Retirement Planning Archives

Look For Home Safety Concerns As You Age

June 16, 2021 by Sharlyn Lauby Leave a Comment

While we’re just starting to see some drops, prices for new and existing homes have steadily and significantly increased during the past year. Construction materials – particularly lumber – are in short supply. It only makes sense that home remodeling projects have increased as well. Some individuals might opt for a renovation instead of a home purchase.

There are lots of reasons that individuals and families are evaluating their housing situation. It’s a good reminder that at some point in our retirement planning, we should start asking ourselves some questions about where and how we want to live.

Do I want to stay in the same city? Or try someplace new?
Should I move closer to family?
Do I want to live in a house? Or a condo?
What are the home features that are important to me in where I live?

Maybe one of the more important questions we should ask is “How will my home needs change as I age?”.

The New York Times recently had an article about “Aging in Place Comfortably and Stylishly” that talked about how people are thinking about where they want to spend retirement and how they want to live. I was reminded of some of the questions that Keith and I asked ourselves when we made the decision to move to North Florida.

In The New York Times article, they mentioned an AARP app called HomeFit. It’s a free augmented reality app that can scan a room and suggest improvements to help with safety and mobility risks. The app is an extension of their HomeFit Guide, a free publication available in multiple languages with tips to make your home comfortable and safe as you age.

One of the things we tried to focus on when building our current home is being able to age comfortably, safely, and stylishly in our home. In fact, this is something we continue to think about. For example, almost every home we’ve ever lived in had really tall ceilings – like 20+ feet. Not this house. For safety reasons, we don’t want to be climbing on ladders when we’re older. And our home still looks nice – at least we think so.

I did some playing around with the HomeFit app and it provided some safety suggestions to consider when it comes to making sure that rooms have good lighting and aren’t arranged in a way that would encourage a slip or fall. I don’t know that I have to act on all these suggestions right away; but as we’re decorating, it’s something to keep in mind.

Regardless of your age, having a safe and comfortable home is important. Apps like HomeFit can help us think about design elements that are both stylish and safe. And as we make long term decisions about our living arrangements, we can plan not only to have something beautiful for today…but safe for our retirement.

Consider Having a Side Hustle In Your Unretirement

March 31, 2021 by Sharlyn Lauby 5 Comments

airport sign showing that forward thinkers consider a side hustle in retirement

A key aspect to unretirement is work. When we think of being retired, we think of “not working”. Many individuals are finding that they like work. They like the challenge of work. They like the camaraderie of work. And they even like the financial rewards of work.

But that doesn’t mean that our work has to remain the same.

It might make sense to transition from full-time to part-time. Or maybe have an encore career, also referred to as a second career. You could also have a portfolio career, where you do a few smaller jobs instead of one big one. Then of course, there’s the option of being a freelancer, contractor, or consultant (aka creating a side hustle as part of the gig economy).

The reason I’m bringing this up is because I just read an article on The Hustle that LinkedIn is building a gig marketplace. The idea is that the “Marketplace” will be similar to Fiverr and Upwork, which are sites that host freelance work. If having a side hustle is part of your unretirement strategy, then it could make some sense to watch what LinkedIn is doing. Here are also a few other things to consider.

Keep your LinkedIn profile current. Most of us do not have career events happen that justify changing our LinkedIn profile on a weekly or monthly basis. But that doesn’t mean you can simply set it and forget it. Make a note to yourself to check your LinkedIn profile every six months or so to ensure it looks the way you want it to. If you feel your profile needs a good overhaul, Hannah Morgan (aka Career Sherpa) has a reasonably priced LinkedIn eGuide that can help.

Start posting news and paying attention to others. With your LinkedIn profile in order, now it’s time to start creating engagement. You can do that by posting articles of interest, giving endorsements, and writing recommendations. You can also do it by commenting on other people’s posts. It’s not hard, but it does take having a plan. If you’re thinking about a side hustle in unretirement, then you need for others to remember you. Being engaged helps people remember you.

Think about how you would display your side hustle on your profile. Lots of people have a side hustle. This isn’t anything to hide. What you have to do is find a way to share it so it looks cohesive with the rest of your profile. A few years ago, an HR Bartender reader asked about displaying side hustles on their resume and LinkedIn. A couple of recruiters shared their thoughts. Check it out when you have a moment. It might give you some creative inspiration on how to let others know about your side hustle.

