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Are You Afraid to Spend Your Money in Retirement?

You spent decades saving for retirement. You contributed to your 401(k), invested, paid the bills, raised a family, hopefully paid down some debt, and tried to make smart decisions along the way. The whole idea was that someday you would have enough money to stop working and actually enjoy it.

Then retirement gets closer and something interesting happens. After spending 30 or 40 years saving money, suddenly you’re supposed to start spending it. And for a lot of people, that’s much harder than they expected.

I see this all the time. People don’t usually come right out and say, “I’m afraid I’m going to run out of money.” Instead, it comes out in other ways. They put off the big trip they’ve always wanted to take. They keep driving the car they really don’t like anymore. They hesitate to help their kids or grandkids even though they’d love to. They agonize over purchases they can probably afford. Or they find themselves constantly saying, “Maybe I should wait. I might need that money later.”

Of course, there’s nothing wrong with being careful with money. In fact, being careful is probably one of the reasons you have retirement savings in the first place. But there’s a difference between being financially responsible and being afraid to spend because you don’t know what you can afford.

And I think that’s a really important distinction.

For most of our working lives, we’re taught to accumulate. Save more. Invest more. Don’t touch the retirement accounts. Prepare for the future. Then retirement arrives and we’re expected to flip a switch and start drawing money out of those accounts. Your paycheck may be gone, the stock market is still going to go up and down, healthcare costs become more important, and none of us knows whether we’re planning for another 10 years or another 30.

That’s why I think a good retirement plan needs to answer more than, “Do I have enough money to retire?” It should also help answer, “How much can I comfortably spend and still be okay?”

If you’re approaching retirement or already retired, here are three questions I think are worth asking yourself.

What would make you feel financially secure 10 or 20 years from now?

Before you start thinking about account balances, think about what financial security actually means to you. Maybe it’s knowing you can stay in your home for the rest of your life. Maybe it’s having enough money set aside for healthcare. Maybe you want to know you’ll never have to depend financially on your children. Or perhaps security means being able to travel, help your family and still know there will be plenty of money there when you’re 85 or 90.

We tend to talk about retirement security as if it’s a number, but I don’t think it is. It’s a feeling, too. Two women can have exactly the same amount of money saved and feel completely differently about it. Until you understand what makes you feel secure, it’s difficult to build a retirement plan that actually gives you confidence.

What are you not doing today because you’re afraid you might need the money later?

This might be the most revealing question of the three. Is there something you really want to do but keep putting off because you’re worried about spending the money? Maybe it’s that trip you’ve talked about for years, a new kitchen, a different car, taking the whole family somewhere special or even just spending a little more on yourself without feeling guilty about it.

Then ask yourself another question: Am I saying no because I truly can’t afford it, or because I don’t know whether I can afford it?

Those are two very different things.

Sometimes the issue isn’t that you don’t have enough money. It’s that no one has helped you understand what your money can realistically support. And without that clarity, the safest answer always feels like “don’t spend it.”

What would you need to know to give yourself permission to enjoy your money?

Maybe you need to see what happens if the market drops 20%. Maybe you need to know how much income your investments can reasonably provide each year. Maybe you’re worried about healthcare or long-term care. Maybe you need to understand what happens if you live to 95. Or maybe you simply need to see, in black and white, that you can spend some of this money and still be okay.

That’s one of the things I think retirement planning sometimes gets wrong. We spend so much time talking about accumulation, rates of return and how much someone needs to retire that we forget why they accumulated the money in the first place.

Your money has a job.

I’ve always said that your money is the vehicle. Retirement is the destination. The point of accumulating money isn’t simply to die with the largest possible account balance. It’s to create security, choices, freedom and the ability to live the life you worked all those years to have.

That doesn’t mean spending recklessly. You still need to plan for inflation, healthcare, taxes, market downturns and the possibility of living a very long life. But there’s a big space between spending too much and being afraid to spend anything at all.

A thoughtful retirement plan should help you find that space. It should give you enough confidence in your future that you can actually enjoy some of your money today.

Because the goal isn’t simply to make your money last for the rest of your life.

It’s to make sure you’re living during the rest of your life, too.

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Eliminating the Fear Factor of Retirement

“People experience retirement emotionally before they experience it mathematically.”

That may be one of the smartest things I’ve read about retirement planning. It immediately reminded me of the television show Fear Factor. Remember it? Contestants willingly jumped from helicopters, crawled through confined spaces, balanced high above the ground, and ate things most of us wouldn’t go near. The premise was simple: fear changes behavior. Sometimes it causes us to freeze. Sometimes it causes us to overreact. Sometimes it convinces us to avoid something altogether. And sometimes it makes us do things we would never choose if we felt calm, safe, and in control.

Retirement has its own version of Fear Factor. Only instead of spiders, snakes, and impossible stunts, the fears sound like this: Will I have enough? Can I really stop working? What if the market crashes? What if healthcare costs wipe me out? What if I become a burden to my children? What if I make the wrong decision and can’t recover?

Those aren’t simply mathematical questions. They are emotional questions. And until those fears are acknowledged and addressed, it can be very difficult to make confident financial decisions.

Why Retirement Feels So Emotional

Retirement represents one of the biggest transitions most people will ever make.

For decades, you receive a paycheck. You know when it will arrive. You know roughly how much it will be. You build your life around that rhythm. Then retirement asks you to turn accumulated savings into income and trust that the money will last for the rest of your life. This is a major psychological shift.

Even people with substantial savings can struggle with it. A retirement account balance may look reassuring on paper, but spending from it can feel very different. Every withdrawal can feel like a permanent reduction. Every market decline can feel like a threat. Every unexpected expense can raise the question: What if this is the beginning of running out?

This is why many retirees become overly cautious, even when they can afford to spend more. They postpone trips, avoid helping family, and deny themselves experiences they spent decades saving for.

The fear of running out can become so powerful that people never fully enjoy the money they worked so hard to accumulate.

The Science of Fear and Financial Decision-Making

Our brains are designed to protect us from danger.

Thousands of years ago, fear helped humans survive immediate threats. Today, the same biological response can be triggered by a falling account balance, a frightening news headline, or uncertainty about future expenses.

When fear takes over, long-term thinking becomes harder. We tend to focus on avoiding immediate pain rather than making the best decision for the future.

Behavioral finance has shown that people generally feel the pain of a loss more intensely than the pleasure of an equivalent gain. Losing $10,000 often feels much worse than gaining $10,000 feels good. This emotional imbalance can influence retirement decisions in powerful ways.

Fear may cause someone to sell investments after the market has already fallen, locking in losses. It may lead someone to keep too much money in cash for years, reducing growth and purchasing power. It may cause a person to delay retirement even when the numbers show they are financially prepared. It may also lead to endless second-guessing, constant account checking, and an inability to enjoy retirement.

Ironically, one of the greatest risks to a retirement plan may not be market volatility itself. It may be the decisions fear causes us to make.

Retirement Planning Should Address Both Math AND Emotion

Traditional retirement planning often focuses on projections, rates of return, withdrawal strategies, and probability-of-success calculations. Those tools are important. But they do not automatically create peace of mind. A plan can work beautifully on paper and still leave someone terrified to spend. That is why retirement planning should answer two questions:

  1. Will the money work?
  2. Will the plan help you feel secure enough to live?

A strong retirement plan should do both.

Introducing the Confidence Foundation™

At Her Retirement, I believe every retirement plan should begin by building what I call a Confidence Foundation™. Think of it as the financial base that helps you sleep well at night. The purpose of the Confidence Foundation™ is to provide dependable income for the expenses you simply cannot avoid.

Ask yourself this question: If the stock market dropped 30% tomorrow, would I still be able to pay my essential monthly expenses? If the answer is yes, you have reduced one of retirement’s biggest emotional risks.

Your essential expenses may include housing, food, healthcare, insurance, utilities, taxes, and basic transportation. These are the costs that continue regardless of what the market does. The goal is to match as much of those expenses as reasonably possible with income sources that are reliable, predictable, or guaranteed.

What Can Make Up a Confidence Foundation™?

There is no single product or strategy that works for everyone. The right combination depends on your income needs, assets, health, risk tolerance, tax situation, and goals.

For many people, Social Security forms the first layer. Because it provides inflation-adjusted lifetime income, it can be one of the most valuable components of a retirement income plan. The decision about when to claim can have a lasting impact, which is why it deserves careful consideration.

A pension may provide another dependable monthly income stream. Some retirees may also choose an annuity to create guaranteed lifetime income that helps fill the gap between Social Security, pension income, and essential expenses.

For others, a bond ladder, Treasury ladder, or CD ladder may provide predictable cash flow over a defined period. Cash reserves can also play an important role by covering near-term spending needs and reducing the chance that investments must be sold during a market downturn. Some people may use several of these strategies together.

The important point is this: the Confidence Foundation™ is not one product. It is a planning outcome. Its job is to make sure the money needed for basic living expenses is not completely dependent on short-term market performance.

Where Annuities May Fit

Annuities can be useful for some retirees because they can convert a portion of savings into a predictable income stream that lasts for life. This can be especially valuable for someone who does not have a pension, is concerned about outliving her money, or wants more certainty around essential expenses.

