5 Tips to Turning on Your Retirement

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 avoid a massive 50 percent penalty from the IRS, you will have to start taking your RMDs the year you turn 72. * Due to the COVID-19 pandemic and economic slide, Congress has suspended all 2020 RMDs, and you may even be able to return distributions you have already taken this year. The rules can change, so work with your tax or financial professional to stay up to date on what best suits your accounts.

To read more, pick up a copy of the September/October issue of LiveIt magazine.

Financial Review: The Ever-Changing Life

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

Over these last few months, many of us have taken an impromptu break from regular routines to quarantine and social distance. Through this, an unexpected blessing has come about with being able to spend more time with our families and those we love. I know some of you are thinking, being trapped in the house with the family for months isn’t as much of a blessing as I am making it out to be.

Either way, we have had time to reflect on what matters most to us. I began to think about what I am doing to protect and provide for them financially.

To read more, pick up a copy of the July/August issue of LiveIt magazine.

Estate Planning: Is Yours up to Date?

By Dan Campbell, Attorney

As I write this article, the Boy Scout motto “be prepared” comes to mind. These “gifts” while they might not give you a warm, fuzzy feeling, can make a huge difference in the lives of your loved ones. Make sure that your will (or revocable “living” trust) is up-to-date.

How often should one review his or her will (or revocable trust)? I recommend every three years, but more often if there is a significant life change: a marriage, a birth, a divorce, a death, or a beneficiary who potentially needs extra consideration.

To read more, pick up a copy of the March/April issue of LiveIt magazine.

Handing Down Financial Knowledge

By Metro Creative

The largest living generational age group, the Baby Boomers, are those currently living in retirement or planning to hit full retirement in the next few years. They also are currently the wealthiest generation. With an estimated $68 trillion, the title of the wealthiest generation comes from a lifetime of saving and careful budgeting.

To read more, pick up a copy of the March/April issue of LiveIt magazine.

Financial resolutions for 2020: The year for goal setting and secure planning

By J. Kimberly Cantwell, Modern Woodmen of America

Most individuals establish resolutions for each New Year on the first day of January. While others are making promises to lose weight or fulfill bucket list wishes, let 2020 be the year you make a resolution to look at your retirement planning and set the goals necessary to make sure your future is financially secure.

Have you insured your life and hard-earned assets?

You don’t know if you’ll have a fender bender in the car or if there will be hail damage to the roof of your home, yet you probably have insurance for both. You have no idea if you’ll drop the cell phone and shatter the screen or accidentally drop it in a puddle of water, but you probably insure the cell phone.

To read more, pick up a copy of the January/February issue of LiveIt magazine.

It’s not too late for a comfortable retirement

BY J. KIMBERLY CANTWELL, MODERN WOODMEN OF AMERICA

John and Linda didn’t have a lot of money to set aside while paying the mortgage and raising a family. Now that their kids are grown and the house is paid off, they’re concerned they may not have saved enough to retire in 10 years. Estimating how much money you’ll need in retirement – and figuring out how to save it – can be complex and confusing. Fewer than half of Americans know how much they should be saving, according to the LIMRA Secure Retirement Institute. Most workers are saving too little or nothing at all.

Though LIMRA recommends saving a minimum of 10 percent of your income annually, four out of five workers are saving less. The average rate of saving is only six percent, LIMRA reports, leaving almost a third of pre-retirees (workers ages 55-70) with less than $100,000 for retirement. More than a third have less than $25,000. If you’ve fallen behind, catch-up contributions may help get your retirement savings back on track. Provisions in the IRS tax code allow people over age 50 to set aside extra money each year in certain savings plans, including 401(k) accounts, on top of normal contribution limits.

To read more, pick up a copy of the November/December issue of LiveIt magazine.