CarolCeltics

The Boston Celtics, A Super Fan Named Carol and Retirement: The Surprising Parallels

The Boston Celtics are the NBA Champions for the 18th time!!  WooHoo. A world record. Wowza.

As a life-long Celtics Fan-atic I’ve been dreaming about this day for a while. My late mom, Carol, dreamed about it too. I will never again be able to think about the Celtics without thinking about my mom. A basketball player herself back in the 50’s and a HUGE Celtics fan. Perhaps their number one fan. She referred to Jayson Tatum as “Her” Jayson.

Last season, the Celtics (and Dana Farber Cancer Institute in Boston), kept my mom cheering and going strong until she gave in to her battle with Ovarian cancer last April. During the 22/23 season, Jayson’s number one fan endured a blockage in her kidney, a blockage in her stomach, two surgeries and stays in four different medical facilities. Throughout all of this my hero mamma NEVER missed a game! The Celtics were her medicine. Her dream was to see them win the championship last year. Neither the Celtics nor my mom, however, could pull it off.

But alas, the Celtics came back with vengeance for the 23/24 season and are now the NBA champs (with a little help from an angel in heaven named Carol). I think she was on the rim at the Garden Monday night. I also think she’ll be watching from above as banner number 18 is raised to the rafters.

My mom was fortunate to have witnessed years of Celtics games and championships. She was also fortunate and grateful to have had a long happy and mostly healthy life. She retired early at 58 and enjoyed a 30-year retirement! A life and retirement like this doesn’t just happen. Just like an NBA championship doesn’t just happen. It’s all a battle from the start.

The battle requires strategy, perseverance, commitment, consistency and teamwork. A little luck from an angel helps too.

So, let me break it down and see what lessons we can learn from the Celtics’ championship (and my mom) that you can apply to your own life and retirement.

  1. A Strong Game Plan

Boston Celtics: The Celtics didn’t just stumble onto the court and hope for the best. They had a well-thought-out strategy, focusing on both offense and defense. Every play was designed to maximize their strengths and exploit their opponents’ weaknesses.

My Mom: Divorced at 38 with four kids, my mom figured out a new strategy for her life. She had good offense and a good defense. She was one tough lady.

Your Retirement: Similarly, your retirement plan should be strategic. According to the Employee Benefit Research Institute, only 48% of Americans have calculated how much money they need for retirement and the average retirement is over 20 years in duration. Creating a detailed financial plan, which includes budgeting, saving, and investing, is crucial. Just like the Celtics, you need a solid game plan to ensure you’re financially prepared for the long run.

  1. Consistent Training and Adaptation

Boston Celtics: The Celtics’ success didn’t happen overnight. It took years of training, adapting to new players, and learning from losses. They kept refining their skills and strategies to stay at the top of their game.

My Mom: Lucky for my siblings and I, my mom had a career as a school teacher, which meant a reliable income (albeit small for a family of 5) and a retirement pension. Leaving our family home with kids in tow, she was the queen of adaptability. She was both a dad and a mom for many years, honing her skills on the job. Her plan: to get through each day, one day at a time and focus on being a good mother.

Your Retirement: Retirement planning is a long-term commitment. Saving significantly for retirement takes consistency and starting as soon as possible. Learning about money, finances and retirement early on is critical. Regularly reviewing and adjusting your financial plan is essential. Keeping up with changes in the market, adjusting your investments, and ensuring you’re on track to meet your goals is essential.

  1. Teamwork Makes the Dream Work

Boston Celtics: Basketball is a team sport. The Celtics’ victory was a result of excellent teamwork. Each player knew their role and worked together seamlessly, from the starting five to their incredibly talented bench. The team is steeped in talent.

My Mom: She kept us all close and we learned what it meant to function as a family team. We all chipped in to make daily tasks easier, we appreciated what we had, and every day ended with love and a smile.

Your Retirement: Your retirement plan should also involve teamwork. Financial advisors, accountants, and even family members can play vital roles in your retirement planning. According to a study by Vanguard, working with a financial advisor can add up to 3% in net returns on your investments. Surround yourself with a supportive team to help guide you through complex decisions and keep you motivated.

