By Dano W. LoPresti, CFP®, ChFC®, AIF®

Millions of Americans each year are entering into a dramatically different phase of their financial lives. As they transition from full-time work into retirement, they are moving from “accumulation” – building wealth through savings in their working years – to “distribution,” drawing on savings for income they can rely on for the rest of their lives. Those life savings will also be a source for any legacies they choose to leave.

The transition is more than just a move from work to retirement – it requires a major change in the way people manage their money as well has how they view retirement. Retirement has changed since past generations, a major shift has occurred in how retirements are funded in this country – away from companies and the government and onto the shoulders of individuals.

The retirement phase of people’s financial lives poses new challenges that require a new mindset. Many of the investment principles and strategies that people rely on while accumulating wealth remain valid in retirement; but there are significant differences in how they may be applied tactically. The consequences of not making prudent decisions can be very painful.

Fortunately many Americans do have the means to help create a financial secure retirement that fits their lifestyle – if they take inventory of their resources, plan wisely (get assistance if necessary), and act.

The bottom line is more of the responsibility for meeting income needs and health care expenses in retirement is shifting to individuals, and we all need to make retirement income plans to meet the responsibility. By planning wisely, we increase the potential of enjoying our retirement years.

Retirement 10 Step Program

Take the confusion out of retirement planning by breaking down each element into manageable parts. Taking a proactive approach can bring satisfaction and comfort knowing your future is prepared for by providing for yourself and loved ones. Eliminate surprises by being informed of what you have and what to expect. Here are things to consider:

1. Take an inventory

2. Estimate Retirement Income

3. Understand Safe Withdrawal Levels and Earning Potential

4. Asset Preservation and Protection

5. Healthcare

6. Retirement Spending Plans

7. Where you are today to where you want to be

8. Investment & Asset Allocation

9. Tax Planning

10. Leaving a Legacy

Taking the time to go through each of these elements will be worth the time and effort. Some of these topics may include the help of a Certified Financial Planner for help on some of the more complex areas such as: tax regulations, insurance options, estate planning, asset allocation, and understanding your Social Security benefit to maximize your income during retirement. CALL Legacy Financial Planning at 815-786-7851 and email me at dano@legacyfp.com to request your FREE GUIDE.

By Warren Stortroen

There was a lot of splashing and commotion ahead of our boat and as we got nearer we saw that a bald eagle had a salmon too big to fly with, so was dragging it to shore; we rounded a point and an Alaskan brown bear on the beach whirled and disappeared into the willows; a mother black bear with two cubs stood and watched us from a gravel bank by a small stream; we heard some pitiful cries and saw a ball of fur floating on the surface – it was a baby sea otter waiting for his mother to return from a dive for food! This all happened on one of our daily boat trips on the Earthwatch Institute volunteer research expedition SEA OTTERS OF ALASKA in wild and scenic Prince William Sound!

The six volunteers flew into Cordova and met at the sea plane base to be flown to Alice Cove on a Beaver float plane. There, a comfortable cabin, built and owned by Co-Principal Investigator Fred Weltz served as sleeping quarters for research scientist Dr. Randall Davis and part of the staff; as our meeting place and dining room; the only place for a shower; and for socializing in the evening – Fred sometimes entertained with his guitar and folk songs! The volunteers and part of the staff slept in sleeping bags on cots in two large platform tents – it was June so it never really got dark and trips in the night to the outhouse were not a problem! Fred slept in his salmon fishing boat anchored in the cove and the only other residents of Alice Cove were blue jays, squirrels and an occasional bear!

Because of the long days and frequent light rain, starting hours were flexible, but each morning after a hearty breakfast we would board one of the two research boats and head to one of the nearby bays for our day’s work. Those in Fred’s boat would do bottom sampling and shore mapping in the areas used by the sea otters and those with Randy would assist with otter observation and photography. He was trying to develop a photo ID system similar to that used with dolphins and whales so individual otters could be followed over a period of years. This system, plus observation of the otters diving, feeding and socializing could help to determine why they are successful in some areas and declining in others.

The sea otters were fascinating to watch and wonderful to work with! While resting or feeding on shellfish they would float on their backs with their front paws folded or holding the food. The mother otters cradled the fuzzy youngsters in their front paws. Juveniles played and wrestled with each other and the dominant male swam around with his head upright to survey his territory!

Randy had a sophisticated digital camera with an 800mm lens and would start shooting when we got within 50 feet of the otters. One volunteer used range-finding binoculars and would call out ranges as we approached them, while another would record the photo numbers and ranges that coincided so that the size of the animal could be measured later. Another volunteer recorded GPS locations and kept track of surrounding otters so that when finished we could move on to the next group.

