If you're doing retirement planning, you'll probably get to the step where you need to estimate your retirement expenses versus your retirement income. I complete this step all the time with prospective clients in our initial meeting and so I've learned the best way to do it without overwhelming them. It might be tempting to break out the spreadsheet, start a Quicken subscription, or build a detailed budget. But there's a simpler way to get started at the beginning. Conceptually it … [Read more...]

If you are a high income earner or are trying to make up for lost time in the retirement savings game, you may be looking for ways to increase contributions to your retirement plans beyond the IRS maximums. If you're over the age of 50, you can put a hefty amount in the company retirement plan. In 2019 the max is $25,000. What if you want to make higher annual contributions, or you don't have access to a company retirement plan? Here are some options: If you are married, you can … [Read more...]

I never realized until recently how the payment of the commission to an agent impacts the benefits and restrictions the client receives in a policy. I had always been aware that a commission payment created the surrender period on a life or annuity policy. This is due to the fact that the insurance company needs a certain number of years to recoup the amount paid to the agent. That is why most life and annuity contracts contain a surrender schedule that lasts 7 – 10 years. It creates the … [Read more...]

Dear [names], What if you're not able to make medical decisions regarding pain management, quality of life, or specific type of procedures? Do you have a plan in place so that someone else can make these important decisions for you? Enter the "Advanced Healthcare Directive". The following is reproduced from an article by National Hospice and Palliative Care Organization _______________________ What are Advance Directives? A living will allows you to document your wishes … [Read more...]

Do you sometimes wonder whether you have too much or enough in reserve? Having too little in reserve may require a retiree to use debt to fund an unexpected expense. Having too much in reserve presents an opportunity cost on the funds that could be better utilized elsewhere. So how much is enough? Is there a right amount? You've probably heard the rule of thumb of 3 to 6 months worth of expenses for emergencies. That is a good starting spot.  In addition to pure emergencies, you … [Read more...]

Have you ever been frustrated by the investment options in your company retirement plan? Maybe there are too few… Maybe there are two many and are overwhelming… Maybe there aren't enough safe options… Navigating the best way to invest inside your company retirement plan while retirement nears can not only be frustrating but can involve a tremendous amount of risk. Most company retirement plans weren't built for the soon-to-be retired. They were built for the accumulator who has a higher … [Read more...]

I recently was explaining the difference to a client between the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). I realize that it is a distinction that many probably don't understand and thought I would explain for those who are curious and are impacted by it. Both the WEP and the GPO impact the same person… someone who earned a non-covered pension. Non-covered means that it was earned in a job in which you were not paying Social Security taxes and were part … [Read more...]

Did you know there's actually a disadvantage of having too much Social Security? I was recently working with new clients who I’ll call Rick and Patty. They had continued to work and save into their late 60s and planned to activate each of their Social Security benefits at age 70. Because they both had a substantial working record, their combined Social Security's would be well over $80,000 per year. What that meant, however, is that if one spouse passed away, the surviving spouse's income … [Read more...]