  1. Staying Healthy and Prepared

Boston Celtics: Physical fitness and injury prevention are crucial for NBA players. The Celtics maintained peak physical condition to ensure they could perform at their best throughout the season and playoffs.

My Mom: Physical and mental health was a priority for my mom, throughout her life. While not an exercise fanatic, my mom always took good care of herself and her kids. She had a good balance and instilled an active lifestyle in all of us.

Your Retirement: Health is equally important in retirement as it is in all the years before retirement. Medical expenses are a significant concern as we age, with Fidelity estimating that a 65-year-old couple retiring in 2023 may need about $315,000 for out-of-pocket healthcare costs in retirement. Maintaining a healthy lifestyle now can reduce future medical expenses and improve your quality of life.

  1. Handling Pressure Like a Pro

Boston Celtics: Performing well in high-pressure moments defines championship teams. The Celtics excelled under pressure, making clutch plays and rising to the occasion when it mattered most.

My Mom: The term cool as a cucumber was coined in my mom’s honor. JK. Seriously, my mom faced some pretty high-pressure moments in her life, but she handled these moments mostly with calm, courage and practicality. She always told us, “Where there’s a will, there’s a way.”

Your Retirement: Retirement planning can be stressful, especially when facing financial uncertainties or unexpected expenses. However, staying calm and making informed decisions under pressure is key. Diversifying your investments, having an emergency fund, and planning for contingencies can help you handle financial and retirement pressures like a pro.

  1. Celebrating Wins Along the Way

Boston Celtics: Every win during the season was a cause for celebration and motivation to keep going. The Celtics didn’t wait until the championship to acknowledge their successes.

My Mom: Celebrations in our family were a regular occurrence. Birthday parties, Christmas, and even everyday life, my mom was celebrating life and being grateful. My mom celebrated and appreciated the smallest things in life. A sunset was one of her favorites.

Your Retirement: Celebrate your retirement planning milestones too! Whether it’s hitting a savings goal, paying off debt, opening a Health Savings Account or making a smart investment decision, recognizing your achievements can keep you motivated and on track.

Conclusion

Winning an NBA Championship, being a single mom, fighting cancer, or planning a successful retirement all require determination, strategic planning, courage, teamwork, and the ability to adapt and perform under pressure. By applying these lessons from the Boston Celtics’ championship run, and from my mom Carol, you can set yourself up for a victorious and enjoyable retirement. So, lace up those sneakers—and let’s get her done.

Remember, whether you’re aiming for a championship ring or a comfortable retirement, the journey is just as important as the destination. Here’s to enjoying every season of life. Happy planning!

If you’d like some help with your financial plan for retirement, reach out to us. We can hook you up with a team of experts: retire@herretirement.com.

 

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When it Comes to Having an Investment Advisor…is Nice, Enough?

Recently I had a Get Her Done Chat with a lovely lady named Susan who’s turning 60 soon. She’s starting to think seriously about retirement (because she’s been watching me and all my tips on YouTube and TikTok).

She has $500,000 managed by one of the big investment firms and she’s paying a 1.5% management fee. That’s $7,500 per annum or $625/month. Not an insignificant amount. However, fees are an issue in the absence of value.

I asked her what services the advisor is providing (i.e. value)? Other than meeting once a year to review her portfolio and making some adjustments, she really couldn’t come up with any other value.

She also admitted she doesn’t really understand what the firm/advisor is doing with her money, or why. She did say the advisor, who she’s had for several years, is likable and nice.

But….when it comes to your money and retirement, is nice enough?

We talked a bit more, and it became clear the nice advisor has never had the proper money and retirement conversation (nor provided any education). A conversation and education that my new friend Susan really needs (and deserves), by the way.

Me: “So has your advisor brought up (and educated you about)…

  • Retirement risks and how to mitigate them? Longevity, volatility, sequence of return, inflation, interest rates, etc.?
  • Optimized retirement portfolios?
  • Retirement income planning (generating protected income for life)?
  • Social Security timing & maximization?
  • Healthcare planning?
  • Long-term care planning?
  • Life insurance planning?
  • Tax planning for retirement?
  • Using home equity as an income buffer?
  • Estate planning?
  • Non-financial topics such as: lifestyle planning (where you’ll live, what you’ll do, purpose, mental and physical health, social connections, etc.)?

