1. https://www.nerdwallet.com/blog/average-credit-card-debt-household/

Where do YOU stand in relation to the ‘average U.S. Household’?
Do you have one of these- or are you working under the trifecta of debt- with several or
perhaps all of these weighing you down?

How does this make you feel? Are you confident? Scared? Overwhelmed? Do
you need some help?

A financial plan can help you to structure your financial life, so that you can get a better
handle on your debts- and your goals! and move forward in a positive way to a secure
financial future.

As a Certified Financial Planner (CFP®), I help people manage their financial lives with
ease and confidence, and build toward the goals they want to achieve.
Call me for a free consultation about creating your financial plan.

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.

Adrienne Rothstein Grace, CFP®, CDFA
Certified Divorce Financial Analyst
1404 Sweet Home Rd, Suite 9 Amherst, NY 14228
716-817-6425/fax 716-313-1754
adrienne@adriennegrace.com
www.TransitioningFinances.com
Member, NYS Council on Divorce Mediation.
Empowering You. Financially.
Securities and Advisory Services offered through Cadaret, Grant & Co., Inc., a Registered Investment Advisor and Member FINRA/SIPC. Davis Financial Service and Cadaret, Grant & Co., Inc. are separate entities.

During this time period, you can ‘true up’ your full contribution for 2018, as well as make your 2019 deposit.

Brace yourself for a lot of numbers —I’m sorry! — but that’s what taxes are all about! If you have questions, or this makes your stomach hurt, just call me and I’ll help explain further (716-817-6425).

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an Individual Retirement Arrangement (IRA) which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50
and over is not subject to an annual cost-of-living adjustment and remains $1,000, for a total of $7,000 for 2019.

If you’re under 50, this means $115.38 per week; if you’re 50+, you can save $134.61 per week for 52 weeks to reach the total.

The income ranges for making deductible contributions to traditional IRAs to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.

You can deduct contributions to a traditional IRA if you meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced (phased out), until it is eliminated, depending on filing status ( single, head of household, married filing jointly, and married filing separately) and your income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply, and you can save the full amount.

Call me for the ranges, if you wish, and I’ll pass them along.

If you are negotiating your divorce settlement, please don’t forget to include which filing status you will use for 2018, 2019 and on. It may make a substantial difference in the amount of tax due.

Don’t let this opportunity to save for your future, using either Traditional or Roth IRA options, pass you by. You can gain either tax advantages for your current filing year or enrich your future. Contact me at 716-817-6425 for further information.

Don’t wait too long!

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.

1. Is there anyone at all on whom you are at least partly financially dependent?
2. What would happen if that person was no longer able to deliver their end?
3. Are you prepared?

Well, contrary to popular belief, sometimes, life does give you a “do-over.” You might call me the women’s financial do-over. But the key to a “do-over,” is to do it over the right way. No matter what your lifestage, there are simple steps you need to follow to plan your financial future… over…

Let’s consider what women should be doing at various points in their life.

For those of you who are in your 20’s

• Remember the “save a penny for a rainy day” mantra, well start an emergency fund – you should have three to six months pay saved up in case you run into financial surprises. Surprises are.. after all… a surprise. But you can be prepared.
• I know you are not really thinking about retirement yet, but if your company offers a 401(k), sign up. Contribute at least the minimum percentage needed to qualify for the full employer match – you will get the most out of your employer benefits this way.
• Be financially prudent. Limit yourself to just one credit card, and pay the entire balance monthly. If you have an outstanding balance on credit cards, pay as much as you can as quickly as possible, starting with the highest interest card first
• Work on paying down any student loan debt
• And check your credit report to make sure there are no discrepancies – you would be surprised what can show up on your credit report that you are unaware of

For those of you in your 30’s

• Take a look at how your 401(k) or IRA money is being invested – a woman at your age may be able to afford more aggressive investments as you have many years before retirement
• If you’re buying a home, put 20% down to a void the cost of mortgage insurance. Your mortgage payment should be no more than 28% of your monthly income. These two benchmarks assure that you buy smartly
• Take out a disability income insurance policy if you don’t already have one, to protect you from the unexpected.
• Work with a lawyer to establish a will, and to address any other estate planning needs you may have. Working on your will is not only a way to address your estate planning, but will force you to answer some questions you don’t even realize are out there.

