Are you planning to retire? Here are a few common mistakes to steer clear of, if possible, while preparing for retirement:

Overlooking Health Care Costs
Health care costs are projected to continue their current annual increase in rate of more than double or triple the rate of inflation. Extended care may be an expense that can undermine your financial strategy for retirement if you fail to prepare for it.

Not Adjusting Your Investment Approach Well Before Retirement
The last thing your retirement portfolio can afford is a sharp fall in stock prices and a sustained bear market as you leave the work-force. Consider adjusting your asset allocation as you transition from living off your paycheck to living off your savings and investments. Because the return and principal value of stock prices will fluctuate as market conditions change, your shares, when sold, may be worth more or less than their original cost. Asset allocation is an approach to help manage investment risk. Remember, asset allocation does not guarantee against investment loss and past performance does not guarantee future results.

Retiring with Too Much Debt
If too much debt is bad during the earning years, it can be especially harmful for those living in retirement. Consider managing or reducing your debt level before you retire.

Retirement Planning Is Not Only About Money
Above all, a rewarding retirement requires good health. So, maintain a healthy diet, exercise regularly, stay socially involved, and remain intellectually active.

Important Steps To Complete Before Retirement

It’s almost that time, you worked your entire life to reach retirement.  Now, what do you do to ensure that your retirement plan will meet your goals?

Here are a few steps to take before retirement:

Important Investment And Financial Planning Terms To Know

Here is a helpful article that defines important investment and financial planning terms:

Social Security: The Most Misunderstood Program in America

With millions of Americans nearing retirement each year, many may be at risk of under utilizing a critical component of their retirement income stream. Just 8 percent of those surveyed considered themselves to be very knowledgeable on the subject of Social Security.

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7 Ways To Manage Risk In Retirement

News reports notwithstanding, people are living longer than ever before. That means many more years of enjoying a well-earned retirement. However, longer lifespans make it critical to carefully manage risk - even after retirement - to ensure that you have the funds you need to maintain your lifestyle. These are seven ways you can protect your retirement income from perils like inflation, market volatility and outliving your savings.

Keep Your Emotions in Check
Every dollar you have put away for your retirement years represents hard work. Because of this, many people have strong emotional reactions to dips in the market. They are tempted to protect their funds by reacting to short-term trends instead of sticking to a long-term investment strategy. The best thing you can do to manage this risk is to keep an eye on your goals and ignore the daily ups and downs.

Beware of Overspending
There are a lot of factors that go into calculating how long your money will last, including your age, your life expectancy, current rates of return and the amount you have saved. We can help by giving you an approximate figure that you can safely withdraw each year without putting yourself at risk of running out of money.

Design Your Portfolio With Inflation in Mind
One of the most frustrating things about setting money aside is that over time, buying power is eroded by inflation. When it comes to your retirement, this issue goes from discouraging to dangerous, as inflation can dramatically decrease the value of your portfolio. Use tried-and-true inflation-proof portfolio management techniques to ensure that your rate of return will - at a minimum - keep up with the cost of maintaining your lifestyle.

Focus on Interest Rates
At one time, interest rates of 5 percent or more were standard. That made it simple to accumulate solid earnings, and interest income could be relied upon for living expenses after retirement. However, those high rates have been gone for a long time now, and who knows when they will reach that level in the future. In the interim, it is important to adjust your portfolio to account for low interest rates, and ensure you have enough invested in holdings that will generate a better return.

Plan for Longevity
Most people assume their lifespans will be far shorter than statistics indicate, and they plan for their retirement accordingly. Unfortunately, the result of this trend is that many retirees outlive their savings. The best way to mitigate this risk is to assume a best-case scenario when planning for retirement. Save, invest and spend as if you will live to be 100 years old.

Prepare for Market Changes
The economy goes through regular cycles, and no matter how carefully you invest, you are sure to be faced with a market downturn at some point during your retirement. While this isn't an issue while you are still making contributions to your retirement accounts, it can add complexity during the distribution phase. Over time, with no withdrawals, your investments may eventually recover. However, this can take years. Practically, you cannot avoid all withdrawals during this period, so your overall income strategy must take this downturn into consideration when calculating your annual distribution targets.

Focus on Sequence of Returns
Market changes mean that you will probably have to make withdrawals during a market downturn, which goes against the standard "buy low, sell high" investment wisdom. If this happens early in your retirement, it is likely that you will deplete your savings more quickly than if it happens later. As you make decisions on when to retire, how much to withdraw and when to begin distributions, keep in mind that taking money out of your investment accounts when the value of your portfolio is down could put you at risk in later years.



Have questions about this week’s content, or need help with your financial plan?  We’re here to help!  Simply call to schedule a complimentary consultation today!

