1.800.791.5773

Second Marriages: Financial Finesse

Of all the questions we ask a potential spouse before tying the knot, they seldom include:

 

“Who are the beneficiaries of your investment plans and insurance policies?”

“Do you wish to be resuscitated if your heart stops or if you stop breathing?”

“Do you want your ex or me to be guardian for your children if you die?”

 

These are not exactly the whispers of sweet nothings upon which romance thrives. They are, however, practical considerations couples engaged in a second marriage need to tackle either before or shortly after exchanging vows. In addition to figuring out who pays for what household expenses, spouses should consider plans for health care, saving for the future and estate planning for both the surviving spouse and all beneficiaries.1

 

Finances are a big part of the marriage contract, and they can be even more controversial when one or both spouses already have experience from prior relationships. According to the American Psychological Association, spouses who share accounts and financial decisions report higher family satisfaction than those who opt to keep their money separate.2

 

However, it’s important to emphasize that this is a highly subjective decision that should be made by both partners based on their circumstances. It may be prudent to work with a financial professional to help determine a household budget strategy, as well as insurance and designated beneficiary decisions to help protect family assets and income from unexpected events. Please contact us if you need such help.

 

Note, too, that how you handle your marital legal affairs may depend on where you live.

In a community property state, what each spouse brings to the marriage remains his or her own, but assets acquired during the marriage are considered owned by both spouses. In common law states, asset ownership is determined strictly by titles, registrations and other documents.3

 

According to the most recent census data, 50 percent of first marriages and 60 percent of second marriages end in divorce.4 Yet second marriages in the U.S. are so common now that blended families are considered “the norm.” Unfortunately, the comingling of children from prior relationships can bring all sorts of financial complications — even when the children are grown. What was once sibling rivalry over who gets the most expensive birthday gifts can morph into who gets what assets when a stepparent dies.

 

Despite bleak statistics, there are definite advantages to a second marriage. For one thing, the partners are generally older and have already witnessed the fallout of prior mistakes. Many couples enter a second marriage with the knowledge of what works and what doesn’t and have accepted the fallacy of their own mistakes. They may commit to correcting the error of their ways and engage in more open communication to ward off problems before they steep. As one seasoned spouse proclaimed, the next time around offers “a second chance for a first great marriage.”5

 

Content prepared by Kara Stefan Communications.

 

1 Janet Kidd Stewart. The Seattle Times. Nov. 7, 2017. “How to avoid the stress that a 2nd marriage can put on a retirement plan.” https://www.seattletimes.com/business/how-to-avoid-the-stress-that-a-2nd-marriage-can-put-on-a-retirement-plan/. Accessed Dec. 22, 2017.

2 American Psychological Association. 2017. “Making stepfamilies work.” http://www.apa.org/helpcenter/stepfamily.aspx. Accessed Dec. 22, 2017.

3 Mark Eghrari. Forbes. June 2, 2017. “Second Marriage and Estate Planning: 5 Things You May Not Have Considered.https://www.forbes.com/sites/markeghrari/2017/06/02/second-marriage-and-estate-planning-5-things-you-may-not-have-considered/#71d3ad261db1. Accessed Dec. 22, 2017.

4 Terry Gaspard. The Good Men Project. Sep. 27, 2017. “10 Things to Improve Your Second Marriage Today.” https://goodmenproject.com/marriage-2/10-things-to-improve-your-second-marriage-today-fiff/. Accessed Dec. 22, 2017.

5 Jill Lipton. Boston Globe. Nov. 17, 2017. “We’re newlyweds over 50, and the best is yet to come.” https://www.bostonglobe.com/magazine/2017/11/14/newlyweds-over-and-best-yet-come/EL6m1jU0sosMxSRSnXALxK/story.html. Accessed Dec. 22, 2017.

 

We are not permitted to offer legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

 

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.

 

AE01185003B


How Losing Sleep Could Translate to a Loss of Money

Some teenagers seem to sleep a lot. As parents and grandparents, we can find this rather aggravating. But the fact is, as we get older, our sleep patterns may change, and our sleep can be less restful.1 Perhaps it’s a good idea to let young people sleep in peace while they still can.