Test drive the Marketplace feature. As I mentioned earlier, LinkedIn’s new feature will resemble other freelance marketplaces. At some point, you will want to test out these sites to see how they work. You’ll want to know their terms and conditions. Are there any other things you will need to create to participate (like a PayPal or Venmo account). You’ll also want to see if others are doing the same type of work you’re doing. On one hand that can be a good thing – because the site might have a reputation or attracting customers looking for a specific product or service. It could also be a negative if there’s too much competition.

Set a date to evaluate your progress. I’m thinking of this activity as a way to learn more about side hustles. I do believe the best time to do that is when you’re still employed. The goal isn’t to start working two jobs, although you might find that adding the side gig now makes perfect sense. Just be prepared to regularly look at the effort you’re putting into your freelance work and the return you’re getting from it.

Freelancing work is a common way to transition from regular full-time status. It offers individuals freedom and some income. But make no mistake freelancing doesn’t just happen. It takes time to build a side hustle. If you’re thinking this might be for you, try it out before you need to make a final decision.

Image captured by Sharlyn Lauby while exploring the Hartsfield-Jackson Atlanta International Airport in Atlanta, GA

Retirement Planning: It’s About More Than Just Not Working Anymore

February 17, 2021 by Sharlyn Lauby Leave a Comment

wall art everything is figuroutable like retirement planning

The COVID-19 pandemic is forcing older workers to examine their job options. In an article on CNN.com, an economist mentions that young workers’ participation in the labor force has almost fully recovered, while older workers and women are recovering more slowly. I’m sure this has prompted individuals to say to themselves, “Am I ready for retirement?”.

Making the decision to retire involves more than simply deciding not to work anymore. It includes financial planning (Do I have enough money?), healthcare planning (Can I take care of my medical needs?), and emotional planning (Am I emotionally ready?). Over the past year, we’ve written about some of these topics and we thought it might be helpful to have them as a reference in one place.

Retirement Planning: 5 Reasons to Have a Stop Working Date

It’s very easy to simply pick the government’s age for collecting Social Security as your retirement date. But if I had a dollar for every person who turned 62 or 65 and said, “I’m not ready yet.” I would be retired right now. LOL! No one is holding you to that date. It’s simply a placeholder for planning. And retirement planning is important.

Retirement Success: We Need to Learn About Happiness

Happiness means knowing what will make us happy. In our retirement life, we will often have to deal with trade-offs. For example, we can travel often but our accommodations might be economy. Versus traveling less but more luxuriously. Or we can retire earlier but it means downsizing and paying off a mortgage. Or we can work longer, but it means becoming a freelancer or contractor without corporate healthcare insurance. For us to make good decisions, we need to truly understand what makes us happy.

5 Ways We Can Bridge Our Retirement Gap

Statistically, we know that people are living longer. The challenge is that we’re not financially preparing to live longer. The financial shortfall between how much we need for retirement and how much we have has been labeled “the retirement gap”. The retirement gap is a global retirement planning issue and it’s growing, especially in the United States. The bottom-line is that individuals need to prepare for retirement because Social Security wasn’t designed to cover 100% of our retirement expenses.

Is It Possible to Flunk Retirement

In today’s business world, we appear to be much more accepting of failure than ever. Billionaires like Sir Richard Branson and Spanx founder Sara Blakely remind us that it’s okay to make mistakes. But I can see how people could feel different about flunking at 20 than flunking at 60. We have to view our unretirement and retirement as a journey. A journey that starts early in life. Will there be stumbling blocks and changes along the way? Absolutely. But that doesn’t mean we’ve flunked life or our retirement. It does mean that we need to find ways to adjust.

The Pros and Cons of Being a One Car Household

One of the things to consider in retirement planning is transportation as in, “How much do you want to drive?” The answer might prompt you to take some action like moving from the suburbs to a more walkable community. Or maybe downsize vehicles to something smaller and/or more fuel efficient. Or you might do what we did and simply become a one-car household.

Should You Keep “To-Do” Lists After You Retire

As a person who likes to plan, I make lists. Granted, all of my lists aren’t created equal. For example, I plan our meals using lists. It helps us save money on groceries and we don’t waste food. I also have a list of small tasks that I need to complete during the day like “buy tickets to see Bohemian Rhapsody on Friday”. I can’t imagine when I retire that I would stop making those types of lists.

