Talking To Your Spouse About Retirement

If you've been together for a while with your spouse and you both have been working for the past many years, getting to see your children go off to college, leave home, get jobs, establish careers, meet the love of their lives, have children, start their own families, doing exactly what you and your spouse did, you might begin wondering what's next. You've accomplished it all... parent and grandparent, fur babies and flesh babies. You've both been so generous to get your children through the major milestones of their lives and even helping a little with the grandchildren. Now the time has come and you're both close to the age of retirement. What's next?

You'll both want to understand your finances and how you'll still continue to pay for bills. The best thing you both could do is hire a financial advisor to assess exactly what you both will retire with and how much you'll actually need during retirement. If you are both earners who were on the books for years, then you'll both have an amazing retirement and won't have to worry too much.

The big issue of worrying really comes with family, particularly your children, and how much you will be helping them, if you choose to continue doing so. During retirement, it is common that you, your spouse, and your children, and grandchildren will be going out to eat for birthdays and other special events. You, as a grandfather, may be very generous to pick up the bill once its placed on the table, but that bill accounting for everyone likely adds up to about $200, so going out to eat at least two or three times a month could mean a hefty $600 bill, which is over $7,000 a year on literally feeding your lineage. Of course, your adult children, who are working, may also help pay the bill if you wish for them to do so. Regardless if you pick up the tab or not, you will want to take this into account as part of your budget.

There are many couples who are beyond retirement age and still continue to work because they love working and making so much money. Remember that by the age of 70 years old, you will need to take your full retirement. A neighbor of mine and his wife are well into their mid-70s and finding them at home before 6 PM is quite rare. When I asked both of them why they went out to work, they said they simply could never stay home. This is an option as well. Of course, you will need to check and make sure that you will not be penalized for working. In other words, people who choose to work might endure a penalty, in which more money will be withheld from you, and you will be unable to receive all of what you worked for, so sometimes, a retirement is a mandatory sentence.

If you both are ready to retire, or one of you is retiring first, you definitely need to realize that you may both have less money or you will need to prepare for the fact that you could be living a long life. If you did everything right, it is very likely that your mortgage is paid off. You have very little debt. And the money flow is going mostly into the savings account. With both of your social security incomes plus any pensions, 401ks, or IRAs, and if you do have everything paid off, then you can both start planning for more vacations and time away from home.

Be sure to set budgets, keep debts low, and enjoy your lives in retirement. Communicate with each other about any major purchases that you may make. Be sure to always have enough for health insurance and if you haven't already done so, make sure your life insurance policy is up to date, or you've prepaid for your funeral [ ]. You've done your time. You've worked for the man. You may have even worked for yourself. You could also pursue any dreams you want that you may have not had time for before or you could even start your own company. You can do whatever you'd like. You've earned it.

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