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How Retirement Could be Different in 2030

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As I wait for the ball in Time Square drop to kick off the start of the new year, I can’t help but think of the changes that will come in the next decade, especially with regards to my retirement. With advancing technology and changing times, it’s hard to predict how things will evolve each year. I worry if I have prepared enough for my retirement, and think about ways in which the world will change when it finally comes time for me to leave the workforce in the next few years. If we take a look at technology and think about the different ways that we are currently advancing, we can try to visualize some ways that retirement might look different in 2030 and be better prepared for the years ahead.

For starters, by 2030, your health should be better monitored. With the rise of fitness tracking devices and rumors of microchips, in 2030 they could possibly track blood pressure, take electrocardiograms and even send 911 alerts if they sense you’re having a medical emergency. Personalized medicine has also been on the rise and should be in full swing by 2030. Medical professionals could possibly provide tailored care for each person’s own unique genetic makeup. This could end up taking some of the uncertainty out of medical bills and help you better estimate the money that you will need to save.

With this, your drug store readers may become a thing of the past, virtual reality glasses becoming more popular and more easily attained, and hopefully with a lower price tag in the next few years. By 2030, your car might even drive itself and drones could drop packages right at your doorstep. If you’ve seen the news lately, you might have heard that both advancements are being tested currently. In the next decade, retirees should no longer have to worry about driving and if you forgot to stop at the pharmacy to pick up your medication, it might be as easy as summoning a drone to your doorstep.

Safety measures will also improve if keys and checks become obsolete. Mobile devices will soon be able to unlock your door and mobile pay will continue to grow. Along with your locks, the rest of your house may also soon rely on technology. Smart homes will become smarter and you may be able to control everything from lights to heat with your phone.

Whatever changes do come in 2019 and beyond, it’s important to be prepared. We are here to create a personalized plan that takes all aspects of your retirement into account. Click here to schedule your complimentary financial review and start the new year prepared.

Wrapping Up 2018

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While it’s easy to get caught up in the holiday spirit, running out to grab last minute gifts, baking dozens of gingerbread men and trimming your tree, don’t forget about your retirement plan. The end of the year is an important time for retires, and there’s a few things you should wrap up before it ends.

One thing that comes with the end of a year is deadlines. An important deadline that can be costly to miss is your required minimum distribution. If you’re over the age of 70 ½ and have an IRA account, you have to withdraw a set amount by the end of the year. The tax penalty can be up to 50% of the amount you were supposed to take. Avoid this penalty by taking your RMD now, don’t put it off until after the holidays.

In the spirit of the holiday, and on the topic of RMDs, you might be thinking about giving to charity and a qualified charitable distribution can be a tax-friendly way to do so. The amount of your QCD can be used towards your RMD and will not count as income, making it a tax deduction in addition to the standard deduction. This is something to consider if you were looking to donate to charity anyways.

If you haven’t retired yet, spending down your flexible spending account or FSA could be a good way to end your year. You can make pre-tax contributions into an account that can be used to pay medical expenses.  Basically, you can pay health expenses with tax-free dollars. The only issue is that you have to use it all before the year ends unless your plan allows you to carry any over. Don’t let this money disappear, figure out some way to use it in the last weeks of 2018.

Like an FSA, you could consider contributing to your health savings account. If you have a qualified high-deductible health insurance plan, you can utilize an HSA. You make pre-tax contributions into an account that you can then use to pay eligible medical costs. This differs from an FSA because you have unlimited time to pay yourself back. Until you’re retired it might be smart to pay these health costs out of pocket, but once you reach retirement, your account will have grown, and you can cover larger expenses that are bound to come up.

The best way to end the year is by sitting down with your financial advisor to wrap up your portfolio. We cover everything from investing and finances to lifestyle and estate planning. Click here to schedule your complimentary, no obligation financial review and start 2019 off right.

Evaluate Your Accounts Before Year-End

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Before the year ends, it’s important to take a look back and reflect on 2018. You can look at how your investments changed, review your portfolio and note any changes that happened in the past year that affected you financially. This can be as easy as taking 15 minutes to check-up on your portfolio and make sure that you are on the right track for 2019. By evaluating your accounts and investments before the year ends, you can be confident in your finances and feel ready to take on the new year.