Susan: “Nope. Nada. Just my investments. I did ask him about Social Security and he said I can take it whenever I feel like it (me: ugh). I also asked him about annuities and he said, “Run. If anyone ever brings up annuities to you, run away from that advisor.”  (me: ugh again)

Before I could respond, Susan added, “I don’t even know when I can retire or how much money I can take from my 401k or when? Or if, god forbid, I run out of money and become a bag lady. I’m just feeling a little panicked and the thought of not having a regular paycheck from working is frightening.”

Wow…so much to unpack from her response. It was crystal clear that Susan’s nice advisor was clueless about retirement planning. As I explained to Susan, “There’s many, many investment-only advisors. This doesn’t make him bad at his job. I’m not here to judge that. It just makes him inappropriate for the “retirement planning” job you need done now. And, for an equal to or potentially lower fee than what you’re currently paying, you could be benefiting from FULL retirement planning vs. just investment advice.”

Susan decided to schedule another chat with me to dig into her details (yay). I encouraged her to take my free Her Retirement Masterclass and to check out a preview of my retirement readiness software platform before our next chat.

I explained that getting foundational retirement literacy is a key part of the Her Retirement process. This will allow her to have more informed conversations with retirement experts and make more informed decisions. She’ll also be taking a complete financial inventory within my software and will benefit from a personalized G.R.O.W. guide the software produces for her. The guide will identify her Gaps, Risks and Opportunities, which is a foundational element to her ultimate retirement plan.

I’m looking forward to being an active listener and collaborator with Susan on her journey to “more.”

Unfortunately, there’s many conversations going on across the country that are similar to Susan’s with her investment advisor. Approximately 5,200 women are turning 60 every day in the United States.  It scares me to think of the lost opportunity many women will have to improve their retirement outcome, simply because they aren’t getting the quality advice and education around retirement they deserve. Sometimes, it’s simply because they don’t know what they don’t know. They don’t know who to turn to and who to trust.

In addition, as the Great Wealth Transfer unfolds over the next decade, women will become increasingly vulnerable as they inherit significant wealth. This demographic shift, which will see trillions of dollars transferred from the older generation to their heirs, places women at a unique risk. Many women, especially those who may not have been the primary financial decision-makers in their households, could find themselves navigating unfamiliar financial terrain. This vulnerability is exacerbated by the potential influx of unscrupulous advisors looking to exploit their lack of financial literacy or experience. These predatory advisors may offer seemingly attractive financial products or services with hidden fees, poor returns, or outright fraud. It is crucial for women to seek out trustworthy, transparent, and knowledgeable financial/retirement advisors to safeguard their newfound wealth and ensure their financial security for the future.

My mission with Her Retirement is to encourage more women to become students and stewards of their life and retirement. With my “More for Her Movement,” I want all women to Know More. Have More & Live More (now and in retirement).

I also connect women with professionals who are nice AND knowledgeable about all this retirement planning stuff…while also providing A LOT more value than the average Joe investment advisor. If you’re a single or suddenly single professional woman who wants more, I can help you Get Her Done.  Reach out because no, nice is not enough.

 

 

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Where Will Your Retirement Money Come From?

What workers anticipate in terms of retirement income sources may differ considerably from what retirees actually experience.  For many people, retirement income may come from a variety of sources. Here’s a quick review of the six main sources:

Social Security

Social Security is the government-administered retirement income program. Workers become eligible after paying Social Security taxes for 10 years. Benefits are based on each worker’s 35 highest earning years. If there are fewer than 35 years of earnings, non-earning years are averaged in as zero. In 2022, the average monthly benefit was estimated at $1,625.1,2

Personal Savings and Investments

Personal savings and investments outside of retirement plans can provide income during retirement. Retirees often prefer to go for investments that offer monthly guaranteed income over potential returns.

Individual Retirement Account

Traditional IRAs have been around since 1974. Contributions you make to a traditional IRA may be fully or partially deductible, depending on your individual circumstances. In most circumstances, once you reach age 73, you must begin taking required minimum distributions from a Traditional Individual Retirement Account (IRA). Withdrawals from Traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. You may continue to contribute to a Traditional IRA past age 70½ as long as you meet the earned-income requirement.

