Libman Tax - February 2019

EMBRACING ‘SPENDOPHOBIA’ 3 Ways to Invest in Yourself After Retirement

You’ve spent your entire life being told to save, save, save. Now you’re finally retired, so it’s time to spend some of that money — but you’re scared! This is only natural because it means breaking a lifelong habit of socking away money and refusing to touch it. You’re not alone. A recent study of retirees’ spending habits showed many people actually spend less than they can afford to. They’re scared of the “what ifs” that come with living on a fixed income. However, at age 70 1/2, you have to start taking the required minimum distributions (RMDs) from your traditional IRA and 401(k) whether you want to or not. Instead of stressing over the fact that you’re pulling money out of these accounts, embrace the opportunity to do something for yourself. TRAVEL It can be tempting to hold off spending money as long as possible. After all, who knows how long you need your savings to last? Travel, however, is one thing you can indulge in early without feeling guilty. Even the most leisurely trips can be physically demanding, so it’s better to see the world at 70 rather than wait until you’re 90. To keep yourself on track financially, use the bucket system to set up a separate savings account just for travel.

it amazing? An in-ground pool or a private tennis court might be outside your budget, but new kitchen countertops or a deeper tub will add a touch of luxury to the space you spend the most time in. Upgrading your home is almost always a good investment because it adds equity, which will pay off down the road. That extra cash will come in handy if you decide to sell later on in order to downsize or you plan to enter assisted living. Don’t forget to set aside money for ongoing maintenance, such as a new water heater or roof repairs. GO BACK TO COLLEGE It might sound counterintuitive to go to college when you’re not planning to go back to work, but continuing your education after retirement offers many benefits. Many individuals find themselves with more time on their hands than they’re accustomed to, and without a plan to fill this time, it’s easy to become depressed or isolated. Numerous studies have shown that continuing to exercise your brain has a positive impact on cognitive function, so taking a few classes can be the perfect way to stay busy and keep your mind sharp. Attending school late in life is also a great opportunity to indulge your passions and learn more about subjects you’ve always been interested in. Many colleges offer free classes or reduced tuition to seniors, so check with your local schools and see what classes or programs they have available.

INVEST IN YOUR HOME Once you no longer have to work five days a week, you’ll be in your home more often, so why not make

Client Spotlight

Meet Jay Zuckerman!

Sometimes in life you meet a person who is so organized and on top of their game, you can’t help but feel inspired to attempt the same feat in your own life. For me, that person is Jay Zuckerman. In all the years I’ve known Jay, I’ve tried to mimic his organizational expertise, and while attempting to do so has certainly helped me, I’ve realized that I’ll never reach Jay’s level, no matter how hard I try!

allow him to bring in fabrics from outside vendors to design and manufacture swimsuits. He has over 10 different companies now that are flourishing due to his awesome design work. He also has a keen eye for real estate, and I’ve enjoyed getting to watch his ventures over the years. I’ve had the good fortune of helping Jay with his companies’ finances since 2010, but I have known him since the early 2000s, when he started as one of my dad’s clients. In the years since I started working with him directly, he has become one of my favorite clients, primarily because he does year-round tax planning and really enjoys learning as much as he can about the process. Jay is also extremely accessible. Anytime my team and I send over questions or need more information, he responds with lightning speed. Overall, Jay is easy and pleasant to communicate with, and I’m looking forward to continuing our work relationship in the upcoming years. Maybe I’ll even convince him to take me to an Angels or Dodgers game!

Jay’s impressive work ethic has helped him immensely in his field. He runs import/export businesses in California and Nevada that

2 • www.AdamLibman.com • Pay Less Taxes by Implementing Tax Reduction Strategies

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