VT Life Planning Guide 2024

PROTECT YOUR ASSET S

HELPING YOU GROW & PROTECT YOUR ASSETS

Earliest age to take pre-tax money from qualified retirement plans (401k, etc) without a penalty if you leave your job or retire. Income taxes may still be owed if funds are not rolled over into an IRA or other qualified account.

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Earliest age to withdraw money from an IRA or other qualified retirement account (401k, etc) without paying a penalty Income taxes may still be owed if funds are not rolled over into an IRA or other qualified account Thiscan usually be done even if you are still employed by the plan sponsor.

This is the earliest age to begin taking social security income. If you receive social security benefits while continuing to work, your social security benefit will be reduced if your earned income exceeds a certain amount.

You become eligible for Medicare even if you are not taking social security or if you are still employed.

Social Security normal retirement age (FRA) . Those born between 1950 and 1959 have a pro-rated age between age 66 and age 67. You can now collect social security while working full time without a penalty to your social security income.

The maximum age at which you can begin taking social security in-come

The age at which you must begin taking required minimum distributions (RMD) from IRA and qualified retirement plans. This does not apply to a 401k plan if you are still employed by the plan sponsor.

Mike Augustus

What to know about life insurance policies

Millions of adults go to great lengths to protect their assets. Those measures run the gamut from simple everyday efforts like utilizing two-factor authentication when accessing financial accounts via online to more complicated undertakings like estate planning.

Life insurance is a component of estate planning that is vital to anyone looking to protect their assets in the event of their death.

EXPLAINING LIFE INSURANCE

Life insurance is both similar to and different from other types of insurance. Like homeowners and auto insurance policies, life insurance provides financial protection in difficult circumstances. A life insurance policy is a contract between an insurance provider and a policy holder that guarantees a payout to beneficiaries designated by the insured individual in the wake of that individual’s death.

PERSONAL HISTORY

Insurance providers differ, but individuals interested in life insurance can expect to be asked about their medical histories and lifestyle habits when discussing policies. Prospective policy holders will often be asked to sign waivers that allow providers to access their medical records. This is necessary so companies can get an idea of the health of the person applying for life insurance, which will determine the cost of a policy. That information, as well as family history, is important because it can serve as an indicator of future health risks. Some variables, including lifestyle habits like smoking, won’t necessarily appear on an individual’s medical history. In an effort to address that, insurance providers typically ask prospective policy holders to answer a variety of questions about their lifestyle, including whether or not they smoke and how much alcohol they consume. It’s vital that individuals answer these questions honestly, as companies can deny payouts to beneficiaries if they determine policy holders misled them during the application process.

COVERAGE

Coverage needs vary depending on the individual. Life insurance is intended to provide for loved ones in the aftermath of a policy holder’s death. How much money will those individuals need to pay their bills? Young adults who are just starting their families may want more coverage than aging adults who have already paid off their homes and saved a considerable amount for retirement. The National Association of Insurance Commissioners recommends that individuals ask themselves how much of the family income they provide and if anyone else, such as an aging parent, depends on them for financial support. Answering these questions can help individuals determine how much coverage they need.

TYPES OF COVERAGE

Insurance providers offer various types of life insurance policies. Term life policies are among the most popular because they tend to be affordable while offering substantial coverage. There

are different types of term life policies, but policies tend to run for anywhere from 10 to 30 years and expire around the time individuals reach retirement age. That’s because many people save enough for retirement and don’t have the sizable expenses, such as a mortgage, to account for at this point in their lives. That means loved ones won’t necessarily need to be provided for in the wake of a policy holder’s death.

Permanent life insurance policies last until the policy holder’s death so long as he or she contin-

ues to pay the premiums on time. Financial advisors can help individuals understand the ins and outs of the various types of permanent life insurance policies, which differ from term life policies because they can serve as investment vehicles and sources of loans in certain instances.