 

Scientists say young adults require about nine hours of sleep a day, on average. If they get less than eight hours, they may have a harder time paying attention. Full-grown adults, on the other hand, need an average of seven and a half hours. Unfortunately, studies show about one-third of adults in Western societies get less than that on a regular basis.2

 

A recent study by the University of Zurich and the University Hospital Zurich found a correlation between chronic lack of sleep and increased risk-seeking behavior. Scientists trace the link to the brain’s right prefrontal cortex, which is directly connected with higher risk-seeking behavior. The researchers theorize that when a person persistently does not get enough sleep, this area of the brain does not recover properly, which prompts behavioral changes. Interestingly, the researchers found that study subjects did not notice they engaged in riskier behaviors and therefore were not cognizant of this relationship with sleep patterns.3

 

The study’s authors observed that sound sleep, of the appropriate duration, is critical for good decision making — especially for political and economic leaders whose daily decisions impact the larger society.4 This advice is also worth pursuing in our own lives. In other words, avoid making important decisions when you haven’t been sleeping well.

 

As financial professionals, we are here to help guide you. We’ll give your retirement income goals our full attention; just give us a call to set up an appointment to discuss how we can help you create a retirement income strategy through the use of insurance products.

 

Although we often hear that everyone needs a full eight hours of sleep each night, the actual amount varies by individual — usually between seven and nine hours.5 Just one night of insufficient sleep can make us cranky and too tired for healthy activities — like engaging in exercise or preparing a nutritious meal.6

 

Over time, sleep deprivation can increase the risk of developing a variety of chronic health problems, including obesity, diabetes, high blood pressure and heart disease. It may make us more vulnerable to getting sick when exposed to a cold virus. Chronic lack of sleep also can make us more susceptible to experiencing depression and anxiety.7

 

Women are 40 percent more likely to suffer from insomnia or symptoms of insomnia compared to men, but the reasons for this are unclear. Some researchers hypothesize that women’s traditional role in society as caregivers could be a contributing factor. Furthermore, single parents who serve as both caregivers and financial providers are at higher risk of insomnia. Some scientists speculate the sleep circuitry for women could be different from men and, when combined with social roles as both worker and caregiver, this may result in a higher risk for sleep disorders.8

 

While the length and quality of sleep is a personal matter, it cumulatively has an impact on the economy. According to a study by RAND Europe, the United States loses approximately $411 billion a year due to workers who sleep less than six hours a night — which represents around 2.28 percent of U.S. gross domestic product. However, if those poor sleepers got one extra hour of sleep each night, the data suggests about $226.4 billion could be added back to the economy.9

 

Content prepared by Kara Stefan Communications.

 

1 National Sleep Foundation. “Aging and Sleep.” https://sleepfoundation.org/sleep-topics/aging-and-sleep. Accessed Dec. 29, 2017.

2 ScienceDaily. Aug. 28, 2017. “Chronic lack of sleep increases risk-seeking.” https://www.sciencedaily.com/releases/2017/08/170828102725.htm. Accessed Dec. 19, 2017.

3 Ibid.

4 Ibid.

5 William Kormos, M.D. Harvard Medical School. May 2016. “Ask the Doctor: The right amount of sleep.https://www.health.harvard.edu/staying-healthy/ask-the-doctor-right-amount-of-sleep. Accessed Dec. 19, 2017.

6 Julie Corliss. Harvard Medical School. July 2017. “The health hazards of insufficient sleep.https://www.health.harvard.edu/staying-healthy/the-health-hazards-of-insufficient-sleep. Accessed Dec. 19, 2017.

7 Ibid.

8 MedicalXpress. Dec. 18, 2017. “New guide aims to unmask unique challenges women face in getting healthy sleep.https://medicalxpress.com/news/2017-12-aims-unmask-unique-women-healthy.html. Accessed Dec. 19, 2017.

9 Sandee LaMotte. CNN. Sept. 27, 2017. “Sacrificing sleep? Here’s what it will do to your health.http://www.cnn.com/2017/07/19/health/dangers-of-sleep-deprivation/index.html. Accessed Dec. 19, 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.

