The Retirement Challenge for Women

that a career or purpose will keep you vibrant longer because research shows it will.

• Look at options for cheaper ways/ places to live. There are other places where housing, taxes, and utilities cost less, with fewer costs for snow blowing and down parkas.

• Look at “co-housing” – a roommate, or family members. Remember The Golden Girls? You may be seeing more of this. Many communities allow adding “granny flats,” an apartment in or separate unit near your children’s larger home. Some friends buy a lot, build individual tiny houses, and share costs.

• Revise your vision. This might mean a small apartment or condo. Or, if you are going south, the envisioned model home with a pool on the golf course may be an older mobile home in a senior community with a central swimming pool. (Look online and you will see them for as low as $40,000 or so; or rent, instead of buy). You may live there year-round, so check on monthly charges, like lot rental and community fees.

• Investment options may include annuities* that provide you with income you cannot outlive. Some have guarantees that might provide you with more than that 4 percent withdrawal rate previously mentioned. For example, Single Premium Income (or Immediate) Annuities buy income every month for the rest of your life, like a pension – but are not liquid. Get a quote to see how much you can add to your income by using part of your nest egg or home sales proceeds.

• Have a VERY frank discussion with your children. Show them your assets, talk about your concerns, and whether you have long-term care insurance. They may be able and willing to pick up all or part of the premium if it keeps you from spending down assets for Medicaid coverage (or moving in with them!). It never ceases to amaze me that parents don’t share this information until one has died, or there is a crisis. If you are looking at a low-income apartment or welfare in your future, they need to know. No one can do anything if they don’t know. And, believe me, they are wondering.

• The discussion should include your estate plan (will or trust, durable power of attorney, and living health care directive). If you don’t know what I’m talking about, start researching now.

*Annuities are long-term investments designed for retirement purposes. Withdrawals of taxable amounts are subject to income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Early withdrawals may be subject to withdrawal charges. Optional riders have limitations and are available for an additional cost through the purchase of a variable annuity contract. Guarantees are based on the claims paying ability of the issuing company. D

Laura Zahn is owner of Zahn Investment Group, Duluth. The opinions expressed are those of the author. Securities offered through Securities America, Inc, Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Zahn Investment Group and SA are separate companies. These recommendations are general and not for any one person specifically. Consult your own financial, tax, and legal advisor.

by Sheryl Jensen

All of us recognize the awe-inspiring beauty of Lake Superior and its importance for tourism, recreation, shipping, and the thrill for residents living on the shores of that glittering blue gem. We sometimes, forget, however, that another body of water is also a Northland treasure, the St. Louis River.