Radical New Strategy for Advisors in Asset Planning


Family asset planning

Have you ever considered providing asset planning for the whole family when consulting with your clients?

Forbes October magazine has an interesting article about a pilot program from an advisor with Wells Fargo.

We probably all know of situations in which a family death began a feud over what money and possessions remain. It doesn’t seem to matter if it’s great amounts of money or small. It always has the potential to get unpleasant.

The program highlighted in this article seeks to counsel families in how to plan for the inheritances – before death – so that everyone makes the best use of the assets. Parents are finding comfort through this program in discussing their financial standing openly and honestly with their children so that they can plan to make the best use of their inheritance. It also gives peace of mind to the parents that their gifts will be used appropriately and not be wasted on foolish gains and activities.

The clients noted in the article are, admittedly, dealing with massive amounts of money. Maybe you have some of those clients yourself. Maybe your clients with less money could benefit from a similar approach as well.

Take a look at the article and see what you think. This program is reporting huge success and say they have people beating down the doors to be involved. Could this work for you in your practice?

Inflation and Your Retirement

Inflation, death and taxes – all a sure thing.

When you’re talking about your retirement, inflation is one of those unsure elements that can make or break your sound planning.

Many Americans identify inflation as one of their greatest concerns. You know it’s coming. Is your retirement plan such that it is able to handle the expected or unexpected jumps?

FoxBusiness.com published this article recently outlining the Facts v. Myths you may find interesting in light of your retirement goals. Many people expect to handle any lapses by being more frugal, but will that cover the possible shortfalls?

FoxBusiness.com quotes  Deb Repya, VP of Consumer Insights for Allianz Life; “Although it may be an option for managing expenses, frugality is not a financial strategy that will mindfully and effectively address the rising cost of living throughout retirement, especially one that could last 30 years or more. There are many factors to consider when planning a long, comfortable retirement and addressing inflation is a critical piece of that puzzle.”

For more information, check out the full article here.

MORE Important Retirement Savings – Age 66

Continuing our series: Age 66 – What you need to know now.

This is the next to the last installment in our series. I hope you’ve learned a lot! Maybe it hasn’t applied to you to this point so you’re just joining us now. In either case, what do you need to know about your retirement planning at age 66?

Social Security! We all have been waiting – hoping it will be there when we finally are eligible to collect. Those of you who are baby boomers are indeed eligible to receive full benefits at age 66, however, there are increases in monthly benefits if you wait until age 70 to start claiming them. Claiming Social Security before age 66 can mean significant reductions in your monthly pay outs. The opposite is also true – if you wait – you will see a significant increase in those same monthly benefits.

What if you aren’t a baby boomer, but you are looking ahead – as a wise person should? The requirements are different for you! Check out this full video from US News and World Reports for all the details.

Missed one in the series? Just click below. Want to be sure you catch the last installment regarding important information for your retirement by age?  Watch for it on Thursday September 28th.

Age 50

Age 59 1/2

Age 60

Important Retirement Savings – Age 59 1/2

Do you have 90 seconds to enhance your retirement savings?

If you have 90 seconds to spare, I found some awesome information that can enhance your retirement savings if you are at least age 59 1/2!

There may be times in your life where you feel like you need to dip into that retirement savings, but by waiting until age 59 1/2, you can avoid hefty penalties when you include the taxes also due on the withdrawal. There are some exceptions though.

Check out this video from US News and World Reports for more details. The video is literally 1 minute and 14 seconds. That’s about how long it takes to ride the escalator to your office! 1 minute and 14 seconds that could save you a bunch of money – knowledge is power!

Important Retirement Savings – Age 50

Do you have 90 seconds to enhance your retirement savings?

If you have 90 seconds to spare, I found some awesome information that can enhance your retirement savings if you are at least age 50!

Did you know that the closer you get to retiring, there are changes in rules regarding contributions and withdrawals from  your IRA and 401(k) accounts? Once you turn age 50 you can save more in your 401(k) account than younger coworkers. By maxing out your 401(k), you can save a significant amount in taxes. After age 50, IRA accounts also allow you to make larger catch up payments and to defer taxes on more money than younger investors.

US News and World Reports has a great recap of these rules in short video located here. It’s really just over a minute long.


Self Driving Cars for Retirement

Self Driving Cars – Good For the Elderly?

Is it really possible that self driving cars are within reach? Congress is even starting to expedite the introduction of these cars. The benefits could prove revolutionary to senior citizens as well as disabled individuals.

Melody Hahm of Yahoo Finance outlines how this could be a major win for the elderly as well as other benefits you could see. As our population is rapidly aging, more and more people could find themselves able to move about with freedom.

Check out the full article here.