Life insurance is a vital component of asset protection that can offer peace of mind to policy holders who want to ensure their loved ones are provided for in the wake of their death.

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The pros and cons of early retirement

Retirement is a milestone that is often the byproduct of decades of hard work. Though a growing number of working professionals have no intention of ever retiring, the vast majority of adults look forward to the day when they can call it a career.

The prospect of early retirement is enticing to millions of people. Though retiring early may seem like a no brainer for individuals in position to do so, a careful consideration of the pros and cons of early retirement can ensure people make the best decision.

BENEFITS OF EARLY RETIREMENT

For many people, early retirement is less about finding a beach to relax on and more about pivoting to a second career. In fact, a recent report from the Employee Benefit Research Institute indicated that 74 percent of workers plan to get a new job after they retire.

In such instances, early retirement is often about turning a long-time passion into a second career. That can help adults achieve a lifelong dream, making it one of the better reasons to retire early.

Another advantage to retiring early is the chance to spend more quality time with family. One study from the American Psychological Association found that more than half of working professionals now check work emails after work hours, including on weekends. Fortyfour percent even check their email while on vacation. Early retirement enables individuals to escape that round-the-clock career commitment, affording retirees a chance to spend more unfiltered quality time with the people they love most.

Retiring early also provides an opportunity to escape a daily grind that many people have in-

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dicated has become increasingly burdensome in recent years. The 2021 Work and Well-Being Survey from the American Psychological Association found that 79 percent of the roughly 1,500 adults surveyed had experienced work-related stress in the month prior to participating. Work is a leading cause of stress for many people, and stress has been linked to a host of health problems. Individuals who can retire early can benefit from less stress in their lives.

DISADVANTAGES TO RETIRING EARLY

Retiring early can seem like a dream, but it could turn into a nightmare for people whose finances aren’t as robust as they need to be to support a lengthy retirement. One report from the Boston College Center for Retirement Research found that around 50 percent of working families face a significant decline in their standard of living

during retirement. Life expectancy has been on the rise in developed countries since 1900, so retiring too early carries a financial risk for people who have saved but not necessarily saved enough.

Retiring early also could make people more vulnerable to cognitive decline than they would be if they keep working. One study from researchers at Scotland’s University of St. Andrews found that people who wait until age 67 to retire experience less cognitive decline than people who retire prior to 67.

Out-of-pocket medical costs are another disadvantage to retiring early. Employer-sponsored medical insurance tends to cost individuals less than private plans, which is a significant consideration for individuals at a point in their lives when they may need to visit doctors more often.

“ We Are So Happy Mom Is Thriving”

“As Mom aged, we thought it best if she stayed in her house, but, even with hours of expensive home care, Mom wasn’t thriving. She needed more She especially needed more socialization not isolation. And more affordable and reliable access to care when she needed it. So she made the move to Equinox Terrace She truly loves her elegant new home! Life is more complete in a communit y with lots of friends and activities, chefprepared meals, daily care, medication management, and even transpor tation to appointments and outings. I know Mom is happier and more relaxed now... and I am too We only wish she’d moved sooner ”

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New SVCOA programs empower older Vermonters

RUTLAND, VT – The Southwestern Vermont Council on Aging (SVCOA), in a vital partnership with Tai Chi VT, announces an inspiring initiative to enhance wellness and quality of life among older Vermonters across the Southwestern Vermont region. SVCOA is dedicating its resources to sponsor individuals interested in becoming Tai Chi instructors, with certification classes scheduled for April 20th and 21st, with ongoing opportunities for certification.

Tai Chi, known for its health benefits, including improved balance, strength, and mental wellbeing, is a core component of SVCOA’s commitment to holistic wellness. This initiative aims to expand the accessibility of Tai Chi to older Vermonters, encouraging a healthier, more active lifestyle.

