5 Different Lifestyle Planning Tips For Living Your Best Life

One of the beautiful things about life is that each person experiences it differently. However, for that very reason, it is vitally important to find the right financial planning resources to reflect your individual life situation. Financial planning should not be seen as a one-off project that sets you up for life. It should be seen as an ongoing consideration that needs to change with your own priorities as your life progresses.

At Payne Wealth Partners, we believe you deserve customized planning services based on where you are in life and the situation surrounding your lifestyle. We understand that staying on top of all of your financial affairs – along with the various laws that govern us – can be quite a challenge, so we would like to share some of our experience to help you think outside of the box to uncover relevant financial planning considerations for your unique situation.

Retiring couple

One key consideration if you are a retiring couple is to understand the impact your income has on how much you will have to pay for Medicare. For Medicare Part B, for example, the monthly premium will rise from $187.50 to $267.50 for each spouse if your combined annual income exceeds $214,000. Get more detail here.

And then there is your legacy to consider. There are several different types of accounts available that you can use to create a powerful legacy for what is most important to you, whether that is your grandchildren and/or a charitable cause. According to the IRS, an IRA could allow you to donate up to $100,000 per year tax-free to charity, while the current Roth IRA rules provide the opportunity to stretch distributions over a beneficiary’s lifetime, and when used for grandchildren it could turn into a “large dollar amount.”. The Roth IRA enables savings to grow tax-free and also exempts withdrawals from tax (when IRS rules are followed), which may provide your grandchildren a legacy that will grow and be paid out over time with all the growth going to them income tax-free.

Expenditures throughout retirement will vary, so it’s important that retirement planning is flexible and ongoing to reflect life’s changes – and it will change. In the first two years of retirement, it’s not uncommon for households to spend more than they did in pre-retirement. Often times, newly retired individuals enjoy the freedom of the non-working life by traveling more or picking up new hobbies. When retirees reach their 70s, spending has been seen to drop off, but later in life spending can increase again, exceeding the early-retirement levels, when healthcare becomes a more serious consideration.

High Income Earner

If you’re a career high-flyer, you may have been placed in a high tax bracket very quickly, so it will be prudent to utilize smart saving strategies that will benefit you in your career years, your retirement years and your desired legacy.

It’s highly likely you will also enjoy a number of different benefits from your employer (i.e. restricted stock, 457 retirement plan, non-qualified deferred compensation (NQDCP), stock options, nonqualified defined benefit restoration plan, etc..). Be aware that these can often have quite complex terms, and there will of course be tax implications that will affect you today and in your future. This is where a fiduciary adviser, like our team at Payne Wealth Partners, really comes into play. Our CERTIFIED FINANCIAL PLANNER™ professionals are experienced in helping individuals understand the intricacies of one’s benefits and effectively model relevant scenarios that will help you make informed decisions for your unique situation.

If you are without any children or grandchildren to worry about in your legacy planning, you may have the desire and freedom to invest a significant sum of money in a cause that is important to you. This places you in a good steward position to create your own charitable foundation. A common fear among retirees without children is that they will leave no legacy after they die, so a charitable foundation or a donor advised fund may be an ideal way to make an impact.

The important takeaway here is that financial planning is not simply about the figures. Although a portion of financial planning will have details on the saving of tax and the maximization of investment, a good plan is only complete if there is some serious thinking about how the money saved/earned is going to benefit a wider human cause.

Parents with young children

One of the key factors here is to constantly look at the moving parts of the equation. Young children will eventually grow up, so the challenge is to combine the day-to-day financial needs and wants that come with having children along with a savings plan that will be there for you and them in the future.

There are a multitude of savings options, so it’s certainly worth understanding the different options available to explore what will work best for your particular situation. The one thing we recommend here is that your overall planning should be flexible enough to adapt with the changing needs of a family.

Also, ever-changing legislation is an area where you should aim to keep your knowledge up to date. While this is hardly going to be at the top of the agenda when raising a family, it’s beneficial to have a skilled financial adviser in your corner who makes it their business to wade through the complexities of the marketplace on your behalf. To not be aware of a change in regulations and to not have the expertise in place to respond to it could cost you a significant amount of money, which could mean less family experiences.

Same-sex couples

There is a lot of variation from state to state regarding the rights of same-sex couples so keeping a close eye on the law is very important here. For example, there may be cases where a same-sex marriage could place a couple in a higher tax bracket than if they filed their tax returns separately.

Beyond tax, it’s worth considering the spousal benefits that same-sex couples have been entitled to receive since same-sex marriage was legalized in 2015, such as employee-sponsored healthcare coverage and life insurance.

Financial considerations will of course be different for a couple who wishes to raise children through surrogacy or adoption, not only in the sense of expenditure but in the potential help available. Couples of all persuasions are often surprised at the amount of help that is out there to meet the costs of surrogacy/adoption (i.e. federal tax credits, company adoption benefits, specialized loans and charitable grants). An experienced fiduciary adviser will help point you in the right direction to find these cost-saving opportunities.

In summary

The key takeaway from this is that there is no one-size-fits-all method of financial planning. Your planning needs to change in accordance to your life situation, but it can often be very difficult to keep track of everything mentioned above. However, with the proper financial planning resources and a knowledgeable CERTIFIED FINANCIAL PLANNER™ professional on your side, you have the opportunity to make changes in your life today.

Whatever your circumstances, one of our Evansville fiduciary advisers would be glad to help you create a planning relationship that will work for you today and, more importantly, set you up for tomorrow.


Published: August 16, 2017

Author: Ann Pendley, CFP®

Phone: (812) 602-6304

Email: aapendley@paynewealthartners.com

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The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

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Payne Wealth Partners, Inc.
Keystone Financial Consulting
601 N Cross Pointe Blvd
Evansville, IN 47715
Phone: 812-477-6221
Toll Free: 888-477-6221
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