Should I Retire?

Senior Thursday

One question more and more seniors are grappling with is whether or not it is the right time to retire.  With the cost of living going up, but income not keeping pace, coupled with the stock market collapse a few years ago, the question isn’t as easy to answer as it used to be. 

Another reason it can’t be answered easily is that everyone’s situation is unique.  We all have different levels of income, varying amounts of debt, and different health concerns.  Nobody’s portfolio (if you even have one) is the same, either.  Add factors such as health and life insurance coverage, ages of your children and grandchildren, your company’s pension plan and you start to see how the answer for you will be completely different from your neighbor or brother’s answer. 

If you’ve been earning a decent pay since college graduation, have put your children through school, and they are financially secure, you’ve grown your portfolio to six times your annual income, and your health is good, you can comfortably retire at 60 or 65.  However, if you’ve been living paycheck-to-paycheck all your life, have medical bills to pay and only one year’s income invested with no company pension, then you may have to work well past 60 or 65 just to make ends meet.

Your financial advisor and accountant can best help you answer this question.  In order to arrive at the best answer, though, you should have the following information/documents together for review:

·        Previous year’s tax return

·        Current pay stubs

·        Most recent statements from investments

·        Most recent statements from bank accounts

·        Summary of monthly expenses (mortgage/rent, food, pets, transportation, utilities, etc.)

·        Summary of assets (real estate, vehicles, savings accounts, etc.)

·        Most recent Social Security Statement

·        Most recent pension statement

·        Life Insurance policies

·        Health Insurance policies

You are never too old to start planning.  But beginning early will help make your retirement years as comfortable as they can be.

The Importance of Sharing Memories

Senior Thursday

How many times have you heard from surviving children after their parents have died that they wished they would have learned more about their heritage?  Too often, we are so absorbed in our own lives, that we don't take the time to learn about theirs.  And when they are gone, it's too late.

It is important to talk to your parents, grandparents, aunts and uncles now.  At your next family gathering, ask them about their childhoods. 

Here are some questions to ask to start the discussion:

SCHOOL/EDUCATION

·         How many children were in their classes at school?

·         How large was their graduating class? 

·         How many years of schooling did they have?

·         What was their favorite subject?

·         Which teacher made the biggest impression on them?

FAMILY

·         How large was their family?

·         Were they the oldest/youngest?

·         Where did they grow up?

·         How big was their home?

ENTERTAINMENT

·         How did they celebrate birthdays?

·         Did they go on family vacations?  If so, where and when?

·         What did they do for fun on Saturday evenings?

·         How much did admission to a baseball game cost?

This is just the beginning of wonderful stories and wonderful conversations.  But don't stop there.  Write down what they tell you.  Keep these notes in a journal or transfer them to your computer.  You'll have those memories forever.

Helping Your Parents Remain Independent

Senior Thursday

One of the biggest struggles we face as we age is remaining independent in our own homes. As adult children caring for aging parents, we often have these discussions with them. While we know their physical and mental limitations, they do not want to leave the home where they raised their family. If they insist on remaining independent, then the most we can do for them is make their lives safe.

First, have your parents sign up for an emergency response system. This will give them 24/7 access to the police/fire department. If they fall, help is only a button away.

Remove all fall hazards, such as throw rugs and sharp corners on tables. Make sure transitions are smooth between rooms, and install grab bars in the bathrooms.

Set alarms around the house. There are alarms for alerting someone that a pot has been left on the stove unattended, or for reminding them to take their medications.

Do what you can to make their life simpler. This may be different door or drawer handles, a long shoehorn, velcro closures, or a grabber for reaching items from upper shelves.

Make sure they eat right and have regular checkups with their physician. Activity is especially important for keeping healthy. If they have difficulty doing any daily activities on their own, hire help to come in and assist with meal preparation, bathing, etc.

Finally, stay connected with them. Loneliness can cause depression and premature aging. But whatever you do, take care of yourself also. If you don't take care of you, you can't take care of them.

Creating an Emergency Hospital Bag

Senior Thursday
As we age, the possibility of having to visit the Emergency Room increases. It may be from an accident, an illness or a fall. Regardless of the reason, the visit can be very stressful. When this happens, the patient often forgets important information, such as phone numbers, medication doses and allergies. Therefore, having a bag or tote to bring with in case of just such an emergency may save your life.