But annuities are not all the same, and they are not appropriate for everyone. Fees, liquidity, guarantees, riders, surrender periods, and the strength of the issuing insurance company all matter.

The question should never be: Do I need an annuity? A better question is: Do I have an income gap in my Confidence Foundation™, and what is the most appropriate way to fill it?

An annuity may be one possible answer. It should not be the automatic answer, or the answer that an insurance salesperson pushes on you.

Building Your Freedom Fund™

Once your Confidence Foundation™ is in place, the rest of your assets have a different job. I call this your Freedom Fund™.

The Freedom Fund™ is designed to help you enjoy retirement, maintain flexibility, keep pace with inflation, and support the life you want to create. It may include stock mutual funds, ETFs, individual stocks, Roth IRAs, traditional IRAs, 401(k)s, brokerage accounts, real estate, or other long-term growth assets.

Because essential expenses are already being addressed through the Confidence Foundation™, the Freedom Fund™ does not have to carry the full emotional burden of paying next month’s bills. This can make market volatility feel less threatening.

Instead of viewing a market decline as a threat to your ability to buy groceries, you may be able to view it as a temporary fluctuation in assets intended for long-term growth and discretionary goals.

The Freedom Fund™ can support travel, hobbies, family experiences, charitable giving, home improvements, education, starting a business, or simply enjoying more of the life you worked so hard to build.

Why the Two-Part Strategy Can Work Emotionally

The power of the Confidence Foundation™ and Freedom Fund™ is not only financial. It’s emotional.

When the basics are protected, retirees may feel more comfortable leaving growth assets invested. They may be less likely to panic during market declines. They may also feel more confident spending on the things that bring joy and meaning to retirement.

This structure creates clarity. One part of the plan is designed for security. The other is designed for growth, flexibility, and possibility. This separation can reduce the feeling that every dollar must perform perfectly at all times.

Confidence Changes Behavior

When every dollar in your portfolio has to perform perfectly just to pay the electric bill, every market headline feels personal. But when your Confidence Foundation™ covers your essential lifestyle, something shifts. Fear begins to loosen its grip. You make calmer decisions. You stay invested more consistently. You become more comfortable spending. You stop treating every market decline as an emergency.

Most importantly, you may begin to experience retirement as a life to be lived rather than a financial problem to be managed. The goal is not simply to maximize returns. The goal is to maximize confidence.

At Her Retirement, we believe retirement planning is about far more than spreadsheets, rates of return, and investment performance.

We help women make informed financial decisions so they can retire with confidence and create a life of meaning. Because the best retirement plan is not necessarily the one with the highest projected return. It’s the one that helps you feel secure enough to live the life you planned for.

If you’d like some guidance on creating a life (and a retirement) with confidence and freedom, reach oout. We can help you Get Her Done.

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Becoming Unbusy: The Retirement Skill No One Talks About

“Busyness” has become one of the most socially rewarded behaviors in modern life.

We praise people for being busy. We apologize for resting. We fill empty space with screens, notifications, noise, errands, obligations, and endless stimulation. Somewhere along the way, many of us stopped asking whether all this activity is actually making us happier.

Behavioral psychologist Daniel Crosby in an article he wrote on busyness, recently referenced a quote from philosopher Blaise Pascal that stopped me in my tracks:

“All of humanity’s problems stem from man’s inability to sit quietly in a room alone.”

What’s fascinating is that Pascal wrote this centuries ago — long before smartphones, social media, email, Netflix, and the modern attention economy.

Yet somehow, his observation feels even more relevant today.

The average adult now spends hours per day in front of screens, checks their phone constantly, and lives in a near-permanent state of stimulation. Even when we finally sit down, we rarely sit in silence. We scroll. We consume. We react. We fill every open moment.

Consider these stats Crosby shared in his article: The typical American adult now spends roughly six hours and 58 minutes a day in front of a screen, with more than half of that time on a mobile phone. The same adult checks that phone 58 times a day and sends 42 text messages. Adults watch just under three hours of television daily, which adds up to nearly 15 percent of an entire lifetime. The Harvard Business Review reports that white-collar workers spend 28 percent of each workday, almost three hours, reading and responding to the 120 emails they receive.

I think many women (especially) carry this same state of busyness directly into retirement. They leave careers, but not mental exhaustion. They finally gain time, yet still feel overwhelmed.

Even in retirement, many women remain emotionally “on”:

  • caregiving
  • volunteering
  • helping adult children
  • overcommitting socially
  • consuming endless information
  • staying glued to devices
  • feeling guilty for resting

But what if retirement is not supposed to be about staying busy? What if it’s about becoming unbusy?

Not lazy.
Not isolated.
Not disengaged from life, but intentional.

There’s a difference between a full life and a constantly filled life. Retirement may be the first season in decades where women finally have enough space to ask deeper questions:

  • What actually brings me peace?
  • What activities energize me instead of drain me?
  • What do I want less of?
  • What have I been too distracted to notice?
  • What would happen if I stopped performing productivity all the time?

The truth is, clarity rarely arrives in chaos. It usually arrives in stillness. And stillness can feel uncomfortable at first because many of us were conditioned to equate rest with laziness or worthlessness. We became so accustomed to deadlines, responsibilities, and constant motion that slowing down almost feels foreign.

But constantly operating in a state of busyness comes with consequences:

  • increased stress
  • poor sleep
  • reduced focus
  • emotional exhaustion
  • less creativity
  • weaker relationships
  • anxiety
  • disconnection from purpose

Ironically, retirement is often sold as “freedom,” yet many people unknowingly recreate the same overstimulated lifestyle they were trying to escape. My neighbor was just lamenting how last summer (her first summer being retired), she way over-booked herself and ended up exhausted. This summer she promised herself a slower, more relaxed pace.

Becoming unbusy doesn’t mean doing nothing. It means creating space for what matters most.

It may mean:

  • morning walks without headphones
  • sitting outside with coffee and no phone
  • painting again
  • journaling
  • reading slowly
  • gardening
  • hiking
  • creating art
  • having deeper conversations
  • protecting white space on your calendar
  • learning how to be present instead of constantly productive

In many ways, becoming unbusy is a form of reclaiming yourself.

A Simple “Becoming Unbusy” Exercise

Take 15 quiet minutes and answer these questions honestly:

  1. What parts of my life feel noisy or overstimulating right now?
  2. What activities leave me feeling calm, grounded, or fulfilled?
  3. When was the last time I sat quietly without reaching for my phone?
  4. What am I afraid might surface if I slowed down?
  5. What would an ideal peaceful day in retirement actually look like for me?
  6. What could I remove, reduce, or say no to?
  7. What would I like to make more space for?

Don’t rush your answers. The goal is not productivity. The goal is awareness.

The “Becoming Unbusy” Checklist

✔️ Leave your phone behind for one walk this week (I did this on a walk at the beach the other day…it was awesome)
✔️ Spend 30 minutes doing something creative
✔️ Sit quietly for 10 minutes without screens
✔️ Remove one unnecessary obligation from your calendar
✔️ Replace one hour of scrolling with reading, journaling, or nature
✔️ Protect one block of “unscheduled” time this week
✔️ Ask yourself: “Do I actually enjoy this, or am I just used to being busy?”
✔️ Create at least one daily moment of stillness

Retirement planning is not only about money. It’s also about learning how to live differently. Maybe one of the greatest opportunities of retirement is not simply having more time. Maybe it’s finally having enough space to hear yourself again.

This is a photo of unbusy me, on a hotel balcony, at the beach, enjoying a beverage and a beautiful view, and “semi-retirement.”

Source: (1) Busyness is Costing You a Lot (and Only Some of What it Costs is Money) | LinkedIn

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The Purposeful Portfolio™: The Cornerstone of a Confident Retirement

For years, retirement planning has been framed as a quest for the perfect portfolio. The ideal asset allocation. The optimal withdrawal rate. The precise mix of stocks, bonds, and alternatives that will mathematically guarantee success.

But in my experience, perfection has never been the real driver of retirement confidence.

Purpose has.

Women don’t lose confidence in retirement because their portfolios are slightly sub-optimal. They lose confidence when their money doesn’t reflect how they actually live, what they value, or what they’re trying to protect. A portfolio can be technically sound and still fail if it doesn’t feel right to the person holding it.

Research shows that women tend to be less focused on relative portfolio performance and more focused on outcomes, whether their money will support their life, protect them from major setbacks, and align with what matters most to them.

Interestingly, this way of thinking is beginning to surface more broadly across the retirement industry. Recent commentary from Christine Benz, Director of Personal Finance and Retirement Planning at Morningstar, who was awarded the inaugural Realie Award for her blog on the value of a “good enough” portfolio echoes something I’ve believed for a long time: most people don’t need perfect portfolios. They need portfolios they can live with, and stick with.

That conviction and lots of research over the last ten years, is what led me to create Her Purposeful Portfolio™—a framework designed specifically for women who want their money to support not just longevity, but meaning, flexibility, and peace of mind.

The Problem With Chasing the “Perfect” Retirement Portfolio

Traditional retirement advice often assumes that better outcomes come from better math. More precision. More fine-tuning. More comparisons.

