About 6% of Americans 65 and older have never married. That statistic comes from a 2018 Census Bureau report, which also found that 22% of Americans aged 65-74 live and retire alone.
If you think you will retire alone and unmarried, you will want to pay special attention to both your financial and social qualities of life. Whether you perceive a solo retirement as liberating or challenging, it helps to be aware of how your future might differ from your present.1
They can be affected by unplanned events and changes in your outlook or goals. Perhaps, a new dream or ambition emerges; you decide you want to start a business, or maybe, see more of the world. You could also end up retiring sooner than you anticipated. Developments like these could alter the “big picture” of your retirement distributions.
Once you retire, you may lose touch with the people who were a big part of your day-to-day life – the people that your business or career connected you with, including your co-workers. If you happen to retire to another community, the connections between you and your best friends or relatives might also weaken, even with social media on your side.
Ask yourself what you can do to try and strengthen your existing relationships and friendships – not just through the Internet, but in real life. Also, keep yourself open to new experiences through which you can build new friendships. Returning to a past hobby or pursuing a new one could also connect you to a new community.
Even if you have no heirs, you still have an estate, and you should have a say in how you are treated as an elder. Consider having powers of attorney in place. These are the legal forms that let you appoint another individual to act on your behalf, in case you cannot make short- or long-term financial or health care decisions.
There are four kinds of power of attorney. A general power of attorney can be written to give another person legal authority to handle a range of financial affairs for you. A special power of attorney puts limits on that legal authority. A durable power of attorney is not revocable; it stays in effect if you become incapacitated or mentally incompetent. Lastly, a health care power of attorney (which is usually durable) authorizes another person to make medical treatment decisions for you.2
In addition to powers of attorney, a will, and possibly other legal forms, you will also want to think about extended care. Not everyone ends up needing extended care, but you should consider its potential cost.
All this being said, you may find a degree of freedom that your fellow retirees envy. If you remain reasonably healthy and active, you may marvel at how many opportunities you can pursue and how many adventures you can readily have. Retiring single can be a challenge, but it can also be an open door to a new intellectually and emotionally rewarding phase of life.
Getting rich quick can be liberating, but it can also be frustrating. A sudden wealth windfall can help you address retirement saving or college funding anxieties, and it may also allow you to live and work on your terms. On the other hand, you’ll pay more taxes, attract more attention, and maybe even contend with … Continue reading “When a Windfall Comes Your Way”
The SECURE Act passed into law in late 2019 and changed several aspects of retirement investing. These modifications included modifying the ability to stretch an Individual Retirement Account (IRA) and changing the age when IRA holders must start taking requirement minimum distributions to 72-years-old.1,2
When you are in your seventies, Internal Revenue Service rules say that you must start making withdrawals from your traditional IRA(s). In I.R.S. terminology, these annual withdrawals are considered your Required Minimum Distribution (RMDs).1
Families are one of the great joys in life, and part of the love you show to your family is making sure that their basic needs are met. While that’s only to be expected from birth through the high school years, many households are helping their adult children well into their twenties and beyond at … Continue reading “Retirement and Adult Children”
When interest rates start to climb, will these be the CD to own? Step-up certificates of deposit (also called rising-rate CDs) are fixed-income investments with a bit of wiggle room. When you have CDs with a step-up provision, you have a chance to exchange the initial yield for a better one as interest rates rise. … Continue reading “Step-Up CD”
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >