Skip to main content

Tag: Financial Advisor

Working in Retirement in an ‘Encore Career’

Experts labeled the birth of more than 76 million babies between 1946 and 1964 the “baby boom.”[i] It was America’s largest generation, although Millennials are on the verge of overtaking boomers.[ii] More than 65 million are still living today with about 10,000 retiring per day.[iii] The youngest will turn 67, full retirement age, in 2031, when the boomer population is projected to drop to 58.2 million.

What will they be doing?

Most of them will continue working.[iv] In fact, nearly four-fifths of retirees will stay on the job or seek other employment to supplement their retirement income.

More than 60% of people in the United States who have retired said they retired too soon.[v]

How do boomers compare to workers in other generations?[vi]

  • Boomers are hardworking, ambitious workaholics and occasionally tend to complain about younger workers’ seeming unwillingness to pay their dues.
  • Boomers are independent, confident, and self-reliant. As the original anti-establishmentarians, they believe they can change the world.
  • Boomers are usually dedicated, focused on achievement, and goal setting.
  • Boomers are highly competitive and correlate work with self worth.
  • Boomers self-actualize. Boomers were raised in relative middle-class affluence, eschewing traditional values for the sake of self expression.

The boomer’s view of retirement

Unlike members of previous generations, baby boomers have animated the word “encore.” Coined by author Marc Freedman, the term “encore career” describes a person’s second life career in later years.[vii]

Encore careers tend to focus primarily in health care, the environment, government, education, and nonprofits. Encore careers provide retirees with financial advantages, such as higher Social Security credits by delaying receiving benefits. Monthly benefits rise when eligible retirees delay applying for benefits after reaching their full retirement age.

Beyond the monetary advantages, boomers find encore careers provide an outlet to express the passion they’ve gained throughout their professional lives. Connected to a community, working retirees gain a sense of engagement and purpose in their later years.

Boomers also gravitate to a variety of mostly help-related professions, such as teaching, consulting or working for nonprofits. Others pursue work in creative fields, such as music, painting, or drama.

Looking for work?

If you’re interested in pursuing an encore career, here are some tips to help you get started:

  • Start by writing down your goals and interests and think about how you could turn them into satisfying work.
  • Take classes at your local college or lifelong learning center to develop new skills.
  • Think about how much you’d like to work and what kind of environment would interest you.
  • Consider taking a personality assessment and work competency test to learn about your strengths.
  • Look around for job opportunities and let friends, family, and others in your network know that you’re looking.

To learn more about retirement, please visit our website.

If you would like to discuss your current financial plans or retirement strategies, we’re happy to talk. Please contact us at (800) 929.1001.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.prb.org/justhowmanybabyboomersarethere/

[ii] http://www.pewresearch.org/fact-tank/2018/03/01/millennials-overtake-baby-boomers/

[iii] https://www.cnbc.com/2017/10/03/health-care-dilemma-10000-boomers-retiring-each-day.html

[iv] https://www.youngresearch.com/researchandanalysis/compound-interest-researchandanalysis/how-many-retirees-will-keep-working/

[v] https://www.bloomberg.com/news/articles/2017-07-10/working-past-70-americans-can-t-seem-to-retire

[vi] https://www.thebalancecareers.com/baby-boomers-2164681

[vii] https://www.investopedia.com/terms/e/encore-career.asp

Recovering From Financial Mistakes

History tells of investors leaping from tall buildings during the Great Depression.[i] It was Black Thursday, October 24, 1929,[ii] that newspaper columnist Will Rogers wrote: “When Wall Street took that tail spin, you had to stand in line to get a window to jump out of.”

Obviously, unforeseen financial (specifically, investment) mistakes were made, which led to the nation’s decade-long economic depression. Human history is filled with tragic tales that have led to some unfortunate decisions. But using tall buildings is certainly no solution to remedy a financial mistake. The adage is true: We all make mistakes, many of which are not necessarily our fault. However, you can easily trace back responsibility for mistakes such as buying a home that is too expensive, making ill-advised investments, not adequately saving for emergencies or retirement, or going into severe credit card debt.

So, how do you recover from financial mistakes?

Forgiveness is divine. Especially as it applies to your situation. Forgive yourself. You’re human. You made a mistake. Put it behind you. It’s in the past. Now plot your way forward.

Reexamine your financial condition. How bad is your situation? What are the potential long-term consequences? What steps can you take to mitigate the damage?