You can start by checking your investments performance. Look at your retirement plans like 401(k)s and IRAs. You can go online to get your statements or look for a year-end statement in the mail. Once you have all of your paperwork, start evaluating. Compare your funds with indexes that include similar investments to yours. For example, you want to compare bond funds to bond funds, not bond funds to balanced funds.

After looking over your performance, check out the fees that you paid in 2018. A goal that many people may have for the upcoming year is to lower fees. Since there are so many options for low-cost investments available, it should be wrong to pay high percentages in fees. But it’s important to talk any changes over with your financial advisor before you make decisions.

The last step in this 15-minute investment check should be to rebalance your portfolio. If some of your investments performed great, you might be weighted too heavily in one area. Now is the time to rebalance because you never know what might happen. If something happens the market and those funds drop, you risk losing big. It’s best to keep a mix of stocks, bonds and other investments in your portfolio. If you’re approaching retirement, this balance becomes more and more important.

We want to help you create a strong financial plan that will start your 2019 off right. We will sit with you and evaluate your accounts and create a complete retirement portfolio that you can feel secure in. We will take into account your goals and resolutions for 2019 as well as your lifestyle goals for retirement and your estate plan. Click here to schedule your no cost, no obligation financial review.

Strategies to Help Survive Volatile Markets

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A volatile market can make anyone nervous, but it can be especially nerve-wracking for retirees and soon-to-be retirees who are concerned about protecting their nest egg for the long-term. And, one thing will always hold true: No one can predict the market’s ups and downs. This is why it’s important to create, no matter how positive or negative the stock market looks, a comprehensive retirement strategy that will help you survive a volatile market.

First, develop monthly income from sources other than those that rely on the stock market. This monthly income should hopefully be able to cover your living expenses. The rest of your money could be in investments that could potentially show big returns or could end up dropping if the stock market crashes. This income can be used for activities like travel or entertainment. If the market is not doing as well as you’d like, you can cut back on these bonus activities and still not worry how the bills are getting paid.

One of the best sources of guaranteed income comes from Social Security because it can withstand the stock market and inflation. It’s important to maximize this benefit so that you can have as much income each month as possible. But, because Social Security alone will likely not be enough to cover all of your expenses, you may have to look for other retirement income options to help supplement.

After your living expenses are covered, you can start planning for that extra income. There are many different stocks you can invest in and also different ways that you can get your payments. Some people choose to use a systematic withdrawal strategy while others use Required Minimum Distributions to determine their added annual income. It’s always best to talk to a financial advisor to see what options might be best for your unique situation.

Now, if you’re not yet retired but are quickly approaching retirement age, you might want to protect yourself more from a market crash. Especially if you are fully invested in a target date fund. If there is a gap between your retirement date and full retirement age, you’ll need to fund that time. Think about how you could protect yourself by investing in funds that won’t be affected by the crash. You should build up enough funds to cover the gaps for at least a few years.

We want to help you make smart financial decisions so that you are prepared for whatever the stock market brings. We will work with you to create a strong financial plan that can withstand volatility. Click here to schedule your complimentary review and strengthen your financial plan.

Tax Efficient Strategies for Charitable Giving

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As the seasons start to change and the holidays approach, we are reminded of how fortunate we are and how much we have to be grateful for. We are also reminded that the season of giving is upon us. But, if you’re retired, you may be worried about where extra income will come from and how you can continue to support the charities that are important to you. For retirees, there are some strategies that you can use for giving to charity that may make charitable giving to your schools, religious organizations, cultural causes and neighborhood charities more tax efficient.

Just like with most things, before you begin you should have a plan. Knowing how much you want to give and the charities you wish to give to, can give you a better idea of how much you will be spending overall. Next, you should review your selection and follow the tax rules closely so that you are sure you’re getting full credit for your gift.

One of the tax-efficient strategies you could start with is using qualified charitable distribution or QCDs. These reduce your taxable income without itemizing and can satisfy and required minimum distribution. You may even be able to write a check straight from your IRA in order to satisfy your QCD. But, before you make any IRA moves, you may want to first check with your IRA custodian to make sure that you don’t miss any necessary steps. It’s also important to note some guidelines for QCDs, if you take out your required minimum distribution and then decide to do the QCD, it won’t count towards your RMD. You also have to correctly report your qualified charitable distribution on your tax return and know that there is a limit of $100,000 per individual.

