Consider Having a Backup Plan

When looking ahead in anticipation of Social Security benefits, many people expect to wait until an average age of 66 to make a claim.1

However, Nationwide Retirement Institute’s fifth annual Social Security survey found many retirees start drawing Social Security at the earliest possible age of 622 — frequently the result of being laid off or health issues.

Thirty-six percent of respondents reported health problems got in the way of living the retirement they expected, and of those, 80 percent say health problems occurred as many as five or more years earlier than expected.3

This tells us something we already know but are constantly reminded of: Life does not always go as planned. Many financial professionals tell their clients one of the most effective ways to help ensure enough income throughout retirement is to continue working through their 60s. This may not be preferable, but it’s an option.

Others may plan to work longer but end up retiring for reasons beyond their control. It’s good to have a contingency plan. As an independent financial services firm, we help people create retirement income strategies using a variety of insurance products to custom suit their needs and objectives. Give us a call if you’re interested in finding out more.

It’s important to have a backup plan because there are many challenges for people working longer. For example, as jobs move further into technology, artificial intelligence and automation, new job skills are constantly required. It’s good to challenge the brain, but young college graduates typically have a firmer grasp on today and tomorrow’s technology — it’s a steep learning curve.4

A Washington Post article recently referred to the “gray ceiling.” As women have faced the “glass ceiling” as an obstacle to career advancement, age discrimination is sometimes manifested in the hiring, continued employment, development and advancement of older workers.5

Fortunately, recent workforce trends have made it easier for older workers to continue earning income past traditional retirement age. Many employers have embraced the work model of the “gig economy,” staffing up (and down) as needed with independent contractors. Older workers have proven to be well-suited for this type of employment due to their laser-like experience in certain roles, reliability and stability. A recent study suggests older white-collar professionals are driving the growing demand for gig workers among businesses in certain industries.6

While employers may embrace the gig economy to add and drop staff as needed, remember workers can do the same. Establishing yourself as a freelancer or independent contractor gives you the freedom to work as much or as little as needed.7 You can take off a month to go on vacation, or six months to fly south for the winter. You can also take on work only when you have big bills coming up, like homeowner’s insurance or property taxes.

A 2017 survey found one-third of future retirees are planning part-time work to provide at least 25 percent of their household income. Besides income, many gig workers ages 51 to 70 say a primary reason for freelancing is simply to stay active in retirement.8

Content prepared by Kara Stefan Communications.

1 Nationwide Retirement Institute. April 2018. “Social Security 5th Annual Consumer Survey.” https://nationwidefinancial.com/media/pdf/NFM-17422AO.pdf. Accessed May 10, 2018.

2 Ibid.

3 Ibid.

4 James Manyika, Susan Lund, Michael Chui, Jacques Bughin, Jonathan Woetzel, Parul Batra, Ryan Ko and Saurabh Sanghvi. McKinsey Global Institute. November 2017. “What the future of work will mean for jobs, skills, and wages.” https://www.mckinsey.com/featured-insights/future-of-organizations-and-work/what-the-future-of-work-will-mean-for-jobs-skills-and-wages#part%205. Accessed May 1, 2018.

5 Susan Williams. Booming Encore. March 2018. “Older Workers Watch Your Head – Breaking Through the Gray Ceiling.” http://www.boomingencore.com/older-workers-watch-head-breaking-gray-ceiling/. Accessed May 1, 2018.

6 Valerie Bolden-Barrett. HR Dive. Oct. 3, 2017. “Older workers — not millennials — are driving the gig economy.” https://www.hrdive.com/news/older-workers-not-millennials-are-driving-the-gig-economy/506349/. Accessed May 1, 2018.

7 Elaine Pofeldt. Forbes. Aug. 30, 2017. “Why Older Workers Are Embracing the Gig Economy.” https://www.forbes.com/sites/elainepofeldt/2017/08/30/why-older-workers-are-embracing-the-gig-economy/#642f904a42ce. Accessed May 1, 2018.

Ibid.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

The Psychology of Economics

Countries with a longstanding track record of economic stability and security tend to have the happiest citizens, reports journalist Dan Buettner, who has studied what makes people happy. Education and health care are two primary reasons why, combining to create an upwardly mobile lifecycle.1

Mothers with higher education levels tend to have fewer children, and those children tend to be healthier and more productive adults, Buettner says. In turn, they often become successful parents and make more well-informed voting decisions. This enables the next generation to make even higher social and economic gains.2

With this in mind, it’s worth considering how we can make education and health care more affordable within our own households. College tuition is expected to continue experiencing higher inflation levels than most other household expenses.3 Health insurance and medical inflation is expected to outpace overall economic inflation this year for the first time since 2010.4 If you’re looking for ways to help prepare for future health care and higher education costs for you and your loved ones, please set up a time to visit with us.

