Navigating Life’s Transitions

Navigating Life’s Transitions By Rewriting Your Story

Your plans for the future are really a story that you tell yourself. Some of the chapters are easy to imagine and plan, like buying your first home, sending your kids to college, or picking out dream retirement destinations with your spouse. But life has a way of throwing unexpected plot twists at you, such as, say, a global pandemic that upends how you live and work. If you feel like your story has lost some of its most important plot threads, use this three-step method to find a new happy ending and navigate life’s transitions.

  1. Accept

An unexpected job loss. The death of a loved one. Losing your home in a fire. A major illness.

Life is never the same after you experience these kinds of unexpected transitions. Your lifestyle might change. Perhaps your relationships might change. Your daily routine might change. And your long-term personal, professional, and financial goals might have to change as well.

Letting in feelings like sadness, embarrassment, and fear can be very challenging. If you’re having trouble expressing yourself to your spouse or another confidant, try journaling. Getting your thoughts and emotions down on paper can help open you up for the conversations you’re going to need to have as you navigate through this new transition.

  1. Edit

Now that you’ve accepted this change in your life, you need to figure out how you’re going to adapt to it. Big transitions often feel so overwhelming that they can be paralyzing. Where do you start?

Start with today.

Break the new transition down into smaller parts. What is one thing on your list that you can accomplish today and that you can build on tomorrow? If your doctor says you have to start eating better, make a new shopping list. Need to exercise more? Buy a pair of running shoes. Brush up your resume so you can start a job hunt. Register for an online class that will help you make a career change. If it’s time to tighten the family belt, cancel that streaming subscription you never use.

Racking up smaller daily wins will make this new transition feel a little more manageable every single day. You might also create some new habits that will make you healthier, happier, and more productive.

  1. Rewrite

In the moment, unexpected transitions can feel like an end. But as you gain personal momentum from your new routine, you’ll start to see that there are opportunities ahead of you as well. And when you finally close this chapter, you can start writing a new one.

Some of the details in this revised chapter might be a little different than you imagined before. But not all change is bad. Maybe, instead of retiring to that beachfront condo, you remodel the family home and have your grandkids over more often. If you have to hang up your tennis racket, taking long walks with your spouse could be a new way to exercise, unwind, and spend time together. Now that one phase of your career is over, it might be time to promote yourself to CEO of your own company.

If you’re really struggling to see a way through an unexpected transition, here’s an easy daily win to get you started: get in touch with us. We can review your $Lifeline in-person or over a video chat to figure out if any of your anticipated transitions need to be edited. We can also coordinate with other professionals like your attorney or accountant to iron out any other major adjustments you might need to make.

No matter how your life story continues to change, we’re here to help you make the next chapter the best one yet.

You can also find some great resources for transition on the AARP website.

Gain Personal Momentum Coming Out of the Pandemic

Part 1: Better Habits for a Healthier Mind 

Since the Covid-19 outbreak we’ve all had to make adjustments so that we could cover our basic needs, care for our loved ones, and remain productive during quarantine. No matter how well you’ve adapted to these extraordinary circumstances, there’s probably a part of you that feels like you’ve been just trying to get through the next day. But it’s important that we create some personal momentum as life returns to normal, so we can hit the ground running.

And, to your credit, you have!

But as the country begins to reopen, it’s time to stop “getting by” and start approaching our lives and work with the same vigor we had before the pandemic. Regaining our old momentum isn’t going to be as easy as flipping a switch. So we asked some leading experts on behavior and peak performance what mental strategies they would recommend to help us start building personal momentum as we approach, hopefully, the end of quarantine life. 

  1. Live in your “Present Box.”

Licensed clinical psychologist Dr. Beth Kurland says that evolution instilled a “wandering mind” in humans as a survival mechanism. We’re never totally in the present because our survival instinct is constantly reminding us of things we overcame in the past and alerting us to potential future dangers. Dr. Kurland says, “In this pandemic of uncertainty, these kinds of mental ruminations can really increase a lot of the anxiety that people are experiencing.”

The more that we focus on the here and now, the less anxious we are going to be, and the more motivated we will feel to tackle immediate problems. To help achieve this mental shift, Dr. Kurland recommends drawing two large boxes on a sheet of paper. Label one “The Present,” and label the other “What If?” Then, write the things that are occupying your mind in the appropriate box. According to Dr. Kurland, separating what’s happening right now from what could happen helps us “to really think about what is in our sphere of influence, what we have personal agency and control over.”

Yes, eventually, you might have to move some of those “What Ifs?” into your “Present” box. But for the moment, try to imagine putting a lid on your “What Ifs?” and structure your time around what you need to do – and can do – today.

  1. More Teflon, less Velcro.

Psychologist Rick Hanson says, “The mind is like Velcro for negative experiences and Teflon for positive ones.” The anxiety and worry we’re all experiencing during quarantine only enhances our tendency to dwell on the negative and overlook the many good things we have in our lives.

Dr. Kurland believes that an added benefit of her Two Boxes exercise is that the more present we are, the more likely we are to notice and appreciate the positive. For example, many of us are feeling closer to our extended friends and families thanks to Zoom calls and care packages. Other folks have used the working from home experience to chart new career paths.

However, a Teflon mindset doesn’t mean boxing away some of the real emotional hardships you’ve experienced during the pandemic. Instead, Dr. Kurland encourages us to find a healthy balance between letting our feelings in and not letting them keep us down.

“I think it’s really important to acknowledge and have an opportunity to process those emotions,” Dr. Kurland says. “But try to both hold a space for the grief, the sadness that may be there, and also really find ways to notice the moments where we can really appreciate the positive things that we can take in. The warm glance from a family member or a kind word from a coworker. These kinds of things that really, as we take them in, can help us to get through a difficult day, a difficult moment.”