After the project I spent a couple of nights in Cordova and rented a car for myself and a young volunteer, Caitlin, for a day trip across the Copper River delta up to the spectacular Child’s Glacier! At the end of the road is the Million Dollar Bridge, a relic of early copper mining days. This is a great wildlife area, and the Copper River is famous for wild salmon!

This was a well-run project and a great group of volunteers and scientists to work with! The wilderness scenery was great and the wonderful, playful sea otters made this one of my most memorable Earthwatch adventures! The expedition is no longer being offered, but there have been sea otter projects along the California coast or sea bird and shore bird projects in Prince William Sound, so for interested senior volunteers I’m sure similar projects will become available in the future!

Ed. Note: RLM experts Billy and Akaisha Kaderli share their views about the new retirement options, as they explore the world. 

By Billy and Akaisha Kaderli

It has been 22 years since we exchanged our briefcases for backpacks and as it has turned out, it’s one of the best decisions we’ve made. Trading an office for the world, opening our minds instead of books, and swapping sandwich lunches for global cuisine, what an experience it has been!

The fine people, intriguing characters we have met and the exotic places we have been are only part of the joy. The challenge to overcome obstacles and the flexibility we have learned in order to move with the flow at times when there is no plane, train or bus going where we wish to go only strengthens us and enriches the experience.

Some might say we’re crazy

We gave up the life in the States and the familiarity it provides. These choices are incomprehensible to many, but from our point of view, there has to be more to life than making repairs, being held hostage to a mortgage and paying off debts. And, there is if you are willing to make a change.

Freedom and wealth

We do not consider ourselves wealthy based on U.S. standards. After all, we are basically homeless and carless, but we’re globally connected. We have more freedom compared to the guy stuck with mortgage payments, car loans and other debt and who has boxed himself into a life of dependency on his “stuff.”

Does this make sense?

As recent as the 1960’s storage facilities came into play as people could no longer put all of their possessions into their ever larger homes. Today there are over 2.35 billion sq feet of rentable self-storage space in the U.S. with TV shows based on auctioning off the contents of the people who do not pay the monthly rent.

How much is enough?

We posed this question to ourselves over two decades ago, and decided that liberating ourselves of our possessions gave us freedom of movement and expanded our choices. Oh sure we still have treasured items, just not rooms and rooms of them.

Some of you may have gone through something similar and now live on a sailboat or in an RV. For us, trading our briefcases for backpacks allows us to travel the globe, creating memories and gaining a wealth of perspective that cannot be purchased.

After all, in the end isn’t that what’s it all about?

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance and world travel. With the wealth of information they share on their popular website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. For information on their latest book, Your Retirement Dream IS Possible, http://www.retireearlylifestyle.com/orderpage-dreams.htm

Excerpt: “Don’t Let an Old Person Move Into Your Body”

By Jim Donovan

In my opinion, life is not so much about how long we live, as it is our quality of life for however long we are on this earth. To achieve this, I have created a concept I call “My Health Team.” Rather than put the responsibility for my life in the hands of my doctor, I have chosen to take personal responsibility for it and have assembled a team of health practitioners and advisors. You see, while I believe the medical profession, at least in the United States, is very good at treating illness and excellent at emergency medicine, I feel there is a big difference between not being sick and being healthy.

Many people in our world today might be considered “not sick,” since they have no overt symptoms and are feeling alright. However, that is not to say that they are healthy. While traditional medical doctors, for the most part, are great at helping you if you have an illness, it is not within the scope of their work to treat a well person. For this reason, I have assembled my own team of health professionals.

Since I believe the one that is ultimately accountable for my health is me, I have appointed myself captain of my own health team. Depending upon your present level of health and fitness and your beliefs about the subject, your team members will vary from person to person. My own personal team includes, of course, our family doctor, and when necessary, one or more specialists, my dentist, and a doctor who specializes in longevity and preventive medicine.

At various times, my team will include a massage therapist, personal coach, chiropractor, personal trainer, yoga teacher, and various other modalities to help me stay balanced. By employing the concept of a “health team” I am able to maintain the best health possible and continue to improve as time goes on.

In addition to my health team, I eat a healthy diet and supplement that with a number of vitamins, herbs and some of the cutting edge nutrients like Co-enzyme Q10, a powerful antioxidant.

