I have been recently told of “investment rules” presented to a client who is managing their parent’s investments. Both of their parents are over the age of 80. Along those lines, my husband is cleaning up a mess that his father followed just because he is over the age of 80.
First off, my client’s dilemma. They were told because their parents were over that age of 80 that they could only invest in annuities, that they had to have an annuity that paid them out at least $20,000/year so they could spend all of their money, and last but not least, they are too old for investments. None of these statements are true. I have many clients in their 80’s, and a few in their 90’s. We invest in a prudent manner with leanings toward the conservative. If, however, your family history shows life expectancy well into your 90’s or later, a client in their early 80’s may have a long term need for their investments to provide income + growth. Many Octogenarians invest with thoughts of succession and not current income needs. This leads to a whole different, possibly, more growth based investment for that person.
Second, my in-laws were told that because they were over the age of 80 they no longer had to file a tax return. Age is not one of the factors considered by the IRS as a reason not to file. My husband has had to pull together all of their tax information for the past 4 years and get them filed. You can go to www.irs.gov and check out who is exempt from filing.
We need to watch out for our parents and grandparents when it comes to their investments.

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But it is not. It doesn’t mean that the match won’t hurt you, but it is manageable.
I do not mean to make light of the market gyrations this week, however, when talking to my clients, we take a step back and look at the big picture. Most of us realize that investments are for the long term. If you cannot keep you assets invested for at least 5 years, then you need to be in cash. If you are at or near retirement, I know you are worried because you feel you do not have enough time. We plan for your time in retirement; this may be 20 years or more. The world is not on fire – it is only a match.

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Many soon to be retirees feel that they need to transition their investment portfolio away from equities and into income for a successful retirement. This conventional thought could leave you short in retirement. Total Return is the key to success.
Total Return is a measure of investment performance that accounts for two categories: growth and income. If you plan to be like the average American and live at least two decades as a retiree, you need total return to keep you ahead of inflation. Appreciation through equity investments can allow you to keep pace with inflation, while the dividends from your income side can cover your current spending needs.
Investing for total return forces you to diversify which can provide additional protection to your portfolio and may provide for a more successful retirement.

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This is the time of year when many of our clients retire. They have banked sick and vacation days, and can now leave work while getting paid through the end of the year. Along with planning for these final paychecks my clients look at a few important retirement planning items. Here are 3 for you to consider:
What will you do with your house?
Do you want to stay where you are or downsize? Do you want to move to another state? If you stay, can you manage the upkeep and expenses? These are important lifestyle questions to ask when considering where to live in retirement.

Long Term Care
No one likes to think about this issue. LTC can average $6000/mo. or more depending on the level or care and where it is provided. If you are wealthy you can self fund, if you are poor you can use Medicaid, if you are in the middle, you have to plan. Take the time to look at what LTC planning options are available.

When should you take Social Security?
This has become one of the biggest questions my clients have. If you can wait until age 70, you will receive an extra 8%/year for every year over your full retirement age. If you are retiring prior to your full retirement age, you should have a comprehensive Social Security Analysis completed for your.

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You save throughout your working life in a tax qualified account, you’ve retired and are living within your means, your taxes are at a level that you feel are manageable, and now you have to pay more! Yes, it is MRD time.
Each October we start working on the minimum required distributions that clients have to take. If you are 70.5 yrs. old, you must begin withdrawing funds from your qualified retirement accounts and pay tax on that withdrawal. The penalty for under withdrawing is 50%. To help you avoid this penalty, find a MRD table to help calculate what you must withdraw.

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http://www.orlandosentinel.com/business/os-ask-an-expert-promo-20140928-column.html

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Among the lessons of the recent financial crisis is the need for virtually everyone — young and old — to acquire a basic knowledge of finance and economics.
-Ben Bernanke
Check out our new flipbooks – there is so much to learn!

http://www.tools.financialgroup.com/learning_center/flipbooks

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Recently, I was asked if retirement accounts from multiple sources could be blended into one IRA account. The answer is yes. There is now a “however” added to that yes.
Starting in 2015, only one rollover from an IRA can be made to another IRA per 365 day period. If you have multiple IRA accounts that you wish to consolidate, it will now take longer. This rule does not apply to a Direct Rollover form an employer plan to an IRA, or Trustee to Trustees transfers. You could process a Direct Rollover and an IRA transfer in the same 365 day period.

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A: For every year beyond your full retirement age, up to age 70, your Social Security benefit will be increased by 8%. In addition to that you may also receive a higher cost-of-living adjustment. Simply put, delaying when you receive your Social Security will mean more dollars paid to you each month.
To learn more about this and other Social Security concerns, you can sign up for our Social Security Boot Camp by following this link:
http://financialgroup.com/social-security-maximize-your-benefits

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The Social Security Administration (SSA) began phasing out mailed statements to most workers in 2011 to save an estimated $70 million a year. Instead, the agency directed workers to track their future benefits online using a secure website.
Congress, however, passed a bill last year requiring the SSA to resume mailing the statements.
The agency said Tuesday that many workers will now start receiving paper statements in the mail every five years, starting a few months before their 25th birthday. Once workers reach 60 they will get them every year.
If you have not been keeping track of your benefits by logging on to www.ssa.gov, you now have the opportunity to check via the paper statement. I noticed that there were two years reporting zero income on my statement. I know darn well I paid taxes those years. Without checking what had been reported on my record, I never would have been able to correct this error.
Payments from the SSA are one part of your retirement; please make sure your records are correct.

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