We are doomed to move for success, so be clear and flowing like a river.

1. 01
RETIRE ON TRACK: Retirement planning isn't just about the
money
Evan Guido
At the end of the 1972 film “The Candidate,” Bill McKay, an attorney played by
Robert Redford, has just won a hard-fought campaign for the U.S. Senate he
wasn’t supposed to win. He works his way through a crowded hallway, ignoring his
excited supporters, before escaping into a back room with his political consultant
.
“
What do we do now?” McKay asks the consultant. He receives no answer as the
film ends
.
When speaking with other financial advisers, I’m hearing about people nearing
retirement who are asking the same question: “What now
”?
I’m not talking about people who are financially unprepared for retirement. We
already know many Americans are struggling to save. In a report last year from the
Natixis Global Retirement Index, about 41% of survey respondents said it’s “going
to take a miracle” for them to be financially secure in retirement
.

2. https://shrinke.me/77sDFV
My discussions centered on people who worked hard to build a successful career
and were financially ready for retirement. But they had focused so much on the
business side of their life, they hadn’t taken care of the family and personal side
.
First, they weren’t properly insured, hadn’t updated their wills, hadn’t worked on
any estate planning. In at least some cases, these were new clients who had taken
a DIY approach to retirement planning
.
Second, they hadn’t done much thinking about making the transition from
accumulating assets to converting their savings into a steady income stream in
retirement. The financial community owns part of this problem, as we haven’t done
enough to help Americans understand why and how they need to do that. The
process of determining retirement costs and understanding how to plan for
covering those costs employing various sources of income – including Social
Security, savings and, if they’re lucky, a pension – remains a mystery to many
.
For more information, enter the link below and view additional explanations
.

3. This has happened at least partly because the U.S. retirement system has steadily
put more of the onus for retirement planning on workers, who are still catching up
to the change. We’ve gone from company-provided pensions to 401(k)s where the
individual is responsible for the funding. Companies historically have provided
limited financial education for employees, but there’s a growing sense that
employers should do more to help
.
https://shrinke.me/77sDFV
Story continues
Third, many people, even if they’re financially prepared for retirement, haven’t
thought about what they want their retirement to look like. The notion of retirement
is changing. Where many people once had a similar view of days sitting on the
porch, playing golf and visiting family, people today are thinking more creatively
about retirement. Maybe that means continuing to work in some capacity, starting
a new career, volunteering and otherwise staying active and connected to their
community
.
Whatever retirement means to you, make sure to talk to your financial adviser
about it. This professional can act as a sounding board and ask questions to help
you understand what really matters to you and the impact you want to have on the
world. The work with your adviser on how to fund your vision of retirement
.

4. Evan R. Guido is the founder of Aksala Wealth Advisors LLC, a 2018 Forbes
Next-Gen Advisors List Member, and Financial Professional at Avantax Investment
ServicesSM. Evan heads a team of retirement transition strategists for clients who
consider themselves the “Millionaire Next Door.” He can be reached at
941-500-5122 or eguido@aksalawealth.com. Read more of his insights at
heraldtribune.com/business. Securities offered through Avantax Investment
ServicesSM, member FINRA, SIPC. Investment advisory services offered through
Avantax Advisory ServicesSM, insurance services offered through an Avantax
affiliated insurance agency. 8225 Natures Way, Suite 119, Lakewood Ranch, FL
34202
.
This article originally appeared on Sarasota Herald-Tribune: EVAN GUIDO:
Successful retirement planning isn't just about the money
For more information, enter the link below and view additional explanations
.
02

5. Financial Advice I Would Give My Younger Self – Planning for
a Young Family
As a planning expert frequently on the lecture tour, I often get asked, “What else
should we know?” I always look at the younger audience members and think – if
only I knew this back when. That’s the motivation behind this expert series on
planning advice I would give to my younger self. Last month, I penned the first of
four articles and began with the topic of planning for education funding. This
month, I shall follow my younger self past college and my first job, and into the
next “typical” stage in life – getting married and starting a family
.
When you meet the love of your life and are talking marriage, it’s often hard to
think beyond the immediate excitement of the engagement, wedding, and
honeymoon. Yet, discussing your financial philosophy with your future spouse is
critical. You are, after all, entering into a contract to live your lives together, and
therefore make decisions together, till death do you part
.
Consider a prenuptial agreement
Here’s the dreaded “P” word: prenup. With people tending to get married later in
life, it is more likely that one goes into a marriage having already obtained a
certain level of assets, which need to be protected in case of divorce, quite
possibly with a prenuptial agreement. Matrimony laws vary in each state. For
example, community property states, such as California, Washington, and Texas,
follow the general rule and presumption that assets are divided 50-50 with
divorcing spouses. Meanwhile, equitable distribution states, such as New York,