Furthermore, SVCOA is calling upon compassionate and motivated individuals to join its esteemed team as coaches for the nationally recognized A Matter of Balance

program. Developed at the Royal Center at Boston University, this program addresses the prevalent issue of fear of falling among older adults. By offering both in-person and virtual classes, SVCOA aims to equip older Vermonters with the tools and confidence to control their fear of falling, engage more in their daily activities, and enhance their physical strength and balance.

A Matter of Balance includes comprehensive training sessions, led by trained facilitators, focusing on practical strategies to reduce fall risks, exercise regimens for increasing strength and balance, and

Historic Bradle y House is a private , licensed, nonprofit residential care home. We provide assistance with daily task s , allowing residents the freedom to enjoy life and maintain personal independence .

Caring staff are available 24 hours a day to help with personal care and medication. A nurse monitors each resident closely, ensuring health and comfor t . Also included in the monthly fee are three delicious meals each day, activities , housekeeping and laundr y ser vices .

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motivational activities to boost activity levels. Coaches, who will serve the Bennington and Rutland areas, are crucial to this program’s success. SVCOA seeks individuals with a passion for making a difference, excellent communication skills, and the ability to lead and inspire. Prospective coaches will receive thorough training from a Matter of Balance Master Trainer, alongside continuous support, and guidance.

In addition to these programs, SVCOA proudly offers the “Eat Smart, Move More, Weigh Less” program – a 15-week online weight management program led by a

live Registered Dietitian Nutritionist. This program exemplifies SVCOA’s commitment to supporting older Vermonters in adopting healthier lifestyles through education, motivation, and community support.

For those inspired to make a significant impact on the lives of older Vermonters here in Southwestern Vermont, or for more information on SVCOA’s comprehensive wellness programs, please visit www.svcoa.org or contact:

Madelyn Gardner,

Assistant Community Services Director

Southwestern Vermont Council on Aging

Email: Mgardner@svcoa.net

Phone: 802.772.7843

143 Maple St, Rutland VT 05701

Together, we can foster a community of wellness, strength, and balance for older adults across Southwestern Vermont. The mission of the Southwestern Vermont Council on Aging is to empower Vermonters to Age with dignity, independence, and quality of life.

Financial mistakes anyone can avoid

Earnings go a long way toward determining an individual’s financial security. However, high wages do not guarantee long-term financial security any more than lower wages ensure a future marked by a lack of financial flexibility. Individuals are a unique variable in any financial equation, and those who can exercise and maintain some fiscal discipline are more likely to secure long-term security than those who cannot.

One way anyone can improve their chances at a secure and flexible financial future is to identify and avoid some common mistakes. Avoiding the following mistakes can increase the chances individuals at various income levels enjoy a secure financial future.

• Delay saving for retirement: Conventional wisdom says it’s never too early to begin saving for retirement. Despite that, surveys indicate many adults are behind on saving. A 2022 survey from Bankrate found that 55 percent of respondents indicated they were behind on their retirement savings, while 35 percent reported being “significantly behind.” Though laws governing retirement contributions have made it easier for people to catch up, it’s still better to begin saving once you enter the professional arena, which for most people is some time in their early to midtwenties. The longer you delay saving for retirement, the more precarious your financial future becomes.

• Spending beyond your means: The post-pandemic increase in cost-of-living has garnered considerable attention in recent years, when inflation has driven up the cost of just about everything. There’s little consumers can do about the rising cost

of living, but making a concerted effort to curtail spending is one way to combat the spike. However, surveys indicate many people earning significant salaries are living paycheck-to-paycheck.

For example, a 2021 report from LendingClub Corporation found that nearly 40 percent of individuals with annual incomes greater than $100,000 live paycheck to paycheck, with 12 percent reporting they are struggling to pay their bills. An assortment of variables undoubtedly contribute to that stark reality, and one might be a tendency for consumers to spend beyond their means. Individuals who are struggling to curtail their spending are urged to seek the help of a certified financial planner who can help them devise a budget and alleviate some of the stress and pressure associated with overspending or living paycheck to paycheck.

