Should I own gold? We have all seen and heard the commercials about buying gold, how it is the standard and gives protection and peace of mind, at least that is what they say in the commercials. What they are selling is actual gold pieces. If you are going to own gold in this manner, here are a few things to look out for.

How pure is the gold? The higher the purity, the higher the price.
What is the markup to the vendor? Often it is quite high.
How are you going to be able to use the gold? If Armageddon happens, are you going to trade a gold coin that cost you $2400 for a bag of groceries?

I believe in diversification and gold can be a hedge against traditional stocks and bonds. If you want to add gold to your portfolio, please look for a quality mutual fund or ETF that invests in gold.
The views and opinions expressed are for informational and educational purposes only as of the date of writing and may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. All investments carry a certain degree of risk and there is no assurance that an investment will provide positive performance over any period of time. The information and data contained herein was obtained from sources we believe to be reliable but it has not been independently verified. Past performance is no guarantee of future results.
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I am generally in favor of the bird in your hand, with 401(k) accounts, this means Traditional, pre-tax contributions. If you save as much as you comfortably can pre-tax, less will go to the IRS, and there is little change in your spendable income. You are putting the funds in your retirement pocket vs. that of the IRS. Roth 401(k) contributions are made with after-tax dollars and currently accumulate tax=free as long as the funds are on deposit for 5 years or more.
Over the past 3 years there has been a lot of talk about changing the Roth accounts because our Government feels too many people are accumulating too much money that will never be taxed. There have not been any negative statements made in regard to the Traditional pre-tax deposits, until now. Our Government is stating that only “well-healed” individuals have access to these types of accounts, and they are adding too much to these non-taxed deposits. If the amount that can be contributed is lowered, more money can go toward Social Security, thus helping that system.*
I do not know, I thought retirement savings were meant to help us all prepare for our own retirement.
*USAToday 3/21/24

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Most people do not get paper statements for their bank and credit card accounts anymore. When we got monthly statements, we took a few minutes to review them, now that most accounts are paperless, how often do you check yours?
I make it a habit to pull up my accounts to review the transactions at least twice a month. Recently, there was a report that people that use Amazon Prime were having their accounts hacked. When I looked at my credit card statement after reading that, I was charged for an Uber ride, I do not have an Uber account. I called my credit card company and reported the charge. They refunded and closed that account, I had to wait about a week to get a new card.
Because I have more than one credit card, I was not left unable to charge items, and because I regularly review my accounts, this was the only fraudulent charge processed. Please, review all your statements regularly so nothing slips through, and you do not lose money.

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This is a question I ask all my clients when they are contemplating retirement. If they cannot start rattling off things they want to do, I tell them they are not ready to retire.

We take a lot of time and discipline preparing to retire by saving into our retirement plans, paying off debts, and making sure health care is taken care of. Many people do not think about all the time they will have on their hands for (hopefully) decades to fill. I can suggest a number of activities to my clients, but they must know what they want to do.

I have seen too many times where people have retired not knowing what to do with themselves. They end up spending a lot of money on a lot of nothing, they end up gaining a lot of weight, or they end up divorced. I do not want that to happen to you.

As you are planning so carefully for the financial side of your retirement, please take a lot of time to think about the time you will have on your hands and what to do with it.

My husband has been retired for about 15 years. Between stuff he wants to do, and stuff he has to do, he wonders how he ever had time to work. That is a successful retirement.

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I was reading Consumer Reports, and they have some great financial tips to start working on now to make your financial life better.
Take Advantage of ‘529 Day’
The College Savings Plan has embraced May 29th as the day to look at funding college for your kids or grandkids.
Review Recurring Charges
We all sign up for different services such as streaming channels and subscriptions that we may no longer be using or like. Review these charges to see if you can drop any and save some money.
Review your retirement savings
Are you contributing all that you can to your 401k or 403b? More pre-tax contributions mean less in tax but may not mean less in spendable income. If you paid more in tax last year, this is one way to keep more in your pocket.