Stephen Sinatra, M.D., a board-certified cardiologist, a certified bioenergetic psychotherapist, a certified nutrition and anti-aging specialist, and the author of The Sinatra Solution, and co-author of Reverse Heart Disease Now, said that in his research, Co-enzyme Q10 was one of the greatest medical advances of the 20th century for the treatment of heart disease.

I exercise regularly, and as I said earlier, I’ve been inspired to set a goal of being in the best physical condition I have ever been. The interesting thing about this goal is that I can never reach it. It will keep moving as I approach it. The more fit I become, the more I increase my fitness capacity. This is one goal that I will enjoy never reaching.

One last thought about health and fitness. You may be thinking “I’m getting older; it’s too late for me to get fit.” Studies have shown that regardless of your age when you begin exercising, you can increase your fitness levels dramatically by following a regular exercise regimen. Of course, check with your healthcare provider before starting any exercise or nutritional program.

Jim Donovan, the Ageless Boomer, is the author of several best-selling self-help books, an inspiring motivational speaker and coach. Look for his new book, “Don’t Let an Old Person Move Into Your Body” to help you make the rest of your life, the best of your life. www.JimDonovan.com

Except from Over 50: The Definitive Guide to Retirement by Auren Uris on the discussion of community living options in retirement.

By Ed Caine

In my view, a key to successful retirement is the ability to keep oneself usefully occupied and absorbed in life. It struck me that retirement activity falls into two major categories, as probably does all human extra-vocation affairs. A person can receive or give, or do both; be entertained or render service, or do both. In fact, I am convinced that a happy retirement for active people is a judicious combination of both categories.

Because it gave us the opportunity for receiving and giving, the [retirement community] Heritage Village is proving to be an almost ideal retirement residence. The opportunities for entertainment, for physical, social, and cultural activities are large. The residents use their skills and backgrounds to enrich the cultural life of the village. For example, a retired teacher conducts a lecture series on poetry. A former professor from Antioch conducts the Shakespeare cycle; plays are heard on tape and discussed… Artists promote exhibits and sponsor classes. An the light side, dances and dinners are promoted. Concerts are held frequently. Organized trips are available.

The life here also offers many opportunities for service. Many residents serve as volunteers in nearby hospitals, state institutions, and public schools. Others have found their niche in helping to govern the village, as members of condominium boards and committees. A fair number of residents participate in the town government as elected or appointed officials.

Shortly after we began living in the village, I decided that I would like to work with the village’s volunteer ambulance service, which the residents had organized. Both of us had decided early on that we did not wish our activities to be limited to the village. Mildred joined the League of Women Voters and soon found herself chairing a group studying the financing of the education system of the local school district.

To round out our retirement, we plan about six weeks of travel each year, either in this country or aboard. Travel lets us get away form the routines that develop even in retirement and prevents the growth of the ivory-tow syndrome that could so easily develop in our enclave of community living.

By Carol Smith

When you think of taking care of your heart, very rarely does laughter pop in most people’s minds. You might be surprised at the health benefits of laughter, particularly to heart.

Researchers have scrutinized the heart benefits of laughter and the evidence is very strong. “The old saying that ‘laughter is the best medicine,’ definitely appears to be true when it comes to protecting your heart,” says Michael Miller, M.D., F.A.C.C., director of the Center for Preventive Cardiology at the University of Maryland Medical Center.

A study by cardiologists at the University of Maryland found that people with heart disease were 40 percent less likely to laugh as compared to people of the same age without heart disease. While it is unclear how laughter helps the heart, it is widely believed that mental stress can adds to the impairment of the endothelium, the protective barrier lining the blood vessels. Laughter is believed to alleviate the effects of mental stress.

In the study, it was determined that people who have heart disease are less likely to find the humor in every day situations that affect us all. People with heart disease tended to be more angry and hostile. Doctors now speculate that in addition to a healthy diet and exercise, daily laughter may help keep the heart healthy.

The benefits of laughter reach beyond the heart. Laughter minimizes pain, as well as stress. It helps to bring the body into physical, as well as emotional alignment. Laughter can inspire hope, connect you to others and lightens the burdens of life.

By Frank Brand

Financial disagreements are the greatest predictor of divorce in a couple. In fact, financial issues can put a greater strain on a relationship in retirement. Tips for money management and financial communication can be an important aspect of the retirement transition.

If you haven’t already, create a household budget planner. Discuss the budget together and make sure both of you are in agreement with it. Have monthly meetings where you discuss your budget and make adjustments accordingly.