Here are some questions to help you analyze your current situation:[iii]

  • What are your current assets?
  • What do you owe?
  • What’s your income and expenditures?
  • What’s your credit score?
  • Are there any long-term ramifications?Here is a useful system for setting goals using the acronym SMART. Your goals should be:

Set goals. The financial mistake is now behind you. Now is the time to develop a road map into your future. Where do you want to go? What do you want to accomplish? Plot your course carefully and studiously.

  • Specific
  • Measurable
  • Attainable
  • Realistic
  • Timely

Make an action plan. The plan must have some balance and a visible outlet. Paying off debt may be a worthy goal, but sometimes it can be no fun. Only the very disciplined and ambitious should pursue single-focus goals. A mix of goals builds more longevity into your plan. Positive goals, like saving for retirement, provide measurable reinforcement. You can see your progress.

Time for reflection. Making your way forward to recover from past financial mistakes certainly feels right. But watch for those old road signs, the traps and temptations that led you astray in the first place. Monitor your behavior and emotions so that you can avoid falling into the same patterns that led to the bad decisions and the negative consequences.

If you would like to discuss your current financial plans and goals, we’re happy to talk. Contact us at 800.929.1001 or visit our website.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.history.com/topics/great-depression

[ii] https://www.washingtonpost.com/archive/opinions/1987/10/25/the-jumpers-of-29/17defff9-f725-43b7-831b-7924ac0a1363/?utm_term=.b27d573c3cf3

[iii] https://financialmentor.com/financial-advice/financial-crisis/6-steps-to-recover-from-financial-disaster/2365

The Importance of Setting Financial Goals

We should understand the value of setting financial goals. Goals serve as stepping stones to achieving your dreams. Saving for retirement is a top priority for many people since some analysts suggest you may need as much as $1 million to retire comfortably.[i]

But what about those intermediate goals, the ones you set along the way to retirement? Are you setting aside adequate money to build those funds?

Here are some intermediate goals you should consider as you make your way to retirement:

Build an emergency fund.[ii]

Experts say you should accumulate three months of living expenses. If you have $4,000 in monthly expenses, for example, you should shoot for $12,000. Six months is even better. That would come to $24,000 in your emergency fund. The ideal goal is to have 12 months covered.

Eliminate debt.[iii]

This is a lofty and worthy goal, especially since many Americans are living beyond their means. The average American household debt is $137,063, while the median household income is $59,039. Analysts warn that debt, especially with credit cards, is a disaster waiting to happen. “We simply can’t keep taking on credit card debt forever without it causing major problems,” said Matt Schulz, CreditCards.com’s senior industry analyst. “This record [debt] probably won’t be a major tipping point, but it likely isn’t too far off.”[iv]

Start planning early for retirement.

That may seem similar to the goal of implementing a responsible retirement strategy. But this one instills the importance of retirement saving into your financial planning. Unanticipated circumstances may derail an otherwise well-designed retirement strategy. Financial setbacks, ill health, or family challenges may require you to put on hold budget priorities. The adage applies. It’s better to plan early and be overprepared than to let life catch you by surprise.

Examine your insurance needs.

Life happens. And insuring yourself against worst-case scenarios is very important. Here are five policies you should consider having:[v]

  1. Long-term disability insurance allows you to maintain your current lifestyle if you become disabled.
  2. Life insurance may ensure your family’s financial needs are met if you or your spouse dies. A good way to estimate your coverage levels is to determine how long you’ll work and how much you’ll make per year. Add burial costs into your calculations.
  3. Health insurance is a must as medical costs continue to rise. Hospital visits, surgeries, and other treatments can rise quickly into the 5-digit cost range.
  4. Homeowner’s insurance will help you replace your house and its contents after a disaster. Check with local builders to get estimates on square footage construction costs.
  5. Automobile insurance is required in many states. Crashes can happen quickly and unexpectedly. Costs in damage and liability can be considerable.

If you would like to discuss your current financial needs or review your current policies, we’re happy to talk. Please contact us 800.929.1001.

Click here to read more  about setting financial goals.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.cnbc.com/2018/04/11/how-to-figure-out-how-much-money-you-need-to-retire.html

[ii] https://www.thebalance.com/how-much-should-i-have-in-my-emergency-fund-2388353

[iii] https://www.usatoday.com/story/money/personalfinance/2017/11/18/a-foolish-take-heres-how-much-debt-the-average-us-household-owes/107651700/

[iv] https://www.washingtonpost.com/business/us-consumer-debt-is-at-a-record-high-havent-we-learned/2017/08/11/5c7bee6e-7e13-11e7-a669-b400c5c7e1cc_story.html?utm_term=.e0f142779450

[v] https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/

Help us keep you informed!

Let us do the work and keep you updated! Sign up for the CapSouth financial updates.

You have Successfully Subscribed!