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Estate Planning: 3 Important Takeaways

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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:

  1. A will
  2. Durable power of attorney for financial matters
  3. 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

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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. 

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 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:

  1. 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. 
  1. 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.  
  1. 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.   
  1. 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. 
  1. 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

Now May Be the Best Time to Volunteer – Or Not

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Original art by Peter Tunney Today Is the Day as it might apply to being a volunteer

According to the Bureau of Labor Statistics, 62.6 million people volunteered in the United States at least once in 2015 which was the last time such statistics were published. Of those volunteers, most were between 35 – 54 years of age and they spent a median of 52 hours on volunteer activities.

We know that planning is important when it comes to unretirement. There seems to be a never-ending number of decisions to be made and, possibly, changed along the way. We’ve written extensively about the importance of getting these decisions right to keep your retirement years sustainable and enjoyable.

But an encore career is just a part of your retirement life. It’s essential to find other ways to fill your retirement days.

Volunteering may be a great way to match your interests and skills with great opportunities to help and give back. In fact, AARP is so supportive of volunteering, that they have created a portal specifically for volunteers. Their Volunteer Wizard can guide you to the perfect experience for your interest and skills. They can even narrow it down to within 10 miles of where you live.

If you are like me and a global pandemic cramps your travel, never fear. There are many volunteer opportunities to be had that only require a phone or computer. Online tutors are in huge demand right now. If you are more of an environmental activist, many organizations are looking for volunteers to support causes like save the bees and stop overfishing oceans. Citizen scientists can volunteer for eBird through the Cornell Lab of Ornithology to record local bird sightings.

Let’s not forget that this is an election year and parties, candidates and causes are all looking for volunteer help. Highly organized campaigns have lists of voters who actually want to receive text messages. Or you can work to help register voters before the general election. If you can safely get to and volunteer at your local voting site, many are desperate for help in the weeks ahead.

Simplification may be the key for many who have a very active retirement life. But don’t let that stop you from giving back. I’m talking about shopping and giving a portion of what you spend to charitable causes. Sites like AmazonSmile offer the same products you buy at the same prices, but they donate a percentage of the proceeds to the charity of your choice. It’s simple and automated – all you have to do is select a charity and start shopping!

Right now may be the best time to do some research to find that volunteer opportunity. Many of us are still cutting back on activities and travel due to COVID-19. Use your spare time to find something that matches your interests and skills. And if volunteering is still a few months or years away, no problem. You can do the groundwork now to find what’s best for you.

We know that, for many, workplace unrest, furloughs and layoffs have upended retirement planning. Volunteering may not be an option when your focus is on an interim job or your next opportunity. However, a volunteer role may provide experience, new skills, or connections that could lead to a new job. Something to keep in mind. For others, volunteering can be a rewarding way to support others and the causes that really matter.

How to Be a Better Team Player at Work

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sign motivate inspire encourage thank are ways to be a better team player

I hate to say it, but I think one of the major contributing factors to ageism is not being able to become a part of the team at work. This doesn’t mean we have to go out partying after work – unless you want to of course. It does mean finding ways to build positive working relationships with people of all ages. 

If you haven’t read the Harvard Business Review article “Collaboration Overload”, check it out. My big takeaway from the piece is that employees spend more time collaborating than ever before. And that the skills it takes to be a good collaborator are different than being a high-level contributor. So, one of the qualities that can make us an effective team player is learning how to become a better collaborator. Here are 10 things to focus on:

