July 2013

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Special Advertising Section Secure YOUR FINANCIAL FUTURE Take control of your retirement planning now—in your 30s, 40s and 50s— and help ensure the comfortable future you deserve BY JENNIFER BRADLEY at Summit Credit Union. It's imperative, she says, that whether a It happens every month. The financial paperwork arrives in your woman is in her 30s or 60s they create a balanced financial plan mailbox and inbox—bank and IRA statements, thick packets of with dedicated short-term, midterm and long-term goals. information on new investments you could or "should" consider. A first step to assessing your future needs is to think about your Like many, you take a peek at what sometimes seems like imperintended spending habits and troubleshoot possible needs in remeable information, and then just file or toss, trusting that the ball tirement. Michelle Taschek, CFP a senior portfolio manager of The , is rolling steady and everything will manage itself with the investPrivate Client Reserve at U.S. Bank, says that a woman should estiments you've made, even those from years ago. mate how much she expects to spend each year in retirement, while But avoidance is no strategy. Financial experts say it's critical for considering all sources of income. women in their 30s, 40s and 50s to take charge of "The goal would be to have a portfolio that is 25 their retirement planning—and to do so on a highly times the amount you expect to withdraw the first individualized level. Why? "The goal would be year," she says. Research shows that two-thirds of all consumer to have a portfolio "Assuming retirement will last 30 years with a wealth will belong to women in the next decade. that is 25 times the balanced portfolio, a person should withdraw an That says a lot for the buying power, and also planaverage of 4 percent each year. This number will ning needs, of women throughout their adult amount you expect vary for each woman, and could likely change many lives. Women sign 80 percent of all checks, both to withdraw the first times over retirement depending on factors includbusiness and personal. They take care of 75 percent year." ing housing and health care," says Taschek. of the family's finances, and 50 percent of all stock Maureen Lokrantz, wealth management advisor market investors are women. These women are Michelle Taschek, CPF, senior at The Private Client Reserve of U.S. Bank, works stepping up at increasing rates to take control of and portfolio manager at The Private with women and families of every age and backsecure their financial futures. Client Reserve of U.S. Bank ground. Whether widowed, divorced, married or Each decade poses a unique opportunity for retired, "Individual circumstances are different and women to address their financial planning. Here, change unexpectedly," she says. "Life happens in ways we don't experienced Madison-area advisors offer advice on money mananticipate." agement in your 30s, 40s and 50s. While each decade has its own Lokrantz explains that the "sandwich generation," the large important considerations, all of the advisors agree: No one womgroup of women in their 40s and 50s who find themselves sandan's retirement or investment situation is exactly like the next. wiched between parents and children, has increased the pressure Retirement planning is unique to the individual and her goals. One on women to manage their family's money. Lokrantz has a current woman may be content retiring at home, doing volunteer work and client who manages her own—and her mother's—finances. tending a garden while the next wants to travel the world. Neither "She's going through that discovery of what Mom has and is right nor wrong, but each goal requires a different level of savings where," Lokrantz explains, "and now needs direction on what and perhaps, sacrifice, in the working years. to do with those funds and investments to ensure Mom's bills are Making Dollars and Sensible Decisions being paid. Because Baby Boomers, like this client's mom, are While the 2008 recession crippled the financial market, it also gave living longer, and Baby Boomers' children are becoming parents people a chance to study their spending and saving habits, includthemselves, it's become a unique situation for sandwich generation ing retirement planning. Many retirees who thought they were sewomen who, in their middle decades of life, are deciding between cure suddenly found themselves re-entering the workforce. While colleges, stock options and senior housing simultaneously." the economy has regained momentum, financial advisors say that "When the decision comes down to the children or yourself," the way we plan for retirement has changed. Lokrantz says, " it's OK to set boundaries. I think the best gift we "No longer can investors depend on pensions or Social Security," can give our kids is for them to not have to take care of us when says Jody Brown, financial advisor with Summit Financial Advisors we're older," she says. July 2013 51

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