Category Archives : All

Identify the Risk in Dollars

Commentary:

This week’s article tells us that “managing your risk constitutes a major element of your financial plan”, and that risk includes items such as your life in addition to your home.
Life insurance can be viewed as insurance to replace lost earnings, to provide a source of savings or an inheritance for your loved ones in the event of premature death, or the eventuality we all face. “The trick here is to put the risk in dollars. In the case of life insurance, for instance, lay out the expected income that will be lost if the insured were to die. Rules of thumb are handy, but there is no substitute for laying out the cash flows.” Call us if you would like assistance in doing this, and explaining some options that may be available to you. We’re always here to help.

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Financial Literacy for our Children

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Research has shown that one of the roadblocks seniors face in setting aside adequate savings needed to retire is the financial help that their adult children may unexpectedly need. One way of working to reduce those occasions where financial assistance is given is to encourage family members to take the initiative to self-educate and grow their own financial knowledge. Today’s article provides some ways to do that. Take a look, and call us if you think your family members might benefit from a conversation with us. We’re always here to help.

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Keeping it Simple

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We have always tried to keep things simple, and so were thrilled to read this week’s article where a member of the faculty at the Stanford Institute for Economic Policy Research has shown the adage “the simpler, the better” when it comes to retirement planning. In a study to be published in the Journal of Public Economics they will show that when faced with complicated choices “people end up throwing their hands up in the air and don’t save anything at all.” Call us – we will tell you, in an easy to understand way, about some choices you may have to create an income off of your savings that you can’t outlive. We’re always here to help

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Are you at Risk for Living Too Long?

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The title of this week’s article caught my eye because most news articles nowadays are telling us we are at risk of shortening our life because of COVID; but of course the article was talking about longevity risk. What exactly is that? “The old line in retirement goes something like: “My problem is not that I have too little money left at the end of the month, it’s that I have too much month left at the end of the money.” Does that hit home with you? If so, call us. We have some ideas that you may not know about, or that you have yet to consider. We’re always here to help.

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Positive Impact

Today’s article shows us a new survey finding “that 39% of men and 47% of women in the U.S. report they are spending less during the coronavirus pandemic than they did before the crises. And more than half of Americans ages 55 to 64 – those closest to retirement age – say their spending has gone down. Cutting back on spending could translate into a nice savings boost over the long term.” Come talk with us about options for you to keep that savings boost working for you with an income you can’t outlive. We’re always here to help.

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Decide when to start

So many people are talking about retiring and hoping to do it soon that I thought to share with you an article that discusses those items in a check list form that you need to think about and pick the choices that work best for your situation. While medicare coverage begins at age 65 regardless of your Social Security full retirement age, when you start to collect on your Social Security benefits is much more within your control. So is purchasing a product that can provide you with additional income, in a form that you can’t outlive it. Take a look at the article and let us know if you’d like to discuss what options are best for you in order to end up with a retirement you can better enjoy. We’re always here to help.

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Especially Trying

This week’s report from the Brookings Institute authors reflects on the impact of the coronavirus and tells us “As painful as this episode has been for all Americans, it has also been especially trying for older individuals.” If you read any newspaper it is as if we must prepare ourselves not just for the impact COVID may have on us, but also what the markets and economy will look like amidst an upcoming Presidential Election. Call us if you are trying to determine where a safe place may be to put some of your hard earned money. We’re always here to tell you about options we know about, and which from our perspective have been tried and true for a long time.

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An all-encompassing view

This week’s article makes a valid point, that “safeguarding financial wellness requires an all-encompassing view of a person. This means considering their tangible assets (including savings and property), but also less tangible assets such as health, skills and career readiness to work longer”. Even before COVID-19 caused us to examine more closely our retirement readiness, we may not have been focusing on the fact that “on average, individuals are outliving their money by between eight and 20 years; women in particular are at the sharp end of this scale, with longer lives and pension savings around 40% lower than men’s.” If you’d like to realign your goals, give us a call. We’re always here to help and may have some options you haven’t considered.

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More Fiscally Conservative Yet Simultaneously More Freeing

More Fiscally Conservative Yet Simultaneously More Freeing
This week’s article tells a story we are all too familiar with: “Approaching retirement at age 65, John and Jill Smith realized their monthly income from Social Security and pensions total $700 less than their fixed expenses. They have savings to fill the gap, but worry that their nest egg may not be sufficient to cover both their fixed expenses and their annual travel plans — especially if they are fortunate enough to enjoy a long retirement. Prudent investors often tackle this problem by becoming ultra conservative with their money. They commit to withdrawing so little from their savings that they have almost no chance of using it all up — say 4 percent of their account balance per year — or they simply forego travel and most other forms of discretionary spending. There is an alternative approach, one that could be considered even more fiscally conservative and yet simultaneously more freeing. It involves using some portion of your savings to purchase an annuity, which is a special type of insurance contract that can be used to generate a guaranteed stream of income for life. The idea is to use these payouts to cover your monthly income gap, which then frees you to use the balance of your savings as you like — without worrying that you’ll be unable to afford food and shelter down the road.” Sound like an option you’d like to pursue? Call us, we’re always here to help.

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Causing Worry

The ongoing pandemic is causing people to worry, “whether they are approaching their retirement age or just starting out in their career – anxious about their finances, and retirement plans. This is the reason why more and more people are increasingly considering lifetime income products that are less vulnerable to factors like market volatility, retirement longevity, and challenges created by cognitive decline in order to secure their retirement income.” If you are worried and would like to learn more about these types of products, call us. We’re always here to help.

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