Roth IRAs were created in 1997. Roth IRA contributions cannot be made by taxpayers with high incomes. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals also can be taken under certain other circumstances, including as a result of the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.

Defined Contribution Plans

Many workers are eligible to participate in a defined-contribution plan such as a 401(k), 403(b), or 457 plan. Eligible workers can set aside a portion of their pre-tax income into an account, which then accumulates, tax-deferred.

In most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty.

Defined Benefit Plans

Defined benefit plans are “traditional” pensions—employer–sponsored plans under which benefits, rather than contributions, are defined. Benefits are normally based on factors such as salary history and duration of employment. The number of traditional pension plans has dropped dramatically during the past 30 years.3

Continued Employment

In a recent survey, 71% of workers stated that they planned to keep working in retirement. In contrast, only 31% of retirees reported that continued employment was a major or minor source of retirement income.4

Expected Vs. Actual Sources of Income in Retirement

What workers anticipate in terms of retirement income sources may differ considerably from what retirees actually experience.

Employee Benefit Research Institute, 2022 Retirement Confidence Survey

  1. SSA.gov, 2022
    2. AARP.org, June 8, 2021
    3. Investopedia.com, July 18, 2022
    4. EBRI.org, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite

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What’s So Great About a Rollover?

What’s So Great About a Rollover?

Changing jobs can be a tumultuous experience. Even under the best of circumstances, making a career move requires a series of tough decisions, not the least of which is what to do with the funds in your old employer-sponsored retirement plan.

Some people choose to roll over these funds into an Individual Retirement Account, and for good reason. About 34% of all retirement assets in the U.S. are held in IRAs, and 59% of traditional IRA owners funded all or part of their IRAs with a rollover from an employer-sponsored retirement plan.1,2

Generally, you have four choices when it comes to handling the money in a former employer’s retirement account.

First, you can cash out of the account. However, if you choose to cash out, you may be required to pay ordinary income tax on the balance plus a 10% early withdrawal penalty if you are under age 59½.

Second, you may be able to leave the funds in your old plan. But some plans have rules and restrictions regarding the money in the account.

Third, you can roll over the assets to your new employer’s plan, if one is available and rollovers are permitted.

Or fourth, you can roll the money into an IRA. Rollovers may preserve the tax-favored status of your retirement money. As long as your money is moved through a direct “trustee-to trustee” transfer, you can avoid a taxable event.3 In a traditional IRA, your retirement savings will have the opportunity to grow tax-deferred until you begin taking distributions in retirement.

Rollovers can make it easier to stay organized and maintain control. Some people change jobs several times during the course of their careers, leaving a trail of employer-sponsored retirement plans in their wake. By rolling these various accounts into a single IRA, you might make the process of managing the funds, rebalancing your portfolio, and adjusting your asset allocation easier.

Keep in mind that the Internal Revenue Service has published guidelines on IRA rollovers. For example, beginning after January 1, 2015, You generally cannot make more than one rollover from the same IRA within a one-year period. You also cannot make a rollover during this one-year period from the IRA to which the distribution was rolled over.4

Also, the Financial Industry Regulatory Authority (FINRA) has published some material that may help you better understand your rollover choices. FINRA reminds investors that before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.5

An IRA rollover may make sense whether you’re leaving one job for another or retiring altogether. But how your assets should be allocated within the IRA will depend on your time horizon, risk tolerance, and financial goals.

A financial professional can help: If you’re a woman concerned about saving for retirement or have questions about your unique situation, give us a call. Our team understands the unique challenges women face, and we’re passionate about helping women just like you plan for a comfortable retirement. Contact us and let’s get started. Email retire@herretirement.com.

