News
The SECURE Act Is Law- Notable Changes to Retirement Savings
Effective January 1, 2020, the SECURE Act, a progressive change to retirement savings plans, is now law. The last legislation to retirement savings happened when Congress allowed for the automatic enrollment of employees. Also the addition of Target Date funds to retirement plans in 2006.
While the new law intends to provide additional opportunities for Americans to save for retirement, other changes will affect both estate and retirement planning in these critical areas:
Why Fixed- Indexed Annuities? A Closer Look at Protecting Retirement Income
One of the most critical things in retirement is not having enough income to last one’s lifetime. An annuity can help you by protecting retirement income. Retirees need a reliable source of income that protects them from the complex issues of unpredictable market-creating havoc in their retirement portfolio. For this reason, fixed-indexed annuities are becoming a standard solution in financial planning, along with other client-appropriate investments.
Visualization and Creating Wealth
Oftentimes, the new year brings resolutions – with one of the top three normally being financially oriented. Many people resolve to “save more money,” “make more money,” or “manage finances better.” While it’s great to start off the new year with new goals, the problem often lies in the fact that less than 7% of Americans actually stick to their resolutions. What is the disconnect? Some experts say a lack of committed visualization.
Aging in Place: Growing Older at Home
The U.S. population continues on growing older, with the baby boomer generation now the largest generation ever. By 2035, one in three heads of households will be someone age 65 and older. The American population will have one in five people age 65 or older, an increase of 30 million people over the next thirty years. Not all people in this group have recovered from The Great Recession, leaving them with lower incomes and homeownership rates than previous generations. As our population ages, the demand for affordable housing connected to accessible services will continue to increase, and many will find their own homes the only affordable option.
Your Retirement Nest Egg- A Carton Full of Options
Many people refer to their retirement savings as a “retirement nest egg,” but in theory, it should be made up of many sources of retirement income-many eggs. Even if Social Security and a company retirement plan were their only retirement savings sources, likely they haven’t thought about their withdrawal strategy. It’s not as simple as just drawing down retirement income from one or two sources without a plan. Have the following been considered?
Money vs. Time
It’s the age-old question: Do you want more money or more time? Researchers have asked this question in several studies, and the majority of people pick money. Initially, this makes sense, because money is essential and allows for our wants to be met, but these same studies found those valuing time over money are generally happier. Researchers also note that money is associated with greater happiness up to an income of about $75,000, but any greater amount does not ‘buy’ more happiness.
Until Debt Do Us Part
The thought the division of joint debt discussed when saying “I do,” to any relationship. For couples that combine both assets and liabilities, a split signals the dilemma of dividing both. About half of all marriages in the U.S. end, according to the American Psychological Association, making debt a significant hindrance to financial security for some divorcees.
In a perfect world, the spouse that acquired the debt would pay if off; however, that is not always the case. Creditors will hold both spouses listed on the note or agreement. This is regardless of the way the court determines the debt is to divide.
Financial Planning for a Couple’s Age-Gap
Couples usually don’t retire at the same time when they have an ‘age gap’ between them. An age gap relationship is one where there is eleven or more year’s age difference between them. Age-gap relationships are becoming more common as people are choosing to marry later in life with someone significantly younger. This type of relationship requires some additional financial planning.
Understanding Fixed Income: For Today and the Future
Fixed income is something many Americans don’t understand, according to the 2019 survey, “Fixed Income, Not Fixed Thinking,” by BNY Mellon Investment Management, one of the largest asset managers in the world. The study revealed that the majority of Americans surveyed have a limited understanding of fixed income investments, regardless of age, income, education level, and other demographics. The lack of understanding ranged from bonds, different fixed-income solutions including fixed-income insurance products, comprehending how fixed-income plays into retirement planning, and understanding its risk in comparison to other asset classes.
Understanding the Impact of Your Charitable Donations
The time of year when the donation requests start rolling from charitable organizations in has come again. In fact, December is when 30% of annual giving occurs, and 10% is done in the last three days of the year. The holiday spirit gives us a wonderful incentive to gift your money, time or resources, but before you do, be sure to carefully look at the organization and its policies to make sure your donation is sent to the right place.