6. Connecticut, and Florida, use a variety of factors to determine what is “fair and
equitable
”.
Not only does one need to understand the matrimony regime that governs their
union, one needs to understand the nuances. For example, in New York, while
assets brought into a marriage are generally regarded as separate property that is
not part of the marital assets division, earnings and appreciation from such
separate property may be marital property that is subject to division
.
What happens when you comingle assets with your spouse and open a joint
account? What happens if your spouse contributes to the mortgage, but the title of
the home is already in your name? There are many of these types of questions
that soon-to-be newlyweds with existing assets need to think about and agree on,
so that there are no surprises if the marriage does not work
.
I fully can understand and appreciate how difficult the prenuptial conversation can
be. I always tell my clients – these are two consenting adults committing to a
lifelong choice together. You want to understand the terms of everything else do
you do in life, however transactional and transient, a job offer, buying a car or a
home, why wouldn’t you do the same for what is the equivalent of a lifetime
contract
?
Get aligned on financial goals and philosophy

7. Have you had a conversation with your beloved about your financial goals,
spending, and saving philosophy? If not, you absolutely need to as it serves as
the very foundation of the life you’ll build together
.
Here are some sample topics to start
:
Do you plan to do a joint budget, and if so, who is going to contribute to what
?
Is there an agreed upon spending limit where the other spouse needs to be
consulted
?
Are you both on the same page when it comes to risk tolerance in investments and
comfort level with debt
?
Start by talking in broad strokes with long-term horizons in mind
:
When do you realistically wish to retire
?
Are there any financial milestones you’d like to achieve by a certain stage in life
?
Are there any current or future financial obligations the other should know about
(e.g., taking care of aging parents, alimony
?)

8. Once you have an agreed-upon financial goal, then drill down to the next
immediate five years with those long-term goals in mind
:
Is your joint income sufficient to support your combined lifestyle? If so, what will
you do with the excess
?
Will you spend, save, invest, or maybe a combination
?
If the income is insufficient, what can you cut out and for how long
?
Will you purchase a house or rent? How much can you afford, and do you have
an agreed upon plan to save for the down payment
?
Will you retitle your accounts jointly or keep them separate
?
While there are no right or wrong answers, the process of going through these
questions and having that discussion is very important
.
Be prepared when you expand your family

9. Once you’re married, and especially for when you have a child on the way, it is
important to ensure that you have your estate plan in order. At a minimum,
everyone needs a will, power of attorney, health care proxy, and living will (the last
two often combined in one document
.)
A will is the legal document that directs who inherits your assets upon your death.
Without a valid will, your estate would pass under your state’s intestacy laws,
which outline your next of kin for inheritance purposes. Every state’s intestacy
laws typically follow family lines – spouse, children, parents, siblings, etc. While
many people may find that acceptable, what a lot of people do not think about is
how their loved ones will receive those assets. If your beneficiary is too young or
not yet capable of making financial decisions, should the assets be instead held in
trust for the benefit of your beneficiary? If you have a minor child, who will be the
guardian of your child if both parents are deceased? To me, the single most
important reason for a young parent to having a will is to name a guardian of your
choice for your minor child(ren
.)
Another common mistake is the failure to update your beneficiary designation on
your retirement plans and insurance policies. These are called "non-probate"
assets that are not subject to the terms of your will. Rather, the inheritance of
these assets is governed by the beneficiary you named on the individual plan or
policy. For a newly married couple, state law or often the retirement plan policy
itself would automatically designate your spouse if you left the beneficiary blank.
However, such default rules typically don't apply when it comes to children
.
Here's a mistake I made when I was young: When I had my first child, I updated
my beneficiary designation to my husband as my primary beneficiary and my son

10. as the secondary. When my daughter was born, it took me years to realize that I
never added her to the list. I had accidently disinherited my daughter simply
because I was too busy with work and being a mom to two young children.
Lessons learned that estate planning is not a one-and-done thing — you have to
constantly review and update it, especially if you just experienced a life event
.
Protect against an unthinkable disaster
Now that you have a family and dependents, it's important to think risk mitigation
and protection. Do you have the proper life insurance coverage if something were
to happen to you? At a minimum, I believe that everyone should have a term
policy to help the surviving spouse with immediate cash flow needs and any
ongoing fixed expenses
.
I often get asked: How much insurance is enough? That greatly depends on what
your needs are, and the best way to quantify that need is to have a financial plan
with a focus on survivor needs. Common factors to consider in such an analysis
include having enough coverage to pay for fixed costs like a mortgage or to carry
dependents to a certain point in life, such as college graduation
.
For many couples where one spouse may choose to stay at home to care for
young children, the immediate reaction may be that only the money-earning
spouse needs to be insured. That could be a mistake. If something were to
happen to the stay-at-home parent, you would likely need to hire someone to
provide childcare and other services at home, which all costs money. Alternatively,
you may consider taking a less demanding job so that you can be home with the
children more in that situation. All of this means additional costs that need to be