  1. Separate good stress from bad stress.

“Stress is good to a certain extent,” says Commander David Sears, who served for 20 years in active duty within the United States Special Operations Command as a U.S. Navy SEAL officer. In Commander Sears’ experience, stress can be a catalyst for growth and improvement. Right now stress is instilling good new habits in you, such as wearing a mask when you go shopping or retooling your monthly budget to adjust for changes in your work and living conditions.

But Commander Sears cautions, “You can get overwhelmed by stress and then it starts to become chronic, debilitating and it turns into a sort of pain.” To manage his own stress response, Commander Sears leans on lessons from his military service, including the importance of having a support system around you and finding order in a personal routine.

“It’s Physical Distancing”

“This whole idea of social distancing that we have is wrong,” says Commander Sears. “It’s physical distancing. We still need that social interaction, you need to have those communications. And you have to put in some structure in order to put some sanity into your life. Maybe develop your own schedule in the morning: I’m going to get up, I’m going to work out, I’m still going to put on my pants and get out of my pajamas. I’m going to then go to my first project of the day, then I’m going to go to the second. You might even need to implement a little more structure and discipline in your life in these times so you don’t feel like you’re wandering.”

We understand that transitioning back to living and working outside of your home is going to present its own set of challenges. We hope the expert strategies discussed here will help you approach those challenges from a more positive place. We’re also available for video calls or in-person meetings to discuss how your Life-Centered financial plan can help you build more momentum towards living your best possible life after quarantine.

If you would like to create personal momentum in your personal finances, reach out to us.

Additional Government Resources

Use This Downtime To Think About Retirement

The coronavirus pandemic has forced many older workers to reassess their careers and how they view retirement. Folks who are fortunate enough to be working from home might be coping with a mix of technological hurdles, while also enjoying more family time and more flexible hours. Too many others nearing retirement are facing real financial worries due to reduced income, job loss, and instability in their investment accounts.

Under ideal circumstances, there are three broad choices about how to transition away from your full-time job: phased retirement, full retirement, and continuing to work in retirement. Let’s consider how the pandemic has affected each of these options and which path could be the most fulfilling for you.

Phased retirement.

Working from home during the pandemic might be giving some workers a small taste of what phased retirement is like. Reducing the hours that you’re in the office can help you ease into a new routine where you’ll be spending most of your time at home. You’ll also have some flexibility with your schedule, which will allow you and your spouse to start experimenting with shared and separate calendars that will let both of you get things done without driving each other crazy.

Moreover, the pandemic has forced all of us to reassess the people, experiences, and goals that mean the most. Phasing into retirement can help you fine-tune your work-life balance as you continue to process how social distancing has affected you professionally and personally.

Full retirement.

That same spirit of introspection is leading many seniors to think about jumping into full retirement sooner. Perhaps being away from your job is making you realize you’re too used to doing unfulfilling work for a paycheck that’s not making your life better. Or, if you’ve been putting off retirement, the experience of social distancing might have motivated you to stop waiting and start doing as soon as life gets back to normal.

Social distancing has created a separation between our sense of self and our jobs that some people find a little unnerving. That feeling is very common among new full retirees, even those who are following a long-established plan and retiring wholly on their terms. If you’re leaning towards a full retirement right now, talk to your spouse about how you’d like to reframe your identity and start living a freer and more fulfilling life after work.

Working While Retired.

Even before the coronavirus pandemic, more and more seniors were choosing to work after retiring. Today’s retirees are healthier and more active. Some are working past 65 because they love what they do. Others transition to part-time jobs that let them explore other interests while still earning a paycheck. Many working retirees also want to top off their retirement and savings accounts while they’re still able so that their nest eggs keep pace with increased life expectancy.

Could the coronavirus pandemic accelerate this trend? While social distancing, many seniors have gained greater proficiency with technologies like Zoom, Skype and Slack. Those skills could open up a whole new world of remote jobs, including teaching and consulting positions. Entrepreneurial seniors might be looking at the shifting landscape of global business and spotting a new route for starting their own dream companies. And still other seniors might be so sick of being cooped up that, when conditions are safe, they’ll seek out part-time jobs as a way to reconnect with their communities.

If retirement is a transition you saw fast approaching on your $Lifeline at the beginning of the year, let’s talk about how the coronavirus has affected your thinking. We just revamped the $Lifeline tool so that it’s easier for you to plot out what you see coming next and sync those changes to your financial plan.

Whatever your approach to retirement may be, we can help you get there. Let’s start with a conversation.

Has the pandemic made Americans more or less confident about their retirement plans? Find out here.

Use the Pandemic as a Catalyst for Change

The coronavirus pandemic has put all our short-term needs front and center, creating a lot of change in it’s path. Just getting through one week of virtual work meetings, grade school math lessons, and grocery shopping can be a challenge. And if you’re one of the millions of Americans struggling with income loss or unemployment, those daily to-dos can feel even more pressing.

However, as the conversation starts shifting towards when and how to reopen the country, it’s worth taking a few moments to broaden our perspective beyond immediate concerns. As hard as this experience has been, social distancing has probably changed the way you live, work, spend, and communicate in a few positive ways as well. Some of the habits you’ve developed over the last couple months might be worth bringing with you once we’re all out in the wider world again.

Change how you work. 

Your first few virtual conference calls were probably awkward, with participants struggling to adjust audio/video equipment and talking over each other. Now that we’ve all learned the “language” of Zoom and Skype, those meetings are becoming much more productive.

Whether you’re a boss or an employee, explore how remote working arrangements could save time and create a more flexible and personal work routine. Once your company isn’t in crisis mode, integrating more virtual meetings into your communication rhythm might make your workforce feel more connected, especially if you have offices across the country or overseas.

Change how you eat.

