This document summarizes Dr. Barbara O'Neill's book "Flipping a Switch: Navigating Later Life Transitions and COVID-19". The book discusses 35 transitions that occur in later life, organized into financial, social, and lifestyle sections. It also addresses how COVID-19 has impacted people differently, causing trauma for some through job/income loss, while others were financially unscathed. The document provides recommendations for navigating various later life transitions related to spending, health, relationships, and more. It also outlines similarities between retirement and quarantine during the pandemic.

1. Flipping a Switch: Navigating Later Life
Transitions and COVID-19
Dr. Barbara O’Neill, CFP®
Owner/CEO, Money Talk
moneytalk1@juno.com
boneill@njaes.rutgers.edu
https://www.moneytalkbmo.com/
https://moneytalk1.blogspot.com/
@moneytalk1

2. My Post-Rutgers Life:
Financial Education
Entrepreneurship in Florida

3. Flipping a Switch is About
35 Later Life Transitions
Amazon Ordering Page:
https://www.amazon.com/gp/product/1620236869

4. Inspiration #1 to Delve
Into This Topic
Personal experience: Rutgers Cooperative
Extension and New Jersey is in my “rear view
mirror” after 41 years

5. Inspiration #2 to Delve
Into This Topic
Research presentation at the 7/18 ASEC
meeting about Spending in Retirement (Lori
Lucas)
Described a subset of retirees with a unique
“problem”: they saved their whole life, are
not comfortable spending, and assets keep
growing
Speaker quote: “We need financial
education to teach people how to ‘flip a
switch’ from saving to spending”

6. Inspiration #3 to Delve
Into This Topic
Grasshoppers and Ants in Retirement article
(Finke, Guo, & Johnson, AAII Journal, 6/18):
https://www.aaii.com/journal/article/grasshoppers-and-ants-in-
retirement
Describes thrifty “ants” who spend less in
retirement than they are financially able to
Excessive thrift puzzle: why did they save all
their money if they’re not going to spend
more?
“Habit formation hypothesis”: people get
accustomed to a certain lifestyle and
spending habits are hard to break

7. I Then Realized… There are
Multiple “Switches” That
Need to Be Flipped in Later
Life (Not Just For Spending)

8. Some Transitions Are Like
“Dimmer Switches” and
Change Over Time
Working
Spending
Investment asset allocation
Downsizing
Disengagement/engagement activities
Simplification

9. Three Book Sections
 Financial Transitions
 Social Transitions
 Lifestyle Transitions
Amazon Link:
https://www.amazon.com/gp/pr
oduct/1620236869

10. Written From “A Place
of Privilege” One-third of workers
have saved nothing
for retirement
35% of workers have
< $25,000 saved,
including 18% with <
$1,000 saved
Source: 2020 Retirement
Confidence Survey:
https://www.ebri.org/docs/defa
ult-source/rcs/2020-rcs/rcs_20-fs-
3_prep.pdf?sfvrsn=f0bc3d2f_6

11. Flipping a Switch
Podcasts and Webinars
Podcast Interviews
 The Military Money Expert - March 2, 2020
 Money Mammals - July 10, 2020
 Wine and Dime- July 17, 2020
Print Media Interviews
 How to Mentally Prepare for Retirement- July 9, 2020
 With Remote Work Flexibility, Some People Opt to Relocate Ahead of
Their Retirement-September 21, 2020
Webinars
 Flipping a Switch (University of Arkansas)-4/22/20
 Navigating the Two Financial Faces of COVID-19 (Rutgers Cooperative
Extension)- 8/31/20

12. COVID-19 Bifurcated
Financial Impacts: Major
Trauma and “Financially
Unscathed”

13. COVID-19 Trauma Impact
Loss of income
Food Insecurity
Depletion of savings
End of moratoriums (e.g., utilities, evictions)
Benefit access issues (e.g., unemployment)
Inability to access social support networks
Travel and COVID-19 quarantine restrictions
Multi-generational health concerns

14. The “Financially Unscathed”
Little or no asset value loss
Increased savings rate
Decreased expenses (e.g., commuting)
Continued or even increased income
Spending freely on home improvements
Other impacts, however….
(Boredom, “survivor’s guilt,” anxiety, sadness
about missed opportunities, mental health)

15. What Many Experts Are Predicting
NOT a “V” shaped
recovery
NOT a “W”
shaped recovery
NOT a “U” shaped
recovery
But… a “K”
shaped recovery
Source: COVID-19 is Dividing the
American Worker, The Wall Street
Journal,
https://www.wsj.com/articles/covi
d-19-is-dividing-the-american-
worker-11598068859

16. Covid-19 Financial Resources
Coronavirus Anxiety Workbook (The Wellness
Society):
https://thewellnesssociety.org/wp-content/uploads/2020/04/Coronavirus-
Anxiety-Workbook-1
Financial Reality Coping eBook (Center for
Financial Social Work):
https://financialsocialwork.com/downloads/financial-reality-coping-ebook
Money Talk Blog (Dr. Barbara O’Neill):
https://moneytalk1.blogspot.com/ (many COVID posts)
Your Money: A Hub for Help During the
Coronavirus Storm (The New York Times):
https://www.nytimes.com/article/coronavirus-money-unemployment.html

