When your Husband Retires and the Nightmare Comes True


Nightmare for Older Women

I deal with a lot of couples where one spouse has retired well in advance of the other and has established a routine or habits they are comfortable with and enjoy. The working spouse is often totally engrossed in their career or business with little else in the way of interests or hobbies. When they do eventually retire they can not only struggle to make the most of the free time, but they can also destroy the lifestyle their parter has come to enjoy.

This letter printed in Newsweek in 2004 sums it up better than I ever could and should be a warning to you to ensure your spouse or partner regardless of gender, has interests that extend beyond their working life.

THE ‘GOLDEN YEARS’ ARE BEGINNING TO TARNISH

My worst nightmare has become reality. My husband retired. As the CEO of his own software company, he used to make important decisions daily. Now he decides when to take a nap and for how long. He does not play golf, tennis or bridge, which means he is at home for what seems like 48 hours a day. That’s a lot of togetherness.

Much has changed since he stopped working. My husband now defines “sleeping in” as staying in bed until 6 a.m. He often walks in the morning for exercise but says he can’t walk if he gets up late. Late is 5:30. His morning routine is to take out the dog, plug in the coffee and await the morning paper. (And it had better not be late!) When the paper finally arrives, his favorite section is the obits. He reads each and every one–often aloud–and becomes angry if the deceased’s age is not listed. I’d like to work on my crossword puzzle in peace. When I bring this to his attention, he stops briefly–but he soon finds another article that must be shared.

Some retirement couples enjoy this time of life together. Usually these are couples who are not dependent on their spouse for their happiness and well-being. My husband is not one of these individuals. Many wives I’ve spoken to identify with my experience and are happy to know that they’re not alone. One friend told me that when her husband retired, he grew a strip of Velcro on his side and attached himself to her. They were married 43 years and she hinted they may not make it to 44. Another woman said her husband not only takes her to the beauty shop, but goes in with her and waits! Another said her husband follows her everywhere but to the bathroom… and that’s only because she locks the bathroom door.

When I leave the house, my husband asks: “Where are you going?” followed by “When will you be back?” Even when I’m at home he needs to know where I am every moment. “Where’s Jan?” he asks the dog. This is bad enough, but at least he hasn’t Velcroed himself to me–yet.

I often see retired couples shopping together in the grocery store. Usually they are arguing. I hate it when my husband goes shopping with me. He takes charge of the cart and disappears. With my arms full of cans, I have to search the aisles until I locate him and the cart, which is now loaded with strange-smelling cheeses, high-fat snacks and greasy sausages–none of which was on the shopping list.

Putting up with annoying habits is easier when hubby is at work all day and at home only in the evening and on weekends. But little annoying habits become big annoying habits when done on a daily basis. Hearing my husband yell and curse at the TV during the evening news was bad enough when he was working, and it was just once a day. Now he has all day to get riled up watching Fox News. Sometimes leaving the house isn’t even a satisfying reprieve. When I went out of town for a week and put him in charge of the house and animals, I returned to have my parrot greet me with a mouthful of expletives and deep-bellied belches. It wasn’t hard to figure out what had been going on in my absence.

Not that my husband has any problem acting out while I’m around. He recently noticed that our cat had been climbing the palm trees, causing their leaves to bend. His solution? Buy a huge roll of barbed wire and wrap the trunks. After wrapping 10 palms, he looked like he had been in a fight with a tiger and the house took on the appearance of a high-security prison. Neighbors stopped midstride while on their daily walks to stare. I stayed out of sight. In the meantime, the cat learned to negotiate the barbed wire and climbed the palms anyway.

It is now another hot, dry summer, and the leaves on our trees are starting to fall. Yesterday my husband decided to take the dog out for some fresh air. They stood in the driveway while he counted the leaves falling from the ash tree. Aloud. Another meaningful retirement activity.

I think my husband enjoys being at home with me. I am the one with the problem. I am a person who needs a lot of “alone time,” and I get crazy when someone is following me around or wanting to know my every move. My husband is full of questions and comments when I am on the phone, working on my computer or taking time out to read. It is his way of telling me he wants to be included, wanted and needed. I love that he cares–but he still drives me up the wall.

I receive a lot of catalogs. In one there is a pillow advertised that says grow old with me. the best is yet to be. Another catalog has a different pillow. It reads screw the golden years. Right now it’s a tossup as to which pillow will best describe our retirement years together. Just don’t ask me while I’m working on my crossword puzzle.

