3 Under-Rated Retirement Accounts

September 03, 2015

One of the most common questions we get is how to prioritize funding different types of retirement accounts.In an ideal world, we would max them all out but most of us need to figure out which ones should take priority. I recently read this article that attempts to answer that question. While I generally agree with the points, there are three things that this article and many similar articles I’ve read tend to underestimate: Continue reading “3 Under-Rated Retirement Accounts”

All Good Things Must End

August 07, 2015

As an addict avid watcher of Game of Thrones, I always hope that the series will go on for as long as The Simpsons. But as we’ve all seen in our lives, eventually all things (good and bad) must end.This article discusses the potential end of the run of GoT. I guess we will all have to deal with a series finale at some point within the next few years. The good news is that with Breaking Bad, Walking Dead, Friends, Seinfeld, MASH, etc. (depends on your generation which one will most resonate), we have precedent in watching our favorite show end. Continue reading “All Good Things Must End”

When Does A Roth IRA Or 401(k) Work Best?

August 03, 2015

As a financial planner, I find people are pretty predictable about their feelings on income taxes: hardly any of them want to pay more than is absolutely necessary, and they feel like other people don’t pay enough! The US tax code has incentives and rules meant to encourage us to do specific things like buy a home, make charitable gifts and save for retirement. But is there any value in actually paying taxes up front rather than put them off if you can? Continue reading “When Does A Roth IRA Or 401(k) Work Best?”

5 Myths About Social Security

July 27, 2015

I’m going to unofficially declare last week as National Social Security Awareness Week as a result of the questions I got in a series of workshops that I facilitated on retirement planning. I don’t think a week of Social Security actually exists on the calendar but with all the confusion surrounding Social Security there probably needs to be one. Here are some common myths I’ve heard: Continue reading “5 Myths About Social Security”

Managing Your Pension In A 401k World

July 15, 2015

Lately there’s been a lot of criticism of 401k plans in the news and some of it is very valid. A 401k that is poorly designed and/or poorly managed can leave people in a bad place when they want to retire, but traditional pensions aren’t a perfect solution either. Don’t get me wrong. If you have a pension that is a GREAT benefit to have. You just can’t assume that everything will work out as planned. Continue reading “Managing Your Pension In A 401k World”

Should You Plan For Retirement Or Seek Financial Independence?

July 13, 2015

When our team of financial planners asks others about their top financial concerns and priorities there is a consistent answer – retirement. In fact, our financial wellness reports usually show that every age group with the exception of those under 30 indicate that their top financial planning priority is indeed retirement planning. This probably comes as no surprise because everywhere you look these days financial services companies are bombarding us with clever messages to shift our focus to retirement. The Financial Finesse blog team, which I am a contributing member of, frequently writes about different aspects of the retirement planning process as well. Continue reading “Should You Plan For Retirement Or Seek Financial Independence?”

Retirement Isn’t All About The Numbers

May 22, 2015

Once in a while, usually during a long cold winter in the Northeast/Mid-Atlantic area, my thoughts wander into a warmer place. I’ve joked that one of the requirements for my next home is that I have to be able to call the local Home Depot/Lowe’s and when I ask if they sell snow shovels, their answer MUST be… “NEVER! Not a single day during the year do we sell snow shovels.” It was while discussing that philosophy with a friend that she pulled up this article on her phone to discuss her retirement dream. She would like to explore the world for a decade or so and then settle down in whatever place she feels like calling home. That sounds like a pretty cool lifestyle and one that a lot of people would love to experience. Continue reading “Retirement Isn’t All About The Numbers”

Small Changes Now Can Mean Big Long Term Results

May 08, 2015

In a conversation I had recently with an employee of a large healthcare company, the topic of retirement planning and investing merged together. She had recently started her job and wanted to be sure that she got off to a good start. Her prior employer had no financial wellness benefits provided so this was her first conversation with a financial planner. The conversation was very revealing about her views of herself, the world of investing and the level of financial knowledge that many people who work in financial services business assume that individuals have when they walk in for a conversation. Continue reading “Small Changes Now Can Mean Big Long Term Results”

Is the Retirement Savings Gap Closing?

