News

Latest News / Retirement In Sight: December 2019

Retirement In Sight: December 2019

December 31, 2019

READY FOR MORE TIME TOGETHER?

A career-focused couple may spend as little as 5 to 6 hours interacting with each other on most days, given hours spent working, commuting, shopping, and running errands apart. Once retired, that same couple may spend as many as 15 to 16 hours together each day, with work and commuting out of the way. When you hear stories of retired spouses or partners getting on each other’s nerves, this difference may have something to do with it.

For many retiring couples, this extra time together is a gift. It offers spouses and partners a chance to savor, renew, or rekindle what is most wonderful about their relationship. Others are surprised by this abundance of time, not really knowing how to spend it and feeling like their days have a kind of inertia. Those who experience that feeling may find a remedy in part-time work, volunteering, and even starting a business. All retiring couples should be aware of this factor and think about how much togetherness or independence they may need. Many pre-retirees aspire to have financial freedom one day; many will have time freedom once they wind down their careers. In arranging their retirement transitions, it will be wise to think about how to spend and enjoy that ample time.1 

RETIRING DEBT-FREE IS GREAT … BUT IS IT REALISTIC?

Ideally, we would all like to retire without a cent of debt. In reality, few of us probably will. Large loan balances may remain with many of us into our “second acts.”

The TransAmerica Center for Retirement Studies says that 40% of retirees rank cutting debt as a financial priority – but not necessarily as their top priority. While reducing debt is a great financial goal, it is hardly the only goal within an overall retirement strategy. An effort to erase debt for retirement should not come at great cost to a retirement strategy’s other important financial objectives – such as adhering to an accepted and long-followed investment approach, making ongoing contributions to retirement accounts, or managing income withdrawals and linked income taxes. Some debts may be worth carrying into retirement, as they could be necessary steps on the way to positive financial outcomes. All nonrecurring debt needs to be seen in the context of a larger financial picture.3

ON THE BRIGHT SIDE

On the eve of Thanksgiving, the S&P 500 stock benchmark was up almost 25% year-to-date. If that advance can be sustained through the end of December, the index will have its best year since 2013.5

 

CITATIONS.
1 - forbes.com/sites/josephcoughlin/2019/10/29/these-are-retirement-numbers-every-couple-should-plan-on-but-dont/ [10/29/19]

2 - mayoclinic.org/diseases-conditions/insomnia/expert-answers/lack-of-sleep/faq-20057757 [11/28/18]

3 - kiplinger.com/article/retirement/T025-C000-S004-tips-for-dealing-with-debt-in-retirement.html [8/30/19]

4 - theconversation.com/six-amazing-facts-you-need-to-know-about-ants-100478 [6/20/19]

5 - cnbc.com/2019/11/25/stock-market-wall-street-in-focus-amid-earnings-and-economic-data.html [11/25/19]

 

Previous PostNext Post

Disclosures

Securities and insurance products are offered by Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered by Cetera Investment Advisers LLC. Neither firm is affiliated with Centier Bank where investment services are offered. Advisory services may only be offered by Investment Adviser Representatives.

View Cetera Investment Services privacy policy and other important information.

Securities and insurance products offered by Cetera Investment Services are: *Not FDIC insured * May go down in value * Not financial institution guaranteed * Not insured by any federal government agency * Not deposit products.

Investment Executives are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.

Find a banking center near you. Click Here
Centier: Not for sale

Centier Newsletter, Sign Up Today!

Stay informed and find out the latest on what’s happening with the Centier family.


Security