To avoid confusion, pack a tote or bag with vital information. You should include the following:

• List of prescription medications, their strength and doses. Include the prescribing physician's name and phone number.
• List of physicians under whose care you have been. Include phone numbers and addresses.
• Names and phone numbers of family members and friends to notify.
• List of non-prescription medications, such as vitamins and supplements, along with strength and dosage.
• List of medical conditions, history of surgeries and hospitalizations, allergies and vitals (height, weight, blood group).
• Personal identification--name, address, phone number.
• Change of clothing and toiletries.
Because you may not be home when an emergency happens, save a copy of your medical information on a document and store it on a flash drive. Keep this flash drive with you whenever you go out. Mark it as containing your medical information.

Starting the Discussion About Inheritance

Senior Thursday

Talking about inheritance with a senior can be uncomfortable. First, for the family members who don't want to seem greedy, and second, for the senior whose life is admittedly ending. After all, who wants to talk about leaving this earth?

Unfortunately, it is a discussion that should be held. It will make matters much easier after their death. You don't want their estate to go to probate. And you certainly don't want family members arguing over their money or possessions.

So how to start the discussion? Be clear about your motives. You are not in this for yourself, but rather for them. Know that others may not share your opinion. But be respectful of other's opinions.

"What if…?" is a natural conversation starter, as is "What would you have done…?" Use these opportunities to begin the conversation.

Finally, don't leave it at conversation. Once they face reality, have them see an estate attorney to put their decisions in writing. And have them call a professional organizer to coordinate the downsizing.

Decide to Downsize

Senior Thursday

As we age, our lives and needs change. Our children move out of the house. They may even move out of state.

Suddenly, that house we needed to raise our family is too large for us. It's too large for occasional visits from the out-of-town grandchildren.

And it's too large to keep up as our health declines.

Now is the time to make the decision to downsize. Yes, your house may be manageable now. But what if a catastrophic illness hits you? Who will take care of the house then? Your children have their own jobs, lives and houses. Can your spouse do all the yard work? Or all the grocery shopping?

Start thinking now about what you really need in a house. This is a difficult decision, as there are many friends in the neighborhood, and you are comfortable with your surroundings.

Just keep in mind what is best for you.

Places to Donate Clothes

Senior Thursday

Last week, we had you sort through your closet and decide which of your work clothes you didn't need in your retirement years. But what do you do with that pile?

You can:
1. Donate them to your favorite charity. There are several that pick up from your front door, or many have donation drop-off sites. These include The Salvation Army, The Cancer Federation, Goodwill, Amvets and Habitat for Humanity.

2. Donate them to a Women's shelter or to a thrift store supporting women's shelters. This would include places such as your local YWCA and Home of the Sparrow.

3. Donate them to a charity that puts women back in the work force such as Dress for Success.

4. Take them to a local consignment shop. Most consignment shops will set up an appointment with you to go through your clothes. They only take certain garments at certain times of the year, and they have to be in excellent condition. If they do not sell your items after a certain period of time, you can take them back or the store will donate them to a local charity.

5. Sell them online. If you have high-end label clothes, they sell well on sites such as eBay and Craig's List. This takes time and costs money. Determine beforehand if the time you spend will be worth it.

6. Distribute them among family members and friends.

7. If they are in poor condition, throw them away.

Retirement Means a Whole New Wardrobe

Senior Thursday

As we age, our lives and needs change. Retirement is one of the biggest changes in your life. Not only are you home all day, but you are wearing different clothes now. No more business suits, dressy blouses, or ties. Your wardrobe is now jeans, tees and loafers.

So what do you do with all those clothes? You don't need them taking up precious space in your closet.

You'll want to keep a few items for special occasions, but you can safely get rid of the rest.

Go through your closet and decide which are your favorite pieces. Look at the rest. Are they in good condition? Then donate them. If they are stained or ripped, then discard them.

If they are designer clothes, you might consider selling them. It all comes down to how valuable your time is, and how much money you need.

Tune in next week for resources on donating/selling your clothes.