856-203-6911

How To Optimize Travel In Retirement

Article from US News & World Report contributor: Craig Stephens

RETIREMENT IS THE IDEAL time to set off on extended travel adventures that weren't possible during your working years. But most retirees will be traveling on a fixed income. As such, it's important to find ways to stretch your travel dollars. Luckily, having more time on your hands makes it easier to spend less on adventures while still experiencing your bucket list destinations to their fullest.

Travel savings strategies deployed by youthful backpackers can also be utilized by retirees without sacrificing comfort. Some of these strategies include utilizing travel rewards and traveling for longer periods of time than a typical vacation. Start your travels soon after retirement to capitalize on your energy and good health. Here are eight ways to optimize retirement travel:

Slow travel. Slow travel is a logical method of travel for retirees, because it requires more time and less money. Instead of taking vacations with firm begin and end dates and tight itineraries, slow travelers stay longer wherever they go and soak in the details and eccentricities of each destination. Extended stays allow for lower-cost accommodations and fewer transportation expenses, thereby increasing the value of your travel dollar.

Slow travel is a great way to experience a city or town. The extra time allows you to avoid the tourist traps and learn where the locals eat. You might even make a few friends. You'll develop a better understanding of the destination and its people, making for a more personally rewarding experience. When you feel like you've experienced enough, move on to the next town.

RVing. Recreational vehicles are a good choice for driving around the U.S. to visit national parks and the cities and towns that make our country so unique and beautiful. RVs are available in a wide range of comforts and costs, so retirees can travel in their preferred style. Though RVs require a significant upfront cost, extended road trips become less expensive each day as the cost of accommodation is low. The best thing about RVing is you'll enjoy the journey as much as each destination. RV campsites and facilities catering to road warriors are common around the U.S., so there's always a welcoming place to park your mobile home.

Extended city visits. Have you ever wondered what it would be like to live in Copenhagen or Buenos Aires? It's gotten easier to book extended stays in the world's greatest cities through online services such as Airbnb. Instead of staying in a hotel, Airbnb hosts often give significant discounts to longer-term visitors to avoid vacancies and reduce maintenance costs. You can find a quaint little street in a walkable neighborhood or something cheaper on the outskirts of town. Consider taking language lessons and sticking around for a few months while you live like a local. However, make sure you know the visa limitations of the country before booking your extended stay.

Train travel. Train travel is a comfortable and scenic way to explore the globe. Europe and Asia offer some of the most convenient and exciting journeys, which can be optimized with the right train passes. The Eurail is a flexible multi-ride pass that isn't just for college graduates on a summer fling before starting their first job. Eurail passes are available in several varieties, so find the one that's right for you. The conglomerate of rail systems includes 28 different countries.

Another classic train route is the Trans-Siberian Railway. Utilize this route to travel overland from St. Petersburg, Russia, all the way to Beijing, China. It's a well-worn rail ride through a fascinating part of the world. Plan a scenic stop at Lake Baikal or Ulaanbaatar, Mongolia, along the route to maximize your experience.

Book multiple tours. If you're flying a great distance to take a tour in one of your bucket list destinations, maximize the value of your flight costs by booking multiple tours. The optimal way to do this is to fly to a global hub city from which you can tour different cultures and destinations. Cities such as Bangkok, Thailand, Quito, Ecuador, and Paris, France, are all excellent launching points for tours to nearby sites and countries. Be sure to add a few extra days on arrival and before departure so that you can enjoy the hub city and avoid any tight timelines.

Round-the-world flights. Round-the-world flights are an efficient way to explore the globe. For one price, round-the-world flights allow for a set number of flight segments or miles depending on the type and price of your ticket. These tickets come with several rules about stopovers, reservations and booking restrictions, so they lack flexibility at times. But as long as you follow the guidelines, it's an efficient way to visit many destinations. Tickets are usually good for a year's time, so you can slowly circumnavigate the globe, leaving room for extended stays and lengthy side excursions. The two main airline alliances that provide round-the-world tickets are Star Alliance and Oneworld. You can book directly on their websites or through a third party.

Retirement cruises. Why retire in one place when you could spend your retirement cruising across the globe? Some cruise lines make accommodations for retirees who wish to stay on for multiple embarkments. For example, the cruise line, Oceania, offers 180-day cruises that visit over 30 countries. These cruises appear expensive at first, but when compared to everyday living expenses at home, they might fit into a reasonable budget. Long-term cruising may not be right for those with frequent family responsibilities or significant medical needs, but active retirees searching for adventure and comfort may find their paradise at sea.

