401(k) and taking advantage of any match offered, Pedersen recommends looking into starting a Roth IRA, as well as researching annuities, which are long-term retirement products that can help protect against the risk of outliving one’s assets. In our 30s and 40s Fiction: I just don’t have the time to worry about retirement right now. Fact: “By this time, women have not only put in the blood, sweat and tears to their careers, but many have also gotten married, started families and/or committed to a community cause or two,” says Pedersen. “As a result, financial planning may fall to the spouse or partner – or fall off the map altogether for years.” This myth is particularly dangerous given the sheer number of years women outlive the male counterparts in their lives. We all know of women who have never had to write a check, and then suddenly that have to handle all the household finances – it is a very difficult position. Pedersen recommends keeping things simple by answering one question: Who do you want to be in retirement? Once you know what you’re trying to achieve, you can gather information on your own from publicly available information, or you can work with a financial professional to save you time. Fiction: I will get half our family’s assets should my partner and I divorce. Fact: “This is still among the biggest misconceptions women – and many men – have when it comes to love and money,” says Pedersen. “The truth is all jointly owned property and monies are considered during a divorce.” And, perhaps even more importantly, all liabilities, such as an underwater home, student loans or credit card debt, are considered and often divided up during the dissolution of a marriage as well. In our 50s, 60s and Beyond Fiction: Thanks to all my hard work and success, it’s time to downsize and enjoy! Fact: “Sure, you’ve worked long and hard – but too many women assume they can just simply collect on retirement and just sell off unnecessary assets, like a large family home, as needed to replace their regular paycheck once they hit a magic age,” says Pedersen. The truth is there is an art and science to liquidating savings, investments and other assets, and timing is critical. “Without planning, women may run the risk of taxes and penalties that can add up to a considerable amount,” says Pedersen. “Similarly as critical – understanding your tax bracket, which will most likely be lower, due to a lower income, once you retire.” Fiction: My estate will automatically go to my kids. Fact: “Never assume anything – especially when it comes to distribution of your assets after you are gone,” says Pedersen. “Many women assume their estates will automatically go to their spouse and/or children, but without an actual will, anything goes. The state or other relatives can get involved. And what happens if your spouse remarries without a will? “You need to protect those you love, not to mention yourself,” says Pedersen. “Knowledge is power. Get educated. Get informed. Get help if you need it.”
NOW OPEN Under New Ownership
GRAND OPENING
PARTY!!
G a te s Op e n 4P M
$10e r Cov
BUY 1
FREE ENTREE RECEIVE 2ND ENTREE
*
'3&& .&"- 0' &26"- 03 -&44&3 7"-6& .*/*.6. 580 #&7&3"(& 163$)"4&
McCormick Ranch Lifestyle
21