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| Stat Of The Day |
| 44% |
Think your homeowners’ insurance has your back? You might want to think again. The five largest home insurers didn’t pay out on more than 44% of claims resolved last year – up from 36% a decade ago.
The Wall Street Journal reports that insurers are getting tougher on claims across the board, raising deductibles and tightening the criteria for expensive repairs in the wake of post-pandemic losses. Bottom line? Don’t assume you’re covered until you know exactly what your policy says. |
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| The Retirement Phase Nobody Warned You About |
Many of us spend our working years with our eyes fixed on one thing: retirement. We save, we invest, we max out our 401(k)s, and we dream about what’s waiting on the other side. But according to Dana Anspach, CFP and founder of Sensible Money, finish-line thinking might actually be holding us back.
Anspach joined the HerMoney Podcast to discuss her new book, Living Off Your Acorns: Your Guide to the Four Phases of Retirement – and explain why a great retirement is built in four phases.
You may already know the Go-Go years (traveling, bucket-listing, spending more than you expected), the Slow-Go years (when healthcare decisions start taking center stage), and the No-Go years (legacy planning, getting everything in order). But Anspach says there's a fourth phase most financial experts skip entirely – and it might be the most important one of all. She calls it the Pre-Go phase.
"This is where you set the foundation, like the foundation of a house. You have to get the plans right before you start building," Anspach says.
The Pre-Go phase typically begins about 10 years before you plan to retire, though Anspach is quick to note it looks different for everyone. "I have seen people who didn’t think about retirement until one day they woke up and said, ‘Oh my gosh, I’m 65, and I’m going to retire,'" she said. "And then there are people who start planning much earlier."
Wherever you are on the timeline, the message is the same: the work you do now matters more than you think.
🚨 Need help navigating your own Pre-Go phase? Our next FinanceFixx Pre-Retirement Checkup kicks off July 28. This six-week course is designed specifically for women within a decade of retirement who want to make sure their money is truly ready when they are. Spots will fill fast, so reserve yours now. |
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| This Week In Your Wallet |
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Gray divorce is evolving… and for many, it no longer actually involves divorce. While divorce rates are dropping across most age groups, they’re still rising among Americans 65+. Longer lives and "empty shell marriages" – relationships where the real connection has faded – are pushing more Gen Xers and boomers to split. But here’s the twist: some are choosing separation without a formal divorce to avoid the financial fallout. Case in point, Gale Emigh, 73, who separated from her husband of 40 years six months ago. "They have agreed to avoid a 'messy and costly' divorce…instead asking their financial adviser to pay them equally every month from their shared pot," reports The New York Times. "She is staying in the house they bought together in Sequim, Wash.; he has moved into an apartment in California, where the pair spent most of their lives."
Congress just passed the biggest housing affordability bill in decades. The legislation aims to boost supply and rein in costs – including new limits on how many single-family homes institutional investors can buy. "It has just been more than 30 years since the federal government has done anything but sit by and say, 'Damn, the price of housing sure has gone up.' Finally, we are actually moving," said Senator Elizabeth Warren. There’s a catch, though. President Trump has said he won’t sign the legislation until Congress approves the SAVE America Act, an elections bill…so don’t hold your breath just yet.
Planning to work in retirement? Most people say yes. Many don’t follow through. About three-quarters of Americans plan to work after they retire, according to a recent survey. But only 31% of retirees are actually doing it. The gap is real, and often comes down to the scarcity of flexible, part-time work or the reality of having to switch careers entirely. "Re-entering employment can be very difficult when you’re an older jobseeker," Maura Porcelli, senior director of workforce at the National Council on Aging, tells USA Today. Sometimes leaving the workforce is not a choice (a surprisingly large number of people are retired rather than making the decision themselves), but if you are doing this on your own steam, it’s something to think about before you hand in that employee ID. |
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| Things That Save You Time |
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| Ask Jean |
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| Q: |
Today’s question comes from Nancy. She writes: "I am planning on retiring in five years. Is there a ‘right’ age to buy an annuity?" |
| A: |
Good news, Nancy. According to Tamiko Toland, an annuity expert and fellow with LIMRA’s Retirement Income Institute, "five to ten years before retirement, when it becomes a little bit more clear what you want," is the ideal window to purchase an annuity.
There’s also a financial case to be made for buying early and waiting to draw income. "You basically get a bonus for waiting because the money that you’re giving to the insurance company is able to grow," she explains.
Many annuities also include explicit bonuses for deferring income (with certain products) — which can be "very, very meaningful" during that five-to-ten year window, Toland adds. Another perk: you maintain control over when you actually start taking income, which matters if your retirement timeline is still in flux. |
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