Regardless of where you are in your retirement planning process, making sure to think about all of the aspects involved in retirement is important. I’d like to think that anyone considering retirement wants to know they’re as ready as they can possibly be for the future.

Can Remote Work Be a Way to Phase Into Retirement?

October 14, 2020 by Sharlyn Lauby Leave a Comment

computer desk image showing an image of a sign with caution rockstar at remote work

Right now, older workers are trying to make some decisions about their future careers and asking a number of important questions. Can I continue to work onsite? Maybe it’s time to retire? Or should I think about transitioning to an encore career? These are all very valid. There’s one other question to consider: Is it possible that remote work might help me achieve my retirement goals?

I recently listened to The Retirement Wisdom podcast, “Can Working Remotely Beat Ageism?”. The guest for this episode was Kerry Hannon, author of the book “Great Pajama Jobs: Your Complete Guide to Working from Home”. I will admit that the title of the podcast gave me a bit of discomfort. As a human resources professional, I hate the fact that ageism exists. But the realist in me understands that it does. And sadly, that it’s not going away overnight.

In the podcast, Hannon says that one of the biggest benefits to working from home is beating ageism. For organizations and individuals. Organizations can have older professionals work remotely and not worry about whether that person fits in with the younger members of the team. Older workers can benefit from being evaluated on their performance results and not how they look or act.

Again, let me say that I hate, hate, hate ageism. And I particularly hate that Hannon’s remarks have some truth in them. But instead of thinking about remote work as a way to beat ageism, is there a way to think of remote work as part of a phased retirement strategy? Organizations benefit because they are able to keep skilled workers longer. Older workers can benefit by being able to still contribute while (possibly) downsizing to their forever home, commute less so they can fulfill caregiving responsibilities, and continue to save for their financial future.

But working remotely doesn’t mean easier work. If you’re intrigued by the idea of using remote work as part of your phased retirement strategy, here are a few things to consider:

Do you want to be an employee or a freelancer? One of the first things you have to decide is how you want to pursue remote work. If you’re working for an organization that allows working from home, then great – you could be set. And if you don’t or you’re currently looking for a new job, do you want to make remote work one of your job must-haves?

Do you have enough workspace? I mentioned earlier that part of your retirement strategy might be moving to a smaller home. If you’re planning to work from home, do you have the space to do it? In our last home, Keith worked in the dining room. With our new house, he has his own space and that’s important.

Can you setup your workspace with equipment and technology? Once you have a designated workspace, you’ll need to think about what it takes to be productive. When we work in an office, we take for granted that we will have a desk, chair, and computer equipment. With high-speed internet. Getting the remote work office setup you want could involve spending some of your own money.

Are your skills current? I believe working from home involves some different skills. A couple that immediately come to mind are technology and time management. You’ll want to take an inventory of your skills and decide if there are any you want to update or add. And you’ll want to find ways to gain those skills while working from home. If you’re accustomed to taking a class at your worksite, now you might read a book or take an online program.

Are you mentally and emotionally ready? I’ve worked from home for over a decade. Socializing is different. You don’t have people to collaborate with all the time. There are distractions and temptations all the time. Some of them are fun (like cute panda videos) and then there’s doomscrolling. You have to figure out how to not snack all day and when you’re going to exercise. All of this contributes to the work from home experience.

Regardless of what’s going on with the pandemic, remote work has been increasing in popularity for quite some time. Is it possible to take advantage of a growing trend and make it a part of your retirement strategy? Possibly, but it takes planning so you’re ready when the opportunity presents itself.

Why Voting Matters – #Election2020

September 23, 2020 by Sharlyn Lauby 1 Comment

I’d like to think that everyone knows there’s an election coming up in the United States. And like all elections, the outcomes are important. Some might argue that this year is even more important. I’m not going to get into that today except to say that even if you vote regularly, I hope you will take the time to finish reading today’s post.

I was a political science major in college, so I like reading and staying up on politics and the news. Which I will admit can be a bit challenging at times. A few months ago, Keith bought me a book titled “OMG WTF Does the Constitution Actually Say?” by Ben Sheehan. Whether or not you’ve read the Constitution, this is an educational and fun read. It contains both the actual text as well as a casual interpretation. I hadn’t read the Constitution in a long time and it was a good refresher.

