MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
PRESENTED BY WESTSHORE FINANCIAL SERVICES – February 2019
QUOTE OF THE MONTH
“What I know for sure is that what you give comes back to you.”
HOW CAN A WOMAN TRY to prevent outliving her money?
Certain financial decisions may help a woman grow and sustain her retirement assets across the decades to make up for time out of the workforce and the prevalent earnings gender gap. Obviously, one fundamental move would be to start saving and investing for retirement as early as possible – but other, sometimes underrecognized choices may also allow a woman to make more financial progress.
For example, stay-at-home moms and caregivers who are joint filers can consider a spousal IRA strategy if they do not have earned income this year. They can ask their spouse to contribute up to $6,000 to their Roth or traditional IRA in their name in 2019 (up to $7,000 if they are 50 or older). This way, one spouse can make an IRA contribution on behalf of the spouse who is not working. (The working spouse’s 2019 income must be at least as much as the total IRA contributions made on behalf of both spouses.) Negotiating a higher salary becomes important, as more income should correlate to more retirement saving potential for a woman. Additionally, if a woman is retiring without a pension, but her spouse is, perhaps a survivor benefit could be arranged should her spouse pass away first.1,2
Enjoy a pricey restaurant at lunch
One way to save money while sampling fine cuisine: eat lunch at a highly regarded eatery rather than dinner. You may end up with virtually the same menu items to choose from, served at about half the price they would be hours later.
FIGHTING FOOD INSECURITY
Nearly 5 million American seniors cannot regularly go out and get the nutritious food they need to eat in order to stay active and healthy. This may have to do with a lack of money, a lack of access, or even, a lack of awareness. This problem is called “food insecurity,” and it is no small social issue. Nor is it one only poor seniors face. A report by nonprofit food bank network Feeding America estimates that 20% of older adults who are above the poverty line risk eating inadequately as well.
If poverty alone caused food insecurity, a social remedy might be fairly simple. Other factors come into play, though: high health care costs that crimp senior household budgets, prioritizing caregiving duties at the expense of selfcare, and simple pride that makes older adults shun food assistance programs in their communities. As Next Avenue reports, only about 45% of seniors eligible for SNAP benefits choose to receive them. The U.S. Administration for Community Living and private-sector agencies have awarded several million in grants to nonprofits in urban centers and rural areas to address this problem. If you think a friend, neighbor, or loved one might be coping with food insecurity, contact the U.S. Administration on Aging’s Eldercare Locator at 800-677-1116.3
DID YOU KNOW?
Cinemas once had a chapeau alert
Between the World Wars, many movie theatres had signs asking women to remove their hats during a screening. In that era, some women wore hats large enough to obstruct the view of other moviegoers. (For that matter, so did some men.)4
ON THE BRIGHT SIDE
Seventy-five percent of baby boomers polled for a new retirement preparedness study, conducted on behalf of Retirement Living, thought they would have enough money to live comfortably in their “second act” after their careers ended.5
There is a nine-letter word starting with S and ending with G, and you can selectively remove one letter at a time from this word and still have a word in the English language, from nine letters right down to a single letter. What is this nine-letter word?
Westshore Financial Services may be reached at 616 392-1222 or firstname.lastname@example.org www.westshorefs.com
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Westshore Financial Services are not affiliated.The information in this email is confidential and is intended solely for the addressee. If you are not the intended addressee and have received this email in error, please reply to the sender to inform them of this fact. We cannot accept trade orders through email. Important letters, email, or fax messages should be confirmed by calling (616) 392-1222. This email service may not be monitored every day, or after normal business hours. This message distributed via use of the MarketingPro system.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
1 – investopedia.com/terms/s/spousal-ira.asp [11/21/18]
2 – kiplinger.com/article/retirement/T047-C034-S002-retirement-tips-for-a-long-lifetime.html [1/31/19]
3 – nextavenue.org/older-americans-food-insecure/ [1/31/19]
4 – mentalfloss.com/amazingfactgenerator/554068/1920s-and-30s-many-movie-theaters-had-signs-instructing-ladies-please-remove-your-hats [1/9/19]
5 – planadviser.com/boomers-far-confident-retirement-gen-xers/ [1/23/19]