In reality, that approach often leads to:

  • Analysis paralysis
  • Ongoing second-guessing
  • Emotional decision-making during market stress
  • Plans that look great on paper but fall apart in real life

Christine Benz describes two common investor mindsets: maximizers, who endlessly seek the best possible option, and satisficers, who aim for a solution that is good enough to meet their goals.

Her insight is critical for retirees: the incremental gains from optimization are often outweighed by the stress, time, and behavioral mistakes that come with it.

In other words, a portfolio you can stick with often outperforms the one you abandon.

This idea often gets confused with the familiar saying “time in the market beats timing the market,” but it’s slightly different. Timing the market assumes people fail because they misjudge markets. Abandoning portfolios happens because people misjudge themselves. A plan can be mathematically sound and still fail if it doesn’t align with how someone actually experiences risk, uncertainty, and change. Time in the market only works if the portfolio fits the person holding it.

 

From “Good Enough” to Purposeful

A “good enough” portfolio is a powerful starting point.
A purposeful portfolio is what makes it sustainable.

The Purposeful Portfolio™ shifts the question from..
“What allocation is optimal?”
to
“What is my money meant to do for me?”

Traditional bucket strategies organize money by time horizon. The Purposeful Portfolio™ builds on that idea by organizing money around purpose, and how each piece is meant to feel.

Instead of organizing retirement assets solely by risk and return, the Purposeful Portfolio™ organizes money by function and feeling, because behavior, confidence, and clarity matter just as much as performance.

 

The Five Pillars of Her Purposeful Portfolio™

1. Security (SecureHER)

What it’s for:
Covering essentials and protecting the rest of the portfolio. This pillar is designed to fund non-negotiables like housing, food, insurance, and basic living expenses while also buffering against market volatility and sequence-of-returns risk, especially in the early years of retirement.

How it feels:
Calm. Reliable. Reassuring. Grounded.

Common tools:
FDIC-insured cash, high-yield savings accounts (HYSAs), money market funds, short-term bonds, T-Bills, and for some women, protected strategies such as fixed or fixed indexed annuities.

In retirement, cash held in an HYSA isn’t just an emergency fund, it becomes part of a Stability strategy that provides liquidity, smooths income, and reduces the need to sell long-term investments during market downturns.

For women who want additional protection, certain fixed or fixed indexed annuities can also play a role in this pillar. These strategies are often used as bond alternatives, offering principal protection with the potential for more upside than traditional bonds, and are frequently designed to create future income later in retirement, rather than immediately.

This pillar exists so the rest of the portfolio doesn’t have to carry emotional or timing risk. When essentials are protected and income pressure is reduced, long-term investments are given the space they need to do their job.

2. Flexibility (LiveHER)

What it’s for:
Travel, hobbies, experiences, spontaneity, and joy.

How it feels:
Free. Ready. Guilt-free.

Common tools:
Balanced funds, laddered CDs, dividend-focused ETFs.

Flexibility is often missing from traditional plans, especially for women who feel hesitant to spend. This pillar gives permission.

3. Wellness (HealthiHER)

What it’s for:
Healthcare, longevity risk, caregiving, and life’s “what-ifs.”

How it feels:
Protective. Grounded. Peace of mind.

Common tools:
HSAs, long-term care planning, health-focused assets.

This pillar acknowledges a reality many plans ignore: health is both a financial and emotional issue in retirement.

4. Growth (FutureHER)

What it’s for:
Long-term security, inflation protection, and future purchasing power.

How it feels:
Empowered. Energized. Strategic.

Common tools:
Equities, diversified index funds, REITs.

Growth doesn’t disappear in retirement, it just becomes more intentional.

5. Legacy (ImpactHER)

What it’s for:
Who—and what—you want to leave behind.

How it feels:
Intentional. Values-based. Enduring.

Common tools:
Trusts, beneficiary planning, donor-advised funds, ESG-aligned strategies.

Legacy isn’t just about inheritance. It’s about meaning.

 

Why This Framework Matters, Especially for Women?

Women tend to:

  • Live longer
  • Earn less over their lifetimes
  • Take on more caregiving responsibilities
  • Retire alone more often due to divorce or widowhood

The old rules of retirement planning were not built with these realities in mind.

The Purposeful Portfolio™ recognizes that retirement success is not just about accumulation, it’s about confidence, continuity, and clarity. It creates structure without rigidity and flexibility without chaos.

 

Where Her Retirement PersonaTM Fits In?

One reason a “good enough” portfolio works for some people—and fails for others—comes down to behavior.

At Her Retirement, we use the Her Retirement Persona™ framework to identify the patterns that shape how a woman thinks about money, risk, freedom, security and her retirement life. It’s not about labels. It’s about understanding how she makes decisions so her portfolio works with her instincts instead of against them.

For example:

  • A Security Seeker naturally emphasizes stability, predictability, and wellness planning.
  • An Adventurer tends to weight flexibility and growth more heavily to support experiences and freedom.
  • A Giver often prioritizes legacy, protection for loved ones, and impact beyond herself.

There is no single correct mix, only the mix that aligns with who she is and how she wants to live. When portfolio design reflects personality, confidence rises and second-guessing fades.

This is where purpose replaces perfection—and where personality comes before portfolio design.

 

The Real Goal: A Portfolio That Supports Your Life

Christine Benz’s work reminds us that retirement planning doesn’t need to be flawless to be effective. In fact, striving for flawlessness often undermines confidence.

Her Retirement’s concept of the Purposeful Portfolio™ builds on that insight by giving retirees a framework that is:

  • Understandable
  • Adaptable
  • Behaviorally realistic
  • Aligned with real life

Not perfect.
Not optimized to death.
But intentional, personal, and strong enough to support a long life well lived.

That’s what a good enough portfolio looks like…when it’s built with purpose.

 

A Purposeful Next Step

If you’re a woman who wants to build a portfolio that reflects who you are, not just what the market expects, one that balances protection, flexibility, growth, wellness, and impact, you don’t have to figure it out alone. We can help connect you with a retirement planner who understands purposeful, behavior-aligned planning for women.

If you’re a financial advisor who wants to build better, more meaningful portfolios for women (portfolios that account for personality, longevity, lifestyle, and real-life decision-making), we invite you to reach out to learn more about the Her Retirement Purposeful Portfolio™ and Retirement Persona™ framework.

Because retirement planning works best when it’s not just technically sound, but personally aligned.

Reach out to me, Lynn Toomey, founder and creator of Her Retirement and Her Purposeful Portfolio at: lynnt@herretirement.com.

 

Sources & Research

This article is informed by ongoing research and industry studies on women, investing behavior, and retirement confidence, including:

  • Fidelity Investments, Women & Investing Studies (various years)

  • UBS Global Wealth Management, Investor Watch reports

  • Vanguard, research on investor behavior and long-term outcomes

  • Global Financial Literacy Excellence Center (GFLEC), research on financial confidence and behavior

  • Morningstar research on retirement planning, investor behavior, and sustainable portfolio design

 

SetbackComeback

Setback or a Comeback? Turning Job Loss After 50 Into Your Greatest Opportunity

Losing a job after 50 can feel daunting, but it’s also a chance to rethink your career, finances, and future. Whether you’re considering a new full-time role, a passion project, semi-retirement, or maybe you’ll do a financial analysis and find out that you’ll be okay with full retirement. Whatever the case, this is your moment to reimagine what’s next. Here’s how to turn this new challenge into your greatest comeback.

  1.  Pause and Process: It’s OK to Feel All the Feels
  • Losing a job often feels personal, but remember—it’s not a reflection of your worth. Allow yourself time to process your emotions, then shift focus to what’s possible.
  • As my late mother used to say, “Life is 20% what happens to you and 80% how you react to it.” This can be your 80% comeback story.
  1. Assess Your Financial Situation: Know Your Numbers
  • Start by reviewing your finances to understand where you stand:
    • How much do you have in savings?
    • What are your monthly expenses?
    • Do you qualify for unemployment benefits or severance?
    • How long can you go without a steady income?
  1. Reimagine Your Career Path: What’s Next for You?
  • Think of this as your opportunity to design a career you love.
    • Dream Big: What’s your ideal job or business venture?
    • Upskill: Take online courses, earn certifications, or attend workshops to update your skills.
    • Explore Gig Work: Freelancing, consulting, or part-time roles can offer flexibility and income.
    • Consider the concept of Ikigai when you’re dreaming. I’m writing another post about this soon and I incorporate Ikigai into the retirement readiness coaching I offer.
  1. Take Advantage of Online Job Boards and Resources
  • The internet is a treasure trove of job opportunities. Here are some platforms to get you started:
    • LinkedIn: Perfect for networking, job hunting, and showcasing your expertise.
    • Indeed: One of the most comprehensive job boards for all industries.
    • FlexJobs: Offers remote, part-time, and freelance opportunities.
    • The Mom Project: Focuses on connecting women with flexible job options.
    • We Work Remotely: Highlights remote roles across industries.
    • RetirementJobs.com: Designed for job seekers over 50.
    • Upwork/Fiverr: Ideal for freelance and project-based work.
  • Use these platforms to find roles that align with your expertise, passions, and lifestyle.
  1. Revisit Your Retirement Plan
  • Could this job loss be the nudge you need to retire earlier or shift to semi-retirement? Review your savings, Social Security benefits, and healthcare plans and costs to see if your retirement timeline can be adjusted.
  • If you’re not sure where to start, our Her Retirement More for Her Program can help you assess your options and plan for a secure future.
  • Talk to a financial advisor to get a retirement income projection (I know a few good ones). You might discover that you don’t need a full-time job—or any job at all! Knowing your numbers gives you clarity and helps you make confident decisions.
  1. Leverage Your Network: People Want to Help
  • Your network is one of your greatest assets. Let friends, former colleagues, and professional connections know you’re exploring new opportunities.
    • Tip: Update your LinkedIn profile with a clear headline and a short note about the type of role you’re seeking.
  • Networking events, alumni groups, and women-focused career communities can also be valuable for finding leads and gaining support.
  1. Embrace the Emotional Reset
  • Beyond finances, a job loss is an emotional transition. Take steps to nurture your mental well-being:
    • Set a Routine: Structure your days with activities that bring purpose and joy.
    • Focus on Positivity: Celebrate small wins, and surround yourself with uplifting people.
    • Seek Support: Join job seeker groups, especially those for women over 50, to find encouragement and resources.
  1. Find the Silver Linings
  • This moment can be a turning point. What if this job loss opens the door to living life on your terms? Many women use this opportunity to start businesses, pursue hobbies, or find roles that better align with their values.
  1. Plan Your Comeback With Confidence
  • This is your chance to rewrite your career and life story. With the right mindset, tools, and support, you can create a future filled with purpose and security.
  • And remember, you’re not alone. At Her Retirement, we’re here to help women like you navigate life’s challenges and build the future you deserve.