• Poor use of credit: Credit cards can be a financial safety blanket, but that blanket can soon smother consumers who don’t know how and when to utilize credit. Reserve credit cards for emergency situations and resist the temptation to use them for daily expenses, such as groceries and gas. Credit card interest rates tend to be in the double digits, so unless card holders can pay their balances in full each month, they’re only exacerbating the already high cost of living by using credit for daily expenses.

• Buying too much house: Overspending on housing is another financial mistake, and arguably the one that’s the most difficult to avoid. It can be hard to walk away from a dream home, but such a decision could secure your financial future. Unfortunately, data indicates far too many individuals are spending more on

housing than conventional financial wisdom recommends. The most recent Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics found that spending on housing accounted for 33 percent of the average household’s monthly expenses and that the average household spent 88 percent of its after-tax income each month. That latter figure is especially troubling, as conventional financial wisdom recommends a saving rate of 20 percent. Overspending on housing greatly affects a person’s ability to save and invest, so resisting the temptation to buy that expensive dream home could be the difference between a secure or scary financial future.

Avoiding some common mistakes can help individuals be more financially flexible and secure over the long haul.

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How we work together: Helping you reach your financial goals

My team and I will take the time to truly get to know you, since how we turn your vision into a reality is very unique to you. I’ll work with you to create a personalized financial strategy that includes advice, tools and resources to help you achieve your financial goals.

I ’ll do this in three impor tant steps:

1. Understanding what ’s impor tant to you Your strateg y should be personalized. So, before I make a recommendation, we’ll work closely together to understand what is most impor tant to you, including your goals, comfor t with risk and how you’d prefer to work together

2. Using an established process to build your personalized financial strategies I use an established 5-step process, incorporating what ’ s impor tant to you, to develop a personalized strateg y using our advice, guidance and advanced tools Our 5-step process helps me fully understand what is most impor tant to you and then create an actionable financial strateg y personalized to you

3. Par tnering together over time to help keep you on track

Markets , interest rates and life’s priorities may change , but our relationship and my commitment to helping you achieve your goals won’t. I ’ll make sure I ’ m with you ever y step of the way by:

• Providing regular reviews and updates

• Identif ying timely risk s and oppor tunities

• Helping you keep your emotions in check during market volatility

• Helping you prepare for the unexpec ted

I believe that when it comes to your financial strateg y, you deser ve a personal relationship and professional advice . My goal is to help you achieve your goals . That means focusing on the future you see for yourself, building strategies just for you and helping you stay on track by par tnering together over the long term

It takes a team

When we develop your financial strateg y, you ’ re backed by all of Edward Jones Along with my team , you have the exper tise of our Investment Policy Commit tee , our produc t review team and research analysts behind you all the way

These teams provide the guidance and resources to help me:

• Develop a financial strateg y for your goals

• Build your personalized investment por t folio

• Identif y and address potential risk s and oppor tunities

FREE E state Planner

Are your final affairs in order? Does your family know where your insurance, will, assets, family records, and valuable financial information are?

Avoid many problems. When you plan ahead and make pre-arrangements now, you tidy up many loose ends such as vital information about your assets, finances, and benefits. Gathering this information all in one place not only makes good sense, it saves your family the frustration of tr ying to remember where ever ything is during their grief.

Act now and receive this free 16-page Individual Estate Record. It contains vital information ever y family needs and usually doesn’t have when a loved one dies.

Funeral pre-planning with a professional eases anxiety

The death of a loved is difficult to confront. Emotions are elevated and grief is prominent, which can make it hard to make important decisions. Quite often several people need to come together to make decisions necessary for a family member’s funeral arrangements. There also is a financial component to consider.

these events every day and can guide families through the intricacies of the process with ease. Most have pre-planning kits that include all of the essentials of the process, such as choosing caskets, deciding on prayer cards and designing floral arrangements.