Except for the occasional curbside pickup run to support our local restaurants, most of us are eating our meals at home. Working through all those cookbooks has been an educational and entertaining way to pass time in quarantine. But it’s also been better for your health, especially if you’re not drifting in and out of the kitchen for snacks all day.

Develop a solid menu of at-home meals you can keep in rotation so that after the pandemic your family will still be spending some extra quality time together while eating quality food.

Change how you budget. 

Whether you’ve economized just by staying home or made some tough cuts out of necessity, quarantine has probably had a profound impact on how you spend your money. Some folks are setting a monthly budget for the very first time.

That’s a habit we hope will continue after this crisis passes. The single biggest factor in your financial plan is your spending. If you have extra cash right now because you’re not filling up your gas tank every other day and popping into coffee shops, we recommend using those funds to top off your emergency savings accounts. We can also discuss if increasing contributions to your retirement and investment accounts might be a good move while prices are low.

Social distancing might have made you look at some of your non-essential spending in a different light. Under normal circumstances, were you really using those social club and gym memberships enough to justify the expense? Are there entertainment subscriptions you’re still not really using, even during lockdown? How much money could you save on food if you keep planning out weekly meals before grocery store runs?

Change how you live.

We’ve all experienced the coronavirus pandemic in both public and personal ways. Some of us can’t wait to jump right back into our old routines and add in a few positive habits we’ve picked up during quarantine.

But maybe working from home has made you realize that you want to keep working from home – as your own boss.

Maybe the necessity of social distancing has made you think about all those unrealized vacation dreams.

Perhaps video chatting with friends and family scattered across the country has you thinking about relocating.

Maybe you’ve been asking yourself, “Before all this started, was I really using my money to live my best possible life?”

If the coronavirus pandemic has added some new transitions and destinations to your financial $Lifeline, the best time to start making those plans is right now. We are online and ready to talk about the changes you want to make to keep your financial plan in sync with the life you want to live.

Experiencing anxiety during the pandemic is normal. Just don’t let that sense of uncertainty lead you to one of these serious money mistakes.

 

2019 Was One For The Ages | Heritage Wealth Weekly

About face!

2019 was a remarkable year for investors with many asset classes delivering positive performance. Both the Standard & Poor’s 500 Index, a gauge of U.S. stock market performance, and the Dow Jones Global (ex U.S.) Index delivered double-digit increases (see the below table). Bonds and gold rallied, too, delivering positive returns for the year.

Possibly the most important factor contributing to asset performance in 2019 was an ‘about face’ by the United States Federal Reserve. Axios reported:

“The Fed’s 180-degree turn was the story of 2019, asset managers and market analysts say…Chairman Jerome Powell and the U.S. central bank went from raising interest rates for a fourth time at the close of 2018 and giving market watchers the explicit expectation this would continue in 2019, to doing the opposite. The Fed cut rates thrice and even began re-padding its balance sheet in the last quarter of the year, bringing it back above $4 trillion.”

How Did Markets React to the Fed?

The Fed’s policy decision gave investment markets a boost, however, it did little to quell investors’ worries about potential recession and the impact of the U.S.-China trade war, reported The Wall Street Journal. As a result, investors moved money from U.S. stock markets into bonds and other investments they perceived to be safer throughout the year.

During the fourth quarter of 2019, U.S. markets delivered positive returns despite uncertainty about the strength of the U.S. economy created by inconsistent economic data. For example, the last jobs report of the year indicated unemployment remained near a 50-year low. Yet, in 2019, workers experienced the highest number of layoffs in a decade.

Many layoffs during the year were the result of corporate bankruptcies, especially in the retail sector. Investors who took time to evaluate the juxtaposition of unemployment levels and layoffs may have recognized disruptions in the retail sector has potential to create opportunities for investors.

How Do The Economic Indicators Look?

A closely watched indicator during 2019 was manufacturing. In December, Fox News reported, “The ISM Manufacturing Index fell for the fifth month in a row to 47.2 in December, down from November’s reading of 48.1. That’s the weakest reading since June 2009, when it hit 46.3, and well below the 49 reading that economists surveyed by Reuters expected.”

One of the reasons for weakness in manufacturing is the U.S.-China trade war. Late in the fourth quarter, concerns about trade subsided after the announcement of a phase one trade deal. The agreement is scheduled to be signed on January 15, 2020.

Continued progress in resolving the trade war could help boost economic growth in the United States. At the end of 2019, United States gross domestic product, the value of all goods and services produced in the country, was expected to remain slow and steady during 2020. However, forecasters at the Federal Reserve Bank of Philadelphia expected the economies of nine states to contract during the first six months of the new year.

From a geopolitical perspective, the 2020s are beginning just like the last decade did, with all eyes on Iran.

In 2009 and 2010, the Iranian Green Revolution captured the world’s attention as social media provided insight to post-election turbulence and unrest in Iran. Last week, the first of the new decade, all eyes were again on the Middle East as tensions between the United States and Iran flared after the death of a top Iranian military leader targeted by the United States.

After rallying on the first day of the new decade, some major U.S. stock markets declined on news of heightened tensions in the Middle East and concerns about the potential consequences, such as the disruption of oil supplies.

what a decade!

While some have called the 2010s a ‘lost decade’ because there was little economic growth, we disagree with the assessment. The decade was filled with remarkable events in politics, sports, science, pop culture, and other areas of interest. Here are a few memorable events from the past decade:

NASA’s Voyager 1 probe left the solar system.

Launched in 1977 to explore planets including Jupiter, Saturn, Uranus, and Neptune, the probe left our solar system in 2013. It will continue to send data until 2025.