Ready to start your comeback? Let’s make it happen. Reach out to me for any help or with questions. Let’s Get Her Done.

Stay tuned for another blog post about how to prepare for job loss. Also, if you decide to retire (or know someone who has recently retired), check out my guide/workbook/journal, Her First 100 Days of Retirement.

#CareerTransition #WomenOver50 #RetirementPlanning #Resilience #HerRetirement

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That’s It, I’m Leaving: 8 Best Places to Live Outside of the U.S.

Since the election I’ve seen sooo many people commenting on social media that they want to leave the United States. Of course, moving abroad is something many people desire to do regardless of the political climate, including those about to retire.

So, I decided to ask ChatGPT for the 8 best places to live outside of the United States. Here’s the list “she” created for me.

For those considering a move abroad, the world offers a variety of destinations with unique cultures, beautiful landscapes, and affordable living options. Whether you’re looking for better quality of life, lower cost of living, adventure, or an escape from the U.S. for political reasons, here are eight of the best places to live outside the U.S., each offering its own set of benefits (according to ChatGPT). If nothing else, this is a great list to take an extended vacation to. My new destination bucket list. Let’s go and Get Her Done. This list includes: Lisbon, Portugal; Mexico City, Mexico; Barcelona, Spain; Chiang Mai, Thailand; Medellín, Colombia; Auckland, New Zealand; Valletta, Malta; and Bali, Indonesia.

I’ve also included some tips on How to Retire Outside of the U.S. and Take Advantage of Retirement Benefits and Strategies as a U.S. Citizen.

Let’s take a look at the list and the reasons to consider the location:

  1. Lisbon, Portugal

Lisbon is a charming European city that has become increasingly popular with expats in recent years. The mild climate, rich culture, and affordable living make it an attractive destination for those seeking a slower pace of life without sacrificing modern amenities. Lisbon is also known for its vibrant culinary scene, historic neighborhoods, and a welcoming expat community.

Why Lisbon?

  • Low cost of living compared to other Western European capitals.
  • Mild climate year-round.
  • Rich history and culture, with a laid-back Mediterranean vibe.
  • Tax incentives for foreign retirees and entrepreneurs.

 

  1. Mexico City, Mexico

Mexico City offers a unique blend of rich culture, excellent food, and a vibrant arts scene, all while being more affordable than many U.S. cities. It’s a hub of economic and cultural activity, and its neighborhoods offer something for everyone—whether you’re seeking the hustle of a metropolitan area or the calm of a quieter suburb.

Why Mexico City?

  • Affordable healthcare, both public and private options.
  • Rich culture and history, with museums, galleries, and historic sites.
  • Close proximity to the U.S., making travel easier.
  • Low cost of living, especially compared to many U.S. cities.

 

  1. Barcelona, Spain

Barcelona is a top destination for many looking to relocate to Europe. The city’s combination of Mediterranean beaches, architecture (think Antoni Gaudí), and a rich cultural scene is hard to beat. While the cost of living is higher than some other cities on this list, it offers a unique blend of lifestyle and opportunity for those willing to embrace a new culture. I can attest to the appeal of Barcelona. My daughter spent a semester there this year and didn’t want to come home.

Why Barcelona?

  • Vibrant social scene with a mix of beach, culture, and nightlife.
  • High quality of life, with excellent healthcare and public transportation.
  • Mild climate, with plenty of sunshine year-round.
  • EU residency options for retirees or long-term residents.

 

  1. Chiang Mai, Thailand

For those looking to live in an affordable and exotic location, Chiang Mai is a great choice. Located in northern Thailand, Chiang Mai offers a slower pace of life, surrounded by beautiful mountains and temples. The cost of living is exceptionally low, and the city is known for its welcoming expat community and excellent street food.

Why Chiang Mai?

  • Extremely low cost of living, including housing and food.
  • High quality healthcare with many medical tourism options.
  • Large expat community and a laid-back lifestyle.
  • Rich culture and natural beauty, with access to outdoor adventures.

 

  1. Medellín, Colombia

Medellín has undergone a transformation over the past few decades and is now known for its pleasant climate, friendly locals, and vibrant culture. The cost of living is low, making it an attractive destination for retirees, digital nomads, and anyone looking for an affordable yet cosmopolitan lifestyle. It’s also renowned for its public transportation system and affordable healthcare.

Why Medellín?

  • Affordable living, with inexpensive housing and healthcare.
  • Year-round spring-like climate, earning it the nickname “City of Eternal Spring.”
  • Strong public transportation system, making commuting easy.
  • Growing expat community and an international airport.

 

  1. Auckland, New Zealand

Auckland is New Zealand’s largest city and offers a high quality of life with access to stunning nature and outdoor activities. The city offers modern amenities while maintaining a relaxed pace of life. New Zealand has a well-regarded healthcare system, and the country’s welcoming attitude towards immigrants makes it an attractive destination.

Why Auckland?

  • Natural beauty, with beaches, forests, and mountains nearby.
  • High quality of life, with a low crime rate and excellent healthcare.
  • Strong economy, with opportunities for work, especially in technology and innovation.
  • Welcoming immigration policies for skilled workers and retirees.

 

  1. Valletta, Malta

If you’re looking for a mix of culture, history, and Mediterranean charm, Valletta, the capital city of Malta, could be the perfect fit. Malta offers stunning coastal views, a rich historical heritage, and a friendly expat community. English is one of the official languages, making it easier for U.S. citizens to adapt.

Why Valletta?

  • English-speaking country, making it easier to integrate.
  • Low taxes for foreign retirees and business owners.
  • Rich cultural heritage and stunning historic architecture.
  • Beautiful Mediterranean climate with warm summers and mild winters.

 

  1. Bali, Indonesia

Bali is often considered a paradise for those seeking an affordable and tranquil lifestyle in a tropical environment. Its natural beauty, culture, and lower cost of living make it a haven for digital nomads, retirees, and anyone looking to escape the hustle and bustle of city life. With its welcoming locals, stunning beaches, and yoga retreats, Bali provides a unique blend of relaxation and adventure.

Why Bali?

  • Incredibly low cost of living, especially for housing and food.
  • Access to stunning beaches, mountains, and spiritual retreats.
  • Growing expat community with a focus on wellness and creativity.
  • Affordable healthcare and easy access to medical tourism.

 

Where Should You Go?

The ideal destination for relocation depends on your individual preferences, lifestyle goals, and budget. Whether you’re seeking a low cost of living, cultural experiences, or outdoor adventure, these eight locations offer unique opportunities for a fulfilling life abroad. From the historical charm of Lisbon to the tropical paradise of Bali, there’s something for everyone looking to start a new chapter in their life outside of the U.S

 

How to Retire Outside of the U.S. and Take Advantage of Retirement Benefits and Strategies as a U.S. Citizen

Retiring abroad can be an appealing option for many U.S. citizens, offering opportunities for a lower cost of living, an improved lifestyle, and access to new cultures. However, making sure that your retirement benefits and financial strategies are intact while living outside the U.S. requires some careful planning. This article will explore how you can retire outside the U.S. while still taking full advantage of the retirement benefits available to U.S. citizens.

  1. Understand Your Social Security Benefits Abroad

One of the key retirement benefits available to U.S. citizens is Social Security. The good news is that U.S. citizens can receive their Social Security benefits while living abroad. However, there are a few things to keep in mind:

How to Continue Receiving Social Security:

  • Eligibility: If you’ve worked and contributed to Social Security for a sufficient number of years, you’re eligible to receive benefits no matter where you live.
  • Payment Methods: Social Security payments can be made via direct deposit to your U.S. bank account, which you can access from overseas, or to an international bank account in certain countries.
  • Country-Specific Rules: Some countries have agreements with the U.S. that make it easier to collect Social Security. Check if your country of choice has a Social Security Totalization Agreement with the U.S. This agreement ensures that you won’t lose benefits if you worked abroad for part of your career.