Another option is looking into a donor-advised fund. This fund groups your deductions so you can itemize more easily. The money also grows tax free, and you have the option of donating anonymously. However, even though they are set up in your name, these funds are controlled by a large nonprofit organization. You can donate different things such as real estate, cash or assets just to name a few. But, although you may suggest grants to charities, you won’t have full control, and these accounts might come with additional fees.

Lastly, you should consider donating your appreciated assets in order to avoid long-term capital-gains of up to 20%. Before doing this though, you should consider your heirs who are looking their chance for a step-up basis by inheriting appreciated assets.

The world of charity and taxes can be overwhelming, which is why it’s important to talk over all your options with your financial planner before making any decisions. We want to make sure you’re making smart tax moves to protect your portfolio. Click here to schedule your no cost, no obligation financial review and make sure you have a tax efficient strategy for charitable giving

Thankful for Retirement

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We spend a lot of time day dreaming about retirement, but once you finally get there, things might not be as you expected. The transition from full time work to retirement comes as a shock to some people which is why it’s increasingly important to have a lifestyle plan for retirement. Having these plans beforehand can make retirement something that you are truly thankful for this season.

There are leisure activities, and there are productive leisure activities. Once you retire, it’s important to not spend too much time in front of the TV, but instead focus on productive leisure activities like reading, travelling, volunteering or exercising. These can be more rewarding and give you even more to be thankful for. In retirement, you have much more free time in your day. Therefore, it’s increasingly important to set goals for yourself. This can help you prioritize and focus on the things that are most important to you. An example of something that might be a part of your retirement journey is returning to work. Some people take up a part time job or decide to open their own business. This could help you remain professionally active in a lower stress environment.

Some people might also enjoy going back to school after retiring. This leads to intellectual stimulation and new social connections. You could also try and learn something creative. Cultivating your creativity can have a powerful impact on mental, emotional and social wellness and can be a fun way to spend time in retirement.

To make the most out of your retirement, it’s important to spend time with your loved ones, especially this holiday season, which can sometimes feel lonely as we age. One of the most meaningful ways to accomplish this is by spending time with the younger generation. Consider including them in your holiday baking or teaching them your secret stuffing recipe. Maybe even just sit together and watch the parade or football game. This gives you a way to share your legacy and life lessons and form memories that will last a lifetime.

We’ll work with you to create a comprehensive retirement plan looking all aspects of your retirement. Regardless of what you want to do in your retirement, a plan that incorporates your personal goals and financial situation can increase your chances of getting there. Click here to schedule your complimentary, no obligation review today.

 

Long-Term Care Myths

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November is long-term care awareness month. This month it’s especially encouraged for you to start planning for long-term care, or to update your plans according to your lifestyle. If you are in or approaching retirement, long-term care is probably something that is on your mind frequently, because there’s a lot of myths revolving around it. These myths and misunderstandings can seriously impact your long-term care plans, and it’s important to know the facts.

In your later years, you may start to hear that serious memory lapses are normal. This idea that memory loss is naturally associated with aging is misleading. Memory lapses are nothing to joke about, and generally, they aren’t normal. Some symptoms usually associated with dementia can be attributed to cataracts or vision problems and medications that cause delirium. Not every symptom is connected to dementia, but if this becomes a reoccurring issue, you should schedule a visit with your doctor.

We’ve all seen the commercials for medical alert systems like life-alert that make it seem like falling is a part of aging. However, falls can be dangerous, and they are not just a normal part of aging. This idea that falls are bound to happen is deceptive. Practicing strength and balance exercises can help prevent the risk of falling, along with home modifications such as removing throw rugs and improving lighting.

Another health misconception is that antibiotics are the best cure for older adults’ colds. Antibiotics are great, but they have been so freely prescribed by doctors that they start to become less effective later in life. The best remedy for your common cold is probably to get plenty of rest, drink fluids and take a pain or fever reducer if necessary.

One myth that could hurt your retirement plans is the idea that Medicare will pay for all long-term care. Believing this misconception could lead to unexpected bills down the line when procedures or medications are not covered. Medicare is most likely not going to cover everything you may need, so it’s important to budget those costs into your retirement plans. Along with this, some people think that long-term care insurance will cover all their needs. This may be the case for some people, but it depends on the policy and the amount that you have contributed. It can be an asset, but you should not fully rely on it to cover all of your long-term care expenses.

