Retirement Questions That Have Nothing to Do With Money

Preparing for retirement is not entirely financial. Your degree of happiness in your “second act” may depend on some factors that don’t come with an obvious price tag. Here are some non-monetary factors to consider as you prepare for your retirement.

What will you do with your time? Too many people retire without any idea of what their retirement will look like. They leave work, and they cannot figure out what to do with themselves, so they grow restless. It’s important to identify what you want your retirement to look like and what you see yourself doing. Maybe you love your career and can’t imagine not working during your retirement. There’s no hard and fast rule to your dream retirement, so it’s important to be honest with yourself. A recent Employee Benefit Research Institute Retirement Confidence Survey shows that 73% of workers expect to work for pay in retirement, whereas just 23% of retirees report that they’ve actually worked for pay.¹

Having a clear vision for your retirement may help you align your financial goals. It’s important to remember that your vision for retirement may change—like deciding you don’t want to continue working after all.

Where will you live? This is another factor in retirement happiness. If you can surround yourself with family members and friends whose company you enjoy, in a community where you can maintain old friendships and meet new people with similar interests or life experiences, that may be a plus. If all this can occur in a walkable community with good mass transit and senior services, all the better.

How are you preparing to get around in your eighties and nineties? The actuaries at Social Security project that the average life expectancy for men turning 67 is 84.6 years old, and the life expectancy for women turning 67 is 87.1 years. Some will live longer. Say you find yourself in that group. What kind of car would you want to drive at 85 or 90? At what age would you cease driving? Lastly, if you do stop driving, who would you count on to help you go where you want to go and get out in the world?²

How will you keep up your home? At 45, you can tackle that bathroom remodel or backyard upgrade yourself. At 75, you will probably outsource projects of that sort, whether or not you stay in your current home. You may want to move out of a single-family home and into a townhome or condo for retirement. Regardless of the size of your retirement residence, you should expect to fund minor or major repairs, and you may need to find reliable and affordable sources for gardening or landscaping.

These are the non-financial retirement questions that no pre-retiree should dismiss. Think about them as you prepare and invest for the future.

1. EBRI.org, 2023
2. SSA.gov, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Five Tough Questions to Ask Before Retirement

Retirement is a significant life milestone, but achieving a successful and fulfilling transition requires answering some tough questions. Whether you’re nearing retirement or just beginning to plan, these critical considerations can help ensure your financial security and peace of mind in this next chapter. 

Do I Have Enough Money?

This is often the first question people ask, and for good reason. The ability of your savings to support your desired lifestyle is fundamental. But it’s not just about crunching numbers; it’s about believing in your plan and being mentally ready for the transition. Partnering with a financial advisor can provide valuable reassurance and ensure your plan is realistic. 

To begin to answer this question, evaluate your retirement income sources, including Social Security, pensions and personal savings. Don’t forget to plan for healthcare costs—insurance premiums, out-of-pocket expenses, and potential long-term care needs can significantly impact your budget. Additionally, account for inflation by building a buffer into your plan to preserve your purchasing power as prices rise. 

Where Will I Live? 

Where you choose to live can significantly affect your retirement experience and budget. Some retirees prefer to stay in their current homes, while others opt to downsize, relocate for better weather or scenery or move closer to family. 

Consider whether your current home is suitable for aging in place. Think about maintenance, accessibility and potential mobility challenges like stairs and exterior walkways. If you’re considering relocating, research the cost of living and tax implications in different areas. Prioritize locations with access to essential services such as healthcare, recreational activities, and social networks. 

How Do I Start Accessing My Money?

Most people are well-versed in saving for retirement but less confident about withdrawing from their nest eggs. The idea of tapping into a fixed amount of savings can be intimidating, but preparation can ease this process. 

Creating a withdrawal strategy that balances income needs with tax efficiency is key. Learn the logistics of initiating withdrawals, rollovers, and managing tax withholding. Familiarize yourself with required minimum distributions (RMDs) to avoid penalties.

Additionally, consider whether annuities might provide the stability you need to complement other income sources. 

What Does Retirement Life Look Like?

Retirement is more than a financial milestone; it’s a new chapter that requires careful thought about how you’ll spend your time. Beyond finances, envision what your “life 2.0” will look like. Will you travel, work part-time, volunteer, or take up new hobbies? 

Having a plan for your days with no commute times, set schedules or places to be can help reduce stress and provide a sense of purpose. Explore new hobbies, stay socially engaged and incorporate physical activity into your routine to enhance your quality of life. 

What About Taxes?

