THE CHALLENGES AND SOLUTIONS OF A FINANCIAL DIGNITY ISSUE WITH A MUST HAVE PLANNING

“Getting up, Getting over, and Getting on. I want to show you how in under 10 minutes, you can be Getting On with… Financial Dignity. I will attempt to combine over 40 yrs experience helping others to achieve fiscal health upon divorce.

Two parts “the problems and some solutions for today and tomorrow. It has been said that “two can live as cheaply as one” what we have now for many is:  One will now live more expensively than two. What we have is a loss of economy of scale. We now have two residences, two separate health policies, and sets of everything from autos to flatware. Additionally, we lose multi-car insurance discounts; the list continues. These problems are on top of our country’s dismal economic future.

 A few years back, I heard this story. A couple went for a walk in the woods and deviated somewhat from the trail, where they happened upon an old wishing well. Intrigued, the wife went first tossing in a coin, and she made a wish and walked away. As she walked away, she heard a splash and turned. The husband was gone, she gasped, “Oh my god, I can’t believe it works.”

Another story this one is not funny: a man and a woman both earn the same income, have the same job titles, and have the same amount in their 401(k)s. Both work for progressive companies that treat different sexes equally; everything is identical. Who gets the bigger monthly pension check- the male? Why? Longevity women usually live longer and will collect for a more extended period. (Same reason men pay more than women for life insurance- they die sooner).

Must change all legal six must-have documents, inc beneficiary forms 401(k), etc. company and personally owned life insurance*

1. Will
2. Power of Attorney for financial
3. Power of Attorney for healthcare  
4. HIPAA release
5. Medical directive
6. Retirement plan beneficiaries

PICTURE

For future planning: 

Idea one: A 50-50 split may leave the women short when splitting assets. You must factor in retirement assets differently. (Ask how much these dollars will produce in income future) and most importantly. It would be best if you planned more safely for these assets much differently than when married.

Idea Two: Reduce taxes. It sounds basic, but we need to do three things:

• Reduce current taxes
• Plan future taxes 
• Now for the critical part plan to use the tax saving to bolster your savings and retirement income. In others, words use Uncle Sam’s money for you. A big issue is avoiding and reducing taxes on your S.S. benefits.  

Idea Three:   Understand Social Security benefits, how, when, and on whom to collect. You can collect on an ex-spouse (if married for ten years). Did you know you can collect on both? They can be staggered in certain circumstances:  the Ex first, then your own, or you first, then the ex. It would be best if you planned to maximize this income, and the laws are complex.

Idea Four: use the “Old Age Roth,” which will ensure your later years are spent living with dignity and not relying on others. 

Idea Five: You must provide a lifetime income stream that CANOT be outlived.

Idea Six: use the Dollar Multiplier in everything you do. Get three dollars in value for every dollar. Like getting low or no cost Long term care coverage attached to a retirement plan or life insurance.

 

For more Healthy Money Tips Listen to our PodCast “Money 911”

Meet with Kris Miller – Financial Fitness Strategy Sessions

https://healthymoneyhappylife.com/

Kris@HealthyMoneyHappyLIfe.com

(951) 926-4158