Blogs

Can anyone expect to save for retirement and college tuition?

This question haunts many Americans. The easy answer is: Loans exist for college tuition, but not for retirement. That creates a moral dilemma. Why? We often encourage our children to attend the best school they can get into.

I let my spouse worry about and manage the money, so I don't have to.

You and your spouse are healthy. So letting your mate worry about the details of your finances might seem fine. But life is more about changes than constants. And if you’ve never taken the time to truly understand your finances, you’re setting up yourself and your heirs for a potential fall.

The shock of a death or a crippling disability can be debilitating even for people who have their fiscal house in order. Imagine the chaos stemming from trying to suddenly educate yourself about your assets if your spouse became seriously ill or died.

Are You Facing a Part-Time Retirement?

Americans with an individual retirement account have significantly more wealth, on average, than those without, writes the Employee Benefit Research Institute. So why aren’t we all saving (even a small amount) if we know it’s a pathway to more wealth? Complexity is one reason.

Should You Tap Into Your Retirement Plan Before You Retire?

The Los Angeles Timesrecently reported that 25 percent of Americans are dipping into their 401(k) retirement accounts to pay bills. So what’s wrong with tapping your 401(k) or 403(b) plan to pay bills? The first problem is it indicates a fundamental breakdown in financial planning.  

Distributing Money Takes a Different Strategy than Accumulating Dollars

Let’s say a recently retired couple in their 60s wants to buy a home in Florida. To do this, they should clearly delineate the funds for buying the home from the money used to generate income over the next 20 years. Money for real estate or big vacations should be accessible in a lump sum earlier in retirement versus a systematic distribution that should be earmarked for the basics needs of everyday life.

Thinking for Generations to Come

According to Inc. magazine, approximately 30 percent of America’s family owned businesses are sold or transferred to the next generation. Outside parties buy the remainder, sometimes for parts or pennies on the dollar. While the person who builds a business might make a significant income from the operation during his or her life, a business owner’s death, disability or retirement can cause the company to close.

Do you have a distribution strategy?

If you think all money is the same, you’re not looking closely enough at your funds. Here’s an example from a client I recently met. A retiree, let’s call him “John,” insisted on leaving some of his money in his 401(k) after leaving the workforce shortly before 2008. In retirement, John needed to draw on his savings to cover a bill larger than what he had on hand in his CDs and a savings account. To make up the shortfall, he drew from his 401(k).

What retirement planning snares should you watch out for?

In our last post, we talked about what type of questions you should ask yourself when putting together a strategy for retirement. But even retirees with a retirement strategy in place can make mistakes. Some of the snares people fall into are these:

Spending too little

How do you sidestep an end to your means?

Baltimore Ravens linebacker Ray Lewis retired last February after winning his second Super Bowl ring. After completing his 17-year career with the Ravens, some sources peg Lewis’ financial net worth at approximately $45 million. Ray Lewis, of course, is an exceptional retiree. For example, in 2007, according to the Federal Reserve, the median net worth for a retired person was $533,100 including home equity.

How are we getting ahead of the curve?

Today we’re launching a blog. We know we’re behind the curve. By our estimate, we’re 500 years late. How’s that you ask?

Blogs have been around since Martin Luther used the printing press to distribute his thesis. In the 1700s, Thomas Paine disseminated his ideas through blogging, which back then people called pamphleteering. This web site is our printing press – our way to share original content about retirement planning with you.

We already offer our ideas through seminars and meetings with our customers. We also distribute an e- newsletter. So why a blog?