Taxes don’t disappear in retirement. Managing them efficiently is crucial to sustaining your income. Generating sustainable, tax-efficient retirement income can be complex but highly rewarding with the right strategies in place. 

Understand which accounts to draw from first, how much to withdraw, and how to minimize taxes. Allocate investments strategically across taxable, tax-deferred, and tax-advantaged accounts to reduce liabilities. Assess whether converting traditional IRAs to Roth IRAs aligns with your goals and stay informed about potential changes to tax laws by consulting with financial and tax professionals. 

Take the Next Step

These five questions form the foundation of a secure and fulfilling retirement. Addressing them early and thoroughly will give you the confidence to transition into this new phase of life with clarity and purpose. Consult with trusted financial and tax professionals to create a plan tailored to your unique needs. Retirement can be the most rewarding chapter of your life, but it starts with asking the right questions today. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. 

Caring for Aging Parents

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 82 million in 2050. As our nation ages, many Americans are turning their attention to caring for aging parents^.1,2

For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.

Cover the Basics

Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:

• Primary physician
• Specialists
• Medications and supplements
• Allergies to medication

It is also important to know the location of medical and estate management paperwork, including:³

• Medicare card
• Insurance information
• Durable power of attorney for healthcare
• Will, living will, trusts, and other documents

Be Thorough

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.

Keep the Lines of Communication Open

This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.

Don’t Procrastinate

The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.

1. WashingtonPost.com, February 14, 2023
   2. PRB.org, January 9, 2024
   3. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

Outlook 2024: A Turning Point

Dr. Jason Van Duyn discusses how the readjustments in the economy and markets may impact you in the coming year.

In today’s increasingly connected world, protecting your information is arguably more important than ever. Your credit report consists of a slew of personal details, such as your financial activity, credit accounts, loans, and payment history. Because of the importance of your credit report, credit bureaus such as Equifax, Experian, and TransUnion offer credit locks to help protect consumers in the event of identity theft or fraud.

Will a Credit Lock Help?

Although a credit lock will freeze your credit report and score temporarily, there are some potential downsides as well. One of the biggest concerns is that a credit lock applies only to the selected credit bureau. So, if you want to protect your credit fully, you’ll need to place a lock on all three main credit reports.

While the initial lock may be free, some credit bureaus may charge a fee to remove or temporarily lift the lock, depending on their terms and conditions. In addition, each bureau’s service agreements clarify that they don’t guarantee error-free operation or uninterrupted service.

Here’s the scoop on what the three main credit bureaus are currently charging for their credit lock services:

• Equifax’s free credit lock product is called Lock & Alert, and the company says it will be free for life.¹
• TransUnion’s free product, administered under the company’s TrueIdentity brand, offers the lock/unlock option and other features, but they may charge a subscription fee to maintain the lock.²
• Experian bundles its credit lock with other services, including identity theft insurance and alerts about when information changes on your report at all three bureaus. This service costs $24.99/month.³

Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Also, products, services, and prices can change without notice.

Should I Accept a Free Credit Lock?

Whether or not you should accept a free credit lock offer depends on your individual needs and circumstances. A credit lock may be a good choice if you’re concerned about identity theft or fraud. It provides an extra layer of protection that can help prevent unauthorized access to your credit report.

How to Protect Your Credit

In addition to credit locks, there are other things you can do to protect your credit:

• Monitor your credit report regularly for any suspicious activity.
• Sign up for fraud alerts either through your bank or with all 3 credit bureaus, which will notify you if suspicious activity is detected on your credit report.
• Use strong, unique passwords for all your financial accounts and change them regularly.
• Regularly review your bank and credit card statements for any unauthorized transactions.
• Be careful about sharing personal information online or over the phone, and only provide it to trusted sources.

1. Nerdwallet.com, September 6 2022
   2. Equifax.com, 2023
   3. Transunion, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Among the many considerations to ponder when forming your estate strategy, intellectual property (IP) is among the more important and misunderstood. The phrase itself may be somewhat confusing, as people may not know whether it applies to them or their assets. To clear things up, let’s start by defining what exactly is meant by intellectual property.

