Actually, there are two silver linings.
The first is for those considering converting a Traditional IRA to a Roth IRA. As you know, any amount that you convert will be taxed. If your Traditional IRA balance is down, you can convert to a Roth without selling those assets, pay the tax on the lower balance, then wait as the markets recover with the assets in an account with tax-free withdrawals.
Second, if you are currently adding to your accounts regularly, history indicates you will have been able to buy on sale. When accumulating assets for the future, the name of the game is to get as many shares as possible. By investing a regular amount of money at regular intervals, you are able to do so. More shares should equal more income during retirement.

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Financial Planning:  The Personal Approach

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Recently, I was talking with a client about her expenses. She was distraught because of her health insurance. My client has been retired for many years, receives a small pension and Social Security. Her distress has been caused by the drug portion of Medicare. She just received notice that the premium for the drug portion of her Medicare is going up $16/month and the deductible on her current plan is increasing to $250. She started shopping the plan available to find a premium that is close to what she currently has, but with each low premium she found, the out of pocket was so high she could never afford it. She asked me why.
The Affordable Care Act has brought thousands of uninsured citizens on to the rolls of being insured. Everyone has to pay part of this burden. Everyone. My client never thought her insurance would increase; I don’t think she is the only one to be surprised.

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Over the years, I have met with more than a few people that were not planning on saving for their retirement because they knew they were going to inherit money from their parents.
I have cautioned these people not to count on this; my caution has been proven to be valid as the years have passed.
Our parents are living longer, but not necessarily healthier. My father-in-law went through about $75,000/year for home health and in hospital care; this lasted for 3 years before he passed. His wife has been in an assisted living facility for the past 2 years – her care is now being paid by Medicaid because there is nothing left. These situations are becoming more and more common.
Prepare for your own retirement – if you inherit, consider it gravy.

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Max out your pre-tax retirement savings:
The more you contribute pre-tax, the more you keep. It is that simple.

Do a mock tax return:
By doing so you can determine if you can deduct more, convert a Traditional IRA to a Roth IRA, or make an extra charitable donation.

Check your health savings account:
Do you have money in your HSA that you have not used yet? Now is the time to complete your preventative care medical appointments.

Check your cash:
Do you need to rein in your expenses? Beef up your emergency fund? Can you add more to your kid’s college savings plan?

Check your beneficiaries:
Have there been marriages, deaths, or births that would change where you would want your estate to go? Make those changes now.

You still have three months left, but times seem to fly. Don’t waste the time you have.

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Comments like this, which I heard on a business channel, are what start panics. 30% of the Dow Component is equal to 9 stocks. That’s it, 9 stocks. In the universe of stocks that you can buy, 9 companies amount to almost nothing.
If you have a well diversified portfolio that matches your risk tolerance, please do not panic. Investments are for the long term. Over the long term, stocks historically have prevailed.

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Q: What do I do with my 401(k) now? I want to roll it over to an IRA but the markets are so wild and my balances are down.
A: First, congrats on your retirement!
Second, you don’t need to do anything right now. While I do not feel it is best to keep accounts where you are no longer working, doing nothing right now is the best decision. You can open up a rollover IRA so there is an account waiting for your funds. Assuming that you have a well diversified and allocated portfolio for someone ready to retire, you need to just sit tight until the turmoil is over.

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Prepping is a world unto its self. There is freeze-dried food, water purification systems or pellets, batteries, shelters, escape plans, protection, and most important in my book, toilet paper.
These people spend enormous amounts of time researching what they need to protect their families, how long you can survive on your own, and how to make sure no one else tries to take what you have worked so hard to stockpile. They really worry a lot about the Zombie Apocalypse, invaders from foreign lands, and anyone who has not prepped as they have.
But what if none of this happens? What if the Zombies never come? Have you “Prepped” for the biggest apocalypse that may occur? What is that you ask? Outliving your assets in retirement – that’s what I am worried about.
Too many of us put off dealing with the fact that one day our paychecks will end but our lives and expenses will not. Get a financial plan done now – be the best Prepper you can be for your own longevity.

disclosures:http://www.hechteffect.net/?page_id=31

I know for many people, being called a conservative is the same as being sworn at. Relax – I am talking about calling yourself a conservative investor.
As we approach retirement, we need to get less aggressive with our investments. I contend that there is always a need to have equities in your portfolio, but you will also need income. I do not have a blanket recommendation for when to start moving your assets into a more conservative mix as every client has different means and needs in retirement, but there will be a time when this becomes necessary.
Please make sure you are keeping up with your portfolio review appointments so you will know when it is the proper time to call yourself a conservative is.

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There is a proposal to make state college free for everyone to the tune of $350 billion over the next 10 years. These expenses will be paid by the “most fortunate” among us. That is the term used – I am not sure who it applies to yet.
My daughter will be graduating from nursing school in December- my husband and I have paid for all of her schooling. We saved from the time she was born because we knew no one else would. Her schooling has been expensive, but worth it.
Will I be considered one of the “most fortunate” that now should pay for someone else’s college? I may fall into the group once it is defined. Let’s look at how ‘fortunate’ I have been. Side note- fortunate to me implies I have been lucky and given what I have.
I have been fortunate to have parents that allowed me to live with them when I was getting started in business. I have been fortunate that I have had good training and mentors. The rest is all on me. I have been self employed for 32 years. I work hard, a lot of hours in the office and out of the office; I take on great responsibility with my clients. I happen to love every aspect of my business.
I have also taken responsibility for the decisions and expenses in my life. I have not asked anyone else to pay for my daughter’s college or any of the expenses of life.
I realize some people have not been as “fortunate” as me; however, if those people have drive and ambition, there are other ways they can realize a college education.
I will gladly contribute to any number of charities, but this is my choice. DO not force me to pay for someone else’s college.

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