed income, you can keep your money primarily in stocks, especially if you want to leave an inheritance. If you need your portfolio for living expenses, step it back but don't get out. A good stock allocation for most people age 70 and over ranges from 40% to 60%.

Pretty soon after you turn 70, you will have your first mandatory withdrawals from your retirement accounts. These are known as required minimum distributions from retirement accounts like 401(k)s and traditional IRAs. The clock starts ticking on these the year you turn 70½. You are required to take each distribution by Dec. 31st—except for the RMD for the year you turn 70½, which can be up to April 1st of the next year. If you miss these deadlines, you'll pay a hefty 50% of the money you were supposed to withdraw. Ouch! It's a good idea to have your brokerage or 401(k) plan automate your RMDs. Now that you have all these details set, you can relax and let the sun shine in.

Reference: Money (December 28, 2015) "Happy 70th Birthday, Boomers!"


Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment


We have a LOT more where that came from!

We hate spam too. We will never share or sell your information.

Call Now ButtonCall Us Now https://jsfiddle.net/7h5246b8/

Request a free consultation

We hate spam too. We will never share or sell your information.

We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
  • We launched the rollout of our on-demand webinar early so that new clients and our allied professionals can view the important component parts of ‘an estate plan that works’ at their convenience.  That is available on our website.
  • Live video workshops will be produced as quickly as possible and certainly ahead of our previous schedule; we will keep you posted as these events become available. Given the ‘boutique’ nature of the firm, we rarely have more than ten people in our office including team members at any one time. During this period of ‘social distancing,’ we promise to have no more than 8 people at any time.   This allows us to comply with the Governor’s directive to limit in-person gatherings.
  • The best way to communicate with us is still by phone during regular office hours of 8:30 to 5:00, Monday through Friday, or, you can email any of our team members (that is, their first name followed by @zarembalaw.com).  We will respond to these emails as quickly as possible.
  • Please continue to follow the directives of our local, state, and federal agencies. For your health and in consideration of our team who is assisting you, if you’ve scheduled an office appointment or planned to drop off paperwork and are experiencing a fever, dry cough, or shortness of breath, please contact your primary care doctor for guidance and then our office to reschedule.

Thank you, Walt and the Zaremba Team

Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.