*Disclaimer: this post is a recap of an event and is not meant to constitute financial advice. Please consult a licensed financial planner.
When it comes to women’s topics, retirement is not always at the top of the list. When you feel young, retirement feels so far off; plus, if you’re contributing to your 401K, you should be good right?
That is the exact mindset our speaker Nela Silva of Marigold Financial Services is trying to change! When it comes to retirement, women face unique challenges - and may not realize it.
“Women live longer than men, on average,” Nela shared. “That’s why we need to plan for life events we might not otherwise consider.”
The “things we might not consider” are not pleasant things to think about (like a spouse passing away), but as Nela illustrated in her talk, it’s still super important to be aware of how those life events could affect you as you get ready to retire.
For example, there’s the “widow’s penalty,” an aptly-named tax bracket jump that happens when you go from filing joint taxes, to filing single after the death of a spouse. If you’re not aware of this jump, it could be a terrible shock that comes during a terrible time.
According to Nela, the best question you can ask yourself as you think about planning your financial future is, “What can I do TODAY to help with taxes LATER?” Whether that means contributing to a traditional IRA or Roth IRA, creating a trust to house your assets, or signing up for a long-term care plan, the point is to try and lower your tax burden later in your life when you will likely be living on a fixed income. You don’t want any big tax surprises that could significantly decrease the amount of money you have at your disposal.
One of the best things you can do is consult a financial planner so they can help you figure out how much you need to retire - and how you get there. Look at your current budget and compare how much you’re spending today with how much you expect to spend in retirement. This is the kind of planning that will help future you live comfortably (and independently) into your later years.
“Don’t feel intimidated! It’s never too late to start planning or to reexamine current plans,” Nela said.
The bottom line from the evening: there’s no time like the present to start planning your financial future (even if the future feels far off)!
Hope we’ll see you next time!
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