Zeh lives in Houston.

Do you get the point I am trying to get across? Retirement takes as much planning as working years. You still have to fill all those waking hours previously filled with commuting and work. If you don’t plan ahead and ensure your partner does too then you could end up destroying both of your retirements and often your relationship. It is no surprise that their has been a rise in what is term “grey divorce as couples find themselves with an empty nest and only each other for company. We start planning the transition to retirement with clients 5-10 years out to ensure they have covered off all facets of their retirement needs. That’s what a professional planner covers rather than just an investment advisor.

retirement

For some ideas and a list of organisation for retirees to suit all interests you should visit The Seniors Information Service here . They also have some great ideas on Leisure, Lifestyle and Travel

I hope this guidance has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, like on Facebook etc to make sure we get the news out there. As always please contact me if you want to look at your own options. We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or via Skype.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Image courtesy of stockimages at FreeDigitalPhotos.net

ATO Releases 2016/17 Superannuation Thresholds…But?


The thresholds for the 2016/17 year have recently been updated by the ATO. Each year a number of superannuation thresholds are changed to reflect movements in full-time Average Weekly Ordinary Time Earnings (AWOTE). Importantly, for 2016/17 the concessional and non-concessional contribution caps will remain unchanged. Oh but wait there is a caveat! SUBJECT TO NO BUGGERING ABOUT BY THE GOVERNMENT IN THE BUDGET!

ID-100264730

2016/17 Superannuation thresholds Threshold Existing 2015/16 New 2016/17
Standard Concessional contributions cap (per annum) No change $30,000 $30,000
Temporary (higher) concessional contributions cap1 (per annum) for 2016/17, for people age 49 and over on 30 June 2016 – No change $35,000 $35,000
Non-concessional contributions cap – No change

− Standard (per annum)

− Bring forward (over 3 years)

 

$180,000

$540,000

$180,000

$540,000

Co-contributions (per annum)

− Lower income threshold

− Higher income threshold

 

$35,454

$50,454

$36,021

$51,021

Superannuation Guarantee (SG) maximum contribution base (per quarter)

Note: Current 9.5% SG percentage until 30 June 2021

$50,810 $51,620
CGT cap amount (lifetime limit) $1,395,000 $1,415,000
Low rate cap amount – No change

(Applies to the taxable component of taxed super fund benefits for members aged from preservation age to 59)

$195,000 $195,000

 

Threshold (Continued) Existing 2015/16 New 2016/17
Untaxed plan cap amount

(Applies to the taxable component of untaxed super fund benefits)

$1,395,000 $1,415,000
Tax-free part of genuine redundancy and early retirement scheme payments (per payment)

− Base limit

− Plus, for each completed year of service

 

$9,780

$4,891

$9,936

$4,969

Employment termination payment cap (per annum) No change $195,000 $195,000
Minimum annual payments for super income streams No change
Under age 65 4% 4%
Age 65 – 74 5% 5%
Age 75 – 79 6% 6%
Age 80 – 84 7% 7%
Age 85 – 89 9% 9%
Age 90 – 94 11% 11%
Age 95+ 14% 14%

 

Preservation age reminder
Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
From 1 July 1964 60

Confused? – Call me or email.

Are you looking for an advisor that will keep you up to date, access to quality professionals and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

The Annihilation of Your Assets – Estate Planning


I am always looking for quality articles to help my clients and here is a great guest post today from Bryan Mitchell of  Mitchells Solicitors in Brisbane on how poor drafting of your will or a lack of a regular review of assets mentioned in a will may leave your intended beneficiaries out-of-pocket. While not focusing specifically on SMSF matters, your will is a very important part of overall wealth management.

Annihilation of your Assets

The doctrine of ademption

What happens to assets listed in a will that no longer exist when the will-maker dies? It might sound like an obscure question, but in fact it is becoming more common as the population ages. Often, the biggest asset people own as they age is their family home. And sometimes, they can no longer live in that home and must move into assisted living. It’s common practice to sell the family home to pay for that care. All well and good until the older person eventually passes away, and the will is found. The beneficiaries discover that the deceased has left them the property held at 182 Birkdale Rd, Birkdale. Where is that asset? the lawyer asks. It was sold to pay for the nursing home, the beneficiaries say. It no longer exists. So swings into action the doctrine of ademption, which means that a specific gift fails if its subject matter has ceased to exist as part of the testator’s property at death. The doctrine of ademption operates on the assumption that if the property cannot be found, the gift cannot take effect. What ruffles the feathers more is the case of real property: a specific testamentary gift of real property will fail if it is sold before death, even if the proceeds from the sale can be traced. The beneficiaries are not entitled to the proceeds of its sale. So the children who might have expected to inherit the Birkdale property now stand to inherit nothing. The only exception is where an agent or attorney through fraud or an unauthorised transaction sells or transfers the asset. Sometimes there may be right for a beneficiary who has missed out to make a claim for compensation even where there has been no fraud or unauthorised transactions, but that is another topic.