Another interesting, emerging economic trend is that of human workers versus automation. While we can debate the merits of cost savings versus human judgment, there’s an underlying theory that technology is not necessarily the key to future economic growth. In fact, in a departure from encouraging more students to study the STEM disciplines (science, technology, engineering and math), there’s a new movement to better understand the drivers of human behavior and how we might interact with technology in the future.5

If you look at recent trends in consumer-driven technology, there is a discernible shift away from high-tech products and services. For example, independent bookstores and print books are experiencing a revival after years of competing with the rising popularity of online bookstores and eReaders.6 And, remarkably, instant-print cameras have become fashionable again and experienced a 30 percent growth in sales in 2017.7

Content prepared by Kara Stefan Communications.

1 Knowledge@Wharton. March 2, 2018. “What Can We Learn from the World’s Happiest People?” http://knowledge.wharton.upenn.edu/article/blue-zones-happiness/. Accessed May 18, 2018.

2 Ibid.

3 Venessa Wong. CNBC. March 17, 2017. “In 18 years, a college degree could cost about $500,000.” https://www.cnbc.com/2017/03/17/in-18-years-a-college-degree-could-cost-about-500000.html. Accessed June 7, 2018.

4 Fortune. Feb. 15, 2018. “Healthcare Prices to Outpace Inflation for the First Time Since 2010.” http://fortune.com/2018/02/15/healthcare-prices/. Accessed May 18, 2018.

5 Shon Burton. MarketWatch. May 31, 2018. “Opinion: Coding skills won’t save your job – but the humanities will.” https://www.marketwatch.com/story/coding-skills-wont-save-your-job-but-the-humanities-will-2018-05-17. Accessed May 18, 2018.

6 Alex Preston. The Guardian. May 14, 2018. “How real books have trumped ebooks.” https://www.theguardian.com/books/2017/may/14/how-real-books-trumped-ebooks-publishing-revival. Accessed June 4, 2018.

7 Chaim Pikarski. Twice. Feb. 20, 2018. “What’s driving the instant photo revival?” https://www.twice.com/blog/whats-driving-instant-print-photo-revival. Accessed May 18, 2018.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Family Business Considerations

Family businesses that manage to survive generation after generation leave not only a family legacy, but also the potential for tremendous wealth. For example, Arkansas-based Walmart is presently the largest business in the world in terms of revenue, earning more than $485 billion in 2017. In 1992, founder Sam Walton passed away and left his retail empire in the hands of seven heirs.1

Presently, the Walton family business outranks the wealth of the Koch Industries energy group, which is the second-largest privately owned company. Next in line in terms of individual wealth of business founders are Jeff Bezos (Amazon), Bill Gates (Microsoft) and Warren Buffett (Berkshire Hathaway).2

These are just samples of the scope of wealth an entrepreneur can amass. However, most small business owners do well just to keep their heads above water. For those who would like to pass their business on to family members, there are basic business management strategies to keep in mind.3 If we can help you develop an insurance strategy to help protect your business, your key executive staff or your legacy, please give us a call.

On a day-to-day basis, successful family-owned entities generally follow some well-honed principles to keep family politics out of the business. For example, the patriarch and his four daughters who run the six-generation family-owned business D.G. Yuengling & Son Inc. have many varying opinions. To keep the business humming, they agree that it’s OK to disagree: “Diversity of opinion is what keeps family businesses strong and spurs collaboration.”4

It’s also a good idea to keep family and business separate. This means scheduling regular, in-office staff meetings so that family dinners can focus on just that — family. It’s important, too, that everyone has distinct roles and responsibilities. It’s difficult enough when duties overlap among workers, but in a family business this can lead to an all-out sibling brawl. When jobs and job titles are doled out to family members based on their natural strengths and interests, each employee can take ownership and be held accountable, as well as enjoy the pride and satisfaction for their individual contributions.5

For some families, entering the family business may take time. Even beyond a formal education, it may be important to first seek non-family job experience before “boomeranging” back to the fold. This scenario worked well for the three generations that run Cleaver Farm and Home — a building-supply distributor in Kansas. The business has managed to expand as each generation of family members took charge. For the current generation of brothers, launching their own career paths allowed them to return to their family roots and give their own children the sort of childhood they enjoyed.6

Bear in mind, too, that younger generations can bring new skill sets to the family business.

