November 15, 2013 The Dispatch/Maryland Coast Dispatch Page 67 MONEY SENSE Retirement Concept Quite Different Now Than Before OCEAN CITY – Today, working in applicable taxes on the withdrawals, retirement isn’t a purely financial for startup capital. (Earlier withdecision. Americans are living longer, drawals would be subject to ordinary and in a world where the average 65- income taxes and possibly additional year-old can expect to live well into federal taxes.) Hunter cautions, howhis or her 80s, what were once ever, that your startup budget shouldn’t depend on funds you’ve known as the post-work years set aside for your baseline rehave become the springboard tirement income needs, based for new, fulfilling journeys – on what you’ve worked out each different from the other. with your Merrill Lynch Finan“Our whole concept of cial Advisor. retirement is changing,” says Relocate with an eye toBill Hunter, director, Personal ward your work life. The best Retirement Solutions at Bank places to retire may not be the of America Merrill Lynch. “People want to stay vital.” BRIAN SELZER best places for your new business. There are many reaWhile everyone’s goals and circumstances will be different when sons to consider relocating in retireit comes to work and retirement, it’s ment: warmer weather, being closer also a fact that continuing to work will to children and grandkids, and lower affect your assets and may require property taxes, to name a few. If new, careful strategies for managing working in retirement is a priority for your income. Here are some things you, remember that location can to think about when considering working into your later years. New careers come with new startup costs. Perhaps retirement is your chance to transform an interest or a passion into part-time work. However, that transition can come with a price tag, and it’s best to be prepared for it in advance – ideally while you’re employed and outlining what your income and spending needs will be during your retirement years. If you expect to be at least age 59 1/2 when you launch your new venture, you can tap IRA funds, minus have a major impact on expenses and quality of life. There are states that offer low unemployment, high job growth potential, a lower cost of living and a favorable tax environment – but they may not always be the best place to pursue the type of postretirement career you’re considering. Rethink when you take Social Security. If your new paycheck allows you to delay taking Social Security, you should consider it. Postponing Social Security payments can significantly boost your available retirement income when you most need it. Take a close look at your insurance needs. The cost of health insurance rises with age and changes in health status. That means it could well be a significant expense, especially during the years before you turn 65 and qualify for Medicare. If you retire from your primary career before then and work independently, you’ll need a plan for covering your medical and dental insurance. The key is to make sure you go into your second act with “eyes wide open,” he adds. That means looking at how the various aspects of your proposed plan affect one another. Your financial advisor can help you run through the scenarios you may be considering and show you how various life changes could affect them so that you can create a strategy that makes sense for your situation. “View each decision as part of another decision,” Hunter says. – Brian Selzer Special To The Dispatch (A Merrill Lynch Wealth Management Advisor who can be reached at 410213-8520.)