For those of you in your 40’s

• Review your life insurance policies to be sure you have the right amount of coverage and the right type as your needs may have changed. What we needed in our 30’s is not likely the same as what we need in our 40’s.
• Explore options for long term care insurance – buying young gives you more options for better coverage at better rates.
• Take a look at your 401(k) plan or IRA investments.  Your investment objectives may have changed as your life has undoubtedly changed.  Update your investments to better reflect your goals.
• Give your credit report another solid “once over” to be sure it reflects a true statement about your money management habits.

For those of you in your 50’s

• Revisit your retirement savings goal to make sure it still makes sense, and that you are on the right plan to reach that goal.
• If you are behind on savings, you can catch up by taking advantage of higher contribution limits in 401(k)s and IRAs.
• Review your estate plan to make sure it is up to date with changes in your life and current laws. Confirm you executors are the ones best suited to carry out your desires.

For those of you in your 60’s

• Consider your retirement income strategy. Determine whether you can live off of a small percentage of your retirement assets and continue investing the majority.
• If you earned a traditional pension, compare the payout options and make sure your choice doesn’t exclude you from other retiree benefits.
• Find out when you can receive your full Social Security benefit – you may want to hold off on collecting your benefit up to age 70 to increase your monthly payout.
• Get yourself ready to enjoy your upcoming retirement in every way, not just financially.

The question always rises: “How can I get through this in the easiest way?” I am not suggesting that divorce could ever really be considered “easy.” But there are resources to help you get through the process in a less stressful and more focused manner.

Supporting yourself with a team of professionals who will guide you through the process to help you achieve the best outcome for today and your future is one of the smartest things you can do at this juncture. One member of the team- a neutral financial professional- can help both of you achieve a fair and equitable financial settlement. Certified Divorce Financial Analysts (CDFA^TM) are trained in the fundamentals of divorce and finance and have extensive experience in meeting the special needs of divorcing couples.  Knowledge of financial planning concepts and divorce financial issues enable your CDFA to provide you with a structure and a process to help you to design your optimal financial settlement.

There are so many things to consider when trying to fairly divide your assets and debts, find ways to live within your new means, and develop your financial future. A CDFA can work simultaneously with both of you. They help you gather the necessary financial information to help you understand your economic situation and help to provide a structure and process for you both to discuss your concerns, with your questions heard and dealt with respectfully.

It is common in most relationships for one of you to be more financially savvy than the other. That person usually handled the financial matters for both of you. Often couples request that the less financially savvy spouse receive additional assistance to help bring them “up-to-speed.” By helping the “non-financial” spouse to be better informed and confident on financial issues, informed decisions can be made, and the process can move forward more easily.

A neutral financial specialist is cost-effective for you in several ways. First, only one professional may be needed – not one for each of you. Second, the initial process often takes place without attorneys present, saving their hourly costs. Most importantly, they provide focused financial expertise that often results in creative and effective financial solutions. They are trained and experienced in researching and analyzing personal, business and tax issues in divorce.

With the right professional expertise, working in Collaborative process can help you to take some of the stress out of your divorce, and help to make your process more successful emotionally and financially.

We may retire earlier than we think we will. Some of us envision leaving the workforce at “full” retirement age (66 or 67) so that we can receive “full” monthly Social Security benefits rather than slightly reduced monthly payments. Will that happen? It might not, according to data released this spring by the respected Employee Benefit Research Institute.

In EBRI’s most recent Retirement Confidence Survey, 21% of the respondents thought they would retire at age 65. Another 26% expected to retire at age 70 or later.

These expectations may not correspond with reality. In surveying current retirees, EBRI found that only 6% had worked into their seventies. Only 9% had retired at age 65. Sixty-five percent of the respondents had left work before age 65, up from 61% in EBRI’s 2010 survey.