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Four million Baby Boomers will turn 65 in 2024 — the largest number in U.S. history.
People 65 and older take prescribed medications more frequently than any other U.S. age group, I take four medications.
Most major grocery store chains offer senior discount days, and tons of restaurants offer early bird specials for older adults. Amtrack offers a 10% discount for those age 65 and older.
When you get carded now, it’s so you can save money, not to deny you a purchase.
I have both been in business and with my Husband for the last 40 of my 65 years, neither seem to be that long.
65 looked much older on my past generations than it does now.
Even though I am now 65, my family still has to put up with me acting like a 12 year old!

Disclosures:Four million Baby Boomers will turn 65 in 2024 — the largest number in U.S. history.
People 65 and older take prescribed medications more frequently than any other U.S. age group, I take four medications.
Most major grocery store chains offer senior discount days, and tons of restaurants offer early bird specials for older adults. Amtrack offers a 10% discount for those age 65 and older.
When you get carded now, it’s so you can save money, not to deny you a purchase.
I have both been in business and with my Husband for the last 40 of my 65 years, neither seem to be that long.
65 looked much older on my past generations than it does now.
Even though I am now 65, my family still has to put up with me acting like a 12 year old!

The following is an email I received from a client:
I’ve been talking with Brad concerning my taxes, and a point came up about GA taxes being applied to my RMD’ s. According to him I qualify for a program called ” Retirement Income Exclusions “. Bottom line is I don’t need to have GA state taxes applied to my RMD’s. Which also means I get more $$ per pay period, and that’s a really good thing!
The Retirement Income Exclusion applies in many States, here is what is says:
Retirement income exclusion refers to the exclusion of taxes on retirement income12. The first $6,000 of retirement income received by anyone 65 years of age or older is exempt starting in 2023. To take this exclusion, the pensioner or retirement income recipient must meet one of the following conditions: 1) 55 years of age or older on December 31, 2021, 2) disabled, or 3) a surviving spouse or a survivor having an insurable interest in an individual who has qualified for the exclusion in 2021 on the basis of age or disability.*

*Investopedia

Disclosures

Generally, surprises when doing your taxes are not good, most people find they need to pay more, some have the pleasant surprise of getting an unexpected refund. My surprise was different.
I was supposed to be a CPA (according to my Dad) vs a CFP. ® I am so happy I have gone the CFP® path, but I still do my own taxes.
This year when I printed off my return to file, yes, I like to mail my return vs. e-file, at the bottom of the return it said 104S2023 Form 1040-SR., I thought what is that? Then I looked it up. Here is what it is: 2023 Form 1040-SR. Department of the Treasury—Internal Revenue Service. U.S. Tax Return for Seniors.
UGG! I guess I cannot avoid the fact that both my Husband and I fall into this category, but I will still act like a 12-year-old!

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401k savings are under attack. The attitude from some is that “allowing people to shelter their retirement money from taxes is a policy that largely favors the well-heeled.”*
Alicia Munnell, an assistant treasury secretary under President Clinton, argues for rolling back the federal tax expenditure for retirement plan contributions and redirecting the savings to Social Security. Full repeal would fix three-fourths of Social Security’s long-term funding gap.
I feel that if the Social Security Fund were used for the purposes originally stated when it was started, and enforcement against those who are abusing the system are taken off the Social Security rolls, the trust fund could heal itself. Another change to Social Security that could help extend the life of the fund would be to credit those who delay 5% vs the current 8% increase in benefits. A little saving could go a long way to help the Social Security Trust Fund.

*USAToday3/21/24

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Often when I meet new clients, and I am reviewing their current accounts, I notice that they always have a primary beneficiary listed on their retirement accounts, but no contingent beneficiary. Generally, no attention is paid to this beneficiary listing, but it is an important one. Most people list their spouse or significant other as a primary beneficiary, which is natural. I don’t know about you, but I often move around town with my husband. G-d forbid the unthinkable happens, if I had not listed our daughter as contingent beneficiary, my accounts would have to go through probate. Probate is a slow and costly experience that no one wants to deal with.
Please look at your retirement accounts and life insurance policies to make sure you have contingent beneficiaries listed. For your non-retirement accounts you can add a Transfer on Death designation to add beneficiaries and avoid probate on these accounts.

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