Considerations for U.S. Social Security Recipients Abroad:

  • Taxes: While your Social Security benefits are generally exempt from U.S. state income taxes, they may be subject to taxes in your country of residence. Be sure to consult with a tax advisor familiar with international tax laws to understand how your benefits might be taxed.
  • Cost of Living Adjustments (COLA): Social Security benefits are adjusted for inflation, but these adjustments may vary depending on your country of residence. Some countries may have different rates or adjustments.
  1. Keep Your Medicare Coverage

While Medicare benefits are an essential part of retirement planning for many U.S. citizens, they don’t typically extend outside the U.S. and its territories. However, there are some ways to ensure that you have health coverage while living abroad:

Medicare Outside the U.S.:

  • Limited Coverage: In general, Medicare only provides coverage for emergency medical services abroad. If you are planning to retire outside of the U.S., it’s wise to consider additional health insurance.
  • Medicare Advantage Plans: Some Medicare Advantage plans may offer international coverage or emergency medical coverage outside the U.S. Make sure to research plans that specifically cater to expats.

Private Health Insurance:

  • International Health Insurance: Consider purchasing international health insurance that will cover you in your new country of residence. Many countries also have affordable local health insurance options that provide coverage similar to what you would get in the U.S.
  • Medicare Part B: If you plan to return to the U.S. occasionally or move back after several years, keep in mind that you can keep your Medicare Part B coverage by continuing to pay your premiums. You may face penalties if you choose to delay your Part B enrollment for more than 8 months.
  1. Minimize Tax Liabilities with the Foreign Earned Income Exclusion (FEIE)

When retiring abroad, it’s essential to understand the U.S. tax implications. As a U.S. citizen, you’re required to file a U.S. tax return every year, no matter where you live. However, there are provisions that can help minimize your tax burden:

Foreign Earned Income Exclusion:

  • FEIE allows you to exclude up to $120,000 (as of 2024) of foreign-earned income from U.S. taxation, provided you meet certain requirements.
  • This exclusion applies to income from work, which is particularly useful if you are working remotely or earning income while living abroad.

Foreign Tax Credit:

  • If you’re paying taxes in your country of residence, you may be able to use the Foreign Tax Credit (FTC) to offset your U.S. tax liability. This credit helps prevent double taxation by allowing you to deduct the taxes you pay to a foreign government from your U.S. tax bill.

Considerations:

  • U.S. Taxes on Worldwide Income: Even though the FEIE helps exclude foreign-earned income, you are still required to report all income, including interest, dividends, and retirement income, such as Social Security benefits and withdrawals from U.S. retirement accounts like IRAs and 401(k)s.
  • Tax Treaties: The U.S. has tax treaties with many countries to help reduce the risk of double taxation. You should review whether the country you are moving to has a tax treaty with the U.S. to understand how it will affect your retirement income.
  1. Manage Your U.S. Retirement Accounts (IRAs, 401(k)s) Abroad

U.S. retirement accounts, such as IRAs and 401(k)s, offer substantial tax advantages. While you can still manage these accounts while living abroad, there are some important factors to consider:

Withdrawing Funds:

  • Age 59½ Rule: You can begin withdrawing funds from your retirement accounts without penalty at age 59½. However, you will still be subject to U.S. income taxes on these withdrawals.
  • Required Minimum Distributions (RMDs): If you are over 73 (age increases with birth year), you will need to take Required Minimum Distributions from traditional IRAs or 401(k)s. Keep in mind that you may be taxed both by the U.S. and your new country of residence, depending on their tax rules.

IRA and 401(k) Contributions:

  • While you can continue contributing to U.S. retirement accounts while living abroad, contributions to U.S.-based retirement plans may be complicated if you’re not earning U.S.-based income. Be aware of the tax rules in both countries, as some countries may limit contributions to U.S. retirement plans.
  1. Plan for Currency and Banking Needs

Retiring abroad may mean dealing with different currencies and banking systems. To ensure you manage your finances efficiently, consider the following strategies:

  • Currency Exchange: You’ll likely need to exchange U.S. dollars for the local currency. Use a reliable and low-fee service to avoid high exchange costs.
  • U.S. Bank Accounts: Many U.S. banks allow you to maintain an account while living abroad, and you can access your funds through international ATMs or online banking. Some banks also offer accounts specifically designed for expats.
  • Local Bank Accounts: It may be worth opening a local bank account to avoid excessive fees when withdrawing money. Research the banking options in your destination country.
  1. Consider Estate Planning and Inheritance Laws

If you plan on leaving assets behind in your home country or in your new country of residence, it’s important to consider how both U.S. and local inheritance laws may impact your estate. Many countries have different rules regarding estate taxes, inheritance, and wills. Work with an attorney to create an estate plan that accounts for the specifics of your international living situation.

Conclusion

Retiring outside the U.S. offers exciting opportunities, but it requires careful planning to make the most of your U.S. retirement benefits. By understanding how Social Security, Medicare, taxes, and retirement accounts work abroad, you can ensure that your transition is smooth and that you continue to enjoy the benefits you’ve earned. Consulting with a financial advisor familiar with expat retirement planning is a smart step to ensure you’re making the best decisions for your financial future while living abroad.

As for me, I have no plans to leave the U.S. I’m not political at all and I’ve lived 59 years under all different presidents so I’m going to take my chances with this not so new new one and hope for the best. If you need help putting together your plan to move or retire outside the U.S., reach out. We have people who can help you prepare, plan and Get Her Done: lynnt@herretirement.com

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Balancing Today and Tomorrow: Enjoying Life Now While Saving for a Secure Retirement

Some financial experts, like David Bach and Danielle Roberts, argue that daily splurges, such as coffee purchases, can derail your retirement savings. According to Bach’s “Latte Factor,” the money spent on small luxuries can add up significantly over time, especially with compound interest, potentially creating a more secure financial future if invested instead. For instance, spending $30 a week on coffee, rather than investing it, could cost over $240,000 in missed savings by retirement age. This approach, promoted by personal finance platforms like Acorns, is meant to emphasize the power of small savings to boost long-term financial stability​.

Even Prudential’s recent “Latte Factor”-inspired ad, promotes the idea of achieving retirement security by cutting out small, daily indulgences. Their messaging suggests, “Every coffee you skip is one step closer to that future beach day, and every splurge you pass up is helping to build your dream castle.”

However, at Her Retirement we take a different stance. While retirement planning is crucial, we don’t believe that people should cut out all the “extras” that make life rich. Instead, we believe people should focus on building a practical financial plan that allows for both enjoyment today and preparation for tomorrow.

Balancing enjoying life now while saving for retirement can feel like a tightrope walk, but it doesn’t have to be! Here’s the thing: both goals are important, and with a bit of planning, you can achieve both without sacrificing too much of either. Let’s break it down into some practical steps:

  1. Prioritize What Makes You Happy Now

It’s tempting to think you need to cut all the “extras” to save for retirement, but that’s not true. Identify what genuinely brings you joy and energy in your current life. Is it traveling? A monthly dinner out? Helping out family? Once you know your “must-haves,” you can budget for them intentionally, giving you guilt-free enjoyment now while keeping your financial future in mind.

  1. Create a Balanced Budget

Think of your budget as a balance sheet for life happiness. Set aside money for everyday life and long-term goals. Start with essentials, add in those “must-haves” we talked about, and then funnel some savings toward retirement. A great tip is the 50/30/20 rule: 50% on needs, 30% on wants, and 20% toward savings, including retirement. Adjust the percentages if you need to — it’s about balance, not perfection.

  1. Set Up Automated Savings

Automating contributions to your retirement fund means you’re paying yourself first — a simple step that makes saving easy and less painful. Start with whatever amount feels comfortable, and increase it over time. This way, you’re consistently investing in your future without constantly having to think about it.

  1. Be Smart About Debt

High-interest debt, like credit cards, can be a real budget drain, limiting both your current lifestyle and future savings. Work on paying off debt strategically so you’re not spending tons on interest, freeing up more cash for both today and tomorrow.

  1. Plan for Some Financial Flexibility

Life happens, right? Build in some flexibility, like an emergency fund, so you’re not dipping into savings for every unexpected expense. This cushion gives you more freedom to enjoy life’s little moments while keeping long-term goals intact.

  1. Visualize the Future (Without Obsessing)

It’s easy to get overwhelmed by retirement planning — after all, it’s a big goal! But instead of letting it stress you out, try to get inspired by it. Think about what you want retirement to look like. Knowing what you’re working toward can make it feel like a fun challenge instead of a financial weight.

  1. Check In Regularly

Every few months, take a quick look at your budget, savings, and spending habits. Small adjustments now and then keep you on track without having to make drastic changes. It’s all about creating a balance that feels natural.

  1. Enjoy Life Along the Way

It’s easy to get so focused on retirement that you forget about the joy of today. Remember, a balanced approach means finding happiness now and later. So, spend time with friends, enjoy your hobbies, and create memories. After all, that’s what financial planning is for: living a life you love, today and tomorrow.

By taking these steps, you’ll get closer to that sweet spot between living for today and planning for tomorrow. Retirement planning isn’t about sacrificing everything; it’s about finding ways to create a life that’s fulfilling and secure, now and in the future.

