Monthly News and Information
QUOTE OF THE MONTH
“It is wonderful what we can do if we are always doing.”
CAN YOU PSYCH YOURSELF UP TO SAVE MORE?
You have probably spent decades saving for retirement, and you might have a decade or more of saving to go before you actually retire. At times, your resolve may be tested. The stock market may falter; household money pressures may mount; new near-term priorities may arise. What can you do to stay on point and stick with this financial commitment you have made to your future self?
First, keep picturing the future you want. Envision the dreams and goals you want to accomplish. If you want to retire to a certain place, spend a day or a weekend there. If you imagine yourself enjoying a particular hobby or pursuit, try out that pastime today. This could reinforce the importance of retirement saving at a time when distractions threaten. Second, if you are tempted to spend more and save less after a raise or promotion, think about the opportunity cost of that choice. A $100 or $500 expenditure on some consumer good poised to depreciate is not an investment in your future, but $100 or $500 invested in equities or fixed-income vehicles could result in further progress toward your savings objective. Third, automate your saving and investing, if that is not already the case, so you never have to think about it. You can do this with an IRA, not just a workplace retirement plan. Some workplace plans offer you the option of gradually increasing your contribution rate. So, instead of merely saving for something hazy called “retirement,” save for the dreams that inspire you.1
Scrub your hands when you wash them
Some people wash their hands more thoroughly than others, and thorough is good. Start by wetting your hands, then apply enough soap to get a good lather going. Then, vigorously scrub your hands, your fingernails, and between your fingers for 15-20 seconds. This scrubbing is what removes the bulk of the germs and viruses, not to mention oil and dirt.
NEW INGREDIENTS ENHANCE CULINARY TOURS
If some of your fondest travel memories center on the cuisine you have savored abroad, you may be intrigued to know how culinary vacations are taking on a whole new flavor. The new trend is toward a deep food experience: exploring the origin and culture giving birth to the food, not merely the food alone.
These trips strive to provide a memorable balance of activities, culture, and cuisine. You might ride a conventional or electric bike from one prime foodie destination to the next in Italy or Spain, fish for salmon and gather edible herbs in Alaska or the Yukon, or go clamming and cook on wild rhubarb-covered rocks in Patagonia. Obviously, trips of this sort are not cheap (think $5,000-$10,000 for two weeks, not including airfare), but they can provide a profoundly immersive experience and lifelong memories. In some areas, you can even add this kind of encounter to a vacation yourself: travel services like NOSHtrekker in Singapore help travelers dine at the homes of locals who share their interest in art, history, and other disciplines.2
DID YOU KNOW?
Famous fast words
Some celebrated novels and novellas have been written with astonishing speed. Irish author John Boyne wrote the first draft of The Boy in the Striped Pyjamas in 60 hours. Fyodor Dostoyevsky wrote The Gambler in 26 days. Jack Kerouac wrote On the Road in three weeks.3,4
ON THE BRIGHT SIDE
Participants in employee stock ownership plans (ESOPs) have an average balance of $170,326 by the estimate of the National Center for Employee Ownership, which is more than twice the mean savings that workers have amassed in other kinds of employer-sponsored retirement plans. There are about 6,700 ESOPs nationwide.5
Sharks have skeletons, yet they don’t have bones. How is this possible?
STUMPED? CALL Bob Greulich FOR THE ANSWER!
Bob Greulich may be reached at 630-684-8562
A5RM-Dec20This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
1 - marketwatch.com/story/how-to-use-mental-tricks-to-save-more-for-retirement-2018-12-10 [12/10/18]
2 - kiplinger.com/article/retirement/T059-C000-S004-savor-the-tastes-of-local-culture-in-retirement.html [12/4/18]
3 - irishtimes.com/culture/books/first-draft-of-the-boy-in-striped-pyjamas-took-me-two-days-1.3034687 [4/3/17]
4 - independent.co.uk/arts-entertainment/books/news/in-just-30-days-you-too-can-write-a-masterpiece-2121214.html [10/31/10]
5 - plansponsor.com/workers-esops-double-retirement-savings/ [12/6/18]
n for Current and Future Retirees
Presented by Bob Greulich- November 2018
QUOTE OF THE MONTH
“Live life to the fullest.”
retirEment PLANNING CONTINUES AFTER YOU RETIRE
It can be easy think of retirement planning as a means to an end: a series of purposeful meetings leading up to a life transition. This transition is not the end of retirement planning. Think of this transition (and the steps preceding it) as the first phase. The second phase focuses on managing your spending, plus enhancing your income and savings.
