Obsidian Market Update 02/03/2024
Economic Update
Are You Prepared for Retirement?
In 2023, a Charles Schwab survey of 1,000 401(k) plan participants between the ages of 21 and 70 found that:
- Workers thought they’d need to save $1.8 million for retirement.
- Only 37% felt they were very likely to reach their retirement goals, compared to 47% in 2022.
We hope you agree with the 37% who feel confident that your financial plan will provide the retirement lifestyle you desire. If not, please give us a call so we can sit down and review the numbers with you.
Today, however, we want to talk about another aspect of retirement: your emotional or mental preparation. An article in Clinical Interventions in Aging cited a study that found that the “prevalence of depression among retirees was estimated at 28%, substantially higher than that of the overall adult population.” Noting that depression need not be part of aging, other researchers observe that “improvement in depression following retirement could be due to decreased work-related stress, increased autonomy, or increased engagement in physical and social leisure activities.”
We aren’t researchers but we have observed many individuals transition into retirement and have found that those who are happiest have thought about several issues well before their retirement date:
- What will your new routine be?
- What’s your vision of retired life?
- In what activities will you find meaning?
We often help clients clarify expectations by discussing the answers to more specific questions:
- Would you like to work part time doing something you enjoy?
- Would you enjoy volunteering for one or several of your favorite charities?
- Would you like to travel?
- How much time would you like to spend with grandchildren?
- To whom would you like to stay socially connected?
We ask business owners to consider two additional questions:
- If you’ve identified yourself as “the owner of Acme Company,” how will you identify yourself in retirement?
- When you retire, do you want to leave entirely, work part time, or consult?
If your vision of your retirement is a bit cloudy, could you use vacation time to take a month off to give yourself a taste of life without work? Perhaps try out some of the activities that you think will engage you in retirement?
We are here to help with your financial preparation for retirement, but we’re happy to share ideas about your emotional preparation as well. Just give us a call.
Another New Team Member
Erin Gray
Obsidian is always on the lookout for people with that special combination of strong work ethic and desire to connect with and deliver extraordinary service to our clients. We found that person when we hired Erin Gray in the fourth quarter of 2023. Since then, Erin has worked with our planners as a paraplanner: a skilled support person for both our planning and service professionals.
Erin came to Obsidian with over six years of experience working in a large asset management and financial services company. “The experience I gained analyzing data, assembling investment reviews, and working first-hand with clients was a great foundation for joining Obsidian. I wanted to dive deeper into holistic planning, and Obsidian offers that unique, tailored approach to help individuals and families meet their lifetime goals, personally and financially.”
Erin is a graduate of Michigan State University and holds Series 7, 66, Life, Accident, Health, and Variable Annuities licenses. She’s a dedicated runner who’s halfway to her goal: running a half-marathon in all 50 states.
Lifestyle
America’s Favorite Super Bowl Snacks
Next weekend, the San Francisco 49ers will play the Kansas City Chiefs for the ultimate prize in football while over 100 million people watch—and eat. According to a survey conducted by sports media network WegENT, the most popular Super Bowl snack in Maryland, Virginia, Ohio, Illinois, New York, and Pennsylvania is buffalo wings. Chips are another favorite whether served as nachos, or dipped in salsa, queso, or guacamole. There are three snacks that are favorites in only one state: pepperoni rolls, fried pickles, garlic knots, and a crab ball. Can you match each snack to its state? (See below for the answers.)
How We Help
In the last issue of this newsletter, we described how we help many of our clients’ adult children with a wide variety of financial issues. It’s not unusual for our younger clients to ask us to help their parents as well. The most common topic is estate planning.
Parents need not divulge any financial data to let their children know if they’ve put in place revocable trusts. That one piece of information gives adult children a glimpse into what could happen at their parents’ deaths. We’ve written in more detail about revocable trusts but for our purposes here, the important points are that a revocable trust 1) avoids probate; 2) gives the grantor (the person who sets up the trust) the ability to set parameters for how and when their assets will be used and distributed; and 3) provides privacy and avoids public disclosure.
If your parents are without an estate plan or you think they aren’t aware of how valuable revocable trusts are both to them and to you, their heirs, we’re happy to meet with them.
Lifestyle answers: Pepperoni rolls: Wyoming; Fried pickles: Arkansas, Garlic knots: Colorado; Delaware: crab ball
Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member