In my work helping single women make sense of their money and their taxes, I frequently talk to women who used to be married, but are not now. If you are a married woman, the odds are high you will not be married in the future. Longer lifespans for women and increasing rates of divorce among those over 50 mean that many married women will inevitably become widows or divorcees. Eighty per cent of women will end up solely responsible for their finances, often for a decade or more. Some are ready for this responsibility - many are not. I have spoken to widows who haven't seen a bill in decades. Divorcees who lived in nice houses, drove nice cars, went on lavish trips who were …
Retirement
The Power of 1% – Small Changes Produce Big Results Over Time
I am currently reading "Atomic Habits" by James Clear. He writes compellingly about creating big improvements in nearly any area of our lives by making small steady changes over time. I'm not quite done with the book so it is not this month's book giveaway - tune in next month to win a free copy! This formula certainly works for saving money. Many 401k plans have encouraged the idea by offering an "auto escalation" feature. With auto escalation the percentage of salary you contribute goes up, typically by 1% each year. When you sign up for this feature this happens automatically which is a great way to save! To see the impact of escalating your savings percentage let's take a look …
Grandma has to take a distribution from her IRA and pay tax? Make a Qualified Charitable Distribution and save money while doing good!
Everyone has that one friend or family member who complains about problems that aren't really problems. I used to know a woman whose parents-in-law paid for everyone in the family to go on vacation every year to some fabulous place. The problem: She didn't always like the place. Hmmmm..... Not a bad problem to have. Another problem that some fortunate people over 70½ years old have is Required Minimum Distributions (RMDs). An RMD is a forced distribution from an IRA for those over age 70½. The dollars contributed to the IRA were (usually) not taxed and the earnings have never been taxed. Eventually the government wants its share. So the rule is you must take distributions …
Teenager Got a Job? Now they need a ROTH!
Did your teen get a summer job? Mine did - in the dining room of a local assisted living facility. Prerequisite: Ability to speak loudly and slowly. One conversation reportedly went like this: "Tonight's special is spaghetti with marinara sauce." "MARIJUANA sauce?!" "No, marinARA sauce!" After more banter to establish the lack of psychoactive substances in the sauce the resident went with grilled cheese. Good choice. Teens earning money is a beautiful thing! Now's the time to salt away some of those earnings to a ROTH IRA and they won't have to share with Uncle Sam. No tax now, no tax later. It doesn't get much more beautiful than that. TEN things to know about …
Working during Retirement for Fun and Profit!
When I work with clients on retirement planning I have a lot of questions about numbers. How much have you saved so far? How much more will you save? How much do you spend now, how might that change in retirement? How much will your social security benefit be? How much will your health insurance cost? On and on and on, numbers galore! But what about the non-numerical questions? They are also important. How will you fill your time for the first 6-12 months after you retire? How about after that? How will you keep your mind sharp? What's going to get you out of bed in the morning? (Besides the cat) For some people, the answer to these questions is a job, even …