We may see retirement as an extension of the present rather than the future. This is only natural, as we live in the present – but the present will not go on forever. Things change, and the costs we have to shoulder five or ten years from now may be greater than the expenses we face at the start of retirement. As many of us will likely be retired for 20 or 30 years, it becomes essential to take a long-term view of the retirement experience – which is why retirees may want to consider growth investing and long term care coverage.

Beyond that basic question, we need to think about insurance from a couple of other angles. Will we need long term care coverage? It seems to get more expensive each year, but as medicine and health care continue to advance and evolve, the possibility of a gradual rather than sudden death may increase. The wealthy may have the assets to contend with long term care costs, but the middle class rarely does. In Genworth’s 2015 Cost of Care Survey, the median annual cost for a semi-private room in a nursing home is $80,300. In California, it is $89,396; in Florida, $87,600.

Disability insurance and long term care coverage may prove more essential to retirement planning than many of us realize.

Age may catch up to us sooner rather than later. Generationally speaking, are we healthier than our parents and grandparents were? Anecdotally, it would seem so: we see people running 10Ks in their eighties, climbing mountains in their seventies, and so forth. Then again, we have diabetes and obesity plaguing American health.

We may be alone sooner than we assume. Many couples retire with a reasonable assumption that they will be together for some time – but something may happen to leave one spouse alone. As anyone who has ever lived alone realizes, a single person does not simply live on 50% of the income of a couple. Keeping up a house – or even a condo – could be arduous for an eighty-year-old man or woman. Driving is a concern. All this means that we may need someone or some group of people to care for us when our spouse is gone. Is that kind of support currently available? Could it be available twenty years from now? If not, what will take its place?

These are some of the blindspots that can surprise us in retirement. They may quickly affect our money and our quality of life. If we age with an awareness of them and recognize them in our retirement and estate planning, then we may be betterprepared when or if they emerge.

Let’s start with longevity. The Social Security Administration reports that a man reaching age 65 today can expect to live, on average, until age 84.3. For women, that average life expectancy is 86.6. Women live longer than men; therefore, their retirements are expected to last longer. Quite simply – women need to have more money saved.

And then there is the very real factor of less income. Women still earn an average of 77 cents for every dollar earned by men. Earning less means not only do women have less money available to set aside for retirement, but also that their Social Security benefits will be significantly lower than what their male counterparts will receive.

On average, women have less savings. When you earn less, you save less. But even when women save aggressively, they often put other goals ahead of their own retirements, such as their child’s college tuition.

So what can women do about this very real challenge?

First, educate yourself – Devote time and effort to learning the basics of personal financial management and investing. Spending time “doing your homework” can pay off nicely down the road.

Do it now – women need to begin their retirement savings as soon as possible. If you are in the divorce process, make sure your divorce team is negotiating terms that will serve you well in your retirement.

As always, save as much as you can. It’s important to think of retirement savings as a commitment. Prioritize needs over wants in your spending, and make no mistake: Retirement savings is an absolute need.

With a commitment to education, good planning, disciplined savings, and professional guidance, there is good reason for you to expect a financially secure retirement. On the other hand, without those things, there is good reason for concern. Make your retirement savings a priority, and not a cause for worry.

“I wish I had known.” “Why didn’t someone tell me?” “This is news to me.”

How many of us have uttered at least one of those phrases in the last few months? How about over the last few years? We want to be informed. We are smart, independent, empowered women who are ready to take charge of their future. But how, exactly, do we do that? How do we get informed?

The easiest way to start is for every woman to ask herself some questions.

1. How comfortable are you with risk in terms of your finances? Do you prefer stocks or bonds or other investments?
   1. I’d like to make enough money to be able to take care of everything while I’m still working and then have enough left over to have a vacation home or a family getaway in my retirement.
   2. I’m not sure which I prefer, I leave this up to my husband/partner/other decision maker. I don’t want to lose all my money, though.
   3. I’m very comfortable with risk and have a diversified portfolio. I’m interested in learning more about my options and how we can collaborate to come up with future investment plans.
   4. I definitely don’t want to play the stock market, but I’d like to know that I have a good nest egg saved when I retire. Tell me more about different types of investments.