1. Investment Company Institute, 2021
2. Distributions from traditional IRAs and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions. If the account owner switches jobs or gets laid off, any outstanding 401(k) loan balance becomes due by the time the person files his or her federal tax return. Prior to the 2017 Tax Cuts and Jobs Act, employees typically had to repay loans within 60 days of departure or face potential tax consequences.
3. The information in this material is not intended as tax advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a tax professional for specific information regarding your individual situation.
4. IRS.gov, 2021
5. FINRA.org, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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Find That Lost Retirement Account

Find That Lost Retirement Account

Do you have a long-lost retirement account left with a former employer? Maybe it’s been so long that you can’t even remember. With over 24 million “forgotten” 401(k) accounts holding roughly $1.35 trillion in assets, even the most organized professional may be surprised to learn that they have unclaimed “found” money.1

What Are “Forgotten” Retirement Accounts?

Considering that baby boomers alone have worked an average of 12 jobs in their lifetimes, it can be all too easy for retirement accounts to get lost in the shuffle.2 Think back to your first job. Can you remember what happened to your work-sponsored retirement plan? If you’re even slightly unsure, then it’s time to go looking for your potentially forgotten funds.

Starting Your Search

One of the best ways to find lost retirement accounts is to contact your former employers. If you’re unsure where to direct your call, try the human resources or accounting department. They should be able to check their plan records to see if you’ve ever participated. However, you will most likely be asked to provide your full name, Social Security number, and the dates you worked, so be sure to come prepared.

If your former employer is no longer around, look for an old account statement. Often, these will have the contact information for the plan administrator. If you don’t have an old statement, consider reaching out to former coworkers who may have the information you need.

Even if these first steps don’t turn up much info, they can help you gather important information.

Websites to Check

Next, it’s time to take your search online. Make sure you have as much information as possible at hand and give the following resources a try.

National Registry of Unclaimed Retirement Benefits

This database uses employer and Department of Labor data to determine if you have any unpaid or lost retirement account money. Like most of these online tools, you’ll need to provide your Social Security number, but no additional information is required.3

FreeERISA

If your forgotten account was worth more than $1,000 but less than $5,000, it might have been rolled into a default traditional Individual Retirement Account (IRA). Employers create default IRAs when a former employee can’t be located or fails to respond when contacted. You can search for retirement and IRA accounts for free using this database, but registration is required.4

Once you reach age 72, you must begin taking required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.

The U.S. Department of Labor

Finally, the Department of Labor tracks plans that have been abandoned or are in the process of being terminated. Try searching its database to find the qualified termination administrator (QTA) responsible for directing the shutdown of the plan.5

What’s Next?

Once you’ve found your retirement account, what you do with it depends on the type of plan and where it’s held. Your location also matters. Depending on where you live, the rules and regulations may differ.

No matter what you decide to do, be sure to involve your tax and financial professionals since they’ll be informed on current regulations for your state. They can also help you identify a strategy for your newfound money: travel, investment, or maybe that vacation home you’ve always wanted. You worked hard for that money, after all, so you should get to enjoy it!

A financial professional can help: If you’re a woman concerned about saving for retirement or have questions about your unique situation, give us a call. Our team understands the unique challenges women face, and we’re passionate about helping women just like you plan for a comfortable retirement. Contact us and let’s get started. Email retire@herretirement.com.

  1. Kiplinger.com, August 27, 2021
    2. USNews.com, October 22, 2021
    3. UnclaimedRetirementBenefits.com, 2022
    4. FreeERISA.BenefitsPro.com, 2022
    5. DOL.gov, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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How Retirement Spending Changes with Time

New retirees sometimes worry that they are spending too much, too soon. Should they scale back? Are they at risk of outliving their money? This concern may be legitimate. Some households “live it up” and spend more than they anticipate as retirement starts to unfold. In 10 or 20 years, though, they may not spend nearly as much.

By The Numbers

The initial stage of retirement can be expensive. The Bureau of Labor Statistics figures show average spending of $60,076 per year for households headed by pre-retirees, Americans age 55-64. That figure drops to $45,221 for households headed by people age 65 and older.1

When retirees are well into their 70s, spending often decreases. The Government Accountability Office data shows that people age 75-79 spend 41% less on average than people in their peak spending years (which usually occurs in the late 40s).

Spending Pattern

Some suggest that retirement spending is best depicted by a U-shaped graph — It rises, then falls, then increases quickly due to medical expenses.