It may be useful to plan your spending with the “bucket” approach. In this strategy, you withdraw assets from three “buckets” to spend on present-day, near-term, and future needs. The present-day (or short-term) bucket is a bucket of cash, typically from bank accounts or short-duration, fixed-income investments, that complements Social Security and other income sources. This is a liquid resource you can tap for emergency expenses as well as everyday needs. Your second bucket is your near-term bucket, a portion of your retirement savings invested for a mix of growth and income. This bucket could help you finance your vacations, a remodel of your home or yard or a dream that emerges during your “second act.” Your third bucket, a portion of your retirement fund invested mostly with an eye toward long-range growth, can be used to address health care costs (including long-term care expenses). All the while, tweaks can be made to your retirement plan in pursuit of tax efficiency and improved income streams (one may lead to the other). According to Bankrate, 61% of Americans have no idea how much money they will need to save for retirement, and very few have probably considered how they will spend the savings they have once away from work. So the first phase of retirement planning is designed to provide one kind of clarity; the second phase, another.1
Going abroad? Bring medications and supplements in original packaging.
In other countries, you may end up getting generics rather than brand names, and supplements and vitamins may come in different forms than you expect. Ask your physician for the exact generic names of the drugs you take.
THE MAY-DECEMBER RETIREMENT CHALLENGE
When one spouse or partner is considerably older than the other, retirement may unfold differently for that couple than it does for others. Most importantly, the younger spouse or partner must realize how self-reliant he or she may need to be decades from now.
If you are a Gen Xer married to or partnered with a Baby Boomer, the prime challenge may be making your own wealth last until your eighties or nineties. Your spouse or partner may have a greater amount of wealth and retirement savings than you do, but future long-term care or hospital expenses may reduce it to an extent you cannot anticipate. Consider also that you might need to retire earlier than you think, to care or simply be with your spouse or partner if he or she becomes physically or mentally frail. If you can work well into your sixties, this can be a plus, as you can maintain your own income and keep up your own retirement savings effort. If you are in your early sixties and your partner or spouse is in his or her eighties and in need of eldercare, having at least one income can help if your home needs upkeep or if you need to downsize. If you intend to retire together, your loved one may be eligible for Medicare, but you may be without any health insurance for some time (and the average annual premium for individual private health coverage was $6,896 this year, by the estimate of the National Conference of State Legislatures). These matters all deserve consideration before a retirement decision is made.2
DID YOU KNOW?
Sometimes the red planet gets a blanket of white
Snow occasionally falls on parts of Mars. The snow is a bit different than that we know on Earth, however: it is not comprised of water, but carbon dioxide. As a result, there are no snowflakes during a Mars snowfall, only a kind of fog.3
ON THE BRIGHT SIDE
At the end of the third quarter of 2018, the average IRA balance was $111,000. That was more than double the average balance of $52,000 in 2008, according to Fidelity Investments.4
What belongs to you, but is used more by others?
STUMPED? CALL Bob Greulich FOR THE ANSWER!
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
1 - investopedia.com/retirement/retirement-planning-doesnt-stop-when-you-retire/ [11/12/18]
2 - washingtonpost.com/business/2018/10/29/retiring-with-big-age-gap-these-couples-share-joys-challenges/ [10/29/18]
3 - mentalfloss.com/life-on-mars-facts [11/12/18]
4 - plansponsor.com/years-positive-retirement-savings-behaviors-lead-record-balances/ [11/5/18]