Shortly after finishing Sheehan’s book, I heard about another book…this one about voting. Kim Wehle is a professor of law and legal expert. She wrote the book “What You Need to Know About Voting and Why”. Needless to say, I had to get a copy.

While I’ve been voting for a long time, I really enjoyed this book for a few reasons. It’s a book that talks about both the mechanics and complexities of voting. The book delves into whether or not we have a “right” to vote, how to qualify to vote, and how voting impacts government. I’ve never questioned my ability to vote ever nor have I ever had anyone question my ability to cast a vote. (Yes, my white privilege is showing.) That’s not the case for everyone and this book does a good job of explaining how voter suppression has happened over time and still exists today. It also talks about money in elections and if you ever wanted to know the difference between individual contributions, political action committees (aka PACs), and Super PACs…this book will clarify it for you.

The book was also helpful in sharing how older Americans who need assistance can have a caregiver help them vote and how individuals with disabilities can make sure they’re able to vote with accommodations. Finally, the book offers suggestions about what to do if for whatever reason you’re turned away from a voting precinct (and it could be because of what you’re wearing – and, yes, they can do so legally).

Voting is important. Our votes elect individuals who create laws that impact our personal and professional lives. I’m not just talking about major pieces of legislation like the Americans with Disabilities Act (ADA) or the Family and Medical Leave Act (FMLA). Right now, an elected school board official is deciding whether or not our kids or grandkids should go back to school in person or online. That’s pretty darn important.

I’m not trying to give you the hard sell on buying this book. I did think it’s really good and it will have a permanent spot on my bookshelf (next to Sheehan’s book about the Constitution). That being said, there is one quote from the book that I want to share.

“As far back as 1886, the Supreme Court has repeatedly declared that the right to vote is ‘fundamental’ because it is ‘preservative of all rights.’ Without the right to vote, individuals can’t hold government officials accountable for breaking other laws.”

Wehle suggests thinking about our ability to vote as an accountability tool. Without it, government officials could feel – and act – as if they’re above the law.

A recent AARP study showed that Americans 50 years of age and older would be the world’s third-largest economy if they were counted as their own country. You can imagine the economic impact of this demographic and the power they have in the voting booth. I’m not here to tell you how to vote. But I do hope you will take the time to learn the voting laws in your state, get educated on the issues, and make a plan to go vote. What happens on November 3, 2020 will have a long-term impact on us as individuals as well as our plans for retirement.

Image captured by Sharlyn Lauby while exploring the streets of Gainesville, FL

Estate Planning: 3 Important Takeaways

September 16, 2020 by Keith Lauby 2 Comments

let's have a conversation about estate planning nothing is accomplished alone

In our last “What We’re UP To” from a few weeks ago, we mentioned that we’re updating our wills and health care directives. We didn’t expect anything out of the ordinary but surprisingly, there are a lot of moving parts in most estates than you might realize. So, we wanted to share some of our findings with you. To get us started with a conversation about estate planning, let’s start with a definition. Investopedia defines an estate as:

Everything comprising the net worth of an individual, including all land and real estate, possessions, financial securities, cash, and other assets that the individual owns or has a controlling interest in.

According to that definition, we all have an estate to some degree. That’s what an estate is, but there are basically three important documents that help spell out how you want your wishes carried out when you are no longer capable of doing so:

A will
Durable power of attorney for financial matters
Health care power of attorney

As I mentioned, we’re in the process of updating these documents right now. Even though we’ve been through this process before, we’re realizing that things can change over time and wanted to share our takeaways.

Takeaway No. 1 – Your Estate Plan Should Not Be “Set It and Forget It”

Years ago, we did like most people and, with the help of an attorney, created a simple will that was signed and perfectly legal. Then, we immediately placed it in a safe deposit box for 15 – 20 years. The thing is, life has a habit of changing over time and you will want your will to keep up. I would still recommend a safe and secure place to store your official will. But, keep an electronic copy and schedule a regular review every 6 – 12 months and make changes as needed.

I mentioned that we created our original wills through an attorney, and we are doing that again now. Which leads us to takeaway number two.

