Introduction

Retirement planning is an indispensable part of one’s life, assuring that your golden years are indeed filled with comfort, joy, and devoid of financial stress. A “stress-free” retirement is having the financial stability and tranquility to relish your retirement years without constant worry about finances. With that said, we hope this guide will provide you with the necessary insights and tools to approach your retirement with confidence and peace of mind.

Understanding the Basics of Retirement

As we all know, retirement is a significant milestone where an individual ceases to continue their professional or work life, typically when they reach a certain age. However, retirement is not just about the cessation of work. It’s a transition into a new phase of life that can be filled with excitement, new pursuits, and opportunities, but also concerns about financial stability and changes in lifestyle.

Starting to plan for retirement early can help alleviate these fears, allowing you to focus on enjoying your retirement instead of worrying about financial matters. For example, if you start saving for retirement in your 20s or 30s, you can take advantage of compound interest, which can significantly increase your savings over time.

Identifying Your Retirement Goals

Creating a clear vision of your retirement is the first step towards successful planning. Do you envision yourself traveling the world, picking up a new hobby, or perhaps relocating to a warmer climate? Once you have an idea of what you want your retirement to look like, it’s crucial to determine the costs associated with your desired lifestyle (just don’t forget to account for inflation, which will likely increase the future costs of goods and services).

If you plan to travel frequently during retirement, consider the costs of flights, accommodations, and other travel-related expenses. If you fancy yourself a foodie, consider the costs of eating out several times a week. By setting realistic expectations around your expenses and achievable retirement goals, you can prepare yourself financially and avoid unexpected  surprises down the road.

Building a Robust Retirement Plan

Consistent saving and disciplined investing are the cornerstones of building a robust retirement fund. Automating your savings can ensure regular contributions to your retirement accounts without needing to remember to make transfers manually. Just remember to diversify or spread your investments across different asset classes to manage risk. Instead of investing solely in stocks, you can spread your investments across stocks, bonds, real estate, and other asset classes.

A robust plan must also take into consideration the appropriate retirement vehicles and account types. This includes understanding various retirement savings options such as 401(k) plans, Individual Retirement Accounts (IRAs), and Roth IRAs. For example, a 401(k) plan allows you to contribute a portion of your pre-tax salary to a retirement account, where it grows tax-deferred until withdrawal. Understanding the benefits and drawbacks of different retirement vehicles is crucial to adapting to your unique situation.

Planning for Health Care and Long-Term Care

Healthcare can be one of the most significant expenses in retirement, so make it a point to understand how Medicare works and the role of supplemental insurance. Unfortunately, Medicare doesn’t always cover everything, and supplemental insurance can fill those gaps.

Long-term care, which is often overlooked, should also be part of your plan, as the need for such services increases with age. Purchasing long-term care insurance can help cover the costs of services like home health care, assisted living, or nursing home care, which are typically not covered by standard health insurance or Medicare.

Maximizing Social Security Benefits

Social Security can form a significant part of many retirees’ income. It’s important to understand how it works, when you’re eligible to take benefits, and strategies for maximizing your payout.

The amount of your benefit depends on your earnings history and the age at which you begin taking benefits. For example, if you start taking benefits at the earliest possible age of 62, your monthly benefit amount will be reduced. If you wait until your full retirement age (between 66 and 67 for those born after 1943), you’ll get your full benefit. If you delay beyond your full retirement age, your benefit will increase until 70. For these reasons, it’s crucial to understand your full retirement age, as claiming benefits earlier can permanently reduce your monthly benefit.

Navigating Retirement Tax Implications

While it’s easy to think that retirement means no longer worrying about taxes, the reality is that retirement income can still be taxable, and the tax implications can be complex. Being aware of the tax implications of withdrawals from different types of retirement accounts is an essential aspect of retirement planning. For example, traditional 401(k) and Individual Retirement Accounts (IRAs) grow tax-deferred, but the distributions are typically fully taxable. On the other hand, Roth 401(k) and Roth IRA distributions are usually tax-free, provided certain conditions are met.

Required Minimum Distributions (RMDs) are another important concept to understand. After reaching a certain age, typically 73, you must begin withdrawing a certain amount from your retirement accounts each year, and these withdrawals are usually subject to income tax. Another consideration is how Social Security benefits are taxed. Depending on your income level, a portion of your Social Security benefits could be taxable.