AVOID CONFRONTATIONS

According to Lincoln Heritage Life Insurance Company, the average funeral costs between $7,000 and $12,000, which may or may not include viewing, burial, transport, casket and other fees. Surviving family members responsible for planning a funeral may be asked to contribute a portion of these expenses if other arrangements have not already been made, which can exacerbate stressful feelings during an already difficult time.

Give us a call, or fill out the coupon and drop it in the mail. This offer is good for a limited time and available to families in this local area. Name Address City/State/Zip Telephone

Funeral pre-planning is a good way for individuals to make a difficult time a little more manageable for their survivors. Funeral homes frequently work hand-in-hand with individuals and families to customize pre-planning packages and facilitate the process. Here’s a rundown of pre-planning as individuals consider their options.

Pre-planning a funeral enables people to consider all of the options without the time constraints of making funeral arrangements directly after the passing of a loved one. A knowledgeable staff member at a funeral home, can explain the offerings and answer any questions.

STRAIGHTFORWARD PROCESS

Unless an individual has planned a funeral in the past, there could be a lot of unknowns. Funeral homes handle

Working directly with a professional also helps alleviate the burden on family members, who may not agree on arrangements or concur on what they believe would be a loved one’s final wishes. When pre-planning a funeral, individuals can spell out in their own words exactly what they desire and even finance the funeral in advance.

ESTABLISH A PAYMENT PLAN

A funeral home staff member can go over the various ways to fund funeral expenses, and may work out a payment schedule to spread out the expense over a period of time. He or she also may explain how funeral prearrangement can be a way to “spend down” assets in a way that protects those monies from look-back periods when determining eligibility for certain assisted living or nursing facilities should that be required in the future.

WORK WITH RELIGIOUS OFFICIALS

Very often a funeral home is a conduit that facilitates all facets of the funeral process. They may reach out to a preferred house of worship to organize a mass or other religious service and will also contact the cemetery and work with them to secure a plot and deed. This also alleviates pressure down the line on grieving family members who need time to mourn.

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3 tips to catch up on retirement savings

One need not look long or far to be reminded of the importance of saving for retirement. Indeed, it’s hard to go a single day without encountering roadside billboards, television and streaming service advertisements, or promotional emails touting the retirement planning services offered by an assortment of investment firms. If those ads seem ubiquitous, it’s for good reason, as saving for retirement is among the most important steps individuals can take as they look to ensure their long-term financial security.

Despite the widely accepted significance of retirement planning, studies indicate that many people are behind on saving and aware that they’re behind. According to a recent survey from the online financial resource Bankrate, 55 percent of respondents indicated they are behind on their retirement saving.

In addition, a Gallup poll released in May 2023 indicated that just 43 percent of nonretirees think they will

have enough money to live comfortably in retirement. The good news for individuals who are behind or concerned about their financial wellness in retirement is that three strategies can help them catch up on their savings.

1. Take advantage of catch-up rules if you qualify. Laws governing retirement accounts in the United States allow individuals 50 and older to contribute more to their retirement accounts than they’re eligible to contribute prior to turning

50. Bankrate notes that current laws allow individuals over 50 to contribute an extra $1,000 per year to a traditional or Roth IRA and an extra $7,500 annually to a 401(k), 403(b) or 457(b) account.

2. Itemize your tax deductions. The online financial resource Investopedia notes that taking the standard deduction is not for everyone. Individuals with significant amounts of mortgage interest, business-related expenses that are

not reimbursed by an employer, or charitable donations may lower their tax obligation by itemizing their deductions. That reduction in tax obligation allows individuals to redirect those funds to their retirement accounts.

3. Cut back on discretionary spending. Perhaps the simplest, though not necessarily the easiest,

way to catch up on retirement savings is to redirect funds typically spent on discretionary expenses like dining out or travel into retirement accounts. One way to feel better about this approach is to remind yourself that the less money spent on dining out and travel now means more money will be available to spend on such luxuries in retirement.

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