{"id":424,"date":"2012-05-28T20:52:04","date_gmt":"2012-05-28T20:52:04","guid":{"rendered":"https:\/\/eagleoneresources.com\/?p=424"},"modified":"2012-05-28T21:09:14","modified_gmt":"2012-05-28T21:09:14","slug":"what-do-you-mean-i-dont-get-my-husbands-retirement-anymore-2","status":"publish","type":"post","link":"https:\/\/eagleoneresources.com\/?p=424","title":{"rendered":"What Do You Mean I Don’t Get My Husband’s Retirement Anymore?"},"content":{"rendered":"
\n\t\t\t\t\t\n\t\t\t\t\t\t\"Fb-Button\"\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>
<\/fb:like><\/div><\/div>
I got a call last month from the wife of my friend “Jack” telling me that Jack had died; and, asking if I could help her with making sense of his affairs. \u00a0She felt overwhelmed. \u00a0Jack left no will and she was learning that she was in for a rough financial road ahead. \u00a0She was afraid that she might not have enough income to remain in her home.<\/div>\n
Jack worked hard all of his life; made what he believed were good choices. \u00a0To ensure that he and his wife could really enjoy their golden years, he took the highest income possible from his retirement, a “lifetime” income, so that they could travel; see and do things that they’d always dreamed of. \u00a0Little did he realize that in doing so, he was sowing the seeds for a financial problem for his wife!<\/div>\n
Last week, Jack’s wife got a letter from his former employer informing her that, because he had selected a “lifetime” income from his retirement plan, the monthly retirement check he’d been receiving was being terminated. \u00a0The income had been provided for his lifetime only and ended at his death! \u00a0While it had provided them with a very generous income while he was alive, she would receive nothing in the future!! \u00a0Needless to say, she was both shocked and afraid. \u00a0She wanted to know why Jack’s employer had not given him other income options. \u00a0What she did not realize was that they had. \u00a0Because his wife had been undergoing health issues at the time of his retirement, he never anticipated that she would outlive him. \u00a0Consequently, he made his selection in the belief that he was making her last years as full and enjoyable as possible. \u00a0He always anticipated that he could fend for himself when she was gone.<\/div>\n
Retirement plans offer various choices as to how income will be received; and, people can plan for retirement well ahead of their last year of work. \u00a0Let’s take a brief look at the options Jack had in his retirement plan and how a different selection might have provided an income for his wife following his death.<\/div>\n
\u2022\tLife Income – this is the option Jack chose. \u00a0It pays the highest monthly income at his retirement; BUT, as his wife learned, that income ends when he dies. \u00a0To illustrate the other options, we will assume that this option provided an income of $1,000 per month.<\/div>\n
\u2022\t75% Partial Benefit – had Jack elected this option, his monthly income would have been reduced by 25%. \u00a0Consequently, he would receive a monthly pension of $750 per month. \u00a0At his death, his wife would continue to receive a monthly check in the amount of $250.<\/div>\n
\u2022\t50% Partial Benefit – by choosing this option, Jack would have agreed to receive a monthly retirement income of $500. \u00a0At his death, his wife would continue to receive the same $500 per month.<\/div>\n
\u2022\tLump Sum Benefit – At first glance, it’s easy to ask how taking a lump sum payment would have enabled Jack’s wife to receive an income after his death. \u00a0However, the fact is that this money could have been invested in a manner (i.e., a portfolio of dividend paying stocks, interest paying bonds, or an annuity) that would create an income for them both.<\/div>\n
Each of these \u00a0options has advantages and disadvantages; and, no option is perfect for all situations. \u00a0When planning for retirement, it’s important to examine all options and carefully consider how each option might impact you and your loved ones.<\/div>\n","protected":false},"excerpt":{"rendered":"

I got a call last month from the wife of my friend “Jack” telling me that Jack had died; and, asking if I could help her with making sense of his affairs. \u00a0She felt overwhelmed. \u00a0Jack left no will and she was learning that she was in for a rough financial road ahead. \u00a0She was […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"","footnotes":""},"categories":[44,66,13,63,62,65,35,64,49],"tags":[],"class_list":["post-424","post","type-post","status-publish","format-standard","hentry","category-financial-planning","category-making-money-last","category-money-management","category-pension-maximization","category-pension-planning","category-pension-planning-retirement-planning","category-personal-finances-2","category-retirement-income","category-retirement-planning"],"_links":{"self":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts\/424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=424"}],"version-history":[{"count":4,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts\/424\/revisions"}],"predecessor-version":[{"id":427,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts\/424\/revisions\/427"}],"wp:attachment":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}