May 2022 Retirement INsight

Monthly News and Information for Current and Future Retirees

Presented by Frederick Saide, Ph.D. - MAY 2022

QUOTE OF THE MONTH

“Age is just a number. Life and aging are the greatest gifts that we could possibly ever have.” CICELY TYSON

RETHINKING RETIREMENT

Some of the "conventional financial wisdom" circulating about retirement may need a second look because those assumptions may not prove true for everyone. Or, to put it another way, sometimes people think about retirement conveniently rather than realistically. Many people assume they will retire as they choose, purely on their terms. Is that how it usually happens? The Employee Benefit Research Institute’s 2021 Retirement Confidence Survey indicates otherwise. The average retirement age is 62, yet most workers expect to retire at 65. While 59% of workers believe they can ease into retirement via part-time work, just 19% of current retirees have. As for working in retirement, 72% of pre-retirees expect to do so, yet just 30% of retired survey respondents said they earned income from employment or freelancing. You still hear about the "4% rule" for retirement income withdrawals, withdrawing 4% a year off your retirement assets. But one size rarely fits all. One of the most complicated and essential calculations is figuring out how much money you can withdraw from your retirement account.?Finally, you sometimes read articles that tell you to save at least $1 million before you retire. It's important to remember that anything you have saved in your retirement account is better than nothing, but the more you can put away now, the more you may have later on.1

TRAVEL TIP

Share those photos from your trip, but wait until you get home

If you go on a trip of several days or longer and post real-time photos on social media, you may be letting some people know you are not at home. If you (or your kids) tell online friends or followers you are leaving on a long trip starting on a particular date, the same applies. Remember that property crime involves both motive and opportunity; if you have any concerns about the safety of your home or small business while you travel, wait to post trip photos until after you return. ?

Source: Travelers.com, April 10, 20222

HOW MUCH DO YOU KNOW ABOUT ELDERCARE?

Eldercare takes different forms: nursing home care, assisted living, adult daycare, and even some forms of healthcare administered at home. According to Genworth’s most recent study of U.S. eldercare costs, a private room in a nursing home now costs an average of nearly $9,000 a month. A one-bedroom assisted living unit, on average, demands about $4,500 a month. Even home health aides cost about $25 per hour. Medicare will not pay for long-term custodial health expenses, so some households look into insurance solutions. In 2021, according to the American Association for Long-Term Care Insurance, the average annual premium for an extended care policy issued to a 55-year-old couple was $5,025. This may seem costly, but ongoing nursing home care is much more expensive. May you want to consider checking into payment choices now with your future in mind? Years from now, you and your loved ones may be glad that you did.3

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DID YOU KNOW?

Sixty years ago, there was an epidemic of laughter

In 1962, a remarkable episode of what was probably mass hysteria afflicted nearly 1,000 people in Tanganyika (now known as Tanzania). These individuals, primarily children, laughed (or, in some instances, cried) in fits for hours or even days. Fourteen schools closed in response to the "laughing plague," which lasted several months. Some social scientists have attributed it to stress felt by kids entering an extensively restructured school system in a newly independent nation.4

ON THE BRIGHT SIDE

Overall, large pension plans appear to have more substantial financial positions. A Willis Towers Watson white paper published earlier this spring studying 361 Fortune 1000 firms estimates their aggregate pension funded status at the end of 2021 at 96%, a 5% increase from 2020. That represents the most robust funding status for large defined benefit plans since 2007.5

BRAIN TEASER

A snail is at the bottom of a well 30 feet deep. It crawls up 3 feet each day, but at night, it slips down 2 feet. How long does it take for the snail to crawl out of the well?

STUMPED? CALL Fred Saide FOR THE ANSWER!

Fred Saide may be reached at 800-593-8188 or Calendar Link to schedule: https://calendly.com/freds-1/one-on-one?month=2022-05 Website: https:// moneymattersusa.net

Disclosure:

MoneyMattersUSA?, Advisory LLC and Foundation Insurance Services, LLC are independent companies with common ownership. Advisory services are offered through MoneyMattersUSA?, Advisory LLC and Insurance services are offered through Foundation Insurance Services, LLC; Frederick Saide Financial Advisor.

For additional information or services, disclosures, fees, and conflicts of interest, please visit https://tinyurl.com/37n3wkba

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This material was prepared by ?third party and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

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CITATIONS.

1 - EBRI.org, January 2021

2 - Travelers, April 10, 2022

3 - Investopedia, January 28, 2022

4 - Atlas Obscura, January 15, 2016

5 - Wealth Management, March 22, 2022