Reach out to Her Retirement for help with walking the tightrope. We got you.

Attribution: Designed by Freepik

 

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Comparing Harris and Trump on Medicare and Social Security: Their Plans and Promises

As the 2024 presidential election approaches, millions of Americans are concerned about the future of Medicare and Social Security. Without congressional action, both of these programs could face substantial cuts within the next decade, affecting retirees nationwide.

The next president, whether Kamala Harris or Donald Trump, will play a pivotal role in shaping the direction of this critical issue.

Polling shows an overwhelming majority of Americans—nearly 80%—are against cutting Social Security benefits. This bipartisan consensus spans political lines, with 77% of Republicans and 83% of Democrats agreeing that no reductions should be made. Despite this widespread agreement, both candidates have avoided specifics on how they plan to address Medicare and Social Security’s looming challenges.

Social Security’s financial troubles stem from an aging population (11,000 people are turning 65 everyday in the United Stateds), and a shrinking workforce. If left unchanged, The Social Security Board of Trustees project that the Social Security Old-Age and Survivors Insurance (OASI) trust fund will become insolvent in 2033 and that the Disability Insurance (DI) trust fund will not become depleted in the 75-year projection period.*

The Medicare Board of Trustees project that the Medicare Hospital Insurance (HI) Trust Fund, out of which Part A benefits for inpatient care are paid, will become insolvent in 2036, which is five years later than projected in last year’s report.*

Social Security

Historically, the last major reform of Social Security occurred in 1983 when the program was nearing insolvency. Any new reforms will need congressional approval, but a Harris or Trump presidency will certainly influence the debate.

Kamala Harris has expressed her commitment to “protecting” and “strengthening” Social Security but has yet to provide detailed plans. As a senator, she co-sponsored the Social Security Expansion Act, which aimed to increase benefits for some and extend the payroll tax on incomes above $250,000. Her campaign is expected to follow this approach, likely pushing for a higher tax on the wealthiest Americans to ensure the program’s solvency. President Biden’s current stance is to tax incomes over $400,000, a plan that has broad public support, with 79% of Republicans and 88% of Democrats in favor.

Harris may also push for changes to how Social Security’s cost-of-living adjustments (COLA) are calculated. Today, these adjustments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), but Harris has supported switching to the Consumer Price Index for Elderly Consumers (CPI-E), which would reflect the higher medical costs that seniors often face. While this change could increase benefits, it might also accelerate the need to address the program’s funding shortfall.

Donald Trump has also vowed to protect Social Security, repeatedly saying he would not cut benefits. His campaign has been less clear about specific reforms, but Trump has suggested tapping into oil and gas revenues to shore up Social Security’s finances. However, analysts estimate that even dedicating all oil and gas leasing revenues to the program would cover only 4% of the projected shortfall.

One of Trump’s key promises is to eliminate federal income taxes on Social Security benefits. Under current law, retirees who earn above $25,000 pay taxes on a portion of their benefits. Eliminating these taxes would be a boon for seniors but would reduce Social Security’s revenue by an estimated $1.4 trillion over a decade, hastening its insolvency.

Medicare

During the September presidential debate, Kamala Harris mentioned Medicare three times, highlighting her focus on protecting it alongside Social Security.

“My work protecting Social Security and Medicare is based on long-standing efforts to protect seniors from scams,” Harris said. While she didn’t specify whether she was referring to her work as a prosecutor, senator, or vice president, her commitment to safeguarding these programs was clear.

Harris also pointed to key achievements under the Biden administration, such as Medicare’s new power to negotiate drug prices. “For the first time, we’ve allowed Medicare to negotiate drug prices on behalf of the American people,” she noted, referring to a 2022 law that enables the Health and Human Services Secretary to negotiate costs for high-priced drugs covered under Medicare. Taking a jab at Donald Trump, Harris added, “Donald Trump said he would allow Medicare to negotiate drug prices. He never did. We did.”

Harris has pledged to “fight to ensure that Americans can count on getting the benefits they earned.” While her 2020 campaign centered on “Medicare For All,” she’s now building on the Biden administration’s Medicare reforms, focusing on lowering drug prices and tackling costs.

As president, Joe Biden enacted some of the most significant Medicare reforms since 2006 when prescription drug coverage was introduced. A key part of Biden’s Inflation Reduction Act allows Medicare to negotiate drug prices directly with pharmaceutical companies—a practice already used by the VA and other federal agencies. This change is expected to save billions for both the federal government and Medicare beneficiaries.

The first 10 drugs covered under these negotiations will see price reductions starting in 2026, with more drugs added over time. Additionally, from January 2025, Medicare Part D beneficiaries will have their annual out-of-pocket costs capped at $2,000. Harris referenced this in the debate, stating: “And when I am president, we will do that for all people.”

Another important aspect of Biden’s plan is directing savings from these reforms back into Medicare’s Hospital Insurance Trust Fund, aimed at extending the program’s solvency.

Trump has vowed to protect Medicare benefits but has provided few specifics on how he plans to do so. His campaign has mentioned reversing increases in Medicare Part B premiums, prioritizing at-home care, offering tax credits to caregivers, and removing barriers that contribute to care worker shortages.

During his presidency, Trump made moves to reduce healthcare costs for Medicare beneficiaries, such as increasing price transparency and lowering insulin costs. However, these initiatives had little effect on Medicare’s long-term financial challenges.

Trump has consistently opposed any cuts to Medicare benefits, positioning himself as a defender of the program. He’s suggested that eliminating waste, fraud, and abuse within the system could save money, though no significant reforms were implemented during his time in office to address Medicare’s financial issues.

In 2023, Trump criticized fellow Republicans for considering cuts to Medicare as a way to offset federal spending, stating such measures were unnecessary.

Both Harris and Trump emphasize protecting Medicare, but their approaches differ, and neither has fully outlined how they will tackle the program’s long-term solvency challenges. As the election nears, voters will need to consider each candidate’s stance on this critical issue.

As the 2024 election draws nearer, voters will need to weigh these proposals carefully. While both Harris and Trump pledge to protect Social Security, their plans for fixing the program remain vague. Regardless of who wins, Congress will ultimately decide the future of Social Security and Medicare, but the next president’s leadership will set the tone for the reforms that follow.

Decisions on funding for Medicare and Social Security are primarily made by Congress, but the president plays an important role in shaping the agenda and influencing these decisions.

Congress’s Role

Congress holds the power to legislate changes to both programs, including funding, benefit levels, and eligibility requirements. Any significant reforms to Social Security and Medicare, such as raising taxes, adjusting benefits, or changing eligibility ages, must pass through both the House of Representatives and the Senate. Congress also determines the amount of funding allocated to Medicare each year through the federal budget process.

The President’s Role

While the president cannot unilaterally change funding for Medicare or Social Security, they can propose policies, budgets, and reforms that Congress may consider. The president also has a powerful “bully pulpit” to influence public opinion and push Congress to take action on issues related to these programs. The president’s administration can also implement certain regulations or executive orders related to healthcare costs and program management, though larger reforms require congressional approval.

In short, Congress holds the legislative authority over funding decisions, but the president can influence the direction of the policy debate.

The stakes are high, as Social Security and Medicare remain a critical safety net for 68 million Americans, and ensuring its long-term viability is crucial for the financial well-being of future generations.

 

Addendum: Fixing Social Security and Medicare Solvency: Key Solutions and Challenges

Fixing the solvency of Social Security and Medicare involves ensuring that these programs have enough funds to continue paying benefits over the long term. Both programs face financial challenges due to an aging population, longer life expectancies, and rising healthcare costs. Several potential solutions have been proposed, though each comes with trade-offs. Here are some common approaches to addressing solvency issues:

  1. Increase Payroll Taxes

Social Security and Medicare are primarily funded through payroll taxes. One option is to raise the tax rate or increase the income cap on which Social Security taxes are levied.

  • Raise the Payroll Tax Rate: Increasing the current Social Security payroll tax rate (currently 6.2% for employees and employers) would generate more revenue for the program.
  • Remove or Raise the Income Cap: Currently, income above $168,600 (2024 level) is not subject to Social Security taxes. Eliminating or increasing this cap would bring in more revenue by taxing higher earners.

Pros: Increases revenue directly without cutting benefits.
Cons: Higher taxes could be unpopular, especially among businesses and high-income earners.

  1. Raise the Retirement Age

Social Security’s full retirement age has been gradually rising, but further increases could reduce the number of years people receive benefits.

  • Gradual Increase: Slowly raising the retirement age for younger workers (those not near retirement) would reduce the number of years people collect benefits while acknowledging longer life expectancies.

Pros: Reduces long-term costs by shortening the time people receive benefits.
Cons: Could disproportionately affect lower-income workers who may not live as long or who work in physically demanding jobs.

  1. Reduce Benefits

Another approach is to reduce benefits for future retirees. This could be done through several methods:

  • Means-Testing Benefits: Reducing or eliminating benefits for high-income retirees.
  • Lowering Cost-of-Living Adjustments (COLA): Adjusting the formula that determines COLA, which could slow the growth of benefits over time.