 

The Patient Protection and Affordable Care Act was signed into law

The controversial law, which Encyclopedia Britannica reported, “required most individuals to secure health insurance or pay fines, made coverage easier and less costly to obtain. This cracked down on abusive insurance practices, and attempted to rein in the rising costs of health care,” remains under challenge in American courts.

 

eSports became an industry

To the delight of people who would prefer to spend their time gaming, online games became a recognized form of sports competition, complete with news coverage and multimillion-dollar prize money.

 

Civil and social movements changed thinking

There were pro-democracy protests in the Middle East (Arab Spring), and social movements in the United States (Occupy, Black Lives Matter, Blue Lives Matter, and MeToo, among others). MIT explained, “…a successful movement can change how we think and talk about key social issues.”

 

The Higgs Boson particle was found

Any fan of the television show, The Big Bang Theory, will know exactly how much this meant to Sheldon Cooper. The television show’s popularity was also a phenomenon of the last decade.

 

Carli Lloyd scored the fastest hat trick in World Cup soccer

Carli Lloyd scored a hat trick – three goals – in 13 minutes for the U.S. women’s national team during the World Cup final against Japan in 2015. She also played on the team that won the 2019 Women’s World Cup.

Hurricanes, earthquakes, and storms wrought destruction

Countries around the world were pummeled by storms during the decade. Hurricanes and tropical storms like Irene, Sandy, Harvey, Irma, Michael, Dorian, and Maria did significant damage in the United States and its territories. One of the most memorable was the Great Japanese earthquake and tsunami that preceded the Fukushima Daiichi nuclear accident.

 

The Chicago Cubs broke the curse

Advised by their manager to go out there and, “Try not to suck,” the Cubs won the World Series for the first time since 1908.

 

Entertainment took a turn toward streaming

Deadline Hollywood reported, “It is impossible to find a corner of the industry that has not been reshaped by streaming, from the pay TV ecosystem and movie exhibition to labor negotiations and talent deals.”

 

The 2010s provided disruptions and delights. Let’s hope the events of the coming decade will make the world a better place. For a closer look at 2019 in review, check out this link.

Weekly Focus – Think About It

“It’s the action, not the fruit of the action, that’s important. You have to do the right thing. It may not be in your power, may not be in your time, that there’ll be any fruit. But, that doesn’t mean you stop doing the right thing. You may never know what results come from your action. But, if you do nothing, there will be no result.”

–Mahatma Gandhi, Lawyer, politician, social activist

Like what you’re reading, be sure to check out our other blog posts.

Add Some Adventure To Your Retirement With These Travel Options

According to AARP, baby boomers expected to take 4-5 trips during 2019 (1). Retired boomers who plan to travel more might even exceed that pace once they’re no longer working. Over the course of a typical 20-30-year retirement, that’s an awful lot of beaches, an awful lot of athletic resorts, and an awful lot of bucket list landmarks getting crossed off.

Many retirees are exploring new types of travel to keep their itineraries fresh and their experiences invigorating. Here are three popular trends in retirement travel, as well as some things you should think about before clicking BOOK NOW! 

  1. Solo travel

No matter how good your marriage is, couples who don’t take the occasional break from each other often end up driving each other crazy. Both people need to have space for themselves at home. And both people also need space to pursue passions and interests that their spouse does not share.

If you feel like you’re dragging your spouse along on a golf trip, or if your spouse just isn’t as interested in leaving the States as you are, consider flying solo. You don’t REALLY have to hit the road alone if you don’t want to. Group travel packages will give you a chance to mingle with new people while also providing you with the security and structure of a set itinerary. Just make sure you’re booking with a reputable company and able to take care of yourself without a spouse’s constant supervision.

Also double-check your annual vacation budget before you book a solo trip. Make sure that doing something separately isn’t going to make it harder for you and your spouse to do something together. 

  1. Slow travel

A European tour might let you see Big Ben, the Eiffel Tower, and the Sistine Chapel in a week or two. But renting an apartment in Paris for a month will give you a very different and much more immersive experience.

That’s the appeal of slow travel, which is becoming more popular as services like Airbnb make it easier to find long-term lodging at affordable prices. Living like a local creates an entirely different daily routine. You’ll be more likely to venture off the beaten tourist path and really soak up local culture.

This kind of a vacation might require a little extra planning. Lean on any friends or family who’ve spent time in your slow travel destination to make sure you’re picking a suitable neighborhood for your stay. And while some people end up spending less on slow travel because they buy groceries instead of eating out every night, the longer you’re going to be away from home, the more money you should probably budget.

  1. Adventure travel

Anyone who equates vacation with R&R probably should steer clear of adventure travel. But an African safari or a trek through Patagonia will definitely get you out of your comfort zone.

Adventure travel can also be as spiritually and emotionally rewarding as it is physically rewarding. Connecting with nature while you’re on a long canoe trip or observing exotic wildlife can clear your head and make you rethink your place in the world. Many adventure travelers come home with a new favorite cause that becomes part of their everyday retirement routine.

If you think you have a couple retirement adventures in you, consider scheduling them earlier in your retirement. This is when you’re likely to be healthier and more mobile. Also, be realistic about what an “adventure” really means to you, and what you’re really capable of doing. You might have missed your whitewater rafting window. But that doesn’t mean you can camp near the Grand Canyon and hike for a couple hours every day.

Are you planning on racking up frequent flier miles once you retire? Are you already shopping for RVs? Come in and talk to us about your travel plans. We can help you make sure your retirement plan is as ready for adventure as you are.

For more great retirement resources, check out the AARP website.

How To Avoid Knee Jerk Reactions to Financial Events

As part of our Life-Centered Planning process, we’ve talked about how market volatility is a normal part of investing. We’ve also discussed how we’ve structured your investments to “weather the storm” and maintain a comfortable level of income for you and your family during turbulent times so you can avoid knee jerk reactions.

