Blogs

Stretch Your IRA

Coaches and athletes say stretching is good for you. Turns out, stretching is also good for your finances. If you’ve ever heard someone talk about a “stretch IRA,” it’s not a new product. It’s a method of making your wealth last longer. With some planning, I believe you can make an IRA last for a generation or more.

All in the Family

“’You’re still too young to run this business,’ said the father to his sixty-something-year-old son,” recalled Niagara University Family Business Center Director Vince Agnello as he reflected on succession planning. According to Vince, the father “just couldn’t give up control.” Vince and Family Business Center Program Coordinator Gerry Catalano invited me to speak in December about family business succession planning at an NUFBC breakfast seminar.

Does your financial ''house'' need cleaning?

If your financial files have taken on the look of a “paperstorm,” the thought of organizing yourself can feel overwhelming. But tax documents, estate plans and financial statements are simply tools. Keeping them sharp and in one place gives you (or a trusted someone) a way to apply them when needed. Here are three simple steps:  First, determine what you need to keep; second, understand how long you need to hold onto your paperwork; and, three, decide where you’ll file your important “papers.”

What should you keep track of?

Estate planning for the 99 percent

Even if you believe you have a modest net worth, without an estate plan, your assets could be dispersed in ways you never imagined. And your heirs would find it difficult or impossible to get what you intended for them. Estate planning documents such as wills, trusts and healthcare directives cover more than money. They stipulate how you want your assets spread and how you’d like to be cared for if you’re incapacitated.

How can I protect my assets from the next economic meltdown?

Collapse and meltdown are attention-getting words. The collapse of Lehman Brothers in 2008 nearly brought the financial system to a halt. In hindsight, experts say, the crisis of 2007-08 was brought on by things like bundling and selling sub-prime loans.

What's a realistic rate of return for the money I'm now putting away for retirement?

Some experts say you can get a 12-percent return on your mutual fund investments. But, in an article titled “Is the 7 Percent Return for Stocks Extinct?”, U.S.

Is your retirement plan based on your home's emotional equity?

Your home’s equity should be part of your retirement plan. But, first, think about what a home means to you. When you retire, do you want to remain in your current home because of its memories, convenience or community? Would you move to a neighboring town or even another state to take advantage of lower property taxes?

How Much Should You Expect to Spend in Retirement?

Expect, on average, to spend 70 to 80 percent of your annual, pre-retirement income when you retire. I know clients who spend more in retirement than they did when they worked full-time. So, the answer differs for everyone. I’ve seen younger retirees with hobbies that cost more than anything they had time for prior to retiring. Retirees often live with very little debt. Their homes are generally paid for, and their children, if they have any, are usually out of college.

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How do you pay your financial adviser?

Do you understand how advisers charge for retirement planning services and products? The financial adviser industry earns its keep from clients through a variety of payment models. However, not all advisers offer a range of models to clients. First, let’s list some models to look for: 1) asset-based fee, 2) commission-based, 3) hourly fee, and 4) retainer.

Should I factor in Social Security payments as part of my retirement plan if I'm in my 30s or 40s?

Should you factor in Social Security payments as part of your retirement plan if you’re in your 30s or 40s? Well, I don’t consider it as part of my retirement planning. If you exclude it from your planning, it will push you to be a more aggressive saver. I would rather make that sacrifice now than be blindsided as I get close to retiring.The one certainty about the Social Security program is that it will continue to evolve. Whether that’s for the better or not is not certain.