  1. Communicate! I know, I know. Communication always shows up on these lists. But effective communication with the team is important. It’s how we present ideas, provide feedback, and ultimately accomplish goals. One aspect of communication that’s particularly important is empathy. Try to remember what it was like being in your younger colleagues’ shoes. Being a good team player means having empathy for others and using it when delivering messages.
  1. Balance the positive and negative. I’m one of those people who believes that life isn’t always positive nor is it always negative. Knowing when to be the skeptic and when to be the cheerleader is important. We run the risk stopping momentum if we don’t know how to motivate people. I’m not saying don’t present your concerns but figure out how to do it where the other person doesn’t lose their zest for the project. 
  1. Think about work flows. Sometimes one of the most valuable things a team player can do is explain how things get done in their department or the company. Not always what the policy is – although that can be helpful too – but how things really get done. If you’ve been working at the company for a long time, you probably already know this. Being a good team player means not only knowing how things work around the office but being able to suggest new and better ways of doing things.
  1. Be organized. I realize that I’m a ridiculously organized person but there’s nothing worse than sitting in a meeting watching someone fumble around for stuff. It’s painful for others to watch and for the person being watched. Disorganization can be confused for not caring and being respectful of others’ time.  When meeting with other members of the team, take a few moments to prepare. Don’t assume that everything is immediately accessible.
  1. Work outside of your department, company, and industry. If you work in a perfectly cohesive team right now, congratulations! Your working situation is rare. And dare I say, not helping you get better at team development. Working on a team can be challenging, frustrating, and downright hard. It can also be incredibly fulfilling, educational, and lots of fun. Regardless of your years of experience, look for opportunities to work on teams that will give you both. 
  1. Set the right priorities. High performing teams accomplish their goals because everyone on the team has the same priorities. Are your priorities the same as the rest of the team? If they’re not, ask yourself “Why?” Do you need to have a conversation with the team leader about your concerns? Are you the right person to be on the team? But if you haven’t bought in to what the team is doing, then you owe it to yourself and the team to find out why.
  1. Meet your deadlines and keep your promises. Your credibility as a team member is important. The quickest way to lose it is by not being a person of your word. I understand that stuff happens but that’s no excuse for leaving the team waiting. Renegotiate your commitments when necessary. The team wants to count on you because, at some point, you’ll need to count on them. Set the example you want to see in others. 
  1. Understand your influence. Everyone has power and influence. Everyone. It’s important to realize that and use your influence for positive outcomes. Not only is it bad to use your power for the wrong reasons but it’s equally bad to not use your influence when you could. In those situations, the rest of the team knows that you can change a situation and you didn’t step up. 
  1. Have fun. Whenever I see lists, have fun is always seems to be the final one. Let me suggest that being a part of a team should be fun. Yes, there will be tough days. But you really should have more fun days than tough days. The team should find ways to have fun, laugh, and celebrate their successes. Building some kind of bond with the rest of the team will help everyone become better team players.
  1. Respect others even when you disagree with them. I read somewhere that “Dream teams are made up of diversity not sameness.” No matter what happens on the team, the individuals on the team should be treated with respect. That doesn’t mean you can’t disagree. In fact, the team might need to disagree to produce their best work. But you can raise questions, show concern, and disagree with respect.

Even employees who are considered “individual contributors” have to work on teams. We all must have the ability to work with others. And it takes effort to do that. 

I find that lists like these are good reminders for me about all of the things I need to do to be a good team player. Because it’s hard. Somedays I’m very focused on being organized. Then somedays, I might be focused on deadlines. It happens. The good news is if we’re all focused on being a good team player, then the other members of the team are too. 

Image captured by Sharlyn Lauby while exploring the streets of Las Vegas, NV

Your Career: Development Strategies To Consider

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mall sign careers success starts here with development strategies

I mentioned a few weeks ago that I wanted to share a few career development resources given the state of the current job market. I hate to say it, but ageism still exists. A recent article on Next Avenue mentioned that many older workers have lost their jobs due to the pandemic and it’s possible they will not be asked to return to the workplace because of their age. 

Traditionally, many workers have relied on their employers to provide professional development opportunities. And I agree, they should. It’s important for organizations to make investments in an employee’s career and future with the organization. If they don’t, it could result in high turnover.

But that doesn’t mean employees are off the hook. Employees need to have their own personal career development strategies. They need to be able to articulate to their managers what they want in terms of a career. In addition, employees should have an honest opinion about the knowledge, skills, and abilities they need to work on. And when the company isn’t ready or willing to provide career development strategies, employees need to figure it out on their own. 

If you’re looking for a little creative inspiration when it comes to developing your own career strategy, here are a few articles that you might find helpful:

The Top 5 Soft Skills That Employers Should Look For

Soft skills are in big demand. Employers want to identify them in candidates. Learn the top soft skills that employers look for when hiring.

Networking: 7 Proven Ways to Grow Your Career

Whatever stage you’re at in your studies or career, networking can connect you with exciting opportunities. Learn to network successfully.

How to Get Better Results in Your Work

Results at work can lead you to career success. But delivering a great outcome doesn’t just happen. Learn 7 steps that will help you get better results at work.

Integrity: 6 Ways to Improve Trust and Values

Integrity is the foundation of trust and respect. Good leadership needs strong values. Here are 6 things to focus on to improve organizational integrity.

10 Ways to Be a Better Team Player

Being a better team player can be a boost for your career. Companies look for it in promotions. Learn 10 ways to be a better team player.

Innovation and Leadership: 7 Qualities Organizations Need for Success

Leadership is needed more today than ever today. Innovation is key to success and growth. Here are 7 qualities in strong organizational leadership.

Understanding what companies are looking for can help you define where you’d like to see your career now and in the future. It can help you identify the resources you’d like when negotiating with the company. It can also help with your overall work performance (which often helps with your paycheck and future opportunities, if you know where I’m going).

Career development strategies benefit both you and the organization you work at. While those conversations should be happening on a regular basis, don’t miss out on opportunities to develop yourself. Be prepared! 