But we also understand that even folks who are armed with this knowledge can get nervous during a market dip. What’s important is that you know how to prevent that initial wave of negativity from leading you to rash decisions that could damage your nest egg much worse than a market correction.

Dr. Martin Seay is a specialist in positive psychology, which focuses on strategies that people can use to improve their sense of well-being. Dr. Seay’s ABCDE method can help you work through your reactions to distressing financial news and arrive at a positive outcome.

Let’s walk through an example of how to use this method to avoid making a bad, emotion-based financial decision.

A. Activating Event


Sometimes stress and anxiety can feel all-encompassing. Dr. Seay believes it’s important that we pinpoint the event that triggered our negative feelings.

So, while you might feel general anxiety about your finances, drill down a little deeper. Is your job secure? OK. Are you saving and investing according to your financial plan? Good.

Did you just read on social media that today’s market correction was “THE BIGGEST ONE-DAY DROP IN HISTORY!”

Ahh, there it is. Let’s move on to the next step.

B. Belief

Market volatility can rouse some of our worst instincts about investing. We might fall back on long-buried Beliefs like, “This game is rigged!” We might feel like we’ve entrusted our financial future to powers beyond our control.

As you work through this step, it’s important to ask yourself where your Beliefs come from. Have you been unsettled by widespread media coverage of major financial problems, like the 2008-2009 housing crisis? Have you had negative interactions with the finance industry in the past? Perhaps one of your parents distrusted the markets or made a poor investment that had a negative impact on your family.

Figuring out why you believe what you believe about the markets can help alert you before you fall back into bad financial habits.

C. Consequences

Panicked investors who can’t shake negative Beliefs about the markets often make poor decisions during downturns. They think they need to “get out fast” to avoid more negative Consequences, like further losses.

Ironically, cashing out your investments during a market correction usually leads to far more serious Consequences in the long run.

So how can you stay focused on the big picture?

D. Disputation

Start by using what you know to push back a little against what you Believe.

For example, we’ve discussed in our meetings that the historical, long-term trajectory of the financial markets has been to rise over time. And now, market averages such as the Dow Jones Industrial Average are near all-time highs. Therefore, when the market does have a temporary drop, we might say, “The Dow was down x hundreds of points today.” It sounds like a big number, but as a percentage, it may just be normal volatility.

We’ve also discussed that “market timing” strategies usually just don’t work. That’s why your portfolio is diversified, balanced, and strategically rebalanced as necessary. Decades of market history have shown that sticking to this type of investment strategy may be more effective – and stable – than trying to jump in and out of the market based on what’s happening in the news right now.

Today’s losses are really just a kind of “tax” that you’re paying on the wealth we’re helping you build for tomorrow.

E. Energized

It’s amazing how just reminding ourselves of what we know to be true can make us feel better about a negative situation. Hopefully at the end of this process, you feel a renewed sense of positivity about this present moment and your financial future.

But we understand that market volatility can be complicated. And as you’re nearing retirement, a downturn can be downright nerve-wracking.

So if you need help walking through your ABCDEs the next time the market corrects, make an appointment to meet with us. We’ll run through the important facts you need to know and decide what moves, if any, we need to make to keep you on track with your financial plan and avoid those costly knee jerk reactions.

We also have some really great resources available on our YouTube Page so head on over and check it out.

How Does Your Retirement Savings Compare?

“How am I doing?”

-Every Investor…..ever

Ever wonder how your retirement savings stack up against other people your age? That’s a big question that most people have when it comes to their money. One way we tend to look for answers is by comparing what we have to what our neighbors, friends, and family, have. Even though we know deep down that “the grass is always greener on the other side,” it can be hard to look away when our phones, computers, and TVs are practically forcing us to make these comparisons.

We understand the worry that you might not be keeping pace with your peers. But if you’re wondering about where your retirement savings “should be,” it’s important that you look at these numbers with the proper context.

The numbers.

According to Nerdwallet, here’s how average retirement savings break down by age:

Under 35

Average household retirement savings: $32,500

Median household retirement savings: $12,300

Ages 35 to 44

Average household retirement savings: $100,100

Median household retirement savings: $37,000

Ages 45 to 54

Average household retirement savings: $215,800

Median household retirement savings: $82,600

Ages 55 to 64

Average household retirement savings: $374,000

Median household retirement savings: $120,000

Ages 65 to 74

Average household retirement savings: $358,400

Median household retirement savings: $126,000

As you might have guessed, retirement savings tend to ramp up as we age. In part, this is because the older we get, the more real retirement becomes, and more prepared we want to be.

But as fiscally responsible people age, their debt level tends to drop as well. No more kids to support. No more student loan payments. Vehicles and houses get paid off. Credit cards get used less (unless you’re focused on accumulating points) and paid down. There’s only so much you can keep in a low-interest savings account before you want to put more of your money to work.

The numbers behind the numbers

If these figures seem a bit low to you, you’re not wrong. Most financial experts believe that, generally, Americans are not saving nearly enough for retirement.

Yes, having a couple hundred thousand in savings and investment accounts may sound like a lot of money. But people are also living longer and more active lives than ever before. That means your retirement assets are going to have to last longer than your parents’ and grandparents’ did.

And as pensions continue to dry up, the responsibility for preparing for retirement has shifted more and more to individuals. That’s going to be a challenge for anyone who’s significantly below these savings levels. And it’s going to be a BIG problem for the 43% of households headed by someone 35-44 who don’t have any retirement savings at all.

Is an “average” retirement good enough?

Let’s say you’re the average 65-year-old with just over $300,000 in the bank. How long is that $300,000 going to last? Is that nest egg going to provide the retirement you’ve been dreaming about and working for most of your life?