Travel rewards. Travel rewards are the points and miles you earn from credit card sign up bonuses, regular spending and frequent flying and hotel stays. By strategically signing up for certain credit cards and spending according to the bonus offer guidelines, you can earn significant travel rewards, which empower you to save money on flights and hotels. Savvy savers can focus on earning rewards during their working years to amass points for use in retirement. Several websites provide guidance on which credit cards are best for the flights and hotels you are most likely to use. But do careful research before signing up. There may be a minimum amount you need to spend to earn the rewards and restrictions on when you can use them.

Source: https://money.usnews.com/money/blogs/on-retirement/articles/2018-04-24/8-ways-to-optimize-retirement-travel

Fear of Investing

Among the many different emotions human beings experience throughout our lives, fear just might be the most unique and intriguing. In our hunter and gatherer days, a healthy sense of fear was likely extremely beneficial in keeping us out of harm's way. However, although we now rely on supermarkets rather than woolly mammoths for our sustenance, that sense of fear can still dominate our lives.

A place this notion is exemplified is in investing. The markets don't naturally lend themselves to the squeamish and faint of heart, displaying stretches of volatility that can make even the most well-seasoned investors want to grab a parachute and jump out of the metaphorical plane.

To the average investor, one that might lack the thorough perspective and financial history of that well-seasoned investor, abiding by the buy-and-hold strategy that is preached from many a mountaintop – particularly in the face of choppy financial seas – can feel like an overwhelming endeavor.

However, as queasy and anxiety ridden as the markets can sometimes make you feel, maintaining an appropriate psychological and emotional approach will always be to your benefit, especially in the face of overwhelming fear.

Keep an Open Mind
In this dynamic and demanding world, society can feel like it's capable of stepping over a cliff at any given moment. Although we certainly live in trying times, life has always been challenging, no matter the time or place. In the modern era, the specific brand of fear created by the investment markets is, to a large extent, created by a lack of control and an unknown future.

The great unknown has always been a constant, however, including in even darker hours over the past century, so remembering that both societies and financial markets have been able to withstand many catastrophes in the past to only rebound should help put your investing fears in a proper perspective.

Dampen Your Fears With a Group Think Approach
In any regard, including investing, fear can be blinding and prevent you from making sound decisions. That notion is precisely why emotions can still dominate the markets, even with our sophisticated analytical and technological advancements in investing.

For that reason, when fear rears its ugly head and just the thought of your investments triggers insomnia, it might be best to help reduce the risk from making rash decisions by seeking the counsel of people you trust – including your spouse, or others that might have a different perspective on current market trends. Such guidance might include strategic solutions to your fear like better diversifying your assets, revisiting your allocation, or dollar cost averaging into the market rather than diving in head first.

Ultimately, if after seeking the guidance of those trusted individuals, selling some shares and heading for the hills still seems like a wise decision, then so be it. However, relying on others to see through the blinders placed by fear can help navigate you through even the most volatile of waters reducing the impact of your financial well-being.

Have questions about this week’s content, or need help with your financial plan?  We’re here to help!  Simply call to schedule a complimentary consultation today!

856-203-6911

Retirement Planning For Women

5 Retirement Challenges For Women:

Video Here

Three Key Considerations Before Taking Social Security

As a critical component of your financial strategy in retirement, consider these important questions in order to make the most of Social Security as a retirement income source.

When to Start... The Social Security Administration gives citizens the option to start their Social Security benefits at age 62, claim them at full retirement age, or delay payments until age 70.

Claiming early will result in a lower monthly benefit than what would be earned at full retirement. Waiting until age 70 results in an even higher monthly benefit than would have been received at full retirement age.

When researching what timing is best for you, remember that many calculations the Social Security Administration uses are based on average life expectancy. The average life expectancy will eventually result in full lifetime benefits. Living beyond the average life expectancy plus a delay in taking benefits could result in more money. When to begin taking benefits may hinge on your need - if you can wait, and whether you think your lifespan will be shorter or longer than the average American.

To Continue to Work... Work can provide income and personal satisfaction, and spending a few more years in the workforce may help increase retirement benefits. How? Social Security calculates your benefits using a formula based on your 35 highest-earning years. If those years come later in life, spending a few more years at work might be a plus in the calculation. Taking benefits prior to full retirement age while continuing to work will reduce benefits.

How to Maximize Benefits... The easiest way to maximize your monthly Social Security is to simply wait until you turn age 70 before claiming your benefits.

Every individual has a unique scenario, I can assist you with creating a Retire Abundantly Roadmap to meet your retirement goals. Contact me if you are interested in attending one of Social Security Workshops! 

Phone: 856-203-6911

7 Ways To Manage Risk In Retirement

News reports notwithstanding, people are living longer than ever before. That means many more years of enjoying a well-earned retirement. However, longer lifespans make it critical to carefully manage risk - even after retirement - to ensure that you have the funds you need to maintain your lifestyle. These are seven ways you can protect your retirement income from perils like inflation, market volatility and outliving your savings.

