Jennifer's Compass

November 2019 Newsletter - Retirement Transitions

On Course                  November 25, 2019         Volume 19, #11                                 Welcome.  Retirement is more than a one-time event.  As with so many transitions in our lives, retirement means thinking and planning about your goals -- both now and for the future.  This month we're taking a look at what you can do before, during, and after your retirement to make the transition as successful as possible.    You may have missed our recent series on retirement.  For Retirement, Part 1 - Retirement Savings, click here.  For Retirement, Part 2 - Social Security, click here.  For Retirement, Part 3 - The Retirement Paycheck, click here.    If you need assistance in planning your retirement, we are here to help you stay On Course!      Jennifer Lane, CFP Retirement Transitions What to do the year before, year of, and year after   The year before     Prepare emotionally and mentally for your retirement date! Take extra time off (even if you stay at home), reduce work hours or start working from home to help transition you from the intensity of your current work routine. Review your financial plan and make sure you are truly ready to stop working, i.e., financially. Have a plan for what age to take Social Security, e.g., age 62, full retirement age, age 70. Do a test run of living on a retirement paycheck to help test your retirement budget. Maintain your emergency fund of at least six months of spending. Make sure you are achieving and maintaining your savings goals, e.g., IRA/Roth IRA, 401(k), taxable savings. Double check your life insurance coverage.  Do you have a need for life insurance once you retire?  How will losing your group life insurance when you retirement affect you? Take a look at the book Portfolio Life:  The New Path to Work, Purpose, and Passion After 50 by David D. Corbett to see if it's something that will help your transition.   The year of     Talk to your boss and HR.  Timing of the talk depends on how much notice you want to give your company.  Shop for health insurance.  Whether it's COBRA, Medicare, Medicare supplements, private insurance (for pre-Medicare age). Make sure you have an ample emergency fund or cash on hand of six months to a year of your retirement budget. Try to max out your 401(k) prior to your retirement date for the calendar year. Take advantage of your group health/dental/vision plan before retirement.  Get all the doctor visits and checkups in before your retirement date. Migrate your personal stuff from work if you use a company computer, phone, and calendar. The year after    Too much time on your hands?  Find a new hobby.  Take on a part time job.  Volunteer. Not happy with where you live?  Begin thinking about where you would like to be.  Relocation, 50+ communities, one-level home, and downsizing are all options. If travel is in your retirement budget, make sure you are seizing the opportunity to travel at the beginning of retirement. Check in on your financial plan.  (See October 2019 On Course.)  How is your retirement budget going vs. actual spending. Stay active and enjoy this next chapter!   Q&A   Q.  I have worked as a teacher in the public schools for the last 25 years. Previously, I worked in the private sector for 10 years. Will I be able to collect on both my teacher's pension and Social Security as well?      -- Jill, Newton   A:  Jill, your situation falls in the area of WEP or Windfall Elimination Provision because you could be eligible for both benefits. To determine how much you'll receive from Social Security, go to the Social Security WEP website page where you can download a fact sheet and use the online calculator. Good luck!   Jennifer in the Media Below are links to Jennifer's frequent contributions to financial planning articles.  Jennifer contributed to the Bottom Line Inc article "Prepare your Finances for a Possible Recession."  Click here to read the article. The New York Times featured Jennifer in an article titled, "Balanced Funds Don't Inspire Fear or Greed.  That's Why They Are So Useful."  Click here to read the article. With a contrarian view, Jennifer contributed to an article, "People are enraged by the idea that you should have twice your salary saved by the time you're 35!" published recently by Business Insider.  Click here to read the article. Moving in together?  Click here for the article from Business Insider, "Five questions you and your partner should answer before taking the biggest step in your relationship." Insider asked Jennifer to contribute to an article on old fashioned ways to manage your money, "Six money-saving tips your grandma used that are way more effective than any budgeting app."  Click here for the article. Jennifer contributed to an article on Business Insider.  Click here to read "This is the best way to do your taxes online - according to experts." CNN Money's Money Moves featured Jennifer in an article on how to strike the right balance between retiring early and saving enough.  Click here to read the article. Jennifer contributed to a CNN Money article "When is the Right Time to See a Financial Advisor?"  Click here to read the article. Jennifer contributed to The Wall Street Journal article "The Biggest Money Mistakes We Make -- Decade by Decade."  Click here to read the article. Compass Planning News   Jennifer recently talked about financial scams.  Click here to watch the segment on her blog. Compass Planning is helping to sponsor YW Boston's two-part 2019 Elevating Lives Series. Jennifer and Sarah were both named 2019 Boston Five Star Wealth Managers. AdvisoryHQ named Compass Planning as one of the ten best Boston financial advisors.  Jennifer appears on NECN every other Monday morning at 9:30 am. Compass Planning Associates helps families, individuals, and small-business clients achieve financial security, knowledge, and control over their money.  Our fee-only, client-centered approach provides education and guidance for achieving financial goals and dreams. All contents of this newsletter Copyright 2019 Compass Planning    In This Issue Retirement Transitions Question & Answer Jennifer in the Media  Most retirement calculators will suggest assumptions to use in your plan.  These usually cover social security income, investment returns, inflation, and how long you'll live.  It's not always best to take the default value they suggest without considering how it fits your personal situation.        Get more tips in Jennifer's book   (click here for link )       Helpful Websites     AARP   Mass residents: SHINE   Medicare   Medicare Rights   Plan Prescriber   Windfall Elimination Provision

NECN Ask Jennifer: November 25th, 2019

 

 