But in a 2017 study, the investment firm BlackRock found that retiree spending declined very slightly over time. Also, medical expenses only spiked for a small percentage of retirees in the last two years of their lives.2

What’s the best course for you? Your spending pattern will depend on your personal choices as you enter retirement. A carefully designed strategy can help you be prepared and enjoy your retirement years.

A financial professional can help: If you’re a woman concerned about saving for retirement or have questions about your unique situation, give us a call. Our team understands the unique challenges women face, and we’re passionate about helping women just like you plan for a comfortable retirement. Contact us and let’s get started. Email retire@herretirement.com.

  1. Bureau of Labor Statistics, 2019
  2. CBSnews December 26, 2017

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

 

 

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Eight Mistakes That Can Upend Your Retirement

Pursuing your retirement dreams is challenging enough without making some common, and very avoidable, mistakes. Here are eight big mistakes to steer clear of, if possible.

No Strategy: Yes, the biggest mistake is having no strategy at all. Without a strategy, you may have no goals, leaving you no way of knowing how you’ll get there—and if you’ve even arrived. Creating a strategy may increase your potential for success, both before and after retirement.

Frequent Trading: Chasing “hot” investments often leads to despair. Create an asset allocation strategy that is properly diversified to reflect your objectives, risk tolerance, and time horizon; then make adjustments based on changes in your personal situation, not due to market ups and downs.1

Not Maximizing Tax-Deferred Savings: Workers have tax-advantaged ways to save for retirement. Not participating in your employer’s 401(k) may be a mistake, especially when you’re passing up free money in the form of employer-matching contributions.2

Prioritizing College Funding over Retirement: Your kids’ college education is important, but you may not want to sacrifice your retirement for it. Remember, you can get loans and grants for college, but you can’t for your retirement.

Overlooking Healthcare Costs: Extended care may be an expense that can undermine your financial strategy for retirement if you don’t prepare for it.

Not Adjusting Your Investment Approach Well Before Retirement: The last thing your retirement portfolio can afford is a sharp fall in stock prices and a sustained bear market at the moment you’re ready to stop working. Consider adjusting your asset allocation in advance of tapping your savings so you’re not selling stocks when prices are depressed.3

Retiring with Too Much Debt: If too much debt is bad when you’re making money, it can be deadly when you’re living in retirement. Consider managing or reducing your debt level before you retire.

It’s Not Only About Money: Above all, a rewarding retirement requires good health, so maintain a healthy diet, exercise regularly, stay socially involved, and remain intellectually active.

  1. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. Asset allocation and diversification are approaches to help manage investment risk. Asset allocation and diversification do not guarantee against investment loss. Past performance does not guarantee future results.
  2. Under the SECURE Act, in most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 72. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty.”
  3. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee against investment loss. Past performance does not guarantee future results.

A financial professional can help: If you’re a woman concerned about saving for retirement or have questions about your unique situation, give us a call. Our team understands the unique challenges women face, and we’re passionate about helping women just like you plan for a comfortable retirement. Contact us and let’s get started. Email retire@herretirement.com.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

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Does Your Portfolio Fit Your Retirement Lifestyle?

Most portfolios are constructed based on an individual’s investment objective, risk tolerance, and time horizon.

Using these inputs and sophisticated portfolio-optimization calculations, most investors can feel confident that they own a well-diversified portfolio, appropriately positioned to pursue their long-term goals.1

However, as a retiree, how you choose to live in retirement may be an additional factor to consider when building your portfolio.

Starting a Business?

Using retirement funds to start a business entails significant risk. If you choose this path, you may want to consider reducing the risk level of your investment portfolio to help compensate for the risk you’re assuming with a new business venture.

Since a new business is unlikely to generate income right away, you may want to construct your portfolio with an income orientation in order to provide you with current income until the business can begin turning a profit.

Traveling for Extended Periods of Time?

There are a number of good reasons to consider using a professional money manager for your retirement savings. Add a new one. If you are considering extended travel that may keep you disconnected from current events (even modern communication), investing in a portfolio of individual securities that requires constant attention may not be an ideal approach. For this lifestyle, professional management may suit your retirement best.2

Rethink Retirement Income?