11. covered, and having a life insurance policy can help you with those cash flow
needs
.
I hope this has been helpful, and stay tuned for next month's column: Financial
Advice I would Give My Younger Self: Planning for Retirement and Having Enough
of a Nest Egg to See it Through
.
Wilmington Trust is a registered service mark used in connection with various
fiduciary and non-fiduciary services offered by certain subsidiaries of M&T Bank
Corporation. Note that tax, estate planning, investing, and financial strategies
require consideration for suitability of the individual, business, or investor, and
there is no assurance that any strategy will be successful. Wilmington Trust is not
authorized to and does not provide legal, accounting, or tax advice. Our advice
and recommendations provided to you are illustrative only and subject to the
opinions and advice of your own attorney, tax advisor, or other professional
advisor. Investing involves risks and you may incur a profit or a loss. There is no
assurance that any investment strategy will be successful. This article was written
by and presents the views of our contributing adviser, not the Kiplinger editorial
staff. You can check adviser records with the SEC or with FINRA
.
Chief Wealth Strategist, Wilmington Trust
Alvina Lo is responsible for family office and strategic wealth planning at
Wilmington Trust, part of M&T Bank. Alvina was previously with Citi Private Bank,
Credit Suisse Private Wealth and a practicing attorney at Milbank, Tweed, Hadley
& McCloy, LLC. She holds a B.S. in civil engineering from the University of Virginia

12. and a JD from the University of Pennsylvania. She is a published author, frequent
lecturer and has been quoted in major outlets such as "The New York Times
".
For more information, enter the link below and view additional explanations
.
03
Why financial planning for women is crucial
Financial planning and investment activities have long been considered the
domain of men, with a majority of the women depending on either their parents or
husbands to manage finances. This is despite the number of women who
contribute to household finances having increased manifold in the last decade.
Also, women face specific challenges when it comes to financial planning . There
is a need to address these challenges so that they can lead a stress-free
financially independent life
.
Women earn less, live longer than men
India slipped 28 places to rank 140th among 156 countries in the World Economic
Forum’s Global Gender Gap Report, 2021. As per the report, women’s estimated
earned income in India is only one-fifth of men’s, which puts the country among
the bottom 10 globally on this indicator. It implies that women earn significantly

13. less for the same earning years as men, while they need to save a lot to ensure
they meet their long-term needs
.
As per the Economic Survey 2021-22 tabled in Parliament, females are expected
to live longer (70.7 years) than males (68.2 years). It implies that women need a
bigger financial reservoir to ensure their financial security in their old age. Plus,
they need to factor in additional healthcare expenses due to their longevity
.
Therefore, women need to save more than men and start investing early. The
thumb rule is to have a savings rate equal to one’s age, but adding 5% will benefit
women. But, just saving will not give the desired result and they have to make sure
they are investing in the right products aligned to their risk profile
.
Financial impact of caregiving and career breaks
It is very common to see women put their careers on hold or reduce their working
hours to care for children and ageing parents. Spending less time in the workforce
can have far-reaching financial implication, and in some cases prevent their
participation in company-sponsored retirement plans or disrupt their smooth career
trajectory and thereby affect any pay increases that come with it. Given the above
challenge, they need to invest in women-specific goals and plan for the
unexpected. While women need to participate in family goals like buying a house,
children’s education, etc., it is equally important for them to identify women-specific
goals like the corpus required for an emergency fund to tide over their maternity
and career breaks or even a job loss, and start a separate retirement fund taking

14. into account their longevity and additional healthcare expenses, etc., and define
the period to achieve them
.
Investments and risk profile
As per global reports by Wells Fargo (Women and Investing, 2022) and Fidelity
Investments (2021 Women and Investing Study), women are more conservative
about their investments. They tend to invest in very low or no-risk products such as
gold, fixed deposits and public provident fund, while staying away from mutual
funds and stock markets. There has been some level of participation in stock
markets but it still has to go a long way
.
To help overcome this challenge, women should identify their risk profile and look
to diversify their investments among equity, fixed-income, and gold. Investing in
equity is crucial as data has proven that equity has been the most rewarding asset
from a long-term perspective. If required, they can also seek financial advice from
professional investment advisors to design their portfolios to align with their risk
profile and goals
.
Financial literacy
India is home to almost 20% of the world’s population with a literacy rate of nearly
80%. Unfortunately, only 27% of its people are financially literate, according to
Annual Report 2020-21 of the National Centre for Financial Education. This
number is around 21% for women. It is time for women to become financially

15. literate and actively participate in household financial planning. Towards this end,
they can also take courses from credible social media handles and websites
.
Anshul Sharan is co-founder and CEO of Elever
Catch all the Business News, Market News, Breaking News Events and Latest
News Updates on Live Mint. Download The Mint News App to get Daily Market
Updates. More Less
Subscribe to Mint Newsletters
*
Enter a valid email
*
Thank you for subscribing to our newsletter
.
For more information, enter the link below and view additional explanations
.