Freeman's Blog


May 8th, 2013 by

empty nest - more money for retirement

About three in 10 Americans aged 25 to 34 live with their parents

The 2006 film Failure to Launch told a humorous story of an adult son who couldn’t seem to leave his parents’ home. Although the plot was fictional, this scenario has become more common in real life — about three in 10 Americans aged 25 to 34 either live with their parents or have done so in recent years.¹ This trend is largely due to the job market, which has been especially tough on young workers. In mid-2012, the unemployment rate for young people aged 18 to 29 was 12%, about 50% higher than the national average.²

Smaller Household= Bigger Bank Account

After years of holding off on spending, some empty-nesters may splurge on themselves. One study found that parents whose children left home increased their per-person consumption of non-durable goods such as vacations, restaurant dinners, and leisure activities by 51% compared with people who never had children.³

There’s nothing wrong with treating yourself, but increasing your consumer spending later in life could create lifestyle expectations that may be too expensive to maintain in retirement. It might be wise to dedicate at least some of the extra income to your retirement nest egg. You may be surprised by how much of a difference late-career contributions could make.

1 & 3) CNNMoney, October 10, 2012
2), July 26, 2012

retirement take controlMy motto for a better retirement plan is “Keep Your Money Safe”. My consultation is always free. Call me today so we can discuss your retirement strategy options. Toll Free: 1-833-313-7233

May 7th, 2013 by

retirement working part time

Most older workers (65 percent) say they would ideally like to include some form of work in their retirement

According to a 2011 Harris Interactive survey of 1,001 people age 55 and older commissioned by Sun America, 65 percent of older workers say they would like tin include some form of work in their retirement years. But only 4 percent of the survey respondents want to work full time in retirement. A quarter of older workers would prefer to work part time in retirement, and 36 percent want to go back and forth between periods of work and leisure.

By continuing to engage with the working world on a somewhat regular basis, you will meet a new group of people and assume responsibilities requiring your mental effort and learned skills. You will not have time to be bored. However, this dynamic retirement strategy may not be for everyone and comes with risks. You will need to save up for an extended period before you can take vacation time and you could be offered a reduced salary at a new job. Moreover, part-time retirees need to decide whether they want to continue to learn new skills and technologies in order to compete with younger workers.

There are no “right” and “wrong” ways to enjoy your twilight years. However, you don’t want to rely on the income from your part-time employment to supplement your lifestyle. A far better approach would be to plan well in advance for your retirement years and allow yourself the opportunity to take time off as you need.

Source: US News, 2/10/12 “Growing Interest in Part-Time Retirement”

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May 3rd, 2013 by

Three in five (59%) kids report that they go to their mom first with money questions and more than one-third (35%) think their mom is in charge of the money.

According to T. Rowe Price 2013 Parents, Kids & Money Survey, moms have a huge influence over their kids when it comes to money matters. That is because kids think that mom is in charge of the family’s money. However, parents feels that money conversations about spending, creating a nest egg, and family finances are less important to discuss with their kids compared to topics such as teaching manners, drugs, and current events1. The irony is that regardless of whether or not you are discussing finances with your kids, they are learning from you about money. And, primarily, moms are the ones teaching by example.

kids and money

Unfortunately, there is a large percentage of parents that are teaching bad financial habits or teaching nothing at all. With the convenience of debit and credit cards, many kids are seeing how mom spends money using the swipe of a card, but they don’t know how it gets paid. Moreover, moms are not explaining that when you pay for something using a credit card, that it should be paid off completely so as not to incur interest charges. In fact, slightly more than one-third (34%) of parents pay off their credit cards each month, but 44% report they carry a balance. 2 Even though moms and dads intend to teach their kids to live within their means, actions speak louder than words.

Parents, we are the teachers and trainers of our children’s futures. Yes, we want to influence them to achieve in school, compete in sport and become productive citizens of society. But, we cannot forget to effectively train them so they will be financially responsible regarding saving, credit, diversification and retirement.

Source 1-2: T. Rowe Price 2013 Parents, Kids & Money Survey

CBS Sports Radio 1580 - listen liveJoin me tomorrow, May 4, 2013, at 9am-10am on SAFE MONEY TALK on CBS Sports Radio 1580AM as we discuss kids and money with an expert in family finances. Stuart Ritter, family finance expert and Certified Financial Planner, will share with us tips on how to set up your children to be financially successful. He is the father of three young kids and a huge advocate for starting good family money management.