October 2019 Newsletter - Stay On Track Between Financial Reviews

On Course                  October 29, 2019         Volume 19, #10                                Welcome.    How should you plan to stay on track in between financial reviews, whether you do it yourself or with your financial planner?  Debt pay down, asset accumulation or retirement -- it's an ongoing process.  This month we're giving you tips on how to make sure you are on the right financial track.    You may have missed our recent series on retirement.  For Retirement, Part 1 - Retirement Savings, click here.  For Retirement, Part 2 - Social Security, click here.  For Retirement, Part 3 - The Retirement Paycheck, click here.    If you need assistance in reviewing how you're doing on your financial planning, we are here to help you stay On Course!      Jennifer Lane, CFP Plan to Stay on the Right Financial Track   Automate, automate, automate    The more things you automate, the easier it will be to keep on track with your plan. Set your savings to happen automatically on a certain day each month so you don't have to think about it. Better yet, have the money from your paycheck be directed to two banks accounts (checking and savings) so you never see the money hit your account! Use apps to track spending    Take the leg work out of tracking and use apps to keep it automated. Spending drives everything you do and all planning you do.  The more accurate the data, the easier to plan with! Take a look at MINT, YouNeedABudget, and Personal Capital. Check your credit   Make sure nothing suspicious or unauthorized appears on your reports. Get the free report from each bureau every 12 months.  Use www.AnnualCreditReport.com. Don't rely on the free credit score that many of your accounts may show you.  It is not enough! Check your paycheck withholding     If you owed taxes last year, have a new job, or change in family status (e.g., dependents, marital status), it's worthwhile to check your withholding to make sure adjustments mid-year are not needed. Use the IRS calculator.  Click here. Money meetings Check in with yourself or your partner to take the pulse of where things are once a month, once a quarter, or whatever time period makes sense in your world.  Review your financial goals.   Think ahead to what big expenses might be coming up.  Adjust spending to start saving for big ticket items that may be coming up so you're not in a pinch. Stay on top of your review schedule with your financial planner to make sure you are on track with your financial plan. Make sure to rebalance your investment accounts at least once a year.   Note: click here for an excerpt from Jennifer's book The Complete Idiot's Guide to Protecting Your 401(k) and IRA to learn more about her year-long-review checklist.     Q&A   Q. My wife and I have been married for 3 years, but we've been together for 15.  I really appreciate that she has always managed our joint household account and makes sure all the bills get paid. I know you're recommending we talk more about expenses and money in general, but why rock the boat when everything is working?     -- Christopher, Ludlow      A:  Christopher, talking about money doesn't need to mean disrupting a process that has worked for you for many years. Money talk is all about sharing information and meeting shared goals. Whether you're trying to build a nest egg for retirement or a child's education, or even just making ends meet from month to month, regular talk about money can help make your priorities clearer and will absolutely help you meet your long-term goals.     If money talk has been difficult in the past, start slowly and focus on the big picture.  Start a discussion about your long-term priorities and dreams. Don't get picky about the short-term small stuff. Once you're both on the same track with the big things the details will fall into place more easily.   Jennifer in the Media Below are links to Jennifer's frequent contributions to financial planning articles.  Jennifer contributed to the Bottom Line Inc article "Prepare your Finances for a Possible Recession."  Click here to read the article. The New York Times featured Jennifer in an article titled, "Balanced Funds Don't Inspire Fear or Greed.  That's Why They Are So Useful."  Click here to read the article. With a contrarian view, Jennifer contributed to an article, "People are enraged by the idea that you should have twice your salary saved by the time you're 35!" published recently by Business Insider.  Click here to read the article. Moving in together?  Click here for the article from Business Insider, "Five questions you and your partner should answer before taking the biggest step in your relationship." Insider asked Jennifer to contribute to an article on old fashioned ways to manage your money, "Six money-saving tips your grandma used that are way more effective than any budgeting app."  Click here for the article. Jennifer contributed to an article on Business Insider.  Click here to read "This is the best way to do your taxes online - according to experts." CNN Money's Money Moves featured Jennifer in an article on how to strike the right balance between retiring early and saving enough.  Click here to read the article. Jennifer contributed to a CNN Money article "When is the Right Time to See a Financial Advisor?"  Click here to read the article. Jennifer contributed to The Wall Street Journal article "The Biggest Money Mistakes We Make -- Decade by Decade."  Click here to read the article. Compass Planning News   Compass Planning is helping to sponsor YW Boston's two-part 2019 Elevating Lives Series. Jennifer and Sarah were both named 2019 Boston Five Star Wealth Managers. AdvisoryHQ named Compass Planning as one of the ten best Boston financial advisors.  Jennifer recently talked about whether to save or pay off debt.  Click here to watch the segment on her blog. Jennifer appears on NECN every other Monday morning at 9:30 am. Compass Planning Associates helps families, individuals, and small-business clients achieve financial security, knowledge, and control over their money.  Our fee-only, client-centered approach provides education and guidance for achieving financial goals and dreams. All contents of this newsletter Copyright 2019 Compass Planning    In This Issue Cybersecurity Question & Answer Jennifer in the Media  Set up direct deposit to savings to build your emergency fund.  You should eventually have three to six months' expenses in an account, depending on your job security and the waiting periods on your disability insurance coverage.  Start today by directing one percent of your pay to an account.  Increase the amount when you get pay raises.        Get more tips in Jennifer's book   (click here for link )       Helpful Websites     AnnualCreditReport.com   IRS Withholding Calculator   MINT   Personal Capital    YouNeedABudget