Market volatility can undermine your retirement-income strategy. While it may come at the expense of some opportunity cost, there are products and strategies that may protect you from drawing down on savings when your portfolio’s value is falling—a major cause of failed income approaches.

  1. Diversification and portfolio optimization calculations are approaches to help manage investment risk. They do not eliminate the risk of loss if security prices decline.
  2. Keep in mind that the return and principal value of security prices will fluctuate as market conditions change. And securities, when sold, may be worth more or less than their original cost. Past performance does not guarantee future results. Individuals cannot invest directly in an index.
  3.  
    A financial professional can help: If you’re a woman concerned about saving for retirement or have questions about your unique situation, give us a call. Our team understands the unique challenges women face, and we’re passionate about helping women just like you plan for a comfortable retirement. Contact us and let’s get started. Email retire@herretirement.com.

 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

 

 

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Emotional vs. Strategic Decisions

Information vs. instinct. When it comes to investing, many people believe they have a “knack” for choosing good investments. But what exactly is that “knack” based on? The fact is, the choices we make with our assets can be strongly influenced by factors, many of them emotional, that we may not even be aware of.

Investing involves risks. Remember that investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

Deal du jour. You’ve heard the whispers, the “next greatest thing” is out there, and you can get on board, but only if you hurry. Sound familiar? The prospect of being on the ground floor of the next big thing can be thrilling. But while there really are great new opportunities out there once in a while, those “hot new investments” can often go south quickly. Jumping on board without all the information can be a mistake. A disciplined investor may turn away from spur-of-the-moment trends and seek out solid, proven investments with consistent returns.

Risky business. Many people claim not to be risk-takers, but that isn’t always the case. Most disciplined investors aren’t reluctant to take a risk. But they will attempt to manage losses. By keeping your final goals in mind as you weigh both the potential gain and potential loss, you may be able to better assess what risks you are prepared to take.

You can’t always know what’s coming. Some investors attempt to predict the future based on the past. As we all know, just because a stock rose yesterday, that doesn’t mean it will rise again today. In fact, performance does not guarantee future results.

The gut-driven investor. Some investors tend to pull out of investments the moment they lose money, then invest again once they feel “driven” to do so. While they may do some research, they are ultimately acting on impulse. This method of investing may result in losses.

Eliminating emotion. Many investors “stir up” their investments when major events happen, including births, marriages, or deaths. They seem to get a renewed interest in their stocks and/or begin to second-guess the effectiveness of their long-term strategies. A financial professional can help you focus on your long-term objectives and may help you manage being influenced by short-term whims.

A financial professional can help: If you’re a woman concerned about saving for retirement or have questions about your unique situation, give us a call. Our team understands the unique challenges women face, and we’re passionate about helping women just like you plan for a comfortable retirement. Contact us and let’s get started. Email retire@herretirement.com. 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

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A Bucket Plan to Go with Your Bucket List

John and Mary are nearing retirement and they have a lot of items on their bucket list. Longer life expectancies mean John and Mary may need to prepare for two or even three decades of retirement. How should they position their money?1

One approach is to segment your expenses into three buckets:

  • Basic Living Expenses— Food, Rent, Utilities, etc.
  • Discretionary Spending — Vacations, Dining Out, etc.
  • Legacy Assets — for heirs and charities

Next, pair appropriate investments to each bucket. For instance, Social Security might be assigned to the Basic Living Expenses bucket.2

For the discretionary spending bucket, you might consider investments that pay a steady dividend and that also offer the potential for growth.3

Finally, list the Legacy assets that you expect to pass on to your heirs and charities.

A bucket plan can help you be better prepared for a comfortable retirement.

Call today and we can develop a strategy that may help you put enough money in your buckets to complete all the items on your bucket list.

  1. John and Mary are a hypothetical couple used for illustrative purposes only. Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
  2. Social Security benefits may play a more limited role in the future and some financial professional recommend creating a retirement income strategy that excludes Social Security payments.
  3. A company’s board of directors can stop, decrease or increase the dividend payout at any time. Investments offering a higher dividend may involve a higher degree of risk. Keep in mind that the return and principal value of stock prices will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.