Do You Need Insurance Changes In Retirement

Insurance Changes

Who doesn’t look forward to retirement and the greater freedom to choose your own schedule? Sounds great to someone who has worked for years. But with any change in life circumstances, you may need to make some insurance changes in retirement as well.

But with the tremendous changes that come with retirement come the need for changes in your spending and don’t forget – insurance. You may need more or less coverage than what you have now.

Barbara Marquand of NerdWallet suggests evaluating your needs in the following areas:

  1. Ask about car insurance discounts. The fact that you are no longer commuting to work may allow for a decrease in your car insurance. Many states require companies to give discounts to drivers age 55+. Other organizations such as AARP and AAA provide discount opportunities as do completing drivers ed courses. But, if you’re planning to travel in rental cars, you may want to evaluate the amount and type of insurance you will require.
  2. Contact your homeowners insurance. Because retirees are often home more, the likelihood of burglary is reduced which makes for a good reason to offer a reduction in homeowner insurance. However, if you’re planning to do a great deal of traveling, you may want to increase your spending in this area.
  3. Revisit life insurance and long term care. Seems obvious, but health changes come with age. Your personal health may allow for decreases or require increases to maintain financial health.
  4. Sign up for Medicare. There is a 7 month window where you are eligible to sign up for Medicare. It begins 3 months before your 65th birthday. Follow current regulations at medicare.gov.  Late enrollment may mean having to pay higher prices.

Everyone’s retirement will look different with the many factors in play. If you need assistance, please look for a reputable financial adviser in your area.

You can read the full article here.


Is Retirement Possible Without $1 Million?

Retirement$1 Million Retirement

Of course entering retirement with a million dollars makes things easier, but you can absolutely live well without having met that magical goal. Preparing ahead of time and making small changes – or big ones – can pay off big in the long run.

5 Strategies

There are a few things you can try to help meet your goals like boosting your Social Security payments. Here are 5 strategies, from our friends at USNews.com that  you can employ to make your (less than $1K 401(k)) retirement a joy!

We would love to know if any of these suggestions have worked for you or if you think any of these strategies might help. We would also love to hear what else might have made your less than $1K savings work for you.


Best Advice From 3 Former Advisers

One criticism of retirement planning.

If you had to find one problem with the whole business of retirement planning, it might be that it is staffed by advisers who have yet to retire!  That’s certainly not to say that professional advisers don’t know what they’re talking about. I happen to know there many top notch advisers out there. They work tirelessly to assist clients and to help them retire successfully.  I, quite often, hear them seeking solutions to improve the financial welfare of their clients. I talk to several of those great advisers almost every day here at Torrid Technologies!

Interesting perspective

I ran across this article today about three former advisers sharing the things they’ve learned in their own retirement.  I found it especially relevant.  Since I enjoyed it, I just had to pass it along.  Most noteworthy – one of them even hired 2 advisers for himself. Check out the article from Marketwatch to see why he uses two different folks. Maybe what they’ve learned can help you make a plan for your own retirement.

Can we hear from you?

So hey all you retired advisers out there, please give us your insight. Share the best lesson you learned in retirement that could help other advisers?

If you used one of those awesome advisors out there, please share the best advise you received?

2017 IRA Contribution Savings Cheat Sheet

You may be bombarded with messages to “make your IRA contribution” this time of year.

For 2017, you have until April 18th tax day to finalize that contribution for the 2016 calendar year.

I was curious as to whether we could calculate various contribution amounts over many different time periods to see how long it would take to accumulate $1 million in an IRA.

So I fired up an Excel spreadsheet mainly because I wanted to create a matrix that shows many results in a small window.

Normally I would have fired up my RetirementView software and just run some numbers in there.  But if I did that I would have to run each scenario and then log the results.

Here is the “cheat sheet” that I created in Excel for 2017.

2017 IRA Contribution Cheat Sheet

2017 IRA Contribution Cheat Sheet

To explain what this means, I first explain that the entire calculation is based on a flat 5% return. If you had my spreadsheet, you could change this return and have the matrix recalculate all the values at a different return.

The left column in blue shows the number of years until retirement – this is the number of years that you “save” the amount specified in “Annual Savings”.

The green “Annual Savings” columns are showing you the calculations if you save $1,000 each year or $2,000 each year…. for the time period in blue.

The yellow area shows you the total amount accumulated for the time period including the compound interest of 5%.

Did I get to $1 million?

No.  The only place we got close was if we saved $5,500 a year for 45 years.

My guess is if we increased the interest rate to 6% we would be over the top.

So I did that in my Excel spreadsheet and voila the $5,500 for 45 years gets us to $1,240,295!

If you’d like to get a copy of my little IRA Contribution cheat sheet spreadsheet in EXCEL format, then CLICK HERE to get your copy of the Cheat Sheet for FREE.

Thanks and Happy Planning!

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