 

AE01185001B


Why It’s Important to Care for the Caregivers

If you picture yourself receiving long-term care at some point, you likely envision a medical professional sitting bedside, tending to your needs. However, the bulk of long-term care in the U.S. is actually provided by family caregivers.1

 

According to a recent Merrill Lynch study, 20 million Americans become caregivers each year. Moreover, family caregivers collectively spend $190 billion a year of their own money on adult care recipients. And the toll doesn’t end there. In addition to 92 percent of caregivers using their own money and/or coordinating or managing finances to aid loved ones:2

 

·      98% provide emotional support

·      92% provide household support

·      79% provide care coordination

·      64% provide physical care

 

Women usually do more caregiving than men, the study found, averaging six years of caregiving in their lifetime compared to four for men. As a result, caregiving can bring more of a financial burden for women because of the time they may need to take away from their careers to care for loved ones.3

 

The financial burden of caregiving, for both men and women, should not be underestimated. The study shows 53 percent of respondents have made financial sacrifices as caregivers, and 21 percent have dipped into their savings.4

 

If you’re in a similar situation and are concerned about having enough income in retirement, please contact us. We work with clients to create retirement strategies through the use of insurance products that help them work toward their long-term retirement income goals.

 

Increasing attention is also being given to the psychosocial burden experienced by family caregivers. The responsibility and stress can contribute to their own physical conditions, including chronic diseases caused by unhealthy eating habits, sleeping poorly and not getting enough physical activity.5

 

Caregivers have twice the incidence of heart attack, arthritis, heart disease and diabetes compared to non-caregivers. Their chronic stress can even lead to cognitive reduction such as short-term memory loss and attention deficits. To cope with their complex lives, caregivers also may be prone to develop dependence on alcohol, smoking, prescription drugs and psychotropic drugs for mood enhancement. Caregivers also tend to have higher obesity rates.6

 

To help family members who are caring for a loved one with cancer, the Memorial Sloan Kettering Cancer Center in New York developed a support program that included webcasts with staged therapeutic interactions between therapists and informal caregivers, and a message board where study participants could post responses to experiential exercise questions. Initial results found that program participants experienced reduced symptoms of depression.7

 

Technological advances may also help ease caregiving challenges. For example, wearable devices can monitor heart rate and blood pressure, among other vitals. These devices can be linked to mobile phone apps, alerting a caregiver of any changes that might trigger a serious health issue.8

 

Some wearable devices use GPS and geofencing technologies to track patients, allowing them more mobility while also helping caregivers monitor patients’ locations. Newer devices use artificial intelligence to recognize trends in vital signs or movement that can lead to health or injury concerns.9

 

Regardless of what innovations the technology industry creates to aid caregivers, there is some comfort in knowing that the primary skills necessary in a caregiver cannot be replicated by artificial intelligence or a robot. Human caregivers not only offer compassion, empathy and the ability to meet retirees’ emotional needs, but these soft skills can be learned and improved — which will prove to be a critical sector of our workforce in years to come.10

 

Content prepared by Kara Stefan Communications.

 

1 Advisor News. Nov. 1, 2017. “92% Of Caregivers Are Financial Caregivers.https://insurancenewsnet.com/oarticle/92-caregivers-financial-caregivers#.WgOptLaZOfU. Accessed Dec. 4, 2017.

2 Ibid.

3 Ibid.

4 Ibid.

5 Kathy Birkett. Senior Care Corner. “How Are YOU, Family Caregiver — Are You Caring for Yourself?” http://seniorcarecorner.com/family-caregiver-caring-for-yourself. Accessed Dec. 4, 2017.

6 Ibid.

7 Meg Barbor. The ASCO Post. April 25, 2017. “Attrition High but Positive Trends Observed in Web-Based Intervention Addressing Caregiver Burden.” http://www.ascopost.com/issues/april-25-2017/attrition-high-but-positive-trends-observed-in-web-based-intervention-addressing-caregiver-burden/. Accessed Dec. 4, 2017.

8 1-800-HomeCare. Oct. 12, 2017. “What Are the Top Emerging Tech Trends for Home Care In 2017?” https://www.1800homecare.com/homecare/new-tech/. Accessed Dec. 4, 2017.

9 Ibid.

10 Harry Welchel. ChirpyHire. July 31, 2017. “Senior Care and The Future of Work.” http://blog.chirpyhire.com/senior-care-and-the-future-of-work/. Accessed Dec. 4, 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.

 

AE12175142B


The Impact of Income Inequality

As it turns out, income inequality can be an issue for all society, not just the poor.

