What’s the best way to handle company stock without getting killed by taxes?
Posted by Cathy Miller on Tue, 04/25/2017 - 08:00
Company stock, especially if it was awarded as part of a long term incentive package, can be a terrific way to build wealth. But it can be a double-edged sword, too. Over-concentration in a single stock probably represents one of the biggest mistakes we have seen retirees make. And when the stock is from the company where they built their career, they may have a strong emotional attachment that can cloud judgement.
Setting aside funds to cover future health expenses
Posted by Julie Andrews on Wed, 04/19/2017 - 08:59
The old saying used to be that you could only count on two things: death and taxes. Today, we need to amend that include a third constant: the rising cost of healthcare. For some time now, medical costs have increased at a pace that exceeds inflation. No one is predicting a change in that pattern.
To cope with these rising costs, we recommend you treat health expenses just as you do the other line items in your budget. Factor this cost into your budget and understand its impact on your cash flow.
Consolidating Company Retirement Plans
Posted by Rick Henderson on Fri, 03/24/2017 - 11:58
For most people, I believe consolidating your various company retirement plans and IRA’s into a single IRA is the best route to go for a number of reasons 1,2,4:
Investment Portfolios and Retirement
Posted by Cathy Miller on Tue, 03/14/2017 - 11:35
Years ago, conventional wisdom was that your portfolio should get more conservative as you age. One widely quoted rule of thumb was that the amount you should have in bonds should match your age. So a 60-year-old would have a 60% bond/40% stock portfolio, a 70-year-old would have a 70% bond/30% stock portfolio, and so on.
What Should I Do About My Pension?
Posted by Rick Henderson on Wed, 02/15/2017 - 13:10
If you are able to ask this question, consider yourself fortunate. Many, if not most retirees today do not have a company pension, and for them, the only guaranteed lifetime income stream they have is Social Security. Usually, retirees are offered pension payments in various different forms and amounts ranging from a) a lump sum distribution of the full value of the pension that can be rolled over tax free to an IRA, to b) a series of equal monthly payments for the lifetime of the retiree and their spouse.
Cash Flow and Retirement
Posted by Cathy Miller on Mon, 01/30/2017 - 12:57
Once the paycheck stops, most retirees wonder how to best meet their cash flow needs. Unless you have saved a tremendous amount of money, living on just dividends and interest could mean a lower life style than you desire, especially in this low interest rate environment. But even if interest rates eventually return to more “normal” levels, the days of “clipping coupons” is not likely to return. Part of the reason is because retirees are living so much longer, and need their portfolio to grow in excess of the inflation rate.
How to Retire to a Fulfilling, Purpose-Driven Life
Posted by Julie Andrews on Wed, 01/25/2017 - 05:59
It is very common, after a lifetime of hectic schedules and work pressures, to wonder how you will live without deadlines and commitments. Most about-to-retire people have these same worries.
Investing While Retired
Posted by Cathy Miller on Tue, 12/06/2016 - 11:34
Years ago conventional wisdom was that your portfolio should get more conservative as you age. One widely quoted rule of thumb was that the amount you should have in bonds should match your age. So a 60-year-old would have a 60% bond/40% stock portfolio, a 70-year-old would have a 70% bond/30% stock portfolio, and so on.
7 Questions to Answer in a First Meeting with a Financial Advisor
Posted by Rick Henderson on Tue, 12/06/2016 - 11:31
Many clients searching for a financial advisor aren’t certain what should be reviewed and discussed at their first meeting. The approach taken by financial advisors varies widely and is not always well structured. The main goal is for you and the prospective advisor to determine if there’s a good fit for working with each other now and well into the future.
Answering the following seven questions should go a long way toward determining if the prospective advisor is the right person to help you achieve your financial vision:
Do I have enough for retirement?
Posted by Cathy Miller on Tue, 12/06/2016 - 11:29
“Do I have enough?” is one of the most common questions asked as clients think about taking the leap into retirement. Behind it is the fear that they won’t have enough money to enjoy the kind of lifestyle they dream of – or worse yet, that they will run out of money in their old age and have to depend on family or others to help make ends meet. Rules of thumb abound – such as the idea that in retirement you can live on 70% or 80% of what you spent while working.