There’s no one-size-fits-all answer to those questions. We all have different passions, goals, healthcare needs, and lifestyle expectations. Some retirees might live quite happily at or even a little below the average level.

But what happens if your spouse has an accident and needs to see a specialist? What if your roof needs a major repair? Will an emergency stretch your “average” retirement too thin?

What happens if, five years into a twenty-year retirement, you start to feel bored and restless? What if you decide you need to see more of the world? What if you can’t let go of that passion project you’ve always wanted to develop into your own business? Will your nest egg provide for changes that will make your retirement more fulfilling?

How your money measures up.

Successful retirement planning balances the things that we can anticipate with the things we can’t. That’s why, as we work together, we’ll never hold up a graph comparing where your money is to where your peers are. We’re not interested in outside standards of “measuring up.” We’re interested in how your money measures up to what YOU want out of life, and what you’ll need to stay comfortable on rainy days.

Contact us to review your saving plan and spending levels. We can help you adjust as necessary to make sure that both are on track to hit the standard that matters most: yours.F

Source

https://www.nerdwallet.com/article/the-average-retirement-savings-by-age-and-why-you-need-more

How To Test Drive Retirement

Want to Retire? Take It for a Test Drive

There are many reasons why people who could retire are hesitant to do so. Some people think they need to wait until they’re 65 or older. Some are worried about running out of money. Many parents want to keep supporting their children through some major life transition, like college, marriage, or buying a first home. 

Maybe the most common reason we see for a retirement delay is folks who just can’t imagine their lives without work. That’s understandable. A routine that’s sustained you and your family for 30 or 40 years can be a hard routine to shake. 

But retirement doesn’t have to be all or nothing right away. If just thinking about retiring makes you jittery, use these tips to ease into retirement a little at a time. 

1. Talk to your family.

Clear, open communication is an essential first step to approaching retirement. Be as honest as possible about what you’re feeling. What worries you about retirement? Does the idea excite you? What do you envision your days being like? Where do you want to live? What does your spouse want retirement life to be like? 

2. Talk to your employer.

Many companies have established programs to help longtime employees transition into retirement. You might be able to trim back your hours gradually to get an idea of what days without working will be like. You’re also going to want to double-check how any retirement benefits you may have are going to work. Discuss any large outstanding projects with your supervisor. Make a plan to finish what’s important to you so that you can leave your job feeling accomplished. 

Self-employed? Give your favorite employee (you) less hours and fewer clients! Update your succession plan and start giving the soon-to-be CEO more of your responsibilities. Make sure you have the absolute best people working for you in key leadership positions so that your company can keep prospering without your daily involvement. 

3. Make a “rough draft” of your retirement schedule. 

What are you passionate about? What are some hobbies you’d like to develop into a skilled craft? Do you want to get serious about working the kinks out of your golf swing? Are there household projects, repairs, or upgrades you want to tend to? A crazy idea you kicked around at work you’d like to build into a new company? A part-time job or volunteer position you’d like to take at an organization that’s important to you? New things you want to try? New places you want to visit? Grandkids you want to see more often?

Try filling out a calendar with some of your answers to these questions. As you start to scale back your work hours, take a few lessons or volunteer shifts. Sign up for a class. Leave town for a long weekend. See what appeals to you and what doesn’t. 

Remember, you don’t have to get your schedule right the first time! A successful retirement will involve some trial and error. Learn from things you don’t like and make a point to spend more time doing the things you do like. 

4. Review your finances. 

This is where we come in! 

Once you and your spouse have settled on a shared vision for retirement, we can help you create a financial plan to help ensure you are financially fit for (semi)-retirement. We’ll go through all of your sources of income, retirement accounts, pensions, savings, and other investments to lay out a projection of where your money is coming from and where it’s going.

We can coordinate all aspects of your situation and collaborate with you on the best course of action. You don’t have to face retirement alone and make big decisions without expert guidance. 

Coming in and talking to us about your retirement is a great “Step 1” option as well. So if you are dreaming of those days when work is optional, give us a call and we can help you through this phase of life.

For more retirement resources check out some of our other blog posts.

For more help with retirement, the AARP website can be a great resource as well.

3 Life Insights from the Jeff and MacKenzie Bezos Divorce

One of the reasons that divorce is such a challenging life transition is its public nature. A couple might keep their problems private as they try to work through them. But if a rift opens that can’t be mended, the couple will have to share some very difficult news with friends and family as they separate from one another.

Few of us will have to reveal emotional personal issues to as wide an audience as Jeff and MacKenzie Bezos recently did. The statement that Jeff released on Twitter suggests that he and MacKenzie are trying to make their split as amicable as possible by using three insightful ideas that could help anyone struggling through a divorce.

1. Be open and honest with those closest to you.

“We want to make people aware of a development in our lives. As our family and close friends know, after a long period of loving exploration and trial separation, we have decided to divorce and continue our shared lives as friends.”

Couples need privacy as they deal with strains on their marriage. But once a decision is made, clear communication with your family, friends, and each other will be very important. That goes double if any young children are in the picture.

The more open a couple is about what’s happening, the easier it will be for you to find the outside support that will help you through this transition. Good dialogue might also help you and your former spouse to focus on the essential tasks at hand, like dividing your assets and updating your essential estate planning documents.

2. Be grateful.

“We feel incredibly lucky to have found each other and deeply grateful for every one of the years we have been married to each other. If we had known we would separate after 25 years, we would do it all again.”

Shame, embarrassment, and guilt are common feelings associated with divorce. Playing the blame game or trying to “win” the divorce can quickly turn all those amicable best intentions into bitter personal and legal issues.

Instead, the Bezos statement is a reminder that the end of a marriage – especially a long one – doesn’t erase all of the positive things that came before it. If an amicable divorce is possible in your particular situation, then don’t be ashamed or embarrassed. Cherish those precious shared experiences, like the birth of children, happy vacation memories, the difficult times you helped each other through. Embracing these feelings of gratitude will help ease both you and your partner through this process.

