Retirement Insight November 2017

November 15, 2017 Retirement Insights

Retirement Newsletter November 2017

“The human heart, at whatever age, opens only to the heart that opens in return.”    

        – Maria Edgeworth

REAL IDs will soon be required

The federal government is getting ready to fully enforce the 2005 Real ID Act and tighten standards for state-issued IDs. As not all states are compliant with these standards yet, you may need to show a passport, permanent resident card, or military ID to a TSA agent to board a domestic flight after January 22. Everyone will need a Real ID for domestic travel by 2020.5

River Riddle.
You are right next to a river and have a 5-gallon container and a 3-gallon container. You need to measure out 4 gallons of water. How do you do it?*

A publisher with an auto motive

helped spark a new sci-fi era

Frank Herbert’s epic novel Dune, considered a landmark in science fiction, was turned down by 20 publishing houses in the 1960s. It was finally published by Chilton Books, best known for its popular auto repair guides.6


Ways to Possibly Produce More Retirement Income

Your income determines your level of financial comfort in retirement more than any other factor. Some mid-life financial moves may help to boost it.

One important move is to max out retirement accounts. Yearly contributions of $5,500 to an IRA starting at age 45 will grow to $214,460 by age 65 at a 6% annual return. At an 8% annual return, that becomes $271,826. (This does not even take catch-up contributions into account.) You can also delay retiring. At an 8% annual return, annual investments of $10,000 in the typical tax-deferred employee retirement plan will grow to $35,061 in just three years, and $63,359 in five years. You can also strategize when to claim Social Security and transform non-earning assets (such as your home, collectibles, and vehicles) into income-producing assets. If you are “house rich and cash poor,” consider the potential of downsizing: $300,000 in freed home equity invested at a 7% yearly return could produce $21,000 in annual income. Some retirees arrange sale-leaseback agreements with their adult children: they sell their home to their kids, then rent it back. The retirees stay in their home and get a little more cash to spend, while the younger, higher-earning generation makes the most of homeowner tax breaks.1,2

Think About Fall Prevention

Rain, slush, and slick ice can make this time of year hazardous for elders. Falls are the #1 cause of injuries for Americans aged 65 and older; about 25% of seniors take a spill each year. “Fall zones” are not always so obvious. Stairs can present a fall risk – but so can a throw rug in the living room.

The National Council on Aging suggests some steps to help prevent falls. One, acknowledge the possibility. The idea of using a cane or walker and/or installing grab bars may be met with a scoff, but a caring conversation can be the first step toward protection. Eyesight can influence stability – a senior who has not had an eye exam in a while can be at risk. Some sleep aids (and painkillers containing them) can affect balance. If your loved one tends to grab doors, chairs, or walls while getting up or getting around, it is time to consult a physical therapist. Local senior centers frequently host fall prevention workshops; these events can also teach people how to fall in ways that may lessen or minimize injury.3

The Pew Research Center says that a majority of Americans aged 65 and older now have broadband Internet in their homes. Forty-two percent have smartphones, compared to 18% in 2013.4



Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Cambridge and Independence Capital Financial Partners are not affiliated.

This material was prepared by MarketingPro, Inc., 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.

* BRAIN TEASER ANSWER: Brain Teaser answer: ill the 3-gallon jug with water. Pour those 3 gallons into the 5-gallon jug. Fill the 3-gallon jug back up again and pour 2 gallons from it into the 5-gallon jug so that the 5-gallon jug is full. Now dump the water out of the 5-gallon jug back into the river. Pour the one gallon left in the 3-gallon jug back into the 5-gallon jug. Now fill up the 3-gallon jug again and pour those 3 gallons into the 5-gallon jug and you have 4 gallons of water.

1 – [10/22/17]

2 – [12/17/16]

3 – [11/7/17]

4 – [5/17/17]

5 – [10/17/17]

6 – [11/2/16]