May 04, 2015

Good news! More people are expressing confidence in their ability to meet their income goals during retirement. According to the Employee Benefit Research Institute’s (EBRI) Retirement Confidence Survey, 28 percent of people with a retirement plan are very confident they will be able to retire comfortably. Continue reading “Is the Retirement Savings Gap Closing?”

Laughter Can Be Retirement Medicine

May 01, 2015

Earlier in the day, I had a conversation with a couple who were convinced that they didn’t have nearly enough money to retire any time soon and this was a very problematic issue for them.While she loved her job and said she planned to work until she’s the oldest employee ever at her company, he is absolutely miserable. Through a reorganization at his company, he now reports to a manager that he absolutely cannot stand and he said he feels like life is being slowly sucked out of him. The new boss, in his view, is an absolute megalomaniac who makes life miserable for everyone in their department. Nearly half of the staff has left for other opportunities within the last 6 months and the workload for those remaining is overwhelming to the point that he feels like his health is being compromised. Continue reading “Laughter Can Be Retirement Medicine”

Do You Need Life Insurance After You Retire?

February 04, 2015

As part of the financial education we provide on retirement decisions, we suggest a review of your insurance policies as a means of protecting your accumulated wealth. This includes a review of your homeowners coverage, medical benefits, and long-term care insurance, but we also suggest a review of your need for life insurance. I’ve always taken the stance that life insurance protects against at least three types of risk: loss of income, insufficient liquidity, and high income taxes. Let’s examine all three to see whether or not you need life insurance after retirement. Continue reading “Do You Need Life Insurance After You Retire?”

Can You Really Save More Tomorrow?

January 26, 2015

We hear a lot in the news about concerns that Americans aren’t saving enough for retirement. It’s not surprising for news to lead to an increased concentration on saving for the future. On average, retirement planning may be the top financial planning priority but that doesn’t necessarily mean that everyone shares this sense of urgency. Continue reading “Can You Really Save More Tomorrow?”

3 Hidden Pitfalls Coming to a 401(k) Statement Near You

December 18, 2014

When you see your 401(k) balance or even a projection of your future balance when you retire, do you really know what that number means for your retirement? If you’re like most people, you probably don’t. A $200k balance may look like the most amount of money you’ve ever had so you can easily think it will be more than sufficient even if it turns out to be nowhere near enough to generate the income you’ll need to retire comfortably. Continue reading “3 Hidden Pitfalls Coming to a 401(k) Statement Near You”

Retirement Planning, Dougie Style!

December 10, 2014

One thing I love about my colleague and friend, Doug Spencer, is his ability to make the complicated simple. Take retirement planning for example. Some people approach retirement planning as though it involves complicated math, an ability to predict the future, and an ounce of luck. Continue reading “Retirement Planning, Dougie Style!”

Should You Take a Pension or a Lump Sum?

December 05, 2014

Within the past few weeks, I have had more than a few people ask about a prior employer offering a lump sum payout vs. leaving it in the plan and taking a monthly payout at a later date.I’m not sure if companies are making this “the lump sum season” intentionally or not, but there has been a major influx of conversations about this topic. I’m figuring for every person that is asking, there are probably many more sitting there silently and trying to make the decision on their own. That sounds like a great reason to write a blog post. Here is the process that I walk through with a person to help them evaluate their options when they have a lump sum opportunity. Continue reading “Should You Take a Pension or a Lump Sum?”

How the IRS Can Help You Save More For Retirement in 2015

November 17, 2014

It has often been said that the only constant in life is change. As a parent, I find that change is both exciting and scary as heck because you never know what lies around the corner. This statement about anticipating change definitely remains true when the IRS is concerned. Continue reading “How the IRS Can Help You Save More For Retirement in 2015”

Be Long Term Careful

November 14, 2014

One of the questions I get asked frequently by people who are on track to retire is if they should buy long term care insurance (if they don’t already own it) or if they should cancel it (if they already own it).Lately, that has been a very difficult question to answer. Companies that offer long term care insurance are raising premiums, sometimes very substantially, and there are no guarantees that they won’t go even higher in the future. So if you are considering purchasing a LTC policy or cancelling your existing LTC policy, what are some things that you should factor into your decision? Continue reading “Be Long Term Careful”