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What’s Your Retirement Plan?

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By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

Whether you are planning to work another 20 years, or you may be thinking that now is the right time to retire, an important part of financial planning is retirement distribution. Just as you laid out a plan for saving your nest egg while you were working, creating a plan for spending that nest egg is crucial. One of the worries everyone has as they are approaching retirement age is, “Am I going to outlive my money?” Making your written plan for retirement can alleviate this worry. Working with a financial professional to navigate this task can make it even easier. Here are a few tips to get you started down the right path.

Make a budget.

This seems like an obvious one, but some have missed this in their working life. If we are concerned about how long our finances will last, we must look at where our dollars will go every month. Breaking down all our expenses into categories can help us prioritize and get a grasp on what amount we are guaranteed to spend. Categories such as utilities, cell phone and property tax are expenses you’ll most likely always have in life. Once we have our expenses written out and ranked by their necessity, we can look at our source of funds.

To read more, pick up a copy of the May/June issue of LiveIt magazine. To subscribe, call 940-872-2076.

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Finance

Finance: Tips for Your Retirement for Your 50s and On

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By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

If you have made your way ‘over the hill’ you could be closing in on retirement. Seven out of 10 people in your age range expect to work past age 65.1.
With the average age of retirement between 61 to 62 years old, you could be closer than you think. Here are a few hints to help you better secure your future.

  1. Be in the know- how much you’ll need.
    Would you take a long trip abroad without planning or budgeting for it? No way. Thinking about how much money you need to live on for the rest of your retirement can be a daunting task. Taking easy steps can help.
    • Start by thinking about what future expenses you’ll have and what sources of income you’ll have.
    • Look at where you are at in all your accounts currently; i.e., 401k, IRA, and savings.
    • Work with your financial professional to create a plan and answer any questions.
    • Don’t let life surprise you. Being prepared is vital and knowing more will help.
  2. Get caught up.
    The days of retiring with a pension that paid your dad for his whole life are a thing of the past. The only person that can take care of you financially in the future is you in the present. If you feel that you have fallen behind, there are still steps you can take to gain some ground. After 50, you gain a valuable tool in catch-up contributions. For age 50 and older, there is a maximum contribution of $26,000 to your 401(k) each year. That’s $6,500 more than other workers are allowed. You can also invest an extra $1,000 in your IRA each year, on top of the regular limit of $6,000.

To read more, pick up a copy of the January/February issue of LiveIt Magazine. To subscribe call 940-872-5922.

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Finance

Retiring in a Down Market

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By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

Life changes can be unnerving even in the best of times. So, the decision to stop working and live the rest of your happy days on your savings could be worrying. That is especially true in an economy that has taken a dip. Bear market, recession, inflation, depression, or just downturn; no matter what they call it or don’t call it, the start of your retirement is not the time you want that to happen. If you do find yourself looking at retirement when the market may be on shaky footing, here are some ideas to keep in mind.


• Build your safety net. Planning to pick the exact time to pull your investments from the market is a great idea but is impossible in practice. A better method would be to anticipate a down market at some point during your retirement. According to a 2020 Vanguard study, the most vulnerable time for a retiree to outlive their retirement savings is at the start of retirement during an economic downturn. If the market takes a dip, you still own the same number of investments, and they have the chance to go up over time once the downturn ends. The problem comes when a retiree needs to sell off some of those investments at a deep loss in the present and future earning potential of those funds — growing a more significant cash reserve to draw from during a downturn is the best way to avoid outliving your retirement. The typical downturn over the last few decades lasts about two years and having enough cash on hand to outlast these downturns can increase your nest egg’s longevity.

To read morepick up a copy of the September/October issue of LiveIt magazine. To subscribe, call 940-872-2076.

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Finance

5 Tips to Turning on Your Retirement

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By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

More and more people have been asking, “Okay, I’m retired. Now what?” While this is an exciting time for most, stressful topics can still linger.


Balancing having enough money to last and using your nest egg to enjoy your Golden Years can be made easier with these tips.

  1. Know the rules.
    Just as important as how much you have saved is how you properly use those funds.
    If your retirement is in a Traditional IRA or a company’s group retirement plan, like a 401k, you will eventually be required to take minimum distributions from your account. The balance of your pre-tax retirement accounts and your life expectancy is used to calculate what the IRS calls the Required Minimum Distribution, or RMDs.
    To read more, pick up a copy of the July/August issue of LiveIt magazine. To subscribe, call 940-872-2076.
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