Hello all my hopeful people!

Fall is in full swing. It’s a season where coziness, nostalgia, and a sense of change all mix together as the days get shorter and colder.

In Chinese medicine, each season is associated with different emotions, and fall is the season of grief. It’s not uncommon for feelings of sadness to resurface, and we tend to feel more introspective than usual.

Instead of resisting it, give yourself space to slow down and take time to reflect. Allow yourself to process the emotions this season may bring up.

Breathe deeply and ask yourself, “What is healthy for me to keep, and what do I need to release?”

The more we take the time to process what we’re feeling, the healthier we’ll become.

Ever hopeful,

Carolyn

This Month’s Financial Tip

Rolling a Pension

You’ll often hear the advice that if you or your person has a pension, you should roll it into an IRA. While this is sometimes the right choice, it varies on a case by case basis and may end up costing you substantial money in the long run.

Always have your situation review by a financial professional who can show you the pros and cons of rolling a pension and help you calculate which path will work best with your situation.

If you have an inherited pension and do not have a trusted advisor to review it with you, I’m happy to take a look and discuss your options with you.

A Lesson from Bonnie

Bonnie is 65 years old and has a family history of longevity. One afternoon, she was contacted by a prior employer from many years ago, informing her that she had a pension valued at $18,000. They made her an offer to transfer it to an IRA she already owned.

Unsure what to do, Bonnie called me for advice. I asked her to contact the employer and find out what the annual payouts would be if she decided to take the income over rolling the lump sum into her IRA.

The employer told her she would receive $1,800/year if she chose the income option. That’s the equivalent of 10%/year on the $18,000 lump sum of the pension, guaranteed for life by the employer (traditional investments cannot guarantee that type of return).

I showed her how the option of taking the income was likely to be much more valuable to her over time. For example, if she lives 15 more years, she’ll receive $27,000, which is $9,000 more than the $18,000 they want her to roll over to her IRA.

The employer knows this, and that’s why they tried to get her to make a quick decision to roll the pension instead of opting for lifetime income.

Takeaway

Financial Jargon Made Easy

Rollover

A rollover occurs when you withdraw cash or other assets from one eligible retirement account and deposit them into another eligible retirement account within 60 days.

IMPORTANT: Your withdrawal typically comes to you as a check. If you forget to deposit it within 60 days, the entire amount will be taxable!

To avoid this, you can ask your current account provider to do a transfer instead of a rollover, which is done directly between institutions and skips the check altogether.

Yup, I know how you feel. There’s a lot to digest here. If you’d like to chat more about your specific situation, let’s set up a call.

Articles Worth Reading

While it’s not an article, I was recently a guest on the Purse Strings Podcast talking about navigating finance after loss. You can watch the full video here.

First Financial Steps for Newly Widowed People

Here’s a fascinating article on how grief affects our brains…and how we can begin to heal from it.

How Tragedy Affects the Brain

On the lighter side, I bet you’ll never guess how cotton candy was invented!

The History of Cotton Candy

If something you read today made you think of another friend or family member, share this newsletter with them

This Month’s Recipe

Mom’s Mind-Blowing Chicken Noodle Soup

My mother’s recipe is just as perfect for fall today as it was when I was little.

Ingredients

1 roast chicken (you can buy this pre-cooked or roast your own)
2 quarts chicken broth (or a bit more if you prefer)
1 cup sliced or diced carrots
1 cup diced celery
3 cups egg noodles (about half a package)
1-2 cups milk or light cream (my secret ingredient)
Salt and pepper (to taste)

Directions

1 • Skin and bone the full chicken. Cube or shred the meat and set aside.
2 • Add broth to a large soup pot and bring to a boil.
3 • Add carrots and celery and simmer until tender.
4 • Add egg noodles and cook until al dente.
5 • Add the chicken and milk. Bring to a gentle boil for an additional 10 minutes.
6 • Add salt and pepper as desired.
7 • Serve with some homemade biscuits, butter, and cheddar cheese.
8 • Repeat step six until extremely satisfied 😋