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Do you involve your spouse in Retirement Planning reviews and overall financial discussions?
According to a study by Fidelity on Couples and Money, 53% of respondents disagreed on how much savings would be needed to reach retirement and more than 1 in 4 partners resent being left out of financial decisions.
In today’s blog, we’re going to talk about 3 potential setbacks that we’ve seen spouses encounter leading up to and in retirement and the reasons we feel working as a team with your spouse when planning your finances can help you navigate through them.
As we know, preparation can potentially help to limit uncertainty and that’s exactly what we’re going to be speaking about today.
1. Unexpected Changes To Your Status Quo
Unexpected and even sudden change in any aspect of your life can bring about setbacks to your retirement plan.
For example, if there is an unexpected illness or disability that comes about for the spouse that regularly handles the finances, this can bring stress to the other partner that now has the responsibility to handle them. Their lack of knowledge about budgeting and payments of certain debts, etc. may seem overwhelming.
In many cases we see first hand that individuals tend to avoid change if possible, especially during a time like retirement.
With that, we would consider working as a team on your retirement planning to be critical due to the fact that it could help minimize uncertainty.
Taking over something so important and potentially new to you, because your spouse becomes unable can be completely overwhelming and uncertain.
In a part of life so significant, some freeze in fear of the negative consequences associated with not treating their finances properly. Working as a team when planning for retirement to try to eliminate potential uncertainties can go a long way to bring structure to your financial plan.
2. Losing a Spouse’s Income
Though something one never wants to think about, losing a spouse’s income due to their passing is a situation that we see often in our line of work.
In the event that something serious occurs which could alter or stop your cashflow, you need to understand which levers can be pulled in your financial plan to make up for any shortfall.
Resourcefulness can be very meaningful, especially in a tough situation, and working as a team with your spouse to fully understand your financial plan can help you gain this knowledge.
3. Not Having Your Estate Plan In Place
For this situation, we wanted to tell a story that is unfortunate yet common for many families.
You may be familiar with or have at least heard of the actor, James Gandolfini, who famously played the role of Tony Soprano in the hit TV Series, The Sopranos.
Throughout his career Gandolfini received recognition on multiple occasions which included winning a Golden Globe and 3 Emmy Awards .
Unfortunately, at just 51 years old, Gandolfini unexpectedly passed away while traveling to Italy.
As it has been said, there was potential for substantial taxes liabilities due on the estate, which may not have been the case with proper planning.
Having a team of trusted professionals around you, which you are in frequent communication with, can help you during unexpected times in your life. This includes your financial, tax and legal professionals.
The Final Word:
It is never too early to start planning for your retirement. Having conversations with your spouse, heirs and team of professionals about how you would like to live in retirement and ultimately pass down your legacy can help bring you confidence to your financial picture. Having those tough conversations about the “What-ifs” that life can bring will help you feel more prepared if the situation ever comes along.
Thanks for reading!
- The Rockline Team
Disclaimer:
Rockline Wealth Management (RWM) is a registered investment adviser located in Islip Terrace, NY. RWM is registered with the U.S. Securities and Exchange Commission. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.
Rockline Wealth Management does not offer tax or legal services. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's investment portfolio.
Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. The opinions expressed and material provided are for general information, and should not be considered a solicitation of financial advice or for the purchase or sale of any security.
Real-life and fictional examples given in this video should not be viewed as guaranteed outcomes when investing. Past performance is not indicative of future results and every individual’s investment circumstances are different. Individuals should consult their financial professional before implementing their investment plan.