The lack of Americans’ retirement savings, referred to as “retirement insecurity”, is a topic we are hearing more and more about as the Boomer generation ages into retirement. Private company pensions are few and far between these days, putting the onus of saving for retirement on individuals, rather than corporations. Compounding the issue of the lack of retirement savings is the fact that Americans are living longer and will need to save more to cover living expenses and potentially higher medical costs later in life. Elected officials have responded to the potential crisis by enacting legislation such as the SECURE Act (Setting Every Community Up for Retirement Enhancement) and the OregonSaves program.
Understanding the SECURE Act
Signed into law at the end of 2019, the SECURE Act poses potentially significant changes to most Americans’ plans for retirement and estate planning documents. SECURE stands for Setting Every Community Up for Retirement Enhancement, and it went into effect on January 1st, 2020. The goal of the bill was to address what some are considering to be a national retirement crisis.
Why Umbrella Insurance?
Picture this scene: your child’s friend is over at your house, they’re playing on the trampoline and things are getting a little rowdy. Your child’s friend lands wrong, breaks their ankle and is rushed to the hospital. Their parents, who had always been pleasant and seemingly reasonable, now blame you for the incident and have decided to sue you for negligence. Without an umbrella policy in place, you face significant risk to your assets and financial security.
The Conversation on Paying for College
According to an article by Forbes, the average total cost of a four-year degree is now over $100,000, more than double, even when accounting for inflation, than it was 30 years ago. Perhaps even more shocking, the total college price tag grew nearly eight times as fast as wages over the same period. Working your way through college is nearly impossible and it’s no secret that student loans make up the largest slice of non-housing debt in the U.S.
So how do you plan for and advise your child as they weigh their post high school graduation options?
Life Transitions: Getting Married
Getting married is the start of something exciting and should be a joyful time. You’ve found the love of your life and it’s safe to assume that thinking through the financial risks of merging assets is an uncomfortable subject between you and your spouse.
At the same time, there are practical matters that you should discuss during your engagement period to prepare for the unexpected. Communication is key to setting yourselves up financially and legally for whatever life sends your way.