 

A new study of high-earning clients of a bank’s wealth management unit tracked the fortunes of male and female young adults to learn how income inequity would impact their lives. The assumptions had both genders starting out in the job market earning a salary of at least $100,000 and in possession of an inheritance of $1 million.1 The following are some of the study’s findings:2

 

·      A 25-year-old woman living in a wealthy country earns 10 percent less, on average, than a man the same age.

·      By age 85, the income gap will result in the woman having 38 percent less wealth than the man.

·      The gap will widen if the woman takes a year off from work or decides to work part time for a while.

·      The problem is exacerbated by the fact that women are expected to live longer and must stretch their wealth over a longer period.

 

Retirement planning is challenging enough without the issue of lower wages throughout one’s career. Lower earnings mean fewer opportunities to save and invest, in addition to a reduced standard of living. Whether married, divorced or single, we help clients create retirement strategies through the use of insurance products that help them work toward their long-term retirement income goals. Give us a call to learn more.

 

Interestingly, the U.S. women’s labor force participation peaked in 2000. At the time, this had a big impact on household income and broader economic growth. Since then, as prime-age women have dropped out of the workforce, the national growth rate has suffered.3

 

Over the past two years, real median household income in the U.S. has increased by 3.2 percent, but this follows 17 years of stops and starts. Even today’s positive numbers can be deceptive, because they do not reflect areas of the country that are still struggling. For example, an analysis of data from the 2000 Census and the 2016 American Community Survey found that 86 urban areas — including Miami, Orlando, Phoenix, Tucson, Chicago, Indianapolis and Milwaukee — suffered declines in median income between 10 and 15 percent from 1999 to 2016. Many of these areas lost a large number of middle-income manufacturing jobs during the 2000s that have not been replaced.4

 

A new large-scale study found poverty-level household income can have a significant impact on children’s development, ranging from cognitive and educational outcomes to social development and physical health. The study included data from past research that found that when low-income families do receive an influx of cash, this money is usually spent on fruit, vegetables, books, clothes and toys.5

 

Aligned with this type of insight, some countries are looking at ways to solve some of their largest societal issues through a basic income. This year, as part of a two-year, limited trial involving 2,000 unemployed citizens, Finland became the first European country to provide a “no-strings-attached” monthly payment to cover essential costs of living. The basic income (about $587 a month) replaces any other current unemployment benefits and will continue even if recipients get a job. Cities in the Netherlands and Canada have scheduled similar pilot programs.6

 

In the U.S., test programs have found that giving homes to the homeless is the cheapest way to reduce homelessness, and paying high-risk people not to be involved in gun violence has been remarkably effective at reducing a city’s murder rate.7

 

Content prepared by Kara Stefan Communications.

 

1 Reuters. Oct. 23, 2017. “Pay gap to affect high-earning women’s retirement lifestyle: study.https://www.reuters.com/article/us-global-women-pay-gap/pay-gap-to-affect-high-earning-womens-retirement-lifestyle-study-idUSKBN1CS0Z7. Accessed Nov. 28, 2017.

2 Ibid.

3 Jay Shambaugh, Ryan Nunn and Becca Portman. Brookings. Nov. 1, 2017. “Lessons from the rise of women’s labor force participation in Japan.https://www.brookings.edu/research/lessons-from-the-rise-of-womens-labor-force-participation-in-japan/. Accessed Nov. 28, 2017.

4 Alan Berube. Brookings. Oct. 12, 2017. “Five maps show progress made, but mostly lost, on middle-class incomes in America.https://www.brookings.edu/research/five-maps-show-progress-made-but-mostly-lost-on-middle-class-incomes-in-america/. Accessed Nov. 28, 2017.

5 The London School of Economics and Political Science. Centre for Analysis of Social Exclusion (CASE). “Does Money Affect Children’s Outcomes? An update. http://sticerd.lse.ac.uk/case/_new/research/money_matters/report.asp. Accessed Dec. 7, 2017.

6 Drake Baer. New York magazine. Jan. 4, 2017. “What Happens When You Give Free Money to Poor People.https://www.thecut.com/2017/01/the-psychology-of-basic-income.html. Accessed Nov. 28, 2017.

7 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.

 

AE12175139B


Page 1 of 54123...Last »

Connect With Us

Sign up now to get your free copy of The Annuity Owner Manual!
Get Your Free Report →

Recent Articles