Month: November 2024

What happened?

What happened?

The buggy dives across sandy slopes in Huacachina, Peru, bringing to mind the movie Dune. Our driver parks and pulls out a snowboard. I lay face first, long legs behind me. Was it the pisco that made me do it?

Pisco, Peru’s signature spirit, is distilled from grapes, and packs a punch with up to 48% alcohol. No trip to Peru is complete without a tasting. Between cocktails, I explore Paracas, glimpsing wondrous wildlife, surf massive dunes, and hike to Machu Picchu.

Riding the Pisco Route

Pisco Cocktails

I tried a pisco sour on a press trip to Chile, and couldn’t get enough of the sweet, tart cocktail. Pisco sour is made with simple syrup, lime juice, egg white, and a dash of bitters. On my Peru trip, I aim to sample other pisco cocktails, including the Machu Picchu (colorful layers of liquid with a cherry on top), the Maracuya Sour (made with passion fruit), and the Aguaymanto Sour (made with berries).

Pisco Tasting

Grapes used for pisco must be grown in one of five locations: Lima, Ica, Arequipa, Moquegua, and Tacna. At CulturPisco in Ica, two native grape varieties, quebranta, a red grape, and torontel, a white grape, are used. Pisco is distilled in copper, to between 38 and 48 percent alcohol, and aged for at least three months.

“Workers crush the grapes with their feet,” says the guide, then adds, “Don’t worry, they wash their feet first.” I try five types of pisco. My favorite is the Maracuya Sour. Following the pisco tasting, I visit the Ballestas Islands.

The Poor Man’s Galapagos

A boat from Paracas heads for the Ballestas Islands, a series of rock formations and caves, considered the ‘poor man’s Galapagos’. I watch mesmerized as hordes of birds swarm fishing boats, scrounging for anchovies. Sea lions jockey for position on a green metal buoy, rocking back and forth. And Humboldt penguins waddle and flap their wings in the sun.

The Islands are covered in guano or shorebird poop, once considered as precious as gold. There were so many poop miners that the government set up a national reserve and required permits to protect the poopers. Today, poop mining is only allowed three months a year. We went from Pisco tasting to Paracas to sand-surfing all in one day.

Surfing Sand

I climb a steep sandhill, bordering a turquoise lagoon in Huacachina, and strap myself into a neon green buggy. The driver’s eight-year-old son sits in the backseat, so how dangerous could this be? The next thing I know, I’m flying up and down enormous mounds, which reminds me of roller coaster rides with my kids when they were small. I thought I was done with that. I guess not.

The driver pulls out a snowboard. I lay face-first on my stomach and woosh down, glad for the pisco-tasting at CulturPisco. The dune buggy and sandboarding tour in Huacachina is an amazing thrill ride. I have sand everywhere possible. And I mean everywhere. I am proud of myself and try not to notice the 20-somethings surfing higher hills. After all, ‘comparison kills joy’. I had another chance to get high on the way to Machu Picchu.

Machu Picchu, My Way

When I was younger, I envisioned a 4-day hike on the Inca Trail, camping along the way. Then I turned 60 and thought my days of adventure had ended. Not so.

The 1-day, 6-hour hike was the perfect challenge. The weather was clear, affording perfect views, and I reached Machu Picchu at the end of the day, when all of the tourists had left. At the end of the tour, an Alpaca nibbled on my favorite yellow sweater. It was hard to shake loose. I ended up leaving the sweater behind as a gift.

The trip to Peru checked all the boxes, wildlife viewing, active adventure, and culinary travel. I got outside my comfort zone, my way. And I look forward to more fun in the future.

Let’s Have a Conversation:

Where would you like to travel? Which trips would you like to do but think you may be too old for? Why put them off? Is there a way to do the trip that you can manage? What’s your favorite cocktail? Would you like some pisco sour recipes?

Are you worried that you may need to work far into the future, or change your lifestyle dramatically in retirement, or both? How do your retirement savings compare to others’?

The Average “Jane”

For many people, an employer sponsored 401(k) retirement savings plan houses their largest retirement account. Vanguard, one of the nation’s biggest providers of these accounts, found its participants had the following average 401(k) balances in 2022:

How Much Do I Need?

The answer to this question is highly individual. It depends on your income sources, spending patterns, cost of living in your area, and retirement lifestyle goals. There are rules of thumb, however. Financial firm Fidelity suggests people save for retirement using the following rule of thumb based on their annual income: 6X their annual income in savings at age 50; 8X at age 60; and 10X at age 67. Some advisors suggest even more aggressive savings goals.

It is apparent that many Americans are falling short. According to the Bureau of Labor Statistics, the average American annual wage across all occupations as of May 2023 was $65,470. That means the average retirement savings at age 67 should be $645,700, based on Fidelity’s guidelines.

If your retirement savings fall short, do not become discouraged! The SECURE Act of 2022 offers a way to boost your savings if you are in your 60s!

Catch-Up Contributions

Starting in 2025, participants in Roth or Traditional 401(k) or other employer-provided retirement plans [403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan] who are ages 60 through 63 are allowed to make a catch-up contribution of up to $10,000 or up to 150% of the regular catch-up contribution amount for those 50 and older — whichever is greater.

In 2025, workers 50 and older can make up to $7,500 in catch-up contributions, in addition to the $23,500 limit for those younger than 50, for a total of $31,000. Under a change included in the SECURE 2.0 Act of 2022, starting in 2025 a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans.

For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500. The total contribution limit for 2025 is then $34,750 ($23,500 plus $11,250) for those in this select age group.Going forward, both the regular catch-up and the extra catch-up for those in their early 60s will be adjusted for inflation.

When Can I Retire?

Good question! The increased contribution limit, if you take advantage of it, might make a difference when you can retire. How will you know? I recommend that, if you have not already, you sit down with a financial advisor or financial planner who is a fiduciary and go through your numbers. Don’t wait! The peace of mind that assurance about your future will give you is priceless! Some studies show that retirement savings of those who worked with an advisor improved substantially over self-management.

How can you find an advisor who is a fiduciary and why is that important? A fiduciary is an individual who is ethically bound to act in another person’s best interest. Fiduciary financial advisors must avoid conflicts of interest and disclose any potential conflicts of interest to clients. Look for a Registered Investment Advisor (RIA) or a CERTIFIED FINANCIAL PLANNER®professional. You can search for an advisor in your area who is a CFP® professional at the following website: https://www.letsmakeaplan.org/.

Questions to Discuss:

Are you ahead of, at the average, or behind in your retirement savings? Were you aware of the 2025 increased contribution limit for 60-63-year-olds? Do you plan to take advantage of the new limit?

It’s time to be greedy and lock down your tickets ASAP because these prices won’t last forever.