Keep Your Emotions in Check
Every dollar you have put away for your retirement years represents hard work. Because of this, many people have strong emotional reactions to dips in the market. They are tempted to protect their funds by reacting to short-term trends instead of sticking to a long-term investment strategy. The best thing you can do to manage this risk is to keep an eye on your goals and ignore the daily ups and downs.

Beware of Overspending
There are a lot of factors that go into calculating how long your money will last, including your age, your life expectancy, current rates of return and the amount you have saved. We can help by giving you an approximate figure that you can safely withdraw each year without putting yourself at risk of running out of money.

Design Your Portfolio With Inflation in Mind
One of the most frustrating things about setting money aside is that over time, buying power is eroded by inflation. When it comes to your retirement, this issue goes from discouraging to dangerous, as inflation can dramatically decrease the value of your portfolio. Use tried-and-true inflation-proof portfolio management techniques to ensure that your rate of return will - at a minimum - keep up with the cost of maintaining your lifestyle.

Focus on Interest Rates
At one time, interest rates of 5 percent or more were standard. That made it simple to accumulate solid earnings, and interest income could be relied upon for living expenses after retirement. However, those high rates have been gone for a long time now, and who knows when they will reach that level in the future. In the interim, it is important to adjust your portfolio to account for low interest rates, and ensure you have enough invested in holdings that will generate a better return.

Plan for Longevity
Most people assume their lifespans will be far shorter than statistics indicate, and they plan for their retirement accordingly. Unfortunately, the result of this trend is that many retirees outlive their savings. The best way to mitigate this risk is to assume a best-case scenario when planning for retirement. Save, invest and spend as if you will live to be 100 years old.

Prepare for Market Changes
The economy goes through regular cycles, and no matter how carefully you invest, you are sure to be faced with a market downturn at some point during your retirement. While this isn't an issue while you are still making contributions to your retirement accounts, it can add complexity during the distribution phase. Over time, with no withdrawals, your investments may eventually recover. However, this can take years. Practically, you cannot avoid all withdrawals during this period, so your overall income strategy must take this downturn into consideration when calculating your annual distribution targets.

Focus on Sequence of Returns
Market changes mean that you will probably have to make withdrawals during a market downturn, which goes against the standard "buy low, sell high" investment wisdom. If this happens early in your retirement, it is likely that you will deplete your savings more quickly than if it happens later. As you make decisions on when to retire, how much to withdraw and when to begin distributions, keep in mind that taking money out of your investment accounts when the value of your portfolio is down could put you at risk in later years.

Have questions about this week’s content, or need help with your financial plan?  We’re here to help!  Simply click or call to schedule a complimentary consultation today!

Avoiding Tax Scams in Retirement

Every year, as the April tax deadline approaches, there’s an increase in the number of tax-related scams that are reported according to Transaction Network Services.


Thousands of taxpayers are duped every year and retirees are among the most vulnerable for this type of fraud because criminals believe they have a significant amount of money that can be targeted. To detect fraudulent activity and avoid falling prey to tax scams, it’s important to be vigilant and realize that tax scams are common. It can happen to you.   Read more...

Invisible Fees in Mutual Funds

Mutual Funds may have "invisible fees."  It is important to know what fees your fund is charging.  The level of fees can have a direct effect on your return.

Find out more... article and video

2019 Tax Highlights, Dates and Deadlines

Now that the 2019 tax season is underway, a review is in order for the new changes that have been implemented this year for the previously-passed HR1, informally known as Tax Cuts & Jobs Act. HR1 had substantially increased standard deduction amounts in 2018 ($6,500 to $12,000) for individuals, which is now $12,200 in 2019. Married couples in 2018 also saw a dramatic change (from $12,000 to $24,000), which is now $24,400 in 2019. However, with the updated tax code, there are a number of itemized deductions that have been changed or eliminated.

• State and Local Tax (SALT) deductions remain in place for 2019, with the total amount claimed for all state and local sales, income, and property taxes together may not exceed $10,000 ($5,000 for married taxpayers filing separately).
• Medical and dental expenses can be deducted from Schedule A - the threshold for 2019 is 10% of Adjusted Gross Income (AGI).
• Mortgages taken out after December 15, 2017 used to buy, build or improve homes (known as acquisition indebtedness) are limited up to $750,000 ($375,000 for married filing separately) while those taken out before December 15, 2017 are still grandfathered to the $1,000,000 limit. There is no deduction available for interest on home equity indebtedness from 2018 through 2025.

Please feel free to call or reply with any questions you might have. All The Best!