Pros: Reduces costs directly, particularly for wealthier individuals.
Cons: Politically difficult, and could hurt low- and middle-income retirees who rely more on these programs.

  1. Increase Immigration

Increasing legal immigration could help address the solvency issue by bringing in more workers who contribute to the Social Security and Medicare trust funds through payroll taxes.

Pros: Expands the workforce and increases payroll tax contributions.
Cons: Immigration reform is politically sensitive and would require broad legislative support.

  1. Change the Way Benefits Are Calculated

Adjusting the benefit formulas can help with solvency:

  • Switch to the Chained CPI: For Social Security’s cost-of-living adjustments, switching to a “chained” Consumer Price Index (CPI) would slow the rate of benefit increases.
  • Recalculate Initial Benefits: Lowering the formula that calculates initial Social Security benefits for higher earners could reduce long-term payouts.

Pros: Could reduce benefit growth in a way that is less noticeable for beneficiaries.
Cons: Some argue that this underestimates real inflation for seniors, especially healthcare costs.

  1. Cut Waste, Fraud, and Abuse

Many policymakers advocate addressing inefficiencies in both programs to reduce costs:

  • Medicare: Efforts to reduce wasteful spending, fraud, and abuse in Medicare’s healthcare payments can help reduce costs without cutting benefits.
  • Social Security: Reducing improper payments and tightening eligibility requirements could help reduce costs.

Pros: Could save money without directly cutting benefits.
Cons: While helpful, addressing waste and fraud alone is unlikely to solve the long-term funding challenges.

  1. Allow Medicare to Negotiate Drug Prices

Recently, Medicare was granted the authority to negotiate drug prices, starting with the most expensive and widely used drugs. Expanding this authority could reduce the cost of prescription drugs for the program.

Pros: Lowers Medicare costs without cutting benefits.
Cons: Could face resistance from the pharmaceutical industry and some lawmakers.

  1. Diversify Revenue Sources

Some proposals suggest new revenue streams to fund Social Security and Medicare, such as:

  • Taxing Wealth or Investments: Implementing new taxes on investment income or wealth could bring in revenue for the programs.
  • Carbon Tax or Financial Transaction Tax: Other potential new taxes could be directed toward funding these programs.

Pros: Expands revenue without directly cutting benefits or raising payroll taxes.
Cons: Politically contentious and could have broader economic impacts.

Combining Approaches

Many experts believe a combination of approaches will be necessary to fix the solvency of Social Security and Medicare. This could involve modest tax increases, benefit adjustments, and cost-saving measures. Bipartisan cooperation will be key, as both programs are politically sensitive and any reforms will need to balance economic realities with protecting vulnerable populations.

If you are confused by Social Security or Medicare, check out Her Retirement’s resources for both:

www.HerSocialSecurity.com

www.MedicareforHer.com

E-Courses on Social Security, Medicare and more at: Courses – Her Retirement

 

* Social Security and Medicare Continue on Path to Insolvency, Trustees Confirm | The U.S. House Committee on the Budget – House Budget Committee

Sources:

https://www.newsnationnow.com/

https://www.bankrate.com/

 

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Rolling Into Retirement

The story, Rolling into Retirement Like a Boss, follows a friend group of women in their late 50s as they revisit their roller-skating glory days to celebrate friendship and to prove that age is just a number.

Lynn tightened the laces on her old roller skates, the kind with bright orange wheels and neon rainbow laces. She couldn’t help but grin as she glanced at the other women beside her—her ride-or-die crew from back in the day. They’d spent every Friday night in the ‘70s and ‘80s skating around the rink, crushing on the DJ, and perfecting their backward crossovers. Now, they were preparing to roll into those traditional retirement years with the same energy, and of course, the same sass.

Jill, the wild one with a head full of silver curls, gave a mock-serious nod. “You know, if we can still do this without breaking a hip, we’re officially winning at this mid-life thing.”

“Mid-life?” questioned Lynn, “Do you expect to live to 116 Jill?”

“You’re right,” Jill said. “Damn, we’re a little older than I thought.”

“I’m more worried about getting off the rink than getting on,” chimed in Tina, winking. “I don’t remember how to stop.”

“I’m not even sure my legs are going to hold up,” quipped Cheryl.

The rink was just like they remembered it—disco ball shimmering above, classic hits blaring over the speakers. “Stayin’ Alive” was playing as they took to the floor, the irony of the song choice not lost on any of them.

The one main difference was this was 50-plus night at the rink. The other skaters looked a little older than they remembered.

The trio formed a line, hands linked, rolling slowly at first. It was like muscle memory kicked in, and suddenly, they were skating with the confidence of their 20-year-old selves. Sure, there were a few wobbles—especially when someone tried to attempt a spin—but the laughter was contagious.

“See gals, this is what rolling into retirement will look like?” Lynn yelled over the music, half skating, half dancing to a Donna Summer song.

Jill, always the daredevil, went for a full twirl. “We may have a few more wrinkles, but we’ve still got moves, baby! We’re just getting started…on our second act. And it’s gonna be disco-tastic!”

As they circled the rink, the young skate guards were seemingly enjoying watching all these 50-plus women and men, defying the stereotype of what “old age” was supposed to look like. No sitting on a porch knitting here—these ladies were rolling into the next phase of their lives like boss babes.

The DJ, sensing the vibe, switched the track to ABBA’s “Dancing Queen,” and the women erupted in cheers. They glided along, arms raised in celebration, feeling the decades melt away.

“Let’s keep doing this ladies, it’s so fun.” Tina blurted out as she tried a little backwards skating. “Who said we have to slow down when we decide to retire?”

Jill chimed in, “It’s about knowing when to hit the rink, when to crank the ABBA, and when to enjoy the ride. And we’re going to rock it…maybe.”

With that, they rolled off the floor, breathless and beaming, high-fiving each other like they’d just conquered the world. And maybe they had—because no matter how many years had passed, they knew one thing for sure: they were still skating through life like the queens they’d always been.

As the ladies kicked off their skates and settled into a booth, sipping on some well-deserved adult beverages, the conversation turned to more than just reminiscing about their glory days.

“Alright, queens,” Cheryl the ever practical (and cautious one) said, adjusting her reading glasses. “We’ve mastered the rink, now let’s talk about our slow roll into retirement. We’ve got Lynn the retirement expert here. Let’s pick her brain. What is y’alls plan? I’m worried about retirement?”

“I don’t even know if I can retire,” added Tina. “I have no idea how much money I’ll need and if my nest egg is enough.”

“Well, I’m definitely ready to give my boss the boot, snickered Jill, “And I’ll do it with these bad-ass skates on too!”

“Yeah and then you’ll fall on your ass,” retorted Lynn.

‘Nope, I’ll roll right over him and never look back. And then I’ll roll-over my 401k and live happily ever after. Ha.” Jill added as she laughed and choked on her sip of hard cider.

“That’s a good one.”

The women all giggled.

“I for one, don’t have plans to retire ladies. I love what I do, and I don’t have a boss to roll over,” added Lynn smirking. “But, I can answer any questions you all have and get you ‘rolling’ in the right direction.”

Cheryl, ever the practical one, nodded. “You know, the key to a smooth retirement is all about finding your balance—just like on the rink. How do we strike a balance between our health, our wealth and our happiness?”

“Oooo, someone has been listening to my podcast and YouTube videos,” quipped Lynn.

Cheryl gave Lynn a wink.

“let’s hear some suggestions, Lynn,” Jill piped in.

Tina added, “Yeah, I don’t even know where to start. It’s freaking overwhelming.”

Well, let’s refill our drinks and keep this conversation rolling. I got you my BFFs,” Lynn began.”

“Yeah and all the other over 50 women like us,” added Cheryl, with a high-five to Lynn.

“Okay, ladies, here goes. A few suggestions for ‘cruising’ safely and happily into retirement or whatever the hell you want to call it.”

First, Keep Moving, But Know Your Limits

  • “We might not be doing double axels, but staying active is essential. Walking, swimming, roller skating, lifting weights, yoga and eating right. We need to focus on our physical health. And don’t forget about mental health. Meditation is awesome.

Second, Review Your Retirement Finances & Have a Plan

  • “Before you give your boss the boot with those skates Jill, make sure you’ve checked your wheels—uh, I mean, your finances. It’s important to know where you stand with savings, investments, and stuff like your retirement income and Social Security. You also need to make sure you have a plan for health insurance, maybe long-term care protection and estate planning. Jill, you need to make sure you and Bill have a will and trust for the kids. Tina, your house is paid off, you can leverage your home equity in retirement. And Cheryl, you probably could really benefit from tax planning. You could be subject to IRMAA in retirement. A little planning now means you can glide smoothly later ladies. Planning is numero uno. Those who plan live a better, more intentional and financially secure retirement.

Third, Stay Social, But Skip the Drama

  • “Remember those Friday nights when drama seemed to follow us everywhere…even here at the rink?” Lynn laughed. “In retirement, it’s all about surrounding yourself with positive vibes. Stay connected with friends (like us) and family, join clubs, or find a new hobby. Life is way more fun when you’ve got a crew to roll with, and you’ll live longer.

