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Joe Lucey

For the Health of Marriage

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Turns out marriage can do more for your heart than fill it with love. A recent study found that, among other health benefits, married people have a higher probability of surviving a stroke.

They are also more likely to survive major surgery, have fewer heart attacks, be less likely to have advanced cancer when diagnosed and more likely to survive it longer, have a lower chance of becoming depressed and, generally, live longer than those who remain single. Scientists have put forth various reasons for these health benefits, ranging from stronger immune systems to taking fewer risks to living a healthier lifestyle.

Financial health can also be impacted by the dynamics within a marriage. If a husband doesn’t pay the household bills, he may not appreciate how much it costs every time he leaves the hose running after he washes the car. A wife, on the other hand, may not know where the couple’s financial accounts are held or who to consult for emergency cash should her husband become incapacitated.

That’s why we believe it’s best for both spouses to be a part of the conversation when meeting with a financial advisor. It’s important to build a relationship of trust, and that can be difficult to do if one spouse is left out of meetings and annual reviews.

While marriage is often about sharing, it may also be a good idea for each spouse to establish his and her own credit history, even if they share a credit card account, as it is likely one spouse will pass before the other.

In this situation, the deceased spouse should be removed from any jointly owned credit cards. This is one reason it can be a good idea to have individual credit histories, so the surviving spouse isn’t impacted by the loss of the deceased spouse’s credit history. An additional advantage is that a surviving spouse generally is not liable for the outstanding debt of a deceased spouse’s solo accounts.

In the case of second and third marriages, establishing a financial relationship between both spouses is important. For example, if one spouse moves into the home of the other, it may be a good idea to get both names put on the deed.

Health, credit and housing aside, both spouses need to understand their investments and the household net worth. It’s not enough for wives to pay the bills while husbands manage the investments, or vice versa. Ninety percent of women are responsible for managing their finances by themselves at some point in their life — which is particularly unfortunate if they’re forced to take on this task during retirement without a clear understanding of how to do it. 

 

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

Use this simple mental exercise to help boost your mood

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In a Rut? This quick trick can make you happier.  According to an article in Reader’s Digest, the secret to happiness is only a few minutes away with this simple mental exercise:  THINK HAPPY THOUGHTS!

The article cites a study in which, before going to bed, German volunteers listed nine beautiful things they’d seen during the day. Three items were from human behavior (like a friend treating another to coffee), three were from nature (a gorgeous sunset), and another three could be from anywhere (a funky font on a sign). Meanwhile, a placebo group reflected on earlier life experiences every night for a week. On day eight, participants reported their happiness levels, then reported back again after a week, and one, three and six months later.

Those who’d spent their time focused on beauty showed more happiness increases than the placebo group right after the study. What’s more, those mood boosts stuck around a week and a month later. The “nine beautiful things” group also reported fewer depressive symptoms right after the practice and one week later.

 

Checks and Balances: How Much Can a U.S. President Do?

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Donald Trump has a broad presidential agenda that encompasses foreign trade, immigration, deregulation, taxes and investment in U.S. infrastructure. These policies are poised to impact certain industries over others, such as health care, energy, financial services and technology.

Every presidential candidate enters the campaign with a platform of changes and priorities, which presumably dominate the winner’s administrative policies for the next term. However, the U.S. Constitution was written in such a way to spread the power of change so that there is a system of checks and balances, thereby no one branch controls the democratic process.

While the U.S. president may be the most powerful leader in the world, there are in fact limits to his ability to affect change. Governing power is shared among the executive branch (the president), the legislative branch (Congress) and the judicial branch (the Supreme Court).

The foremost job of the president is to implement and enforce the laws passed by Congress. The president can sign a piece of legislation into law or veto it (although a veto can be overridden by a two-thirds vote of both houses in Congress).

One of the president’s most significant powers is that of commander-in-chief of America’s armed forces. In that regard, an aide who accompanies him at all times is charged with carrying a nondescript briefcase that holds the “nuclear football” — the launch codes to activate the nation’s nuclear missiles.

Congress is the legislative body responsible for declaring war. However, there have been plenty of instances when America engaged in overseas military combat without actually declaring war, especially since the Authorization for Use of Military Force law passed in 2001.

The most direct power the president bestows is through an executive order, which is a presidential decree that holds the force of law. Interestingly, it’s possible for a future seated president to reverse a prior president’s executive orders.