3. Focus on the positives ahead.

“We’ve had such a great life together as a married couple, and we also see wonderful futures ahead, as parents, friends, partners and ventures and projects, and as individuals pursuing ventures and adventures.”

When we work through the $Lifeline exercise, we emphasis that important transitions like retirement, children graduating, weddings, and yes, divorces, are ends in one respect, but also new beginnings. They’re the start of new chapters in your life.

That might be difficult to see when the pain of a divorce is still raw. But it’s important to open yourself up to new opportunities when they present themselves. You’re about to start your single life all over again. And yes it’s scary. It may not be what you wanted. And you may be bitter. But over time, you may be able to see what awaits you on the other end. It could be traveling that you’ve longed for. Maybe you’ll relocate, start a new career, begin new hobbies, and meet new people. You might have more financial resources at your disposal to explore solo than you did when you were younger and unmarried. And you might approach these experiences with a more mature and grateful perspective, enjoying every minute just a little bit more fully.

We want to help you through all of life’s major transitions, the positives as well as the challenges. If there’s change on the horizon, make an appointment to come in and review the $Lifeline exercise with us. We can help you plan ahead so that the next chapter of your life is the most fulfilling yet.

Make The Most Of Your Empty Nest

How to Make Your Empty Nest Time a Prime Time in Your Life

Time flies when you’re a parent. Just when you’ve wrapped your head around the demands and responsibilities of raising a child, you turn around and your little bundle of joy is ready to head out into the world.

This empty nest transition can be very emotional. And in some cases, like children who stay on your health insurance until age 25, the break isn’t as clean as it used to be. But this change should also be exciting! Here are some tips on how you and your spouse can stay positive and make the most out of all your new free time, all that new space, and hopefully, all that extra money.

1. Celebrate!

First off, some major congratulations are in order. Raising children is as rewarding as it is challenging. In order to get where you and your spouse are today, you had to make so many sacrifices, juggle work and family schedules, and carefully manage your finances.

An empty nest fills some parents with sadness and loneliness. But you should focus on the positive. Your kids are ready to be adults. Be proud of them, and of you and your spouse. Pop a good bottle of wine you’ve been saving or treat yourselves to a night out. You deserve it. An exciting new part of your life is about to begin.

2. Readjust your budget.

Children are wonderful. They’re also really expensive! No more sports fees. No more restocking the fridge every other day. Depending on their ages and how much you’re helping with their transition into adulthood, no more school tuition or piggybacking on insurance and phone plans.

Even the smallest of these expenses adds up quickly month after month. Now that they’re in the past, it’s time to make a new budget. You might find ways to ramp up your savings and contributions to your retirement accounts. You also might be able to afford a few more creature comforts or an extra trip or two.

3. Reclaim your space.

If your house suddenly feels a little emptier, well … it is. Too empty? If you and your spouse now have more room than you really need, it might be time to consider downsizing and economizing. Any new homes or neighborhoods in your community that look appealing? Have you considered moving out of state to start a new adventure?

If you’re happy where you are, take back those vacant rooms. Refurnish with a more grown-up touch to create a guest room for visiting friends and family. Give your hobbies and passions their own space by making a crafting room or a library.

Added bonus: if your kids have any trouble “adulting,” they’ll be more motivated to figure things out for themselves if there’s an easel or writing desk where their beds used to be.

4. Reconnect with your spouse.

You and your spouse are going to have more one-on-one time now than you’ve had since you were newlyweds, especially if you’re both getting ready to retire. What things did you used to do together before all those soccer practices and ballet recitals started dominating your schedules? What dream vacations for two have you been putting off? Have your golf or tennis swings gotten a little rusty over the years? Do you have time to cook meals together now?

Another activity that might bring you and your spouse closer is regular visits to your adult children and any grandchildren you might have. Seeing your kids on their own, flourishing at college or raising their own kids, will only deepen the sense of pride you should feel for a job well done.

5. Talk it out.

Major life transitions are often more challenging than we’re prepared to admit. More room, more free time, and more cash in hand are all positive. But the feeling that a large part of your life is over might be hard to shake.

Your blank calendar and lack of routine can be intimidating. Empty bedrooms can feel lonely. And while empty nest blues are often associated with the mother, many fathers suffer in silence. Make sure that you and your spouse are open and honest with each other about what you’re both feeling and get help if necessary.

On the flipside, you might feel overwhelmed in a good way – thrilled by all the options available to you, excited to start something new, but unsure of where to begin.

Again, step one is clear communication with your spouse. Make sure that you are on the same page about what you both want from this new stage of your life. Plan activities that you can do together. But also make space in your new routine for each of you to explore, learn, and grow individually.

Step two: come in and talk to us. We can help you sort through the financial implications of your empty nest and make sure you have the resources to live your best possible life with the money you have.

How to Have More Fun and Meaning When You Retire

How to Have More Fun and Meaning After You Retire

Lou Desepoli, Heritage Financial Advisory Group

A blank calendar filled with nothing but free time can be every bit as stressful as a packed work week.

That’s the surprising fact that many people who retire confront after a few days of hitting the snooze button and puttering around the house. This is usually when the reality of retirement sets in. This is your life now. What are you going to do with it?

Whatever you want!

The only thing better than sleeping in is jumping out of bed early because you’re energized and excited for the day ahead. This is the kind of active and fulfilling retirement that we love to help our clients prepare for.

Here are some ideas for creating a new retirement schedule that will keep you growing, learning, experiencing new things, and making meaningful connections with your community.