Fourth, Embrace New Adventures—Safely

  • “We may not be jumping at the rock quarries anymore, but that doesn’t mean we can’t try new things,” Lynn added with a grin. “Just make sure to use some common sense. Whether it’s traveling, picking up a new hobby, or even just exploring your own neighborhood, keep safety in mind—especially if you’re going solo. And don’t fall for someone calling you and trying to scam you. Senior scams are BIG business and so many people fall prey to it.

Fifth, Health Check-Ups: Your Tune-Up

  • “We always made sure our skates were in good shape, right?” Lynn pointed out. “Same goes for our health. Regular check-ups with your doctor, eye exams, breast exams, all those shots for senior, and staying on top of any medications will keep you rolling along without unexpected bumps.”

Sixth, Budget for Fun

  • “Just because you may be retired doesn’t mean we’re done having fun,” Lynn added. “Make sure your budget includes room for little luxuries—whether that’s a trip, a spa day, or just a night out with the girls (wink, wink). We’ve earned it!”

Seventh, Focus on Your Purpose

  • “Just because we’re closing in on those traditional retirement years doesn’t mean we have to “retire” in the traditional sense. We can define a new purpose for our lives. There’s lots of research on purpose and retirement. Research consistently shows that having a sense of purpose in retirement can significantly enhance both mental and physical well-being.”

“Wow, that’s an awesome list, Lynn. Thank you so much,” Tina said giving Lynn a big hug.

“You’re welcome,” added Lynn. “I know it feels like a lot, but we got this ladies and I’m always here for you. We can be HappiHER, HealthiHER and WealthiHER and I’m here to help you Get HER Done.

As the group of friends gathered their things, Jill stood up, wobbling slightly on her feet. “And if you do take a tumble—whether it’s skating or life—just remember, the trick is getting back up and laughing about it. We’ve got this, ladies. Retirement? Phhh. We’re rolling into it like boss babes!”

That’s the spirit! Rolling into retirement with confidence and a plan (and a little bit of humor) makes all the difference. Those tips feel just like strapping on your roller skates—if you keep your balance, plan ahead, and have fun along the way, you’re bound to enjoy the ride!

How Do I Get Started Planning for Retirement?

Getting started on rolling into retirement smoothly is a lot like prepping for a great night at the rink. Here’s your step-by-step guide:

  1. Assess Your Current Situation
  • Finances First: Review your savings, pensions, and Social Security benefits. Knowing what you have to work with will give you peace of mind. Use retirement calculators like the Her Retirement Readiness software platform to help you.
  • Health Check: Schedule a full health review with your doctor. Knowing where you stand health-wise will help you plan for activities that suit you now and down the road.
  1. Set Clear Retirement Goals
  • What do you want retirement to look like? Travel, hobbies, time with family? Write it down. Knowing your goals will help you prioritize and budget accordingly. The Her Retirement Readiness software has an entire module to help you envision your retirement.
  1. Create a Retirement Budget
  • Track your current expenses and see how they may change once you retire. Be sure to budget for both essentials (housing, healthcare) and fun stuff (travel, hobbies). Include a cushion for unexpected expenses. Knowing your cash flow (income minus expenses) is essential. The Her Retirement Readiness software has a Smarter Spending Tracking Tool to help you know and track your cash flow, now and in retirement.
  1. Stay Active and Engaged
  • Find physical activities you enjoy, whether it’s walking, swimming, or even roller skating every now and then. Staying active helps keep your body and mind sharp.
  • Look into local clubs or classes where you can meet new people or learn something new—like dancing, cooking, or gardening. It’s all about keeping life exciting!
  1. Start Organizing Your Paperwork
  • Make sure your will, power of attorney, and any advance directives are in order. It’s a small step now that gives you huge peace of mind later. Check out the Her Retirement Personal Info & Emergency Planner at: www.HerEmergencyPlanner.com
  • Organize any retirement accounts and insurance paperwork so it’s easy to access when you need it.
  1. Practice Letting Go of Work Stress
  • If you’re still working, start easing into a mindset where work doesn’t dominate. Maybe reduce hours or take on more flexible roles. Begin mentally transitioning to what life will look like when work isn’t the center.
  1. Find Joy in the Little Things
  • Treat yourself now and then. Whether it’s an afternoon spent with friends or picking up that old roller-skating hobby again, find ways to inject joy into your routine.

Starting on this retirement journey doesn’t have to be overwhelming. Just lace up, take it step by step, and before you know it, you’ll be gliding into your second half with confidence! If you need help rolling into retirement, reach out to Lynn at: lynnt@herretirement.com. I got you, and I’ll even go roller skating with you.

 

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Forget 401K & IRA’s – You Can’t Retire Early With Those!

There has been a trend of late, especially among Millennials and Generation Zs, they want to retire as early as possible. “I want to retire when I’m 40, 45, 50…” So, they are dumping as much money as they can into qualified plans mostly 401Ks with the hope they will have millions of dollars by the time they are 40 or 50 years old.

The one big problem with that… the 59 ½ rule.  This means that the minute you take a distribution from your qualified plan you are subject to a 10% early withdrawal penalty. Couple that with a normal withdrawal rate of 4%, you are taking out 14% a year. How sustainable is that?  To be able to accomplish this long-term is a huge stretch!

Is there a better alternative?

Why Consider Life Insurance as a Retirement Plan?

Life insurance has long been seen as a means to provide financial protection for loved ones in case of an untimely passing. However, it can also serve as a powerful tool for retirement planning. By leveraging the benefits of indexed universal life and whole life insurance, individuals can create a tax-exempt source of income while enjoying the flexibility of early retirement. (life insurance is not subject to the 10% early withdrawal penalty)

Benefits of Indexed Universal Life Insurance

Indexed universal life (IUL) insurance combines the benefits of a life insurance policy with the potential for accumulating cash values through the performance of linked indexes, such as the S&P 500. This unique feature allows policyholders to grow their policy’s cash value while enjoying protection against market downturns.

Here are some key benefits of using IUL as a retirement plan:

  1. Tax-Advantaged Growth: The cash value accumulation in IUL policies grows on a tax-deferred basis. This means that policyholders do not have to pay taxes on their cash value gains as long as the policy remains in force.
  2. Flexible Premiums: IUL policies offer flexibility in premium payments, allowing policyholders to adjust their contributions based on their financial situation. This gives individuals the freedom to allocate funds to their retirement plan without being constrained by fixed premium amounts.
  3. Death Benefit Protection: In addition to the cash value accumulation, IUL policies also provide a death benefit to the policyholder’s beneficiaries. This ensures that loved ones receive financial protection in the event of the policyholder’s passing.
  4. Upside Potential: IUL policies participate in market gains, allowing policyholders to enjoy the potential for higher returns compared to traditional life insurance policies. The cash value accumulation is linked to the performance of selected indexes, offering the opportunity for significant growth over time.

The Benefits of Whole Life Insurance

Whole life insurance is another type of permanent life insurance that can be utilized as a retirement plan. Here are some reasons why whole life insurance can be a valuable component of a retirement strategy:

  1. Lifetime Coverage: As the name suggests, whole life insurance provides coverage for the entire lifetime of the insured individual. This guarantees that life insurance protection will be available, regardless of age or health conditions.
  2. Cash Value Accumulation: Similar to IUL policies, whole life insurance policies build cash values over time. These cash values can be accessed during retirement to supplement income or cover any unexpected expenses.
  3. Dividend Payments: Many whole life insurance policies are eligible for dividends, which are a share of the insurance company’s profits. These dividends can be reinvested to enhance the policy’s cash value or received as cash payouts.
  4. Stable and Predictable: Whole life insurance offers stability and predictability, as the premiums and death benefits remain fixed for the duration of the policy. This allows individuals to plan for retirement with confidence, knowing that their life insurance will provide a steady source of income.

How to Leverage Life Insurance for Retirement Planning

Now that we understand the advantages of using life insurance as a retirement plan, let’s explore the steps and strategies involved in leveraging IUL and whole life insurance for a secure retirement.

Step 1: Evaluate Your Financial Situation

The first step in using life insurance as a retirement plan is to assess your current financial situation. Consider factors such as your age, health, income, and existing retirement accounts. This evaluation will help determine the optimal amount of life insurance coverage needed and the level of premium contributions you can afford.

Step 2: Determine Your Retirement Goals

Next, establish your retirement goals. Define the lifestyle you aspire to have during retirement and estimate the income required to support that lifestyle. Take into account factors like healthcare costs, inflation, and any outstanding debts or financial obligations.

Step 3: Consult with an Insurance Professional

Seek guidance from an experienced insurance professional who specializes in retirement planning. They can help analyze your needs, recommend suitable products, and design a customized plan that aligns with your retirement goals. An insurance professional can also assist in understanding the tax implications and withdrawal strategies associated with life insurance as well as how to properly structure it as a retirement plan.

In summary, life insurance can offer a secure and tax-advantaged retirement plan for individuals seeking financial stability and early retirement. By leveraging the benefits of indexed universal life and whole life insurance, individuals can protect their loved ones while building a cash value that can be used to supplement retiree income.

Remember, creating a successful retirement plan requires careful evaluation of your financial situation, clear retirement goals, and consultation with an experienced insurance professional. With the right strategy and guidance, life insurance can serve as an effective tool to achieve a comfortable and financially secure retirement. Reach out to us at Her Retirement to get connected with an insurance expert: retire@herretirement.com.