I love shoes, what girl doesn’t? Many years ago, a wise man told me to buy better quality shoes; they can be re-soled, and will last longer. I started down that path. It took a while to get used to spending a bit more per pair, but buying fewer shoes. This is the lesson that many people take into retirement. Budgeting is a big issue in retirement – spending usually declines in the areas of food, transportation, and personal care, (i.e.) clothing. Let’s take a look at how these areas of spending change in retirement.

Transportation is easy – if you are not driving to work each day, you usually spend less on gas and auto maintenance. Many people will eat lunch out almost every day while on the job, and there is often a business dinner. Once you retire, cooking at home becomes an art or hobby for many people, as well as a money saver. Then there are the shoes….

A work wardrobe generally cost more than a leisure wardrobe. There is less of a need for a suit & tie or the business dress, but we all like to feel good in what we are wearing. Buy quality clothing and shoes vs. quantity. Your budget and piece of mind will be richer through your retirement.

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

They’ll be discussing . . .
What to do if your pension is at risk.
(i.e.) Detroit retirees preparing for a cut in their pension.
Costly Social Security Mistakes

Q & A: I received a letter from my employer stating that I “over contributed” to my 401k and have to withdraw a few thousand dollars from the account. I know I have not contributed the max of $17,500. So why? Why do I have to take this money out and pay more in tax?

Call or eMail
Your Questions:
407-290-0058 OR
1-800-328-5858
Nancy@CertifiedFinancialGroup.com
Denise@FinancialGroup.com

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

File and suspend is a way to boost Social Security payments for one Spouse while allowing the other to get payments now. Let’s look at Ken & Barbie.

Ken & Barbie are age 66, Ken wants to keep working, and Barbie wants to hang around her dream house. Ken’s Social Security payment at age 66 would be $2000, Barbie’s would be $900. If Ken files, but suspends taking his payment, his benefit will grow by 8%/year until age 70. Barbie can now receive her Spousal benefit on Ken’s record, receiving $1000/month. Barbie has now increased her monthly benefit by 11%, and Ken will now receive $2640/month at age 70. They can buy some new furniture for the dream house with the extra $100/mo. she will receive by using this strategy.

Go to www.ssa.gov and check out what your benefits are.

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

Q: I received a letter from my employer stating that I “over contributed” to my 401k and have to withdraw a few thousand dollars from the account. I know I have not contributed the max of $17,500. So why? Why do I have to take this money out and pay more in tax?

A: The simple answer is testing. Annually, each company that offers a 401k plan has to go through DOL/IRS testing to make sure the highly compensated employers are not contributing a disproportionally high amount compared to everyone else who participates in the plan. If a number of the lower wage employees do not participate, or contribute a much smaller percentage vs. the higher compensated participants, you will be told you have over contributed.

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

No, I don’t mean divorce, I mean your investments. Often, I meet with couples that have completely different attitudes about risk, time to keep money invested, types of investments, and where it should go when they are gone. It is o.k., financial plans, as well as the specific investments, can be carried out as if the couple were just two separate clients.

My clients that ask to be treated individually do pay a bit more in planning fees, but that is the only area where I treat them differently. If I am asked to produce two plans it is more work, generally not double the work, but sometimes it is. I always tailor my investment recommendations to the individual, so there is no change in that regard for my clients.

So take a deep breath and know that it is o.k. to separate, but just in this instance.

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

This Saturday hear
Nancy Hecht CFP® and Joe Bert CFP®
co-host our program
“On The Money”!

They’ll be discussing . . .
• A Man Is Not A Plan:
Sometimes, Separating Is The Best Decision.

• 5 things to consider
when picking your retirement age

Email question: Is My High-Fee,
No-Employer Match 401(k) Worth It?

Call or eMail
Your Questions:
407-290-0058 OR
1-800-328-5858
Nancy@FinancialGroup.com
Joe@FinancialGroup.com

Listen for details about
our upcoming workshops:

Countdown to Retirement
Saturday, Sept 7, 2013 – 11:00am – 1:00pm
Hosted By: Roger Johnson CFP® and
Estate Planning Attorney Jodi Murphy, J.D.

Social Security:
Maximize Your Benefits
Thursday, Jan 23, 2014 – 6:45pm – 8:00pm
Hosted by: Nancy Hecht CFP®
and Denise Kovach CFP®

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

This is an issue I have been dealing with a lot lately. Actually, most of the planners in my office have. Why you may ask; because we have Parents in their 70’s and 80’s and we are taking care of them right now.

Many of us have seen first hand how expensive even the most basic of Long Term Care is, and how unprepared our Parents are. Not planning enough, or at all, for this need has put a huge emotional as well as financial strain on our lives.

I have had a number of clients that have, sadly, lost their Parents after a prolonged illness. Some have given up their careers, moved the Parent into their homes, or temporarily moved to their Parent’s home during these crises.

There are many options available to fund for part or all of your own potential long term care needs. Give me a call at 407- 869 -9800 or email me at nancy@financialgroup.com. I can help.

Disclosures:http://www.hechteffect.net

When it comes to Social Security, there is an advantage to being married. One spouse can take what is called a spousal benefit, up to 50% of the other spouse’s benefit. Let’s say you would receive $2000/mo. from Social Security but your spouse would only get $400. Your spouse can apply for the spousal benefit and receive $1000/mo. vs. the $400. This assumes claims are made at full retirement age.

Learn about this and all of the Social Security options at our Social Security Seminar, Thursday July 25th @ 6:45pm here at our office in Altamonte Springs, Call 407- 869- 9800 to make your reservation. We only have a few seats left.

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

Q: I am 62 and currently unemployed. I have $117,000 in a 401(k) and $7,000 in savings. If I do not find a job soon, should I file for Social Security?

A: At age 62 you would receive a reduced Social Security benefit but it can be helpful with cash flow. So, yes, you should consider filing for Social Security benefits.

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