For example, a 17-year-old prodigy whose family has owned a metalworking company since the late Middle Ages has introduced technology to the fold. Anton Klingspor added exponential growth in his family’s business through various technological tools like LinkedIn Lead Builder and Facebook Workplace to improve team collaboration and communication.7

As a business grows larger and more complex, the family may need to look outside the fold for specific skills and experience. It’s important to engage knowledgeable professionals and establish formal business and family governance systems to help manage risks and enjoy a more sustainable foundation for future success.8

Content prepared by Kara Stefan Communications.

1 Lianna Brinded. Quartz. May 14, 2018. “The richest family in the world beat the Koch brothers, Bezos, Gates, and Buffett.” https://qz.com/1276872/the-richest-people-in-the-world-walton-family-koch-brothers-bill-gates-jeff-bezos-warren-buffett/. Accessed May 28, 2018.

2 Ibid.

Hilary Sheinbaum. Forbes. April 30, 2018. “How The 4 Yuengling Sisters Manage The Family Business.” https://www.forbes.com/sites/hilarysheinbaum/2018/04/30/how-4-sisters-manage-the-family-business-and-still-get-along-and-you-can-too/#198c9d0262ca. Accessed May 28, 2018.

4 Ibid.

5 Amy George. Inc. Jan. 17, 2018. “How to Build a Family Business That Lasts for Generations, According to Bravo TV Star Tabatha Coffey.” https://www.inc.com/amy-george/how-to-build-a-family-business-that-lasts-for-generations-according-to-bravo-tv-star-tabatha-coffey.html. Accessed May 28, 2018.

6 Raney Rapp. Farm Talk. May 15, 2018. “Cleaver Farm and Home celebrates three generations of family business.” http://www.farmtalknewspaper.com/news/cleaver-farm-and-home-celebrates-three-generations-of-family-business/article_7796c170-584b-11e8-8ed6-27bc3ee8f20b.html. Accessed May 28, 2018.

7 John White. Inc. Sept. 7, 2017. “How This 17-Year-Old Used an Entrepreneurial Mindset to Grow His Family Business to $300-Million.” https://www.inc.com/john-white/lessons-from-a-gen-zer-on-how-to-grow-a-200-year-o.html. Accessed May 28, 2018.

8 Marleen Dielemen. Forbes. May 25, 2018. “4 Types Of Family Businesses You’ll See In Asia And How To Govern Each Effectively.” https://www.forbes.com/sites/nusbusinessschool/2018/05/25/4-types-of-family-businesses-youll-see-in-asia-and-how-to-govern-each-effectively/#5147434e659f. Accessed May 28, 2018.

Guarantees and protections provided by insurance products are backed by the financial strength and claims-paying ability of the issuing insurer.

 We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 

Vanishing Deductions

Money-Saving Tips

Beginning with the 2019 tax season, filing income-tax returns will no longer be “business as usual.” Some people may be happy to see their 2018 tax return streamlined and receive a higher refund to boot. However, others may lament lost deductions that had previously helped reduce their tax liability.1

The good news is that the standardized deduction will nearly double. Individual filers will receive a $12,000 deduction while married couples will get $24,000. However, in exchange for the simplicity, many itemized deductions will go away. The following are some of the more common ones.2

  • Dependent exemption — Taxpayers will no longer be able to subtract $4,050 from their taxable income for each dependent they claim. The newly doubled $2,000 child credit may help offset the loss of that deduction for some, but not for those whose children are in college.
  • SALT — Deductions for state and local taxes (SALT) will be capped at $10,000. This will mostly affect those who live in areas with high property tax areas, such as in South Florida, New York and
  • Mortgage interest deduction — Deductible interest will be capped for new mortgages valued at $750,000, down from $1 million.
  • Miscellaneous itemized deductions — Expenses such as unreimbursed employee-education expenses, tax-preparation services, investment fees and professional dues, among others, are no longer deductible.
  • Moving expenses — This deduction is completely eliminated for everyone except members of the armed forces.
  • Natural disasters — In the past, expenses not reimbursed by insurance or other relief programs could be deducted on your tax return. Now this deduction is available only to taxpayers in a presidentially designated disaster zone, typically made on a county-by-county basis.
  • Alimony — These payments are no longer deductible from federal taxes for any divorce that is executed after Dec. 31, 2018. However, there is no change in the tax treatment of alimony payments for divorces finalized before 2019.3

The content provided in this newsletter is designed to provide general information on the subjects covered. Neither our firm nor its agents or representatives may give tax advice. Be sure to speak with a qualified professional about your unique situation.