17. Later Life and COVID-19
Action Steps: 20 Similarities
Source:
In Quarantine, a Glimpse
of What retirement Might
Look Like, Wall Street
Journal:
https://www.wsj.com/arti
cles/in-quarantine-a-
glimpse-of-what-
retirement-might-look-
like-11587135637

18. 1. If You Don’t Spend Your
Money, Someone Else Will
 Step outside of your spending comfort zone
 Automate savings withdrawals
 Answer some hard questions:
 Why did you amass savings if you aren’t
going to spend it?
 If you don’t spend your money, who will?
 What are you waiting for?

19. 2. Deciding When You Have
“Enough”
 Do some savings calculations
FINRA Retirement Calculator:
https://tools.finra.org/retirement_calculator/
 Hire a financial advisor
Try a Monte Carlo Calculator

20. 3. Creating a “Paycheck”
 Set up automatic withdrawal plans (mutual funds)
 Create a bond or CD “ladder’
 Purchase an annuity
Amend the “4% Rule”

21. 4. Later Life Investing
 Assess your risk tolerance
http://pfp.missouri.edu/research_IRTA.html
 Rebalance asset class weights regularly
Beware of “free meal” seminars

22. 5. Adjusting to Changes
in Income and Expenses
 Work longer and/or spend less
Consider geographic arbitrage
Tap home equity
Reverse mortgage
Sale-Leaseback

23. 6. Tax Withholding: It’s
What You Get to Keep
 Request income tax withholding services
 Determine your new marginal tax rate
 Time elective cash withdrawals
Consider hiring a tax professional

24. 7. Becoming a Social
Security Beneficiary
 Get a Social Security benefit estimate
 Make estimated payments for Social
Security taxes
Beware of the earnings limit
Take care of your spouse

25. 8. Health Care Transitions
 Take care of yourself (2,500 extra hours)
 Earmark part of nest egg for health care
Learn about Medicare and supplements
Expect “sticker shock” if transitioning from an
ACA plan with premium subsidies

26. 9. Setting New Financial
Goals
 Set “through retirement” financial goals
 Go “first class” with upgrades if you can
afford it
 Develop spending action plans
Automate spending and gifting

27. 10. You Can’t Take It With
You (Philanthropy)
 Check out potential charities
 Specify a purpose
 Plan your donations (gifting budget)
Use tax-advantaged strategies (bunching,
QCDs, donor advised funds, trusts)

28. 11. Financial Organization
and Simplification
 Create a financial inventory
 Consolidate “like” financial assets
 Cull automated payments
 Gym
Newspapers
Satellite radio

29. 12. Becoming “Fraud Bait”
 Use caution with “free meal” seminars
 Recognize “red flag language
 Power down on tech scams
Never sign forms with blank spaces

30. 13. Answering the “What
Do You Do?” Question
 Dodge the “R words”; don’t let other people
impose their social clocks on you
 Practice “identity bridging”
Continue valued commitments
Develop a new “elevator speech”

31. 14. Changed Relationships
With Family and Friends
 Identify separate and “together’ activities
 Create a personal space
Define your boundaries
Share your future vision with family/friends

32. 15. FINDing Fulfillment
After Full-Time Work
 Leave work with a plan
Don’t disappear for long
Cherry-pick work that you like
Expect Ageism, OK Boomer?

33. 16. Getting Help, When
Needed
 Find free local financial education
resources
Hire a financial planner
Interview services and go with your gut
Lock down your house

34. 17. A New Definition of
“Busy”
 Schedule around “Big Rocks”
 Redefine “productivity”
 Set goals as “guardrails”
 Stay connected with others

35. 18. Should I Stay (Put) or
Should I Go?
 Do pre-move research
Consider family implications and
expectations
Consider SALT (taxes)
Build strong relationships

36. 19. Invincible to Vulnerable
 Accept your vulnerability
Stave off disease and delay
Follow healthy lifestyle recommendations
Get recommended vaccines and
screening tests

37. 20. Planning a Good
Ending
 Envision your “good ending”
 Take action on your vision
 Tie up loose ends (personal & financial)
 Prepare an “after I’m gone” list
Organize financial records

38. Positive COVID-19 Related
Changes That Should
Continue “On the Other Side”
 Hand-washing, wipes to clean surfaces, and plexi-glass use
 Addressing “underlying conditions”
 Increased savings rate
 Formal budgeting
 Attention to estate planning
 Carving out time for physical activity
 Time savings from reduced commuting and WFH
 Slower-paced life and more family meals together
 Increased philanthropy
 More online learning opportunities

39. Best Wishes With All of the
“Flipped Switches” in
Your Life

40. Questions and Comments?
@moneytalk1
moneytalk1@juno.com
https://www.moneytalkbmo.com