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Archive: November 30, 2015

Annual Review

November 30, 2015
The holidays are approaching and gift-shopping lists will be made and checked off. Taking a moment to meet with us for an annual review of your financial plan can:
increase your sense of being prepared
reduce stress knowing you’ve protected you and your family
make the holidays that much more enjoyable
We’ll ensure that you’re on track with your retirement plan, and that you’ll have the income to celebrate holidays in style in the future.
And what about unplanned expenses?
You’ll want to make sure you have liquid assets to deal with those!
In the last year*:

  • 60 percent of households in the U.S., regardless of household income level, said they had suffered a financial “shock,” defined as an unexpected expense or loss of income.
  • A third had suffered two or more!
  • More than half of these households said theystruggled to make ends meet afterwards.
*According to a report from The Pew Charitable Trusts
In order of impact, the unexpected expenses were:

  1. Major car repair
  2. Home repair
  3. Illness requiring a visit to the hospital
  4. Loss of a job or cut in work hours or pay

“Financial shocks are both common and damaging to family finances,”  said Clinton Key, a Pew research officer.

To protect yourself and your family, learning about brand new flexible, tax-advantaged ways to invest are another reason to meet with us yearly and review/update your plan.

When you’re on track with your financial plan, you will be celebrating instead of worrying during the holiday season.

You Already Have an Estate. Now Do You Have a Plan?

November 30, 2015

When most people hear the term “estate planning” they usually think of the rich and famous. The truth is, no matter who you are, you have an estate. Your estate comprises everything you own. It can be as simple as naming the beneficiary of your IRA and personal property, or as complicated as having multiple trusts for children and charities.

You probably want to determine who will benefit from your estate. When someone dies without an estate plan, his or her property passes to heirs by “intestate succession.” In other words, state law takes over and a will is made for you. One you might not like.

Here are some tips for Estate Planning 101:

Wills & Trusts

A will contains your instructions, but it does not avoid probate. Probate primarily has two functions. It pays off your debts and transfers assets to beneficiaries. Since a will still involves probate many estate planning attorneys recommend a trust. Though a little more expensive, a trust takes the state out of the equation. Your assets are held in the trust and are distributed by a trustee of your choosing.

Getting Started

The estate planning process includes some simple steps:

These elements help determine how your assets will be distributed, what happens if you become incapacitated and who is responsible for seeing that your wishes are fulfilled.

One of the many benefits of estate planning? It forces you to organize your records and update your beneficiaries.

Births, deaths, marriages and divorce are reasons to regularly review your estate plan and beneficiary designations. Estate planning also helps avoid conflict within a family after you pass. It’s a sad fact that many families have been torn apart fighting over an estate.

Talk About It

The first big step in the process is a conversation with family members.  While this takes courage, it can help avoid surprises, lead to better financial planning and promote family harmony. Again, an estate plan isn’t just for the wealthy. If you have assets, no matter how modest, an estate plan makes sense.

Contact us for help in starting the conversation.

Why Stock Market Corrections are Worse for Retirees

November 30, 2015
 Are you buckled in? The equity markets are said to be heading for a correction. A stock market correction is defined when major market indexes decline at least 10%. Drops greater than 20% are considered to be bear markets. In the last 15 years, stocks have experienced multiple corrections and two bear markets*.

Gambling on Your Retirement

Stock market volatility is a fact of life. Younger investors can afford to give some back because they have time to recover. For retirees it’s a different story entirely.

Those of us at or nearing retirement can’t afford to lose 20% of our portfolios because of the shortened investment horizon. Think about it. Could you handle a 20% decrease in income? What about 40%-50% less like we saw in 2008?

Capital Preservation is Key

After saving all those years, once in retirement, your goal is to protect your assets and create a predictable, stable income stream. Of all the risks out of your control, such as health risk, inflation risk, interest rate risk and longevity risk, market risk is one you CAN control. You can choose to expose yourself to market risk or not. And there are alternatives that protect and grow your savings and produce income at the same time.

Transferring Risk

When you invest in the stock market, you take on 100% of the risk. Did you know there is a way to totally eliminate market losses, achieve desirable growth and create an income stream you can depend on as long as you live?

If we haven’t talked about it recently, please contact us so we can share the latest choices in the ever-advancing retirement solutions market. Then you can get back to getting a good night’s sleep.