As for the economy, the president’s influence is manifested in his fiscal budget proposal each year, something both sides of the political fence will be interested to see. On one hand, the new president has vowed to cut income and corporate taxes. On the other, rebuild the military and invest in infrastructure — all while keeping Social Security and Medicare intact.

Tax Facts About Annuities

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Often touted as a tax-advantaged retirement income resource, the annuity is a complex insurance product. While it offers distinct tax benefits, it’s important to understand how it works from a tax perspective. The following are six important facts you should know:

  1. Most contributions are not tax-free; the money you initially contribute is not deductible from your tax return.
  2. The exception to this is if you hold an annuity within a traditional tax-deferred account, such as an IRA or 401(k) plan. This is known as a qualified annuity.
  3. Whether you purchase an annuity alone or within a qualified retirement plan, your earnings will grow tax-deferred until distributed.
  4. Annuities are meant for retirement or other long-term needs so they come with a surrender charge period during which you may not be able to withdraw funds without incurring a surrender charge. In addition, withdrawals taken prior to age 59 ½ may be subject to an additional 10 percent federal tax.
  5. The IRS does not impose a limit on contributions to an annuity like it does for IRAs and 401(k)s.
  6. You generally have to start taking withdrawals from your IRAs or other retirement plan accounts, including qualified annuities, when you reach age 70 ½.

 

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice. Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

Hearing Aids Go High Tech

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Here’s the thing about hearing aids: They amplify sound. So if you’re having a conversation with someone, you hear their words louder than the volume at which they’re actually speaking. If they mumble or have an odd accent, that sound won’t be any clearer — just louder. If there’s a lot of background noise, that sound will pump up louder as well. In short, if you want to hear what someone is saying, traditional hearing aids work best in a quiet environment.

However, today’s hearing aids have improved significantly, using microchips, computerization and digitized sound processing (DSP) to convert sound waves into digital signals. These signals are then interpreted by a computer chip to differentiate between noise and speech. Many enable users to control acoustic feedback, reduce extraneous noises and save various settings for different environments.

In 2013, Apple introduced the Made for iPhone hearing aid program in concert with its launch of iOS 7. The program offers various options designed to enable a hearing-impaired person through the use of an iOS device to make phone calls, converse on FaceTime, listen to music and watch movies via direct streaming directly to his ears. The user can adjust the volume and various settings with his iPhone. Another Made for iPhone feature is Live Listen, which enables the iPhone to work as a remote microphone from across the room or wherever it is placed. Similar functions are currently in the works for Android phones as well.

One of today’s more high-tech advances is the cochlear implant. This is an electrical device implanted into the ear that directly stimulates the auditory nerve. The device requires an external microphone, speech processor and a transmitter, all of which are worn externally behind the ear or in a chest pocket. A receiver implanted under the skin receives the transmitted sounds and helps the person perceive sound rather than restore hearing. Cochlear implants are generally recommended for patients with severe hearing loss.

Other types of devices are designed to help hearing impairment with or without a hearing aid. These include television listening devices, personal frequency modulation (FM) systems, conference microphones and telephone amplifiers.

“Caregiving” a Parent’s Investment Portfolio

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Many individuals often spend large sums of their own money caring for an aging parent. A recent survey found that one out of three caregivers provide $5,000 or more per year helping their loved one, and nearly one in five provide $10,000 or more. One reason is because adult children are uncomfortable talking about their parents’ finances to discover what they can and can’t afford.

This often becomes an issue in the latter stages of retirement, when mature adults begin to have more health and mobility issues. It is important to know how much your parent(s) have in terms of ongoing income, expenses and overall assets. Otherwise, caregivers’ own savings and investments may suffer, making it more likely that they will need to rely financially on their own children during retirement — creating a cycle of dependency.

Parents may not even realize how much their children are contributing to their care or have a clear idea of how their own assets could potentially be used to offset their expenses.

To help evaluate a family member’s financial state, first determine how much income is available via Social Security and pension benefits, required minimum distributions and any automatic payouts. Then, determine the amount spent on bills and other household expenses. If the outgoing is more than the incoming, it’s time to take a hard look at assets.

It is also important to consider the level of risk for any given investment, since seniors do not have the luxury of time to make up for poor market performance. While it may be appropriate to maintain a growth component in the portfolio, it’s also important to consider risk-mitigation strategies such as diversification and insurer guarantees to help offset investment risk.

You should consult with the parent’s financial advisor or your own before making any financial changes to their portfolio.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.