Why Money Brings Up Such Powerful Emotions

Written on .

money and emotions
Tips to Tame the Fear and Anxiety You May Feel About Your Finances

The following content has been adapted from Chapter 24 of Momma’s Secret Recipe for Retirement Success, by Dan Ahmad & Jim Files.

For many people, money is scary. It produces anxiety and many other powerful emotions, too. Oftentimes, the root of fear or anxiety is that you don’t truly understand your finances. You may even blame yourself for your “lack of financial intelligence.” However, we believe that for the overwhelming majority of retirees, the confusion and lack of understanding have nothing to do with personal shortcomings. If you feel confused and don’t understand your money, it’s because you don’t have an actual plan in writing.

Continue reading

What is a ‘Safe’ Income Withdrawal Rate?

Written on .

income withdrawal rate
It’s Crucial to Ensure You Won’t Run Out of Money in Retirement

What does the phrase “safe income withdrawal rate” mean to you? Most people would answer, “the amount of income you can withdraw from your assets without the fear of running out of income during your lifetime.” This seems cut and dried. But you have to look at what the word “safe” means to different people.

“Safe” to some people might actually mean “safer than something else,” such as you stating that you are “driving safe” because you are going 80 miles per hour while everyone else on the road is driving 90 miles per hour, but the posted speed limit is 65 miles per hour. And then, “safe” to other people might mean the chance of anything negative happening is 0%. In planning for retirement, safe better mean safe, something you can count on for sure. Safe better not mean “kind of safe.”

Continue reading

What is the Only Thing Worse Than a Stock Market Loss?

Written on .

investment portfolio
High Fees Can Devastate Your Portfolio and Your Chances for Long-Term Success

Stock market losses can devastate a portfolio and your chance for long-term success, but today we’re going to talk about something that could be even more devastating than a stock market loss. You probably think, “What could that be?” because stock market losses can ruin your retirement. The answer is … high fees!

Continue reading

The Golden Rule of 5% to 10%

Written on .

the golden rule
Protecting Yourself Against Big Portfolio Losses

Because of how painful portfolio losses can be to retirees, we created The Golden Rule Of 5% To 10%. The Golden Rule Of 5% To 10% states you should not have your assets positioned to lose more than -5% to a maximum -10% of your total portfolio, even if the stock market crashes and loses -50% or more.

If you are like many retirees, right now you may be very nervous, anxious, and worried about your money simply because you are afraid of suffering through the next big stock market crash. You are not sure how much you could lose, but you know at this time in your life, a big loss could be devastating. If your money is currently unprotected in the stock market, you should be nervous because none of us like uncertainty. Following The Golden Rule Of 5% To 10% may help decrease your worries.

Continue reading

Adjusting to Retirement: 8 Helpful Tips

Written on .

adjusting to retirement
Many Retirees Find This New Phase of Life More Challenging Than They Bargained For

Many new retirees are shocked to find that, though they have dreamed for decades about how they would enjoy their golden years, adjusting to retirement is actually quite difficult at first. On the surface, it would seem like leaving the stress and busyness of work behind and embracing a daily schedule of leisure would be ideal, but many retirees find it hard to navigate this “new normal.” That’s because retirement can often mean a loss of identity, and most people don’t prepare for this psychological challenge. Whether you identified as a lawyer, banker, chef, teacher, or small business owner, it’s easy to begin to question who you are now that you’ve retired.

Other issues can trip up new retirees, as well. While you may have more time for hobbies and the people you love, you may also have less money and feel less purpose in life. This can lead to anxiety and depression and, in fact, a study in the Journal of Population Aging recently found that retirees are twice as likely as working people to suffer from these mental health issues.

So, what is a new retiree to do? Below we’ll discuss eight helpful tips for adjusting to retirement that will help you navigate the challenges you may not have been expecting.

Continue reading

How to Keep Your Relationship Healthy in Retirement

Written on .

retirement
Six Tips for Keeping the Spark Alive During this Chapter of Life

When you and your partner have spent your whole lives working, it’s natural for retirement to change the dynamic of your relationship. Just as with the financial aspects of your retirement, it’s important to plan ahead to keep your relationship healthy in this phase of life, too. You might have a fantastic financial advisor and all the money in the world, but if you haven’t taken into consideration how retirement will impact your relationship – and vice versa – then you’re missing a crucial part of retirement planning.

Below we’ll share six retirement and relationship tips to help you fully enjoy this phase of life with your spouse or partner and thrive together in your dream retirement.

Continue reading

The Two Stages of Money in Retirement

Written on .

stages of retirement planning
Are You Still Accumulating Assets or is it Time to Shift Your Focus to Asset Preservation?

At Peak Financial Freedom Group, we believe there are a distinct set of seven rules to live by in order to create retirement security. Today, we’re sharing the first lesson, which is that there are two stages in retirement planning when it comes to money. We detail all seven rules in our book, Momma’s Secret Recipe for Retirement Success.

Continue reading

Five Financial Tips for Your Second Marriage

Written on .

financial tips for your second marriage
The financial stakes can be higher for a second marriage, so you’ll want to be prepared.

It’s no secret that about half of first marriages end in divorce, meaning many people will get married more than once during their lifetimes. If you find yourself getting ready for your second marriage, congratulations! Getting remarried offers a fresh start, a new opportunity to learn from the past, and time to build a life with someone new.

Before you walk down the aisle for the second time, however, there are several important financial steps you should take with your partner. Communication is always important in a relationship, but in some ways, it’s even more important in a second marriage because you will both be bringing more complexity and baggage with you – some of it financial.

Below are five steps you should consider before saying “I Do” for the second time.

Continue reading

Average Retirement Debt for Older Americans is Higher than Ever Before

Written on .

debt in retirement
What to Do if You Fear Your Debt Will Get in the Way of Your Retirement Plans

When it comes to retirement, the most common worry among workers tends to be whether they’re saving enough. However, with new reports showing that the average retirement debt is on the rise, many workers nearing retirement have an added concern to consider. According to the Federal Reserve Bank, Baby Boomers are carrying more debt into retirement than ever before.

Debt is often a serious source of contention and stress and carrying debt into retirement could be quite detrimental to achieving retirement dreams and goals. It can affect a retiree’s ability to pay necessary living expenses, keep their home, and even influence whether or not they can afford independent- or assisted-living facilities, should their health prevent them from living alone.

If you’re concerned about bringing debt with you into retirement, here’s how to tackle it ahead of time so that your retirement dreams can become your retirement reality.

Continue reading

Family and Finances: Tips for Discussing Money and Retirement with Your Loved Ones

Written on .

family and finances
Facing Money Topics Head-On is Key to Accomplishing Your Family’s Financial Goals

Though it may seem that family and finances are two words that don’t belong together, it’s important to make sure that you’re occasionally combining the topics despite how awkward it may feel. Talking about money can be incredibly difficult, but it’s equally important to make sure you and your loved ones are on the same page. Having conversations about money and retirement matters because, like it or not, your finances and current or future retirement plans will impact your children, too.

Furthermore, discussing money can ultimately end up strengthening everyone’s finances – and your relationships. Below you’ll find tips to help inspire you to begin having those hard conversations.

Continue reading