Don’t leave your retirement income to chance. Let us help you navigate your retirement decisions, taking all of the necessary risks into account. We’ll learn your life goals and combine them with your financial situation to create a customized retirement plan that aims to carry you to and through retirement. Click here to schedule a comprehensive, no obligation review to get started.

Staying Calm in Unpredictable Markets

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There’s no doubt that the markets are unpredictable. Just over 2 months ago officially marked the current period of growth as the longest-lasting bull market in history. A bull market is generally noted as any period of rising stock prices and can be measured as a time in which market values rise at least 20 percent after a decline of 20 percent. However, as the saying goes, what comes up, must come down and in the past few weeks, the market has people concerned. With large daily drops and sharp jolts, it can be nerve-wracking. But, if you’re in retirement or approaching retirement, it’s important to stay calm and not let your emotions affect your financial decisions.

First things first, have a plan that prepares for down markets and stick to it. You can also create an investment strategy that looks at your risk tolerance and sell thresholds so that you are prepared beforehand.  Follow these tips to control your emotions when the market changes.

Stay focused and avoid panic by turning off the news. The TV stations don’t always help you make sense of the world, they tend to use alarming terms to focus on the declines. Instead, you should focus on what you know for sure. This is hard for most people, because we tend to dwell on what we don’t know and the questions that we have. However, you should remain at ease knowing that you need to be invested in order to achieve your goals and stocks are a great way to grow your portfolio over time.

Now that you’ve realized that stocks are important to your financial portfolio, try to avoid extreme changes to that portfolio. Doing something extreme can have long lasting repercussions. If you decide you need to do something, aim to make a smaller change that won’t fully disrupt your plan. Some people also consider rebalancing. Rebalancing your allocation to stock and bond funds for most means selling bonds and buying stocks. This isn’t easy to do when stock markets are in turmoil but can pay off in the long run.

Working with a financial advisor can also help give you peace of mind with your decisions. An experienced advisor can put things in perspective and talk you through any concerns you may have. A professional can also help you stick to your plan and stay focused on your goals because in retirement, emotional decisions can be costly.

You can’t outguess the market, but you can create an adaptable plan to accomplish your retirement goals. We can look at your whole portfolio and help you decide what moves are best for you so that you can achieve these goals. Click here to schedule your comprehensive financial review. There will undoubtedly be more ups and downs, but one thing that holds true is the need for a plan regardless of what happens in the market.

 

Expenses That Can Disappear During Retirement

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There are plenty of expenses that you’ll have to worry about in retirement. With the cost of healthcare and entertainment, along with travel expenses generally rising in retirement, just to name a few, it can be reassuring to learn that there’s a few areas where you might save some money in retirement. In fact, here’s five expenses that can practically disappear altogether!

With the costs of commuting rising every year, it’s no surprise that when you stop commuting you also save money. From bus tickets to gas prices, when you’re no longer sitting in traffic every morning or cramped on public transportation, your costs should drop drastically. The money that you otherwise would have spent on your commute is now yours to keep.

Another cost that disappears in retirement is Payroll taxes. When you are no longer working, you don’t owe any payroll taxes. This means the 7.65 percent of your salary that used to be taken away each month is no longer an obligation.

Once you retire, another expense that you don’t have to worry about is saving for retirement! After spending so many of your working years saving for the future, you finally can enjoy your savings. Instead of paying into your retirement accounts, you will be withdrawing from them. Some people also decide that after they retire they no longer need life insurance and disability insurance. Disability insurance is designed to replace a worker’s income when they are injured and unable to work, and most don’t see it as necessary once they retire. Life insurance is generally for the event that the worker dies unexpectedly and leaves their family without income and the idea that you have enough money to retire usually means this is no longer applicable for some.

Another item that you might save money on after you retire is clothing. Work related attire can be pricey and there’s no need to buy new dress pants or blazers so frequently once you retire. You will no longer be dressing up for important meetings and presentations, and a more modest wardrobe is generally adopted. Once you trade those fancy suits for jeans, you could end up cutting costs dramatically.