IP embraces four distinct areas of consideration: patents, trademarks, copyrights, and trade secrets. Let’s look at each of these in a little more detail:

• Patents are any property rights registered through the U.S. Patent and Trademark Office for an original invention, such as a process or machine. When the office deems an invention to be patentable, inventors are awarded a patent that helps to protect their investment. These include design patents (think of the distinct shape of a sports car or Coca-Cola bottle), utility patents (for things such as software, applications, and pharmaceuticals), and patents for new varieties of plants (e.g., a new variety of rose or a fruit tree with unique properties).¹
• Trademarks cover many of the items used to identify a product or service, including service marks and trade dress. Trademark owners may assign their ownership or bequeath the rights. What counts as a trademark? Think of McDonald’s Golden Arches or the symbols associated with Amazon, Netflix, Disney, and other media companies. Trademarks can also extend to colors, fonts, and even specific words associated with a product or service.¹(Companies are mentioned for illustrative purposes only and not as a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.)
• Copyrights as defined by copyright law protect and guard the rights of creators of original works. This does not cover your idea for a mystery novel, but, if you write that novel, you automatically have copyright to your work. A copyright extends to poetry, works of fiction and nonfiction, music, the visual arts, podcasts, and most tangible works of expression. Creators hold what is called the original work of authorship, which entitles them to the copyright, and they have the option to register it with the U.S. Copyright Office. While registration is not required, it can strengthen the author’s rights. Copyright assets can be transferred under an estate strategy, but the protection doesn’t last forever (see below).^1,2
• Trade secrets belong to a company and may be defined as confidential business information that provides a competitive edge; this nonpublic knowledge has monetary value and provides information. You can probably think of a few famous trade secrets, such as the formula for Coca-Cola or Colonel Sanders’ eleven herbs and spices for KFC. The company that owns a trade secret must take steps to maintain it, because it’s no longer protected once it becomes publicly known. Unlike copyrights, trade secrets can be tangible or intangible. For programmers, for instance, the biggest secret in the tech business is probably Google’s search algorithm. If you own a company, your trade secrets will need to be factored into your estate strategy. You can require beneficiaries to sign confidentiality agreements and make provisions for the continued preservation of trade secrets.¹(It bears repeating that the mention of any company is for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of its securities.)

With all that in mind, it’s clear that IP represents a considerable amount of work on the part of you or the company that you run. For that reason, it’s important to incorporate it into your estate strategy in a way that continues to create value and meet your personal expectations.

IP can be one of the more valuable assets in an estate, but it can also be difficult to value and manage. Your estate professionals should take an inventory of IP assets and consider having IP counsel assess their scope. It’s also important to consider creators’ personal preferences for the ongoing treatment of their IP to ensure it’s managed according to their wishes. For instance, they might not want a song they wrote to be used to sell products.

Before including IP in an estate strategy, it’s important to confirm ownership, as the original inventor or creator may not be the sole owner of the rights to the invention or creative work. Joint inventors or creators may have agreed on various percentages of ownership. Additionally, the IP may have been assigned to another person or entity, transferring some or all rights. Employment agreements should also be reviewed to determine which rights can be passed on to beneficiaries.³

The value of IP also depends on the remaining life of the asset. Patents have a fixed term of either twenty years (for utility patents) or fourteen to fifteen years (for design patents). Copyright protection lasts for the author’s lifetime plus seventy years, but, for older copyrights, there is a different cutoff. In 2024, all works from 1928 and earlier entered the public domain. Trademarks and trade secrets can last indefinitely if they continue to be used or have commercial value.³ Keep in mind that IP rules change constantly, and there is no guarantee that they will remain the same in the years ahead.

While the value of IP may be in flux, certain benchmarks can be considered. Past licensing agreements can provide insight into the value of the IP as well as whether the rights granted were exclusive or nonexclusive. Non-exclusive rights allow for potential expansion of licensing opportunities, whereas exclusive rights have a fixed value and timeline. Other valuations for IP assets, such as for sale, taxes, or business transactions, should also be reviewed. The absence of a valuation can negatively impact the value of the IP assets.³

Certain types of IP, such as copyrights, are valued based on potential future revenue. Hiring a professional expert or appraiser in the specific field of the IP can determine present and future value. Descendants of copyright owners can terminate assignments of copyrights to regain bargaining power for creative works. Also, court decisions can render patents invalid, making them financially worthless. It’s important for your estate professionals to consult with IP counsel to assess the risk of invalidation for patent assets.³

Overall, protecting creators’ personal legacies requires careful consideration of their wishes for their IP rights. By including specific instructions in the estate strategy, you can ensure that their work is handled in a way that aligns with their personal preferences and helps preserve their legacy.

When factoring your IP into your estate strategy, you must carefully consider a number of factors to pass this legacy on to your heirs. Working with your financial team, you’ll be able to determine how best to incorporate your IP into that strategy so as to continue providing for your beneficiaries.

1. StFrancisLaw.com, August 22, 2023
   2. Copyright.gov, August 22, 2023
   3. AmericanBar.org, August 22, 2023

 believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.