People often come to us for help in solving problems. Below are some of the more popular problems we help solve.
How much can I spend in retirement?
Another way to phrase this problem is “will I run out of money?” When you were working and had a paycheck coming in each month you knew how much you could safely spend. Once retired, you may need to supplement your social security, pensions, and other steady income with money from savings. You need an income plan that can both help you establish how much you can spend, and provide a way to see if you are on track as the years go by. A good plan may allow you to spend more in the early, more active “go-go” years of retirement, then cut back as you move into the “slow-go years.” Creating an income plan is one of the key things we do for clients.
Do I have the right investments?
In today’s world, we are constantly being pitched a wide variety of investment options. Once you get to retirement how do you know what to choose? It all starts with the income plan. If you don’t have a plan for where the money will come from for the rest of your life how can you begin to know what to invest in? Yet many people we meet with seem to have a “junk drawer” of investment statements, with no idea how they fit into their retirement income goals. We help clients develop a plan, then fund it with investments it calls for.
I’m paying too much in taxes.
We have yet to meet the person that wants to pay more than their fair share of taxes. While working a person’s regular income usually came from a taxable paycheck, you had little control over the taxes you paid. This changes in retirement. For the first time, you may have significant control over where you take the money from and thus how much you pay in taxes. You may be able to balance the withdrawals over time to help minimize your taxable income. You may even be able to “pre-pay” some taxes in a lower bracket using strategies like Roth conversions. We work with a client and their tax preparer to integrate their tax plan with their retirement income plan.
How will I pay for Long Term Care?
The good news is we're living longer. The bad news is it often means we could have increased medical cost. Traditional Long Term Care insurance has gotten more and more expensive. At the same time, newer “hybrid” policies have appeared on the market, opening up options we didn’t have before. We can help you compare your options and decided what strategy might be right for you.
OVERVIEW The stock market initially posted a major drop at the beginning of the U.S. coronavirus outbreak. Since then, it has gained back some ground, but there continues to be daily volatility with no end in sight. That initial shock affected a lot of people. In fact, the Spectrem Group reported that the number of U.S. millionaires dropped by 500,000 in just the first quarter of 2020. The greatest concern is among people who have either recently retired or were planning to within the next year or so. That’s due to something market analysts call “sequence of returns” (SOR) risk. This is when there has been a sustained market decline (i.e., a poor sequence of returns) that severely reduces an…CONTINUE READING
OVERVIEW Investing for income is generally the modus operandi of a retirement portfolio. That’s because the so-called “accumulation phase” ends and the “distribution phase” begins. In other words, retirees stop focusing on getting rich and become more concerned with paying their bills and living a comfortable lifestyle. Income investing is different from growth investing but should still practice a similar strategy of diversification. The goal is to develop two or more streams of passive income so you can retire from work and let your portfolio supplement other forms of reliable income, such as Social Security and a pension. By building a strategic income-oriented portfolio, retirees can draw a steady stream of income without having to liquidate a large portion of…CONTINUE READING