We can look at your entire financial portfolio, your lifestyle needs and your retirement goals to create a plan that works for you. We want you to be prepared for the costs and savings that come with retirement so that you aren’t faced with surprises.  Knowing the expenses that disappear during retirement is just one step in your full retirement plan. Click here to schedule your comprehensive, no cost, no obligation financial review today and continue the right path to retirement.

Are You Nurturing Your Relationships?

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Social networks have been on everyone’s mind lately, from Facebook’s falling stock price to debates about whether the internet is too isolating. If you’ve been thinking about your own social networks, you’re probably asking yourself a few common questions. Who do I really connect with? How do I stay part of other people’s lives, and have them stay in mine? What’s the difference between a casual friendship, and a really meaningful one?

In retirement, social networks are more important than ever. After all, this is when you’re going to have more time to invest in friendships both old and new. We all need networks of family, friends, and community. Whether that’s a band, a religious group, or some old golf buddies, retirement should let you make time for the people who really matter and the things that really make you happy.

But that isn’t easy. It can be hard to really set yourself up for a retirement full of friends, connections, and fun. Why? Because leading up to retirement, many of us are so focused on work that we don’t leave enough space to nurture those relationships. We tend to isolate ourselves even further by throwing ourselves deeper into work over concerns about not having enough money to last for retirement. And unfortunately, all of that extra work – and the stress that comes with it – can take a toll on your social relationships. You might find yourself saying “no” to those get-togethers with your pals just to finish up that one big project. At some point when you keep saying “no” too many times, people stop asking, and that’s something you don’t want to happen right when you need them the most.

So, what can you do to strike a healthier work-life balance? One thing you can do to alleviate some pressure is make sure you have a solid retirement plan in place, and it starts by clicking here to set up your complimentary, no obligation financial review. During our meeting we’ll assess your current financial situation and discuss how we can create a strategy to help you reach your financial and lifestyle goals. Simply understanding if you’re on track for retirement may give you the confidence you need to feel free to accept those invitations for those get-togethers.

Our goal is to help bring organization and clarity to the complexities of retirement planning, so you can start enjoying time nurturing your relationships instead of spending all night puzzling over finances. Getting prepared for retirement is serious business, but it shouldn’t come at the expense of your social network. We’re here to help so you can get back to what really matters: friends, family, community, and fun.

 

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2520 Douglas Boulevard, Suite 110
Roseville, CA 95661
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All of the information presented here is provided and intended to be used for general educational and informational purposes only and is not intended as a solicitation for you to buy or sell any security or financial product. The content is developed from sources believed to be providing accurate information. None of the information presented is intended to give you specific tax, investment, real estate, legal, estate, or financial advice but rather to serve as an educational platform to deliver information. The ideas, thoughts, and strategies presented here are those of the Management Team and provide an insight to our views on Peak Financial Freedom Group, LLC. Some of this material was developed and produced by Peak Financial to provide information on a topic that may be of interest. Every detail in this website is subject to change without notice. Seminar, radio shows, TV productions, book releases, magazine and book promotions are sponsored, promoted and paid for by Peak Financial Freedom Group, LLC.

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2019(1), 2020(2), 2021(3), 2022(4), 2023 (5) and 2024 (6) Five Star Professional Wealth Manager Award - Dan Ahmad and Jim Files have been nominated for and have won the 2019, 2020, 2021, 2022, 2023 and 2024 Five Star Wealth Manager Awards. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Once awarded, wealth managers may purchase additional profile ad space or promotional products. Award does not evaluate quality of services provided to clients. The Five Star award is not indicative of the wealth manager’s future performance. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. Award winners represent an exclusive group of wealth managers who have demonstrated excellence in their field by satisfying 10 objective selection criteria. For additional information on the Five Star award, including a complete list of the 10 objective selection criteria and their research/selection methodology, go to https://fivestarprofessional.com.

Investment advisory services are offered through Fiduciary Solutions, LLC, a California Registered Investment Advisor. Insurance products and services are offered through PFFG Insurance Agency LLC, a licensed insurance agency (CA Insurance License #0N14013). Peak Financial Freedom Group LLC is a financial planning and umbrella marketing organization, which enables the provision of multiple financial services under one brand. Peak Financial Freedom Group LLC, PFFG Insurance Agency LLC, and Fiduciary Solutions LLC are affiliated entities with common ownership and control. Jim Files is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1620449) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0F06511). Dan Ahmad is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1491561) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0732913).

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