R E T I R E M E N T  I N  S I G H T
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MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES 

JANUARY 2015  

“When I let go of what I am, I become what I might be.”
      

- Lao Tzu  

TRAVEL TIP
Back up before you head out  

Sometimes you want (or need) to take important photos or documents with you when you travel. Backing them up on a thumb drive or cloud-based service is wise in case your laptop or netbook fails. Doing the same thing with your visa, passport, health insurance card and driver’s license is even wiser. 

BRAIN TEASER
Dry observation.
What gets wetter the more it dries?^* 

DID YOU KNOW?
Visionary change 

The earliest ancestors of humans had UV vision, the same kind nocturnal animals possess. As mankind became diurnal, there was a shift to trichromatic color vision.⁴ 

HOW DO YOU END UP WITH A MILLION-DOLLAR IRA? 

An IRA worth $1 million or more must be a product of very early retirement planning and very astute investing, right? Compounding and great yields certainly count, but they aren’t the only reasons behind seven-figure IRAs.  

According to a recent report from the federal Government Accountability Office (GAO), about 1% of IRA owners have $1 million or more in their accounts. In this recent snapshot, the GAO estimated that there were 7,952 Americans whose IRAs held $5-10 million and 314 IRA owners whose accounts contained more than $25 million! Where is all this money coming from or being generated?    

Often, the major factor in creating a seven-figure IRA balance isn’t the IRA’s earnings. Instead, it is a lump sum rolled over into the IRA from a workplace retirement plan. If an employee has contributed to a 401(k) or 403(b) for decades (perhaps with employer matches along the way), the result can be a six-figure asset balance. (The larger annual contribution limits for workplace retirement plans also help to promote large account balances over time.) An emphasis on equity investing plays a part – the GAO observed that IRA owners who were less risk-averse tended to amass greater IRA balances than more conservative investors. Lastly, IRA structure is undeniably a factor: the account rules permit the invested assets to grow and compound with taxes deferred.¹ 

THE ART OF MODERN GRANDPARENTING 

Parenting has changed with the times, and grandparenting along with it. As Today.com notes, whole seminars have emerged to prepare new and future grandparents on what to do and not to do when helping out with a new baby.      

Baby walkers? Out. Putting babies to sleep on their stomachs? Dangerous. Baby powder? Use lightly. Bottle feeding? Go easy on it. All these things were common generations ago, but they are largely frowned on now. Button batteries and television tip-overs constitute new hazards. A new mom and dad may want a lot of help from grandparents – or just a little. Learning about these changes in parenting style and respecting the wishes of the new parents with regard to child-rearing is crucial – misunderstandings can be minimized, and parents and grandparents can thrive in their new roles.²  

ON THE BRIGHT SIDE
A recent poll of MONEY Magazine readers showed that 48% were happier than expected in their retirements; only 7% found retirement not up to par.³ 

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