  1. Travel.

Taking all those trips you couldn’t squeeze in around work meetings and kids’ baseball tournaments tops many retirements wish lists. And with good reason. After all that hard work, prudent planning, and disciplined saving, you deserve to treat yourself, do things you never had time for, see places you’ve always wanted to see.

Why not try to be your own travel agent? Planning a few big trips scattered throughout the year can be a fun activity for you and your spouse to do together. And in between those big destination vacations like a river cruise in Europe, you can sprinkle in some long weekends visiting the grandkids, and a few separate getaways to give each of you space to pursue your personal passions.

  1. Work or volunteer part time.

No, “working in retirement” is not an oxymoron. More and more retirees who can afford to stop working are taking part-time jobs and volunteer positions. This can give your week some welcome structure and provide an outlet for things you’re passionate about.

That non-for-profit job you couldn’t afford when you were raising kids and paying a mortgage? Take it. Do some good in your community and make a little spending cash on the side. Put your cultural expertise to work as a docent for an art gallery or museum. Volunteer at a church or charitable organization that’s close to your heart.

  1. Upgrade your living situation.

Whether you’re handy and enjoy doing the work or just like picking out new colors, patterns, and fixtures, take care of all those lingering household projects. Your comfort is important, especially as you age. Don’t let minor inconveniences like leaky faucets and spotty heating turn into major problems. Get rid of that lumpy mattress and hard couch you’ve been torturing yourself with for a decade. Map out the deck and pool you’ve always wanted and turn your backyard into a central hangout for your family and friends.

Of course, that’s assuming you want to “retire in place” at your current residence. A permanent change of scenery can be invigorating as you enter this new phase in your life. Just make sure you talk to us if you see a new beachfront condo in your future. We’ll make sure to incorporate the move and all the necessary tax, health care, and cost of living adjustments into your financial plan.

  1. Get really good at something you love doing.

Been a frustrated weekend golfer your whole life? Sign up for lessons and get that handicap down for good. What better time than when you retire? Or better yet, set up a weekly tee time with a group of retired friends. No more rushing through meals on your way to and from work and school, so let your inner foodie have the run of the kitchen. Dust off your college French lessons before that dream trip to Paris with an online class. Clear out that back bedroom no one uses any more and make a study. Paint the pictures you’ve always wanted to paint. Finish the novel hiding in the bottom of your desk drawer.

The possibilities for an exciting and fulfilling life in retirement are bound only by your imagination and the financial resources you have available to you. Let us help you take care of the money part so you’re free to focus on the fun.

For more retirement resources check out our YouTube Channel

What Did You Learn Today?

What Did You Learn Today?

“In a world of change, the learners shall inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists.”
― Eric Hoffer

It’s never been easier for adults to continue to learn after completing their formal education. Online universities, TED talks, “master classes,” podcasts, and even curated YouTube playlists put world-class professionals, teachers, and thinkers literally at our fingertips.

Are you taking advantage?

One common attribute of successful, happy people is that they are intensely curious. They never feel like the world has passed them by because they have made learning and self-improvement a lifelong process. In fact, Bill Gates places such a high value on continuous learning that he schedules annual “Think Weeks” where he holes himself up in a private study with books, magazines, and scientific papers.

Whether you want to stay ahead of the curve or just cultivate a curious mind, daily learning can have some major personal and professional benefits.

Upgrade your job.

Technology, automation, and the global marketplace have disrupted many jobs and career paths. Learning a new skill is a great way to “future-proof” yourself or even reposition yourself for a new job that you’ll find more fulfilling.

If you have an interest in tech, consider learning how to “code” by studying a programming language. If you’re a pen-and-paper artist, translate those skills to the digital world by learning website or graphic design.

Or, if you want to make yourself a little more global, why not learn a new language? Is your company preparing to expand into Europe or China? Do you have a large customer base that speaks Spanish? Learning the language of your business will prepare you for where that business is travelling next.

Think outside the office.

Learning can make life more exciting outside of the office as well. When we challenge ourselves to learn new things, we step outside of our comfort zones. We bring ourselves in contact with new cultures, new ideas, and new experiences.

French lessons might be your passport to a month vacationing in Paris. Signing up for a cooking class could improve your family’s health, or lead you to farmer’s markets that strengthen your connection to your community. Golf lessons could improve your enjoyment of the game and turn you into a better first coach for your young children.

Of course, learning doesn’t just mean signing up for formal classes. We spend so much of our lives on social media these days that it bears repeating: you can do a whole lot more with your phone and PC than get sucked into the latest tweetstorm. When was the last time you closed that Facebook app and opened up an ebook reader or audiobook player? You could also make your morning commute or exercises more stimulating if you cue up a podcast for some on-the-go learning.

Get ready for the long run.

One of the ways that your financial planning experience will be very different from your parents’ or grandparents’ is how we will account for your plan’s longevity. People today are healthier, living longer, and staying active later in life. In fact, Andrew Scott, Professor of Economics at London Business School and a fellow of All Souls, Oxford University, and the Center for Economic Policy Research, believes that hundred-year lifespans will soon become much more normal.

A commitment to learning and self-improvement will create positive attitudes and habits that will serve you well as you near retirement and prepare to enjoy your golden years. According to Professor Scott, “in a hundred-year life, leisure time will be used not just for recreation, but also, if you’ll excuse the pun, re-creation. You’re going to have to use leisure time not just as a consumption activity by watching Netflix, but as an investment activity. Using your leisure time to invest in yourself and not just rest we think will be crucial to deal with these changes.”

 

So, why not start making daily learning a part of your routine today?

Make a list of two or three things you’ve always wanted to know more about, or skills you wish you had, or talents you’d like to develop. If any of your learning goals are big enough that they might have an impact on your financial planning, we’d love for you to come in and tell us about them.

for more info on this topic and others, visit us at Heritage Financial Advisory Group