1 Maryalene LaPonsie. US News & World Report. Feb. 9, 2018. “10 Tax Deductions That Will Disappear Next Year.” https://money.usnews.com/money/personal-finance/taxes/articles/2018-02-09/10-tax-deductions-that-will-disappear-next-year. Accessed May 29, 2018.

Ibid.

3 Bill Bischoff. Marketwatch. Jan. 26, 2018. “New tax law eliminates alimony deductions — but not for everybody.” https://www.marketwatch.com/story/new-tax-law-eliminates-alimony-deductions-but-not-for-everybody-2018-01-23. Accessed May 29, 2018.

Filing Your 2018 Tax Return

Next year, taxes must be filed on or before April 15, 2019. For the last few years, that iconic date was extended because it fell on a legal holiday or a weekend, but it lands on a Monday in 2019.1 While there’s been significant debate regarding how the new tax law will affect Americans across the income scale, we should then have a better idea of how we may be personally impacted by the changes.

Highlights of the new tax law include:2

  • Lower individual tax rates
  • Increased standard deduction ($12,000 single; $24,000 married filing jointly)
  • Increased child tax credit ($2,000)
  • Elimination of dependent and personal exemptions
  • Elimination of some itemized deductions
  • $10,000 cap on the combined deduction for state income taxes, sales and local taxes, and property taxes
  • 20 percent deduction for “pass-through” entities (e.g., sole proprietorship, partnership, S corps)

In light of these changes, it’s a good idea to conduct a midyear review to see if there are ways to take advantage of the new changes or discover any potentially negative situations. If you’re not sure how you might be affected, consult with a tax professional. It may be worth reviewing your 2017 return to consider what new rules may affect your unique situation.

The content provided in this newsletter is designed to provide general information on the subjects covered. Neither our firm nor its agents or representatives may give tax advice. Be sure to speak with a qualified professional about your unique situation.

1 TimeAndDate.com. April 24, 2018. “Tax Day in the United States.” https://www.timeanddate.com/holidays/us/tax-day. Accessed May 29, 2018.

2 TurboTax. April 24, 2018. “How Will Tax Reform Affect My Refund Next Year?” https://blog.turbotax.intuit.com/tax-reform/how-will-tax-reform-affect-my-refund-next-year-33055/. Accessed May 29, 2018.

 

Medicare News

Earlier this year, Congress passed a last-minute budget deal that included provisions affecting Medicare benefits. Specifically, one provision will permit certain therapies to continue beyond the previous caps, subject to conditions. All therapy (physical, speech and occupational) must continue to be classified as “reasonable and necessary to treat the individual’s illness or injury.” 1

There had been ambiguity in the past as to whether Medicare would continue paying for sessions without measurable improvement. Now, however, therapy sessions may continue per the provider’s recommendation. Retroactive for this year, once therapy billing has reached $2,010 (about 20 sessions at $100 per visit), a provider must add an extra billing code to ensure payment. However, if total expenses subsequently pass a $3,000 threshold, they may be subject to medical reviews and audits.2

The federal budget agreement also accelerated the share-cost reduction during the so-called “doughnut hole” period in Medicare drug plans. Starting one year earlier — in 2019 — Medicare beneficiaries will pay 25 percent (instead of 35 percent) of drug expenses once they reach the stated annual limit (currently $3,750 in 2018).3

Medicare rules are always changing. It’s a lot like trying to make retirement planning decisions throughout your career — the bar is a moving target. One potential solution is to over-plan and overfund your share of expected health care expenses in retirement. If you’re looking for ways to help plan for possible increased health care expenses in the future, contact us.  We’d be happy to discuss your options based on your unique situation.

