Page 75 - May-June-July Life In Naples Magazine

FINANCE
The Longer Road Ahead?
WOMEN BABY BOOMERS
PREPARE FOR RETIREMENT
by Lynn A. Ferraina
Partner/Financial Advisor
W omen are healthier, engage in more active
lifestyles and are living much longer. Their
retirement period could be as much as 20 years
longer which creates both opportunities and
challenges. Many women will spend as much time in retirement
as they did in the workforce.
Some women were not in the workforce as long as their
male counterparts which affects their savings for retirement.
Companies that provide a monthly pension are no longer the
norm. Many retirees will need to rely on their 401K, IRA, and
personal assets accumulated during their working years. Whether
you have 5 or 25 years until retirement if your company offers
a 401k take advantage of it. Many companies offer a match or
contribute a portion to your 401k on your behalf. If you qualify
for an IRA strive to deposit the maximum each year.
If you have additional discretionary income to target toward
retirement, consider making deposits to a non-retirement
account. This creates an emergency fund which could be used
before retirement if needed.
Eliminating debt before you reach retirement will help you
have more discretionary income to live on. Make it a priority
to pay off your credit cards in full each month, make additional
payments on your mortgage and avoid home equity loans unless
it’s an emergency.
More baby boomers are working part time in retirement either
out of need or boredom. Many find they miss the day-to-day
feeling of accomplishment that working can bring. Others found
the cost of retirement was more than anticipated and need a part
time job to make ends meet. Regardless of the reason, a part time
job may offer an opportunity to try something different from your
prior career – something new, interesting and rewarding.
Research early how to best apply for social security, typically
three months before the time comes. Those born before 1937
can collect full benefits at age 65. Full benefits gradually increase
to age 66 for those born between 1943 and 1954. After that,
an older retirement age is phased in. To receive the maximum
benefit, waiting to age 70 might be advisable. If you are a widow
or can collect on a spouse’s social security, you need to know the
rules. A beneficial tool to use is the Retirement Estimator. Visit
www.SSA.gov/estimator for more information.
A few other tips ….In every woman’s life there comes a time to
downsize. Get rid of the clutter and simplify your life. Invest in
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your health by exercising. When you eat
out, order healthy choices, learn to cook
Mediterranean diet meals. Not only
will you feel better, you can potentially
cut down on your medical expenses.
Have your affairs in order by
documenting. Know where your
investments are and how they are
managed and diversified. Keep a log
of all you own and are responsible for.
Have your legal documents up-to-date,
for example, your will, trust, healthcare
surrogate and power of attorney. Give much thought to who you
choose to make these important legal decisions for you. Document
your insurance policies and when your premiums are due including
life insurance, auto, health, home, long term care, disability, etc.
Review your beneficiary designations periodically for changes.
Know how much you save and how much you spend each year
and what you pay in taxes. Document your passwords, where
your safe deposit box is and other important information to share
with the person you trust if you become ill or incapacitated.
The knowledge, experience and support of a financial
professional can help you put your affairs in order and to monitor
the process annually. If their credentials are similar, choose the
professional you feel you can communicate openly with. Ongoing
communication is what makes any relationship work.
By taking time to empower yourself now, you will feel more
self-assured and optimistic about your future.
Lynn A. Ferraina
www.CASMoneyMatters.com
Ciccarelli Advisory Services, Inc. is located at 9601
Tamiami Trail North, Naples, FL (239.262.6577)
Investment advisory services offered through
Ciccarelli Advisory Services, Inc., a registered investment
adviser independent of FSC Securities Corporation.
Securities and additional investment advisory services
offered through FSC Securities Corporation, member
FINRA/SIPC and a registered investment adviser.
Life in Naples | May • June • July 2015