Forget Boomers and Get Ready For the Young Old

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Anthony Bourdain quote I don't have to agree with you like the young old or YOLD

I ran across an article in The Economist titled “The Decade of the ‘Young Old’ Begins”. It’s an interesting read worth checking out. “Young Old” – also known as YOLD – is the group of individuals between 65 and 75 years of age. The reason that the group is being called “young old” is because, while their age is in the traditional retirement range, their lifestyles aren’t. 

YOLD individuals are working longer, staying healthier, and represent a significant consumer market. This should not be a surprise to anyone. Regardless of the unemployment rate, organizations need the best talent and YOLD individuals are willing to work a few more years because they want to, and they can save up a few extra dollars. 

There’s research that says remaining in the working world is helping people stay healthier longer. The article cites a study that shows a positive relationship between cognitive abilities and working, which makes sense. And finally, because YOLD people are staying in the workforce longer, they can afford to do some of those things on their bucket list (i.e. spending money on travel).

While this all seems logical, organizations are behind the times when it comes to recognizing YOLD individuals and their value. Here are three areas of focus that businesses should consider:

  1. Ageism. I wish I could wave a magic wand and erase ageism, but I haven’t figured that one out yet. Ageism exists and organizations need to figure out how to create more inclusive workplaces. Not just because it’s the right thing to do. Selfishly, they need the talent and YOLD workers are one of the groups that can bring it. It’s time for companies to realize that inclusionary workforces bring positive results. 
  1. Health Care. Speaking of working longer, if organizations want to enjoy high performance from their employees, then it pays to keep employees healthy – regardless of age. Now, I will admit that some of the responsibility for health falls to the individual – eating right, exercising, and preventative care. But organizations are in a position to make health care affordable. 
  1. Retirement. This is one of the reasons that Keith and I started this blog. Thanks to YOLD, retirement is changing. Yes, at some point, we all will want to stop working and retire. But people want a modern retirement. Since Social Security and Medicare have been enacted, there have been numerous technological and societal changes. Retirement programs need to be updated to reflect the way we live our lives today. 

I understand that YOLD is simply a euphuism. It’s something new and catchy, especially in the wake of “Ok, Boomer.” But YOLD does raise some good points about aging and work, health, and retirement. Not only do businesses need to pay attention but so do individuals. Are you supporting legislators who agree with your YOLD philosophy? Do you support businesses that respect YOLD individuals? And if you’re thinking that you’re so far away from retirement that this doesn’t matter, think again. How does this impact older friends and loved ones?

The time to think about how you want to spend your YOLD years is now. Because you want to spend them your way. 

Retirement Planning Bot: A Unique Solution for Unique Times

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wall art bot representing a retirement planning bot

We’ve all seen the terms recently – unique, unprecedented, even surreal or seismic. Whatever you call these pandemic times, most of us can agree that they often require equally anomalous ways of dealing with them. Depending on how close you are to retirement, that could apply to your retirement planning too.

I was excited to see that Michelle Singletary, personal finance columnist for The Washington Post, has introduced a retirement planning bot to “see us through the coronavirus pandemic and beyond”.

If you aren’t familiar with bots, they are software applications which are programmed to complete certain tasks. In this case, the bot collects information about your financial situation and retirement plans and makes recommendations relative to both. I had the opportunity to run through the bot program and see first-hand some of their suggestions.

The good news is that this is all completely anonymous. While they ask specific questions about your finances, they don’t know who you are, and they don’t save any of your information. Along the way, you can hear advice and commentary recorded by Michelle. I’ll be candid: I didn’t always find them helpful, but I thought they were good reminders and could offer a little effective guidance, particularly for some people who may be early in their planning.

On the downside, the program doesn’t factor whether you’re planning as an individual or a couple. That can make a huge difference when they ask for retirement or bank account balances and earnings. The bot also doesn’t ask your expected retirement age. It just makes the assumption that you will retire as soon as you reach the age for full Social Security benefits.

The best thing about this particular retirement planning bot is that it provided a step-by-step guide with as much hand holding as you can expect from a robot program. And there is a little encouragement along the way provided you are doing something to fund your retirement. They even have some FAQs at the end.

A couple important things to focus on:

  1. This is not a replacement for your professional financial advisor. A single source of information is rarely enough for something as important as retirement planning.
  1. You may not agree with the assessment of your financial situation and your retirement plans. That’s okay. It doesn’t mean you are doing a bad job of funding your retirement.

I think the best way to view this tool can be found in their own description:

“We may not be able to capture everything about your financial situation, but it’s a place to start”.

Many people are very concerned about their financial situation right now regardless of when they plan to retire. This retirement planning bot may help relieve some of the stress as you think of future plans. Who knows? You may just be better off than you think. And, if not, you could get some ideas on how to get back on track.

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