In April, the Centers for Medicare & Medicaid Services (CMS) issued a final ruling with updates for Medicare Advantage (MA) plans to provide more choices. Specifically, the rule expands the definition of “primarily health-related” benefits to cover products and services not considered direct medical treatments. Examples include air conditioners for people with asthma, healthy groceries, rides to medical appointments and home-delivered meals. Paid benefits also may include home modifications for mobility and balance, such as installing a wheelchair ramp or bathroom grab bars. Plans may offer benefits to help pay home aides who help with dressing, eating and other personal, daily-living care. MA plans must submit their bids for CMS approval by June 4 to begin offering these benefits in 2019.4

The new CMS rule also includes initiatives to address the national prescription opioid epidemic. Specifically, Medicare Part D plans now limit new opioid prescriptions for acute pain management to no more than a seven-day supply. The Overutilization Monitoring System (OMS) is expanding, increasing pharmacist accountability for patients already taking opioids.5

The CMS rule is part of a hardline approach to combating the opioid crisis. The White House has established a Safer Prescribing Plan initiative with specific goals that include cutting nationwide opioid prescription fills by one-third within three years.6

Content created by Kara Stefan Communications.

1 Judith Graham. Kaiser Health News. March 29, 2018. “Scrutinizing Medicare Coverage For Physical, Occupational And Speech Therapy.” https://khn.org/news/scrutinizing-medicare-coverage-for-physical-occupational-and-speech-therapy/. Accessed May 4, 2018.

Ibid.

3 Susan Jaffe. Kaiser Health News. March 14, 2018. “Lifting Therapy Caps Is A Load Off Medicare Patients’ Shoulders.” https://khn.org/news/lifting-therapy-caps-proves-a-load-off-medicare-patients-shoulders/. Accessed May 4, 2018.

4 Bruce Japsen. Forbes. April 5, 2018. “How Trump’s New Medicare Rules Boost Amazon And Walmart.” https://www.forbes.com/sites/brucejapsen/2018/04/05/how-trumps-new-medicare-rules-boost-amazon-and-walmart/#600a42d6786c. Accessed May 4, 2018.

CMS. Fact Sheets. April 2, 2018. “2019 Medicare Advantage and Part D Rate Announcement and Call Letter.” https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2018-Fact-sheets-items/2018-04-02-2.html. Accessed May 4, 2018.

6 The White House. Fact Sheets. March 19, 2018. “President Donald J. Trump’s Initiative to Stop Opioid Abuse and Reduce Drug Supply and Demand.” https://www.whitehouse.gov/briefings-statements/president-donald-j-trumps-initiative-stop-opioid-abuse-reduce-drug-supply-demand/. Accessed May 4, 2018.

We are able to provide you with information but not guidance or advice related to Medicare. Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Music Plays Instrumental Role in Healing Ailments

Hearing a familiar song from a happy period in your life, such as childhood, can instantly make you feel joyful. It’s as if you’re right back there — toe tapping, head bopping and singing along. Just as with our sight, smell and taste senses, positive auditory memories can enhance mood and transport us back to a happier time.

The power of music has led researchers to study various applications of music therapy to help people overcome the pain of health conditions, emotional challenges and even the cognitive decline that often accompanies old age.1

It’s not enough to believe we will all grow old gracefully. This usually doesn’t happen without planning. A big part of planning for retirement isn’t just how to provide enough income for the rest of our life, but how to help ensure we still enjoy a high quality of life no matter our age.

As an independent financial services firm, we help people create retirement strategies using a variety of insurance products to custom suit their needs and objectives; just give us a call. As for creating a plan to help enhance quality of life, consider some of these music therapy applications.

Music therapy is now a board-certified health profession. With approximately 7,500 practitioners throughout the country, the practice has become prevalent in nursing homes and hospices. The American Music Therapy Association reports about 10 percent of musical therapists work with terminally ill patients in a new discipline called end-of-life music therapy.2

 A growing body of research indicates music therapy can help improve cognitive function in patients with Alzheimer’s disease.3 It also can be used to aid in stress and pain management, memory enhancement, communication and physical rehabilitation.4

Further, the discipline has been found to help people with psychiatric problems, such as depression, trauma and schizophrenia. Music can help calm patients as well as help them process emotions, trauma and grief.5

Interestingly, the military has used forms of music therapy since the post-World War I era. Trained musical therapists use it as a tool to help wounded, injured or ill soldiers express their thoughts nonverbally. Research also shows music can be effective at increasing neuroplasticity in the brain, which is an important role in helping veterans address symptoms of PTSD and traumatic brain injuries.6

 Content prepared by Kara Stefan Communications.