Understand each of you have a unique money personality. One of you is more likely to save and the other, spend. Don’t try to change the other, but celebrate your differences and recognize both bring value to the relationship. Make sure your budget allows for each of you to demonstrate your strength.

Create financial responsibilities for each of you. One may be responsible for paying the bills and the other for monitoring investments. Both of you should be involved in your finances and have full understanding of your money situation.

Communicate about your money situation. Don’t have secrets from your partner about finances. If there is a problem, be willing to discuss it and work together to find a solution. Also, be willing to share concerns and worries. In retirement, there are many unknowns about both the present and future.

Work together to establish you financial priorities. What are you financial goals individually and as a couple. Establish action steps that will move your toward your goals. If there are disagreements, work together collaborative to come to a mutual agreement.

Involve financial experts in your financial plan, especially if you have troubles communicating. This can be an accountant, financial planner, insurance agent and/or lawyer specializing in estate planning. Have them help you resolve differences.

Finances for couples can be challenging. Following these tips for money management will help you solve problems early on so it doesn’t destroy the marriage later.

By Jim Leonard

The New Year is a great time to go through basic routines, such as checking smoke alarms batteries and updating your home emergency kit. No one likes to think of being in an emergency that requires basic survival, but we watch thousands of people every year on television that face a disaster.

Experts recommend you be able to take care of yourself for three days, which includes enough water, food and other supplies. It is recommended that you have one gallon of water stored per person per day. If you are at home, you can also drink the water in the tank of the toilet and the hot water heater.  Make sure you have a hand operated can opener. If you have pets, have extra water and food for them.

You first aid kit should include dust masks, moist towelettes and a whistle. Have a flashlight that works with extra batteries. You will want to have a battery-powered radio with extra batteries, and local maps. Include a wrench and pliers to turn off utilities and know where they are located.

In addition to having a home emergency kit, you should also have a smaller version for your car. Of course, people never think it will happen to them, but taking a few steps to be prepared will save you potential regret in the future. It might also save your life.

By Cathy Severson

Nothing smells or tastes better than homemade bread fresh from the oven. While I never considered myself much of a baker, a couple of times a year, I’d make bread for my family. Now that it’s just my husband and me, it seems like a lot of work and excess bread just for the two us. So, I was thrilled to learn about the five minute artisan bread.

I first heard about five minute artisan bread listening to an interview with authors Jeff Hertzberg and Zoe Francois who wrote the book Artisan Bread in Five Minutes a Day. There are two things I like about their basic recipe. First, it doesn’t require any kneading. You throw all of the ingredients in a large bowl, and then place it in the sun for a couple of hours. That’s it.

Once the bread has risen, it’s recommended it be placed in the refrigerator over night. When you want a loaf of bread, you take what you want, shape it into a loaf or ball, let it rise while the oven is warming, cook it for 30 minutes and it’s ready. You can leave the dough in the fridge for up to two weeks, and use it as desired.

The basic recipe consists of flour, water, yeast and salt, which I like and have used numerous times. I purchased the book which gives suggestions for different variations. I love the bread made with olive oil and whole wheat. The book includes peasant loves, flatbreads and pizzas, as well as enriched breads and pastries.

The wonderful thing about the book is all of the breads follow the basic process. There is never any kneading, you can store dough in the refrigerator and use it as you want it. Five minute artisan bread is easy, flavorful and perfect for a couple, an individual or a party.

By Carol Smith

Menopause is different for every woman. When it starts, how long it last and the symptoms of menopause are very individual. How you manage symptoms will also be based on your individual situation.

Having a better life style can help the symptoms of menopause. Following these tips for a healthy life can also help you manage the symptoms of menopause.

Stop Smoking. While the health dangers of smoking are well known, it can also heighten menopausal symptoms. Hot flashes, weakened bones and irritated bladder can be generated by smoking.

Reduce Stress. While menopause can be stressful in women, stress can also trigger symptoms. If you struggle with stress, learn techniques such as yoga, and mediation to lessen the symptoms of menopause.

Exercise. Getting physical activity is the first and most important answer to how to have a healthy life. Getting the heart pumping, weight training, and stretching are all important aspects of a solid exercise program.

Eat healthy. Excess sugar, alcohol and caffeine may affect menopausal symptoms. Eat a well-balanced diet for better health, as well as to minimize symptoms of menopause. Being overweight can also contribute to hot flashes.

As you can see, the suggestions to help manage symptoms of menopause are the same tips for a healthy life. As we get older, the body becomes more sensitive to abuse and lack of healthy behavior. Use menopause as the time to make lifestyle changes to get and stay healthier.