Knowing your tolerance for risk is a very important step in understanding how you should develop your retirement financial strategies – from what investment product mix you should employ to how often you are willing to change strategies. Whatever your risk tolerance, there are investment products perfectly suited for you.

2. What is most important to you today?
   1. Provide for my family/protect my family
   2. Not to have to rely on others
   3. Achieve financial independence
   4. Prepare for the future

We all have priorities. Recognizing those priorities and planning accordingly will give you a better financial plan whether for the short- or long-term. Priorities also help us adjust as needed based on where we are going, not from where we have been.

For even more guidance on how to Empower Yourself Financially attend this free seminar – November 16th – Parkside Lodge, Buffalo. Register: https://empoweringfinancially.eventbrite.com/

“I wish I had known.” “Why didn’t someone tell me?” “This is news to me.

How many of us have uttered at least one of those phrases in the last few months? How about over the last few years? We want to be informed. We are smart, independent, empowered women who are ready to take charge of their future. But how, exactly, do we do that? How do we get informed?

The easiest way to start is for every woman to ask herself some questions.  

1. When thinking about your future, what keeps you up at night?
   1. My family, kids or grandkids future
   2. Did my husband put enough money away for us?
   3. How is my portfolio?
   4. Has my 401(k) done well and will it last through retirement?

No matter what it is that makes you worry about finances, there are resources available to strengthen your ability to make the tough decisions.  The key is to access those resources and make decisions about those financial matters that are unsettled.  Ignoring the nagging questions won’t make them go away!

2. How involved would you like to be with your household finances and financial plan?
   1. I’d like to have a better understanding
   2. I’m fine with things the way they are
   3. I’d like to be able to collaborate with a financial professional to make some of my decisions.
   4. I’d like to be able to have some of my decisions made for me.

I don’t think many of us are truly “fine with the way things are” especially if we have not armed ourselves with the right knowledge to make sound judgements on our financial future. Whether we are an independent thinker, or someone who likes to collaborate, making decisions in a vacuum is a sure recipe for an unplanned financial future. And that ignorance brings fear and insecurity.

For even more guidance on how to Empower Yourself Financially attend this free seminar – November 16^th – Parkside Lodge, Buffalo. Register: https://empoweringfinancially.eventbrite.com/

Q. How much long-term care coverage will I need?

A. Start with factoring that the average annual stay in a nursing home is nearly $96,000, and the average length of stay is about two years – then add to that time you may need in an assisted living facility – or in your own home. While everyone’s needs are different, understanding your own health and having a clear vision of where and how you want to spend your later years can help you be sure you are fully protecting yourself and your family.

Q. When should I start a policy?

A. This is an individual decision, based on many factors. Most people think about LTC insurance when they are close to retiring. Premiums are much lower for people in their 40s and 50s than for those over age 65. In addition, as people age, they are more likely to develop health conditions that may make them uninsurable. After age 60, premiums for LTC insurance begin to rise steeply.

Q. Why should I get long-term care insurance?

A. Most health insurance plans provide for in-hospital care, doctor visits and preventative healthcare needs. But, they may not cover many other health-related needs of older adults. Long term care costs, whether in your home, at assisted living or elsewhere are not covered by any health insurance plan, not even Medicaid.

Q. If I buy long-term care insurance will I be able to stay out of a nursing home?

A. Not necessarily – This is all dependent on the level of care you need. However, just over half of long-term care claims are for in-home care, with 30% in nursing homes and just under 20% of claims are for assisted living care. With the financial boost of long term care benefits, you are more likely to be able to better afford the costs involved in being at home.

Someone you love will pay for your long term care. Like it or not, women usually step up in families to do what’s needed. A wife, daughter or daughter-in-law will likely bear the major burden and make the sacrifices necessary to take care of you at a physical cost, or at the cost of employment/advancement. Your retirement funds and savings, designed to pay for your joint life time retirement, will likely become depleted,. So your survivor – wife or husband, will do without, because other than insurance, there is no way to provide for what you will likely need.

Knowing more is important. Get the information you need – not only for your parents’ care, but for yours as well. November is Long-Term Care Month – now is the time to arm yourself with knowledge.