1 Sharon Otterman. The New York Times. Jan. 15, 2018. “Music Therapy Offers an End-of-Life Grace Note.” https://www.nytimes.com/2018/01/15/nyregion/music-therapy-nursing-home-hospice.html. Accessed April 13, 2018.

2 Ibid.

3 Sherry Christiansen. Alzheimer’s Universe. July 24, 2017. “Quick Alzheimer’s Prevention Pearl: Studies Show Music Improves Cognition in People with Alzheimer’s Disease.” https://www.alzu.org/blog/2017/07/24/how-music-helps-with-alzheimers-prevention/. Accessed April 18, 2018.

4 American Music Therapy Association. 2018. “What is Music Therapy?” https://www.musictherapy.org. Accessed April 13, 2018.

5 Molly Warren. National Alliance on Mental Illness. Dec. 19, 2016. “The Impact of Music Therapy on Mental Health.” https://www.nami.org/Blogs/NAMI-Blog/December-2016/The-Impact-of-Music-Therapy-on-Mental-Health. Accessed April 18, 2018.

6 Frank Otto. Drexel University News Blog. March 20, 2018. “3 Things to Keep in Mind About Music Therapy in the Military.” https://newsblog.drexel.edu/2018/03/20/3-things-to-keep-in-mind-about-music-therapy-in-the-military/. Accessed April 13, 2018.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

AE04185043B

Cultural Influences From Abroad

They say variety is the spice of life. A variety of cultural experiences may even contribute to a longer life and cognitive sharpness. A new study links cultural activities, including exposure to other languages, as a strong influence in the way we learn, amass and assimilate new information.1

Some cultural influences may well impact longer lifespans. In Japan, which has one of the world’s oldest populations, people live with a philosophy of “ikigai.” Roughly translated, this phrase means “a reason to live,” or identifying one’s purpose in life. To discover one’s ikigai, start by answering the following questions:2

  • What do you love?
  • What are you good at?
  • What does the world need from you?
  • What can you get paid for?

This idea of living for something more spiritual than, say, a job or material possessions is also practiced by the people of Costa Rica. Ticos, as Costa Ricans are called, use the term “Pura Vida” to convey a range of greetings, from hello and goodbye to “everything’s cool.” The real value of the phrase, however, is that Pura Vida reflects the way many Ticos live: relaxed and appreciative of the simpler things in life. This attitude toward life has gained the country recognition as one of the happiest places in the world. To live “Pura Vida” means you’re thankful for what you have and do not dwell on what you lack.3

Whether finding your ikigai or living a Pura Vida lifestyle, these influences may be able to enrich an American’s retirement, even if we don’t have the means to travel extensively. Reading, watching documentaries and movies, and listening to foreign music all can help expose us to other cultures and expand our mind and thought processes. Ultimately, this may help us appreciate the lifestyle we’ve created for our retirement years. If you’d like help creating a retirement income strategy to help you pursue your retirement lifestyle goals, please call us for ideas.

In the U.S., perhaps the most influential culture is that of the Hispanic or Latino population, which the U.S. Census Bureau describes as people of “Cuban, Mexican, Puerto Rican, South or Central American or other Spanish culture or origin regardless of race.” At an estimated 54 million people, Hispanics are the largest minority in the U.S., and the Census Bureau expects that number to rise to 119 million by 2060.Their impact can be felt in all aspects of U.S. culture, including language, food and entertainment.

While the U.S. is influenced by other cultures, it also wields cultural power of its own. In a 2017 survey by U.S. News & World Report, the U.S. was ranked as having the third most influential culture in the world, largely due to popular contributions in music, movies and television. In first place was Italy, followed by France, with Spain and the United Kingdom rounding out the top five.5 In a separate portion of the survey that ranked overall influence, the U.S. ranked first, followed by Russia.6

Content prepared by Kara Stefan Communications.

1 Science Daily. Aug. 4, 2017. “Cultural activities may influence the way we think.” https://www.sciencedaily.com/releases/2017/08/170804103911.htm. Accessed Oct. 17, 2017.

2 Laura Oliver. World Economic Forum. Aug. 9, 2017. “Is this Japanese concept the secret to a long, happy, meaningful life?” https://www.weforum.org/agenda/2017/08/is-this-japanese-concept-the-secret-to-a-long-life/. Accessed Oct. 17, 2017.

