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About Polk County itemizer observer. (Dallas, Or) 1992-current | View Entire Issue (Feb. 3, 2016)
Polk County Living Polk County Itemizer-Observer • February 3, 2016 7A Retirement: begin planning early Couple gets creative to earn enough money for life after work following mid-career shift By Jolene Guzman The Itemizer-Observer Five fundamentals for preparing: DALLAS — In late 2008, Mark and Jamie Fangman were “downsized.” Both in their late 50s, they were laid off from their jobs within months of each other. T h e y w e re l i v i n g i n Prineville, where Jamie was the registrar at a private school and Mark was the general manager of the Nickel Ads. The recession hit their community hard and prospects of finding a new job were slim. “There was nothing over there at all,” Jamie said. They also faced a prob- lem unique to their age group. “It was too early for re- tirement, but it’s too late to go in and grab the introduc- tory jobs at companies, if they had any,” Mark Fang- man said. “McDonald’s was looking like a real career choice at the time.” They had retirement sav- ings, but not enough to allow them to stop working for good. Under duress, they had to use what was supposed to be their retire- ment nest egg to keep working. “So we sort of bought a job,” Jamie said. Jamie’s brother is the re- gional manager for Postal Connections and knew that the Dallas store was going to be available soon. “We liquidated all of our belongings and retirement accounts and bought the store,” Jamie said. “The store now has become our retirement. In a matter of weeks, they sold their furniture, rented out their house and moved from Prineville to Dallas. They reopened the store on Dec. 1, 2008, the absolute worst time of year to try to The following are ive tips inancial advisor Kelly Denney gives all her clients: • Live within a budget while still preparing for retire- ment so you are practiced at it when you are on a ixed in- come. “Sometimes preparing for retirement and thinking about retirement can be scary because as soon as you re- tire, you’re then no longer a wage-earner and you are forced to live within a budget.” • Always have an emergency fund and save a little every month. “Life is not a straight line. Things will happen. It’s not a matter of if, it’s a matter of when. Peace of mind comes from knowing that you can have a little bit of money that you can put your hands on at any time.” • Max out your employer’s 401K plan. That includes any extra contributions you are eligible to make after age 50. • Reduce and eliminate consumer debt. “It’s very diicult to approach retirement and switching from being a wage-earner to a ixed income while you are carrying a debt load.” • Work with a inancial adviser to make sure your invest- ments are prudent based on your age and your risk toler- ance. JOLENE GUZMAN/ Itemizer-Observer Mark and Jamie turned the Dallas Postal Connections into a second career and alter- nate method for saving for retirement after being laid off from their jobs in 2008. After a difficult start, the venture proved successful. learn how to operate a store specializing in shipping be- cause of the Christmas rush, Mark said. For the first few weeks, they would go home to their sparsely furnished rental home in Monmouth and wonder over cocktails if they had made a huge mistake. Now they know they made the right decision, even if it was rough in the beginning. “It turned out to be a good decision for us. It’s paid our bills and allowed us to position ourselves a little better for retirement,” Mark said. “And it’s not ex- actly the hardest work in the world.” Jamie and Mark’s path to a second career isn’t typical, but illustrates why people need to think about retire- ment and have a plan. “The earlier the better,” said Kelly Denney, a finan- cial advisor with Edward J o n e s i n D a l l a s . “ I ’m a m a z e d a t h ow m a n y clients we have that are 20 years old who recognize the need to have a plan.” Never fear, those who have procrastinated: it’s never too late to start plan- ning. Denney advises all her clients to follow five funda- mentals of preparing for re- tirement: learn to live with- in a budget; build an emer- gency fund; contribute as much as possible to 401Ks; eliminate consumer debt; and get professional advice from a financial planner. The last tip is important because each situation is different depending how much time you have before retirement and your finan- cial situation. “There is no template that’s going to be for every- body,” Denney said. “There are so many variables.” Other things to think about is the timing of big fi- nancial decisions, such as refinancing your home and Social Security. Denney said Social Secu- rity is a significant part of retirement planning, so knowing your monthly esti- mates is important when you plan for your post-work budget. She added there is one last thing to keep in mind: “People are living longer, so it’s even more important to have a strategy and plan so you don’t outlive your money.” The Fangmans sudden- change retirement, though not expected, has worked out for the best. With another seven years work under their belt, the Fangmans believe it truly is quitting time, so to speak, and have put the business up for sale. “I don’t think we are sorry we did this because it has helped us get to more of a retirement goal than we thought we’d have,” Mark said. Joyful Sound Hearing 312 Main Street • Dallas Start Super Bowl Sunday out with breakfast at Latitude One! February 7th • 9 am - 2 pm Enjoy our brunch menu for all ages and appetites. Menu posted online at www.latitudeonedallas.com • 503-831-1588 • Hearing Testing • Hearing Aids • Service Call today for your FREE Consultation Mark Sturtevant 503-623-0290 Personally involved and invested in the Dallas community Welcoming new patients. Most insurance health plans accepted. Also a Moda preferred provider.
