When it comes to planning for retirement, there’s a lot of information and options available to you that it may get a little overwhelming. However, for a successful retirement, it’s important that you’re in front of, and in control of, your retirement rather than the other way around. For example, did you know that you can move your 401K funds into an IRA, tax-free if you’re 59.5 years old or over? Not many people do.
It’s completely understandable to worry about the state of your finances, especially as you get closer and closer to retirement. In this episode’s Case Study, Dan and Jim discuss the best financial plan for chronic worrier, Gary. For them, the best way to combat financial stress and fears is to minimize the risk in your portfolio and then create a lifetime income projection so that you know exactly what to expect for your financial future. This works by simplifying your financial life into one page so that you can see exactly where your income sources will come from for the duration of your retirement; whether from savings, your assets, revenue, the government, or your investments.
The opportunity to sell your family business might represent the pinnacle of your life’s work – and possibly the work of generations of family before you, as well. It can be an even more meaningful experience when you use the sale as an opportunity to achieve your philanthropic objectives, which is possible with proper business and tax planning.
So, you’ve made it to retirement – congratulations! Your many years of hard work, smart financial choices and proper life planning have paid off and you’re now enjoying the best years of your life. Or, are you?
Like many big life changes, retirement can bring with it some surprises. One that catches many retirees off-guard is just how difficult it can be to fill your days when you no longer have the obligation of work – or the natural social life that stemmed from daily interaction with coworkers. So, if you’re feeling bored or even daunted by the idea of so much free time on your calendar, rest assured you’re not alone.
Still, it takes thoughtful commitment to overcome boredom in retirement. It’s not just about keeping yourself busy, it’s about making sure you feel fulfilled. Read on to learn how to overcome this common retirement challenge so you can live the retirement of your dreams.
The United States is in the midst of a massive wealth transfer from Baby Boomers to Gen Xers and Millennials – to the tune of $30 trillion, in fact. In light of this, many parents are wondering how to ensure their children feel empowered by their inheritance, without adopting a dangerous sense of entitlement. Below we’ll explore four proactive strategies for avoiding uncomfortable family scenarios that can develop when adult children know there’s guaranteed money in their future.
The subject of money and inheritance can be seen as taboo in many families, whether there’s a great deal of money in the family or not. A 2015 survey by U.S. Trust (now Bank of America) showed that one-third of high net worth and ultra-high net worth adults intentionally did not discuss family finances with their children out of fear that it would create a negative work ethic. Additionally, a full 20 percent said they had been taught as children that it was not appropriate to talk about wealth. How, then, will these families address the very real concerns that arise when wealth transfers to the next generation? The four action steps below offer a place to start.
In the financial advising business, it’s fairly common to hear from clients who are concerned they haven’t saved enough for retirement. What’s surprising about this, though, is that many of these clients are actually in an enviable financial position. They have worked hard to save more than they are likely to need, and yet they still worry about becoming penniless in retirement. Why is that?
Let’s consider a gentleman we’ll call David. He is 65 years old, a military veteran with a $40,000 per year pension, and he has $400,000 saved. His home is paid off and he has no debt to speak of. He qualifies for both Medicare and Tricare for health needs, and he has a long-term care policy just in case. You don’t have to be a financial professional to see that David has his ducks in a row, yet he’s still terrified of retiring and outliving his money.