3 Vacations Costa Rica. 2017. “Pura Vida! Costa Rica Lifestyle.” https://www.vacationscostarica.com/travel-guide/pura-vida/. Accessed Oct. 17, 2017.

4 CNN. March 31, 2017. “Hispanics in the US Fast Facts.” http://www.cnn.com/2013/09/20/us/hispanics-in-the-u-s-/index.html. Accessed Oct. 27, 2017.

5 U.S. News & World Report. 2017. “Cultural Influence.” https://www.usnews.com/news/best-countries/influence-rankings. Accessed Oct. 17, 2017.

6 U.S. News & World Report. March 7, 2017. “Most Influential Countries.” https://www.usnews.com/news/best-countries/international-influence-full-list. Accessed Oct. 17, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Personal Productivity

Do you ever feel as if you don’t get enough done in a day? Many of us tend to do what we absolutely must, tackling easy tasks instead of launching into bigger projects or the pursuit of longer-term goals. In other words, we cook, clean, answer emails and catch up with the day’s news – but do we ever start that novel or the side business we’ve been considering?

One of the causes of poor productivity may be lack of a plan. Ben Franklin planned out everything he would do each day at what time, tracked in half-hour time blocks.1 In fact, studies have shown that writing a plan is an effective way of improving productivity. Further, writing out a plan by hand – as opposed to typing it on a computer or smartphone calendar – is even more effective. Apparently, it makes us feel more connected to the material because we use the frontal lobe of the brain for both writing and planning, as well as problem solving.2

According to a recent article in Inc. magazine, a few simple habits can help make us more productive. They include setting basic building blocks toward a goal, creating benchmarks for incremental success and using only essential tools – don’t spend a lot of time and money unnecessarily.3

Some of these tips are also worthwhile practices for retirement saving and budgeting. After all, it’s a good idea to have a strategy for retirement income – a written one is best. Focusing on small, regular savings can help you meet incremental goals, and making commonsense decisions about what you do and don’t need to spend money on in retirement can help reduce the amount of income you’ll need. If you’d like some more ideas on ways to help make your retirement savings more productive through the use of insurance products, please give us a call.

Sometimes all we need to make ourselves more productive is to take a break from the action. However, it’s best not to take a long one – just enough to distract your brain so it returns to the task re-energized. In that break, you could stand and stretch, complete a quick chore – like paying a bill online – or respond to a text or email.4 Other productivity boosters include taking a 20-minute power nap and spending some time outdoors – preferably in the sunshine.5

Bear in mind that productivity isn’t about how many hours there are in a day, but how well you use them. A new study out of the United Kingdom said the average worker would be more productive if he or she were expected to work only three hours a day. That’s because the average office worker is generally engaged in actual work for only that long – the rest of the day is spent checking social media, visiting news websites, chatting with coworkers, etc. If we weren’t expected to be at our job for a full eight hours – if we could leave as soon as we got “X” amount of work done – it’s easy to imagine that people would become a lot more productive in less time.6

If you’re retired, consider translating this idea into your usual day. Imagine that long-term task you want to accomplish is your job, and you have to be “at work” for a full hour each day. The rest of the day is all yours for everything else. Would you be more productive in that one hour?

Content prepared by Kara Stefan Communications.

1 Amy Carleton. TheCut.com. Oct. 11, 2017. “The Centuries-Old Strategy That Turbocharged My Productivity.” https://www.thecut.com/2017/10/the-centuries-old-strategy-that-turbocharged-my-productivity.html?utm_campaign=sou&utm_source=tw&utm_medium=s1. Accessed Oct. 24, 2017.

2 Ibid.

3 Julian Hayes II. Inc.com. Oct. 25, 2017. “These 5 Overlooked Habits Will Instantly Make You More Creative and Productive.” https://www.inc.com/julian-hayes-ii/5-simple-habits-that-will-immediately-boost-your-productivity.html. Accessed Oct. 25, 2017.

4 Richard Moy. Inc.com. Oct. 20, 2017. “A 5-Minute Routine to Jolt Your Productivity.” https://www.inc.com/the-muse/how-to-boost-energy-at-work-5-minute-routine.html. Accessed Oct. 25, 2017.

5 Stephanie Vozza. Fast Company. Oct. 12, 2015. “15 Habits That Will Totally Transform Your Productivity.” https://www.fastcompany.com/3051540/15-habits-that-will-totally-transform-your-productivit. Accessed Oct. 24, 2017.

