Menu Close

Retirement Newsletter April 2016



Many of us may retire earlier than we anticipate. In fact, a recent Voya Financial survey found this to be true for 60% of Americans. The reasons for a forced retirement varied from health issues (16% of respondents) and job loss (11% of respondents) to becoming a caregiver to a loved one (3% of respondents).

If it happens to you, how should you respond? One, look for a part-time job you can still perform; less physically demanding work, or work you can do at home without a commute. Look at your savings, and the way they are invested, with an eye on protection.

Slash your expenses wherever you can: think about living with one car, eating in more often, even downsizing to a smaller residence if it looks like that might be cost-effective. Look at unemployment insurance; if you were working full-time and you were laid off or your job was eliminated, you are likely eligible. If you are 62 or older, think twice about immediately applying for Social Security; remember, your monthly benefit grows larger with time. The value of such incremental gains should not be dismissed. If waiting another year to apply means that your monthly benefit will be only $80 higher, that $80 difference will still put $20,000 more in your pocket over the course of a retirement lasting more than 20 years.1


The self-storage business has quietly become a multibillion-dollar industry. Some people are paying $100, $200, or even more per month to store things they could arguably keep at home. At a time of life when every dollar saved toward retirement really matters, spending $1,200-2,500 a year to maintain what amounts to a spare closet may make little financial sense.

A storage unit can be a good idea if you are in the middle of a move, or if you want to protect vehicles from the ravages of winter. The opportunity cost of renting storage space, however, is significant. If you pay $100 a month for storage space for 10 years, that $12,000 is simply gone. If you invest $100 a month for 10 years and achieve an 8% annual return, that $12,000 will grow to $18,295.2

A study published this winter in the American Journal of Preventive Medicine concludes that retirement has health benefits. University of Sydney researchers tracked 25,000 older adults and found that retired subjects enjoyed 93 minutes more of physical activity per week and 11 more minutes of sleep per day.3

APRIL 2016

There is nothing stronger in the world than gentleness.

– Han Suyin

Ten-Minute Curry Fajitas

2 medium flour tortillas

1 large red bell pepper

½ medium onion

½ tsp. olive oil

½ tsp. curry powder

¼ tsp. chili powder

1 tbsp. salsa

Fry tortillas over high heat for 30 seconds on one side. Set them aside. Cut the bell pepper and onion into ¼-inch strips. Heat the oil over high heat in a medium saucepan. When the oil is hot, place the bell pepper and onion in the pan and fry for 2 minutes, stirring constantly. Season the onion and pepper with the curry, chili powder, and seasoned salt. Continue cooking for 5 minutes over medium heat. When peppers are tender, divide the mixture between the two tortillas, top each one with salsa and enjoy! Makes 1-2 servings.

Seventy-Seven Switcheroo.
How can you make 77 into 1 by adding only one line?*

Scorpions live on little sustenance

The venomous arachnids can go up to a year without eating.4

Paul E. Lewis, CFP®, CWS® may be reached at 217-337-5584 or paul.lewis@rfsadvisors.com.

Securities and Advisory Services offered through Triad Advisors Member FINRA/SIPC

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

* TRIVIA ANSWER: Stumped? Contact me for the answer! 217-337-5584.

1 – fool.com/investing/general/2016/04/02/forced-into-retirement-5-smart-moves-you-can-make.aspx [4/2/16]

2 – bankrate.com/finance/smart-spending/is-storage-unit-eating-retirement-savings.aspx [2/15/16]

3 – consumeraffairs.com/news/retirement-can-lead-to-improved-health-study-finds-031416.html [3/14/16]

4 – todayifoundout.com/index.php/2011/12/scorpions-can-live-for-as-much-as-a-year-without-eating/ [12/29/11]