Given the complexity of these issues, consulting with a tax professional or financial advisor can be beneficial. They can help you strategize to minimize your tax liability in retirement and ensure you’re compliant with tax laws.

The Role of Estate Planning in Retirement

Estate planning, while sometimes delayed in retirement planning, plays a pivotal role in ensuring that your assets will be distributed according to your wishes after your death. It also can help avoid potential legal complications and disputes among your heirs.

Key components of estate planning include creating a will, which outlines your wishes for your assets after your death; establishing trusts, which can help manage your assets and potentially provide tax benefits; and designating powers of attorney, which give a trusted individual the authority to make financial and medical decisions on your behalf if you become incapacitated.

Considerations such as life insurance policies and end-of-life healthcare decisions (often documented in a living will or healthcare directive) can also be part of your estate plan.

Keeping your estate plan updated is essential. Major life changes, such as marriage, divorce, or the death of a beneficiary, can necessitate changes to your estate plan. Regularly reviewing your plan with a legal professional can ensure it stays aligned with your intentions and current laws.

Embracing Lifestyle Changes

Retirement is a significant life transition that often involves substantial lifestyle changes. It’s important to prepare for these changes to help make the transition smoother and more enjoyable. For example, the shift from a structured work schedule to having more free time can be challenging for some retirees. Developing a routine or schedule can provide structure and purpose. This could involve regular exercise, pursuing a hobby, volunteering, or even part-time work.

Social connections also play a crucial role in a fulfilling retirement. Friendships, family relationships, and social activities can provide emotional support, reduce the risk of loneliness, and contribute to mental health – all of which are essential ingredients to a happy retirement. Continuing to engage with your community, whether through clubs, volunteer work, or local events, can provide valuable social interaction.

Finally, retirement is an opportunity to explore new adventures that you didn’t have time for during your working years. Whether it’s traveling, gardening, learning a new language, or writing a book, pursuing interests can provide enjoyment and a sense of accomplishment, adding further purpose and value to your retirement days.

Conclusion

Planning for a stress-free retirement might seem daunting, but it’s more manageable when broken down into steps. There’s no need to move mountains today – as you have most of your life to prepare – but it never hurts to get started early. Every box you check now is one less you’ll have to check later. Just remember, it’s all about creating a future where you can enjoy the fruits of your labor without financial worry.

Have a great weekend!

Source: Ballentine Capital Advisors 

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Golf Tip of the Week

The Incredible Backstory of The Putter Jim Furyk Used to Win The U.S. Open 20 Years Ago

Every year at the U.S. Open there are good stories. From the champion’s tale to the travails of the unknowns. Reporters routinely capture these moments and share them with the world. The role the player’s equipment plays in these yarns, however, is sometimes overlooked. Such was the case at the 2003 U.S. Open at Olympia Fields, won by Jim Furyk. Here we go back 20 years to the story of Furyk’s Bettinardi Baby Ben putter as well as taking a look at the rest of his bag.

Just five days before the start of the 2003 U.S. Open outside of Chicago, Dave Billings, president of Dogleg Right Golf, received a disturbing piece of news from the USGA: The backweighted Superline putter his company produced was ruled non-conforming. The USGA claimed the putter did not adhere to the plain in shape statute and recommended a few changes that would make the club legal. “The club had a back weight that does not wrap completely around the club,” said Dick Rugge, senior technical adviser for the USGA at the time. “That was the primary problem.”

Under normal circumstances, such a ruling wouldn’t be a big deal. But these were not normal circumstances. Jim Furyk had used the Dogleg putter in each of his last three events—including two top-10 finishes—and was heading to Olympia Fields C.C. for the U.S. Open.

Billings contacted Furyk, who was understandably upset. No player wants his putter—especially one he’s had success with—taken from them right before the national championship.

Beginning Monday, Furyk started practicing with a new Ben Hogan by Bettinardi Baby Ben putter at Olympia Fields, the USGA granted Billings an emergency appeal on Wednesday in Chicago. The appeal, however, was denied. According to Billings, the USGA allows players who have been using a putter that the association decrees nonconforming to continue using it for a reasonable period as they adjust to something else. However, the request to allow Furyk to continue using the Dogleg Right putter was denied as well. Billings then took the putter to Nike’s tour van and made the necessary alterations. By then, however, Furyk had already decided to go with the Baby Ben—a smaller version of the Hogan Big Ben mallet.

Armed with the new putter, Furyk got off to a fast start—taking just 25 putts in the first round and boosting his confidence. It translated to the rest of the week.