6 Arielle Tschinkel. Hellogiggles.com. Sept. 28, 2017. “A new study shows that a 3-hour work day may be better for productivity.” https://hellogiggles.com/lifestyle/money-career/3-hour-work-day-productivity/. Accessed Oct. 24, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Anticipated Changes in Workplace Demographics

Online shopping has become the norm in the Western part of the world. Experts say mature economies adopted e-commerce quickly because of its strong infrastructure and a trusting financial landscape.1

In other words, consumers could count on receiving goods ordered, vendors knew they would get paid and any conflicts were protected by a reputable credit and court system. These things weren’t true in many developing countries, thus e-commerce was slower to gain traction there.

However, now that emerging markets have put a secure infrastructure in place, many expect online sales to soar — which could help bolster those waning economies. The global online market offers new prospects for struggling brick-and-mortar retailers in the U.S. Just about any retailer, large or small, that can adapt its sales model to a global e-commerce market could be poised for massive opportunity.2

That’s one of the interesting parallels between life and commerce — where some doors close, others open; we just need to see where opportunity awaits. The same can be true when planning for retirement. Please feel free to contact us to discuss creating retirement strategies through the use of insurance products that can help you work toward your long-term retirement income goals.

Interestingly, one of the biggest economic issues of the day comes from a social phenomenon: As older people are living longer, younger people are having less children. To be exact, the first of the baby boomer generation turned 70 last year while, at the same time, the fertility rate in the United States reached its lowest point since records began in 1909.3

The ramifications of this population shift will likely be widespread and long lasting. For example, retirees tend to contribute less to the consumer economy, with an average reduction of 37.5 percent in household spending. This, in turn, affects company revenues and, subsequently, returns in the investment market.At the same time, retirees may be drawing down invested assets for income, further reducing available capital.

The elderly population boom also is expected to cause economic drains in targeted areas of the country. For example, states that have long been popular retirement havens, such as Florida, Arizona, Oregon and South Carolina, are among at least 14 states where the cost of elderly care is rising.5

In Florida alone, 20 percent of the population is over the age of 65; more than 40 percent is over 50. While it’s easy to write this off as the result of Florida being a retirement haven, that is no longer the case. Within about 10 years, the entire country will have a similar demographic composition — we will become “a nation of Floridas.”6

Another problem with the sizable gap between retirees and babies is an anticipated drop in the number of workers. The workforce may not be large enough to support the government programs older people are entitled to after years of contributing into the system. This issue is hardly isolated to America. Between 2025 and 2050, the number of people age 65 and older is projected to nearly double worldwide.7

To help mitigate the drain on resources, many are raising the eligible age for government-sponsored pensions and encouraging people to work well past traditional retirement age. Whether due to lack of retirement savings or the desire to work longer, the share of people working longer has grown during the past decade: a 6 percent increase in Germany, 10 percent in the U.K. and 18 percent in the U.S.8

Content prepared by Kara Stefan Communications.

1 Knowledge@Wharton. Nov. 1, 2017. “Why Emerging Markets Are the Next E-commerce Frontier.” http://knowledge.wharton.upenn.edu/article/why-emerging-markets-are-the-next-e-commerce-frontier/. Accessed Nov. 22, 2017.

2 Ibid.

3 Stephen McBride. World Economic Forum. Sept. 14, 2017. “Retiring baby boomers are going to have a huge impact on the economy.” https://www.weforum.org/agenda/2017/09/retiring-baby-boomers-are-going-to-have-a-huge-impact-on-the-economy. Accessed Nov. 22, 2017.

4 Ibid.

5 Sue Chang. Marketwatch. Nov. 8, 2017. “These maps show just how crazy fast the world is aging.” https://www.marketwatch.com/story/these-maps-show-just-how-crazy-fast-the-world-is-aging-2017-11-08?link=sfmw_tw. Accessed Nov. 22, 2017.

6 Joseph F. Coughlin. Time. Nov. 8, 2017. “There’s No Such Thing As ‘Old Age’ Anymore.” https://www.msn.com/en-us/news/other/theres-no-such-thing-as-old-age-anymore/ar-BBEJG0u. Accessed Nov. 22, 2017.

7 Suzanne Woolley. Bloomberg. Sept. 17, 2017. “Retirement, Delayed.” https://www.bloomberg.com/quicktake/retirement-redesigned?cmpid%253D. Accessed Nov. 22, 2017.

Ibid.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.