Takeaway No. 2 – Doing Everything Yourself to Save Attorney Costs May Not Work Very Well

Yes, you can do that, and it may be just fine. Or, it may not. I’m not an attorney or a certified estate planner so the best advice I can give is this – know if and when to engage an attorney. That might depend on how involved your estate is or how complicated local and state laws are for your estate plan. Just don’t make assumptions that could result in costly headaches for your loved ones.

Speaking of assumptions, the worst assumption you can make brings us to the last takeaway.

Takeaway No. 3 – No, Everyone Does Not Have to Carry Out Your Final Wishes

We found out pretty quickly that you should have a Plan A, Plan B, and at least a Plan C when it comes to estate planning. It turns out that different states have different laws regarding things like taxes and executors. And if your will doesn’t follow the laws for your state, chances are the estate will be disposed by probate court. That could mean additional costly headaches for heirs and family.

Hopefully this article doesn’t seem full of doom and gloom. On the contrary, think of this as caring for those you love when you are no longer able to do so. Yes, it takes planning and dealing with a few decisions that could be a little uncomfortable. That helps avoid pitfalls and provide some peace of mind for everyone.

5 Ways We Can Bridge Our Retirement Gap

September 9, 2020 by Sharlyn Lauby Leave a Comment

wall art hands reaching toward each other implying a retirement gap

I ran across an interesting TEDx video on the Center for Retirement Research’s Squared Away Blog. Kevin Bracker, a finance professor at Pittsburg state university in Kansas was talking about “The Retirement Gap”. While the video is from 2019, it does have some really good takeaways for retirement planning.

The retirement gap is global and it’s growing, especially in the United States. So why do we have a retirement gap? There are two primary reasons. First, we don’t save enough. There are people close to retirement who do not have enough saved. Bracker says 40% of the population doesn’t have a retirement account and the majority of individuals do not have enough in savings to last them a year. Second, Social Security, which is supposed to be our retirement safety net, doesn’t have enough funding.

Whether you believe Social Security is funded enough is a topic for another day. The bottom-line is that individuals need to prepare for retirement. Social Security wasn’t designed to cover 100% of our retirement expenses. Here are five things that could help individuals bridge their retirement gap:

Save more. I realize this is very difficult to do in general. Even more so when people are facing unemployment or taking a job that pays less than the last job. Toughness aside, are there ways we can set a little bit aside? I’ve mentioned before that we have monthly budget meetings and ask ourselves, “Is there something we can cut from our regular expenses?” Sometimes we amaze ourselves with what we can live without.

Understand the tax code. I’m not saying don’t pay your fair share. But there are ways to legitimately reduce your tax burden. One thing I immediately think about are 401(k) plans where you can save pre-tax. According to the Investment Company Institute, 50% of all employees have access to a 401(k) plan. And over half of those plans include an employer match. As a HR professional, I’m amazed when people don’t take advantage of this benefit. It’s a way to automatically save, pre-tax, and get a savings match from your employer.

Become financially literate. In addition to taking advantage of the savings opportunities from your employer, it’s possible to invest on your own. I think it’s important if you’re going to invest to understand key financial terms. For example, knowing how inflation impacts the market. Also, individuals should know how to read an organization’s financials to determine whether or not to invest in them.

Think about professional help. Most of us are not full-time market fund managers. At some point, we might want to consider the services of a financial advisor. Keep in mind these services are not free. Individuals should know how to select the services of a financial advisor and what their fee structures are. A financial advisor can be a huge benefit but it’s important to have trust in their abilities.

Play the long game. It can be frustrating to save and not see immediate results. Or not see big results. Those small increments can and will add up if we play the long game. I’m reminded of the saying, “If it seems too good to be true, it probably is.” It definitely applies here. Retirement planning happens over time. In small increments. It happens when we’re patient.

Toward the end of the retirement gap video, Bracker talks about creating some systemic changes like “opt out” 401(k) plans versus “opt in” and automatic savings increases but I think most of us aren’t in a position to implement those changes. The five actions above are things we can do now.

I know for some people these financial strategies aren’t anything new. It is a good reminder to stay focused and look for opportunities to do more. After all, we want to enjoy those extra years ahead.

Image captured by Sharlyn Lauby while exploring the streets of Fort Lauderdale, FL