“I’d never putted with a Bettinardi putter until this week,” said Furyk, who declined to discuss the nonconforming issue. “I liked it for alignment purposes, it has a big line on the top. I was real comfortable with it. I gave it a try and was in there working with Bob’s rep all week, just making little adjustments, making adjustments, getting the line and loft. And I felt like I was really comfortable with it and I putted very well with it this week. I made some key putts and some great putts. It’s kind of an interesting story.”

No kidding.

What Jim Furyk had in the bag at the 2003 U.S. Open

Ball: Top-Flite Strata Tour Ace

Driver: Titleist 983K (UST Proforce Gold 65X), 8.5 degrees

3-wood: TaylorMade 200, 15 degrees

5-wood: Orlimar TriMetal, 19 degrees

Irons (3, 5-PW): Ben Hogan Apex Plus Forged Cavity

Wedges: Titleist Vokey 200 (50, 56 degrees); Ben Hogan Colonial (60 degrees)

Putter: Ben Hogan by Bettinardi Baby Ben




Tip adapted from golfdigest.comⁱ

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Recipe of the Week

Skillet S’Mores

6-8 Servings

Ingredients

• 3 tablespoons unsalted butter
• 1 cup walnuts, roughly chopped
• One 12-ounce bag mini chocolate chips
• 3 cups mini marshmallows
• Graham crackers, broken into squares, for dipping

Instructions

• Preheat the broiler on high.
• Heat a cast-iron skillet over medium heat. Melt the butter in the skillet, add the nuts and toast until fragrant. Remove from the heat and sprinkle the chocolate chips evenly over the nuts. Spread the marshmallows over the chocolate chips. Place the skillet under the broiler until browned on top.
• Serve in the skillet and use graham cracker squares for dipping.

 

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Health Tip of the Week

Self-Care for Chronic Migraines

It’s hard to work, see friends, or do much of anything when you are in the throes of a bad migraine attack. That’s why preventing them — or decreasing the number of headaches you have — will improve your life in so many ways.

This is especially important if you have migraines like these:

• High-frequency episodic migraine: You get headaches 10-14 days each month.
• Chronic migraine: You live with a migraine most of the time — 15 or more times a month.

Typical treatment may mean taking two different kinds of medicine: one to keep attacks from happening, and the other you take during a migraine to ease the pain and keep it from getting worse.

But when headaches come fast and furious you need a plan that doesn’t rely on pills alone. A good self-care routine can help pump the brakes on migraine.

Sow SEEDS of Success

A migraine is a nervous system disorder that appears to be hereditary. That means it’s passed down through your family. You can’t change your genes but you can make chronic or high-frequency migraines easier to deal with by keeping a regular daily schedule. It’s something migraine experts call “SEEDS.”

S is for Sleep. One of the biggest favors you can do for yourself is to keep a consistent sleep-wake schedule. That means go to bed at the same time and get up at the same time, even on weekends. Most adults need 7-9 hours of sleep.

Try these tips to get the shut-eye you need:

• Set the mood. Do things that tell your body that it’s time for bed. Draw a warm, relaxing bath, read a book, or listen to some soothing music.
• Make your bedroom a soft place to land. Make sure your mattress, pillow, and bedding are comfortable. Dim the lights a
• nd close the blinds.
• Turn down the heat. A cooler bedroom is typically more sleep-friendly. Between 60 and 67 F is ideal.

E is for Exercise. Regular exercise raises natural pain-killing hormones called endorphins. It can also relieve stress, fight anxiety and depression, and help with sleep.

Ideally, a good routine includes cardio like walking or swimming, strength training to build muscle, and flexibility training like yoga. Try to work in exercise most days of the week. Set aside time in your schedule so you’re not tempted to skip it.

Start slowly and gradually add more minutes of movement if you’re new to exercise. Of course, talk to your doctor first to make sure you’re healthy enough to start.

E is for Eat, too. It’s important to keep your blood sugar steady, so don’t skip meals. Ask your doctor if eating five or six small meals may help you. Avoid heavily processed foods or those you think may make your symptoms worse.