Bryan Mitchell - Solicitor http://www.mitchellsol.com.au/

Bryan Mitchell – Solicitor
http://www.mitchellsol.com.au
(07) 3373 3633

Ban v The Public Trustee of Queensland [2015] QCA 18 Ms Ban and Mr ADF had been friends for a long time. As Mr ADF aged, he became unwell as his cognitive function declined and he was eventually diagnosed with dementia. Ms Ban held the Power of Attorney for Mr ADF for personal and financial matters. At around the same time that Mr ADF was hospitalised in a confused and disoriented state, he entered into a contract of sale for a property at Park Ridge. The property was sold for $2.25 million and the funds were placed in an account in the names of Ms Ban and Mr ADF. When Mr ADF passed away, his will revealed that the Park Ridge property had been mentioned specifically. In fact, the will stipulated that the Park Ridge property was gifted to the Queensland State Government, and that the property was not to be sold until the fifth anniversary of his death. Ms Ban used the funds for her own benefit, including her wedding, a political campaign, and home renovations.Because she was convicted and fined for misappropriating the funds, the doctrine of ademption will not stand. The beneficiaries of that gift (in this case, the state government of Queensland) could get compensation or make a claim on the estate. Hay v Aynsley [2013\ NSWSC 1689 The willmaker, Mrs Brook, had three adult children, Peter, Louise and David. Her husband, Mr Brook, pre-deceased her by three years. Prior to his death, he was granted a power of attorney for his wife in need. Upon his death, the Power of Attorney was granted to Louise and David jointly. David also pre-deceased his mother, leaving Louise with sole Power of Attorney authority for her mother. Mrs Brook suffered from dementia, lacked legal mental capacity and Louise acted for her mother under the authority of the Power of Attorney. She decided to sell land owned by Mrs Brook at Soldiers Point in 2011, collected net proceeds of the sale of $360,000 and placed the money in a bank account, accruing interest. Mrs Brook died in 2012 and the will was granted probate. However, specific stipulations within the will gave rise to questions of what the willmaker would have wanted. Mrs Brook, in her will, gave a property to her daughter Louise, at Round Corner. She also gave the property at Soldiers Point to her son, David. The remainder of the estate, which was minimal, would be shared in one-third equal shares to Peter, Louise and David. A further stipulation allowed that if any of Mrs Brook’s children should die before she did, that their share of the estate would be held in a trust for her grandchildren. The question we are looking at in this case is whether the sale of the property at Soldiers Point adeemed the gift to David, who himself had passed away, and whether David’s own heirs were due to receive both the value of the property plus the one-third share of the remaining estate. The judge ordered that the Soldiers Point gift was adeemed (ceased to exist) by virtue of the sale of the property and that the residual estate, including the proceeds of the sale and accrued interest, would be broken up in thirds. In this case, the children of the late David Brook miss out on the value of the property of Soldiers Point, receiving only a third of it. This is how the doctrine of ademption can cause heirs to receive much less from a will that perhaps the will-maker intended. How can I avoid the doctrine of ademption? Reassuringly, it’s not difficult to ensure the ademption won’t apply. The use of back-up clauses is especially useful. For example, if the intent is to give the property at Birkdale, have a back-up clause that applies if the gift fails, providing for a sum of money or a share of the estate. The important issue to remember here is that though ademption is an obscure doctrine that very few people have heard of, it still applies.  And it is not a rare occurrence.  Therefore, it is vitally important that people:

  • Do not write-up their own wills
  • See a specialist who understands the doctrine of ademption
  • Have a will that is clear, concise and thorough

For those who prefer to watch and listen then hear more from Bryan on the Doctrine of Ademption. https://youtu.be/5PXWFzcH4No Are you looking for an advisor that will keep you up to date, access to quality professionals and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. Image courtesy of Mitchells Solicitors – Brisbane Phone for a FREE Consultation  – (07) 3373 3633

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