Most people think of “bucket lists” as those items they wish to accomplish or experience before they die. I have a “bucket list” for successfully withdrawing from your retirement to help assure that you don’t run out of money.
First, set aside enough cash to cover one to three years worth of fixed expenses.
Second, move up the risk ladder a bit to intermediate-term (less than 5 years maturity) bonds or bond funds for additional income. Along with the bonds, a diversified mutual fund portfolio of dividend paying equities will help provide income for additional spending.
Third, think long term. Most people look at the timeframe between now and when they will retire, ignoring that they may be retired for 25 years or more. A balanced portfolio geared toward growth will help fill this bucket.
Once the investment “bucket list” is filled – you can move on to the fun type.

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Recently I was listening to a competitor’s radio show and the Financial Advisor speaking stated that your past life as am employed person, and how you were living it, does not matter for retirement planning. I respectfully disagree with this guy. Your past matters a lot. The crux of his comment was that your personal expenses will decrease so much with your retired lifestyle that you can completely ignore them. Sure, you may not be buying business wear anymore and may pay less in tolls, but there will be plenty to replace those items.
When we gather data for a comprehensive retirement plan, one of the most important things we look at is expenses. We have an 81/2 x 11, doubled column page just for expenses. We have tried to think of every expense most people have in their everyday life, whether monthly or annually, add inflation on to those expenses, + taxes, then look at net cash flow.
No one likes to go backward in lifestyle. Travel and healthcare expenses can easily replace clothing and tolls, generally at a greater expense than those items cost while you were working.
If I am helping you plan for 25yrs. or more as retirees, your past certainly does matter.
If you would like a copy of our expense report that you can fill in if needed for your records and future reference, email me at: nancy@financialgroup.com

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I received a call the other day from a client that said he called the Social Security office to ask this question – his full retirement age for benefits is age 66:
He stated that he wanted to delay taking his Social Security until age 68 to collect the 8% per year increase in benefits. He asked what his wife would receive if he passed away any time after age 68. He was told that his wife would receive the benefit calculated at his age 66, not what he had been receiving because he took the delay.

Her answer is completely wrong. Survivors receive the full benefit of the one that has passed. If you delay your benefit to take advantage of the increase that is what your surviving spouse will receive.

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There are a lot of decisions to make when a loved one passes on. A lot of loose ends to tie, things to liquidate, bills to pay and emotions to deal with. One thing you can do for your kids that will be inheriting your IRA accounts is to teach them about stretching. No, I don’t mean physically stretching, I mean stretching out your IRA.
When a non-spouse inherits an IRA account, they have to start taking withdrawals right away. As a non-spouse, one withdrawal option you have is to stretch those withdrawals over your lifetime vs. in one lump sum. Why is stretching better? Taxes are the biggest plus to stretching out the withdrawals vs. taking a lump sum. Any withdrawals from the Inherited IRA will be taxable. By using your life expectancy, you spread out the addition to your taxable income each year and the corresponding tax, to a more manageable amount. You can allow the balance to grow tax deferred, controlling your cash flow and tax rate.
Stretching, in most any form, can be good for the mind, the soul, and in this case, your pocket.

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I know, many of you think that we, your wives, cost you a lot. But by having us – you can save a lot. For example, let’s look at car insurance. Just for being married, you can save up to 21% vs. being a single guy. If you are still renting, you can save about 23% as a married person vs. paying rent on two apartments. Food is another big cost that goes down once you are married. You will eat at home more, about a 6% savings, so your wallet and waistline will both be healthier. Retirement savings generally is better for married couples vs. singles. With a joint goal, couples tend to start long term savings earlier than singles.
Being married can be very good for your pocket.

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Many Americans today are more concerned about paying off their debt than saving for retirement. I’m o.k. with that, to a point. I feel that making yourself debt free, or at least getting rid of all debt but your mortgage, is a great idea. Interest rates on consumer debt add years to paying off what may have been a reasonably priced purchase. If you are carrying debt, often, you are not paying your credit card bills in full each month. It happens, I understand. The interest rates and compounding schedules are crazy; this can extend the life and cost of a debt tremendously.
If you were to cut back on your long term retirement savings while paying extra toward your debt so you can wipe it off the books, great. Please remember to increase your long term retirement savings when that debt is finally gone.

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We were promised that the Affordable Care Act (ACA) would provide choice, innovation, lower premiums, and no need to change your Doctor. We have seen that this has not actually been the case. The biggest concern for many of us now is the insurance companies are dropping like flies.
Soon, many counties across the country will only have one choice of a provider, most likely a Blue Cross company. Premiums in most cases have increased, out of pocket costs have increased, all while the competition has decreased. Choice and flexibility have gone away for most of us.
The only advice I can share is to look at every feature of the offers you receive, crunch your numbers, and next time vote carefully.

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As a victim of identity theft, I spend a minute each day looking at my bank account and credit card activity. How do you spend your money minute? Each day, you should spend a bit of time on financial activities so you will not be overwhelmed at the end of each month. Here are a few quick things you can do daily:
As I do, check your bank balance to see if checks have cleared and deposits have been made correctly.
Pay a bill or two.
Make a donation to that charity you love.
I’m sure there are some small items that tug at the back of your brain financially, so take a minute out of your day and check it off your list.

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Are you in the midst of a life change? Are you about to retire? Has a loved one passed? Are your kids finally on their own? These are just some of the reasons that someone would hire a Certified Financial Planner Professional. ™ Hiring a CFP® can be a good investment; however, the planning process can be a confusing one. When planning your financial future, having a road map is a must. One put together by an impartial and unemotional professional can provide the best answers.
Ask yourself these questions:
Do you feel lost when planning your future? Do you find that you just don’t want to deal with money?  If your answer to these questions is yes, that is why you would hire me.
The bottom line is this: if you are set with emergency cash but beyond that are not sure where to go, it will be well worth your time  to potentially avoid that one bad money decision that will change your future.  Contact me at: nancy@financialgroup.com

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Yesterday I was reviewing a retirement plan with a single man age 56 who wants to retire at age 62. It turns out that he will have to work to age 65, but will have to watch his pennies, mostly due to future health care needs. As a typical employee, he pays very little out of pocket right now for health care. I discussed with him the potential increases he will have to pay toward health care in retirement. Needless to say, he was shocked. When he retires at age 65 he will apply for Medicare and he will also have to look into the variety of supplements necessary to cover what Medicare does not. If you then add in deductibles and out-of-pocket costs, it adds up fast. A 65 year old retiring today may need an additional $130,000 just to cover long term care needs such as home health aids, assisted living, or full nursing home. Another point to consider is inflation as health care cost have been going up an average of 3%/year and this trend probably will probably continue.
Please make sure you do your health care homework prior to retirement. A well researched decision is the best one.

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