There’s no solid proof that a particular food causes symptoms, but some may be linked to migraines, including:

• The artificial sweetener aspartame
• Chocolate
• The additive MSG (monosodium glutamate), found in seasonings, condiments, and fast food (including Chinese dishes)
• Processed meats with sulfites, like bacon and salami
• Alcohol (especially red wines)

Caffeine is a double-edged sword. A little can stop a headache; too much can bring on one. So, moderation is key. If you drink coffee, for example, limit yourself to one or two cups a day. If you’re used to a morning cup of joe, don’t skip it. Caffeine withdrawal can set off a headache.

D is for Dehydration. Even mild dehydration can cause head pain. In general, aim to drink about 2 liters of water a day, unless your doctor has told you to drink more or less fluids. Carry a water bottle to sip on. Drinking water may be all it takes to stop a migraine in its tracks.

S is for Stress Reduction. You can’t avoid all stress. Work deadlines, family and financial problems, and personal loss are part of life. And stress can cause headaches. In fact, 50% to 70% of people with migraines say stress is linked to their symptoms. Use these tools to help you deal with stress:

• Take slow deep breaths
• Learn meditation
• Focus your mind on a relaxing, calming image
• Exercise

Target Triggers

Building a good self-care routine through SEEDS can help you deal with migraine triggers better.

Triggers are things that set off a migraine or make it worse. Other common migraine triggers and ways to handle them include:

• Light. Wear sunglasses outside and stay away from fluorescent or flickering lights inside.
• Strong smells. As much as possible, avoid perfumes, smelly chemicals, and strong food odors.
• Weather. You can’t control heat, humidity, storms, or sudden weather changes. But you can tweak your routine. Stay in the air conditioning as much as possible when it’s hot. Go out in the cooler mornings or evenings.
• Too much medicine. Pain pills are a catch-22 when you have chronic migraines. They certainly can make you feel better, but using them too much can lead to more headaches. Talk to your doctor about how to better manage your migraines if you reach for pain pills more than 10-15 times a month. About half of people with chronic migraines get much better when they are “weaned off” overused medication and focus on prevention and other treatments instead.

Hormone changes are a huge trigger for women, especially. You may get migraine symptoms around your monthly period. “Menstrual migraine” can also involve nausea or vomiting. Talk to your doctor about how to help prevent hormone-triggered migraines.

If you don’t know what triggers frequent and chronic migraines, start a diary. Note the days you had headaches and how bad they were. Record what you ate and drank, medications you took, what the weather was like, sleep habits, etc. You might be able to spot a pattern and pinpoint what causes your pain.

You can either simply write all this down or download a smartphone app.

Think Outside the Pill Box

Self-care can also include some approaches you may not have considered:

Acupuncture. This is an ancient Chinese treatment that uses needles placed in certain parts of the body. It’s believed to disrupt pain signals. In a review of almost two dozen scientific studies, acupuncture reduced the frequency of migraines by at least half in about 60% of people in the studies. That is similar to the effect of medicine used to prevent migraines.

Don’t expect results overnight. It could take at least six sessions for it to work.

Dietary supplements. Check with your doctor before adding any herbs or supplements. Some may interact with medications you take or could hurt you if you have other health conditions.

But these have been shown to keep migraines from happening or reduce the number of headache days you have:

• The mineral magnesium (400-600 mg/day)
• The vitamin riboflavin (400 mg/day)
• An antioxidant called coenzyme Q10 (CoQ10) (300 mg/day)

Heat and cold therapy. Try this the next time you feel a migraine coming on: Put a cold pack on your neck and forehead. Meanwhile, put your hands and feet into hot water (as hot as you can stand). This draws blood away from your head and into your extremities, which can ease the pain. Because of your chronic condition, it may not be possible to do this every time you have a migraine. But it’s a good idea to keep a lot of cold packs handy.

Creative solutions. Painting, knitting, writing, woodworking, and more can give you an outlet to relieve stress. Cooking and baking can help you unwind, have a more nutritious diet, and even pinpoint food triggers.

Open and honest communication with your healthcare provider is part of self-care, too. Tell your doctor if your treatment plan isn’t working. Together, you can brainstorm some ways to find relief.




Tip adapted from WebMD.comⁱⁱⁱ 

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Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.

This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.

No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.

Advisory services through Ballentine Capital Advisors, Inc.

ⁱ https://www.golfdigest.com/story/the-incredible-backstory-of-the-putter-jim-furyk-used-to-win-the-us-open-20-years-ago
ⁱⁱ https://www.foodnetwork.com/recipes/jeff-mauro/smauros-skillet-smores-2383345
ⁱⁱⁱ https://www.webmd.com/migraines-headaches/migraine-self-care