In the not-so-distant past, retirement planning was planning for a financial event—deciding how much you needed to live comfortably for a certain number of years and then figuring out how to accumulate, distribute and sustain that income. Very little attention was paid to a retiree’s quality of life or personal fulfillment in retirement until individuals began living decades beyond their working years. 

Still today, in fact, the majority of pre-retirees neglect to psychologically prepare for the changes that accompany the retirement transition—the change in identity, the change in routine, the change in social interactions (types and frequency), and the change in purpose. These retirees may be left feeling socially isolated, bored, depressed, purposeless, and disillusioned about retirement after the “retirement honeymoon phase” wears off.

According to the Social Security Administration (SSA), women account for 55.5% of the 37.8 million social security beneficiaries over age sixty-five and 65% of the beneficiaries over age 85, making social security benefits a more fundamental part of their overall retirement plan.

While marriage may be all about love, it has been said that divorce is all about money. I'm not sure that's always true, but what I do know is that during a divorce, there is an overwhelming amount of personal and financial decisions at a time when most people are already feeling depleted and overwhelmed. 

My role as a CDFA®  in the collaborative divorce process (as the "Financial Neutral") is to help both the clients and attorneys understand how the financial decisions made today will impact the clients financial future. The financial neutral identifies the short-term and long-term effects of dividing property, considers tax implications of the settlement decisions and assists the clients with all things financial. I'm often asked to help determine if one spouse can afford the marital home after the divorce and if not, to help bring a creative approach to outline additional options.

As parents, we are hard-wired to help our children—emotionally, physically, and financially. Often, we will do whatever is within our power to grant them as many opportunities as we can afford. But, where do we draw the line? How long is too long to assist in supporting your adult children? Is your current level of financial assistance helping or hurting them? Are you sacrificing your own financial goals to do so?

April 15^th may seem far off, but once school starts and the holiday season rolls around, tax preparation may be the last thing on your mind. Those who have experienced significant life changes, individuals with Flexible Health Spending Accounts, and high-income earners could especially benefit from the extra planning time to improve their income tax strategy. Why not take advantage of these longer summer days by getting some year-end tax-saving tasks out of the way now?

Estimating income and expenses is one of the most crucial steps in building a viable, long-term retirement plan, so having an accurate representation of how your social security benefits will fit into that picture is essential. Maximizing benefits is especially important for divorced women whose ex-spouse’s benefits may trump their own, ultimately providing a higher guaranteed income for the duration of their retirement years.

Any widow would likely attest to the fact that the loss of a spouse is one of the most difficult life changes—a change that disrupts the very foundation of your reality and how you envisioned your life unfolding. Whether your spouse’s passing was expected or completely unforeseen, no one can ever fully anticipate the implications of becoming a widow until they are faced with the reality of taking on life’s new challenges alone. At Northstar, we specialize in helping widows emotionally and financially and find the following first steps can help improve your sense of well-being as you navigate through this difficult life transition.

For individuals who are moving from one state to another or for residents with homes in multiple states, legally establishing “domicile” can get a bit tricky. The state in which an individual resides may not always be their place of domicile, especially as it is seen in the eyes of the law.

From kindergarten to college, the core of our education is focused on English, Reading, Science, Math, and History. We are taught to memorize geometric proofs and analyze Paradise Lost, but what about financial literacy? Where are we taught about budgeting, debt management, or preparing taxes? Unless we learn from our parents or study finances as adults, we typically are not taught how to manage money, let alone how to prepare for retirement or finance large purchases. Luckily, a number of different financial professionals exist to help bridge the gap between what you should have been taught and what you were actually taught.

When it comes to your financial future, the decisions you make today can change the course of your life. Choosing the right investment strategy, ongoing tax planning, establishing an estate plan, analyzing and potentially purchasing life insurance, considering long-term care, preparing for retirement, etc.—navigating these complex matters can quickly become overwhelming.