I was recently interviewed for a magazine with the question “what are the biggest misconceptions about Social Security”. My conclusion, and the headline used, is that Social Security isn’t a nest egg. Many people think it will pay out more to them than it actually will Many believe you have an individualized account, sort of a government-held savings account. A third misconception is that Social Security will be broke sometime in the future. Different yes, but gone no My advice is to take control of your own retirement and not abdicate it to someone else, and most definitely not those ... Read More
There are a number of risks we have to take into consideration when planning for the future. There are the “tangible” ones that we can quantify, and the “intangibles” that are there but harder to see. Inflation is a real cost. If you don’t believe me, remember what your first home cost? What was your salary when you joined the workforce? It will probably be very similar in the future as inflation has been a constant for many years. Have you taken inflation into consideration when calculating your retirement plan? Retirement Fear: Inflation Read More
I was recently asked by a news journalist my opinion on how to avoid penalties on your required minimum distributions. Of course, my first answer was to make sure you actually take them and problem solved! I think she was looking for more…..so I did in fact answer more seriously. Personally, I always watch over all my clients that are at least 70 years old (or have a beneficiary IRA) to calculate the requirement and ensure it’s taken care of. If you don’t adhere to the rules, the tax penalty is 50% of what you should have taken out, in ... Read More
One technique for moving money from one IRA to another, and possibly use that money in the meantime, is to do a “60 day rollover”. This is very common, and can be done once per year per individual IRA account. Starting in 2015, you can only perform this 60 day rollover once per year for all your IRAs, regardless of how many you have. What does this mean? IRA transfers, which I usually recommend for clients, is the way to move money from trustee to trustee. Understanding the New IRA Rollover Rules for 2015 Read More
Do you know your life expectancy? What does life expectancy really mean, and why should we care? These are the questions I answer in my video this newsletter. Therefore, you should watch my video. Hi there, Mike Brady with Generosity Wealth Management, a comprehensive, full service, wealth management firm headquartered here in Boulder, Colorado. Today I want to talk about life expectancy and withdrawals and Medicare and Social Security, etc. To be honest with you I only have three or four minutes so I’m only going to give you a little teaser and then I’m going to follow up in ... Read More
One third (1/3) of workers and retirees have less than $1,000 in savings and investments in their retirement nest egg. Only 44% have done a calculation to find out how much they should be saving. With longer life expectancies, your retirement years can be the best years of your life, but outliving your money is a real risk! One of the biggest and best values I bring to clients is the ability to put the pieces of retirement planning together, and chart the progress along the way. Please contact me if you feel I can help you with your retirement ... Read More
It’s my belief that the longer your time horizon, the more it starts to be your friend. What do I mean by that? Investments of all nature tend to be cyclical, meaning as a normal course of business they go up and down. The longer you’re invested, the more of these intermediary “cycles” you’ll experience, with the end goal eventually being up. If you don’t believe that long term the value will be greater, then why are you investing? Anyway, many times people say “but I just retired and I’m no longer a long term investor”. My answer is that ... Read More
One of the advantages of having a retirement plan is that you start to understand where your sources of income will be upon retirement, and how much. Unfortunately, there is a perception by many Americans that Social Security will be a bedrock of their retirement, when in fact it is just a complement, and usually a small one at that. According to the Congressional Budget Office, someone retiring at 65 today will receive 43% of his/her annual income from Social Security. Where does the rest come from? Your investments and savings, additional job, or significantly reduced standard of living. Which ... Read More
There are a number of different options available to you as you reach retirement age. Collect Social Security early, late, with your spouse, alone, etc.? The following article is a rather detailed discussion for ways to use and plan for social security. Things that I go over with clients all the time. One of the best, most useful articles in a long time. 42 Social Security “Secrets” Read More
Everyone has heard the 80-20 rule at some point in their careers, where 80% of the work is done by 20% of the people. How about applying that to your financial plan? Save 20% every year and live off only 80%. Let that 20% work for you for your retirement. Many times I’m asked what my rich clients did to get that way. Invariably I say that the majority spent less than they made, saved it, and invested wisely. Pareto Principle and Savings Read More
This is a good article about 10 Myths about college planning, many of which I’ve addressed with clients over my 21 years. Is there endless financial aid available out there? Is it better to spend the extra money for a top tier school for the networking? Should you use your retirement funds to pay for your kids’ education? Read the following article for more information. 10 Myths About College Planning Read More
A number of years ago the Social Security Administration started to mail out statements every 2 years near your birth date. This is great for your financial planning. I recommend you review this every time you receive it, and you can even get different iterations based on hypothetical future earnings right at the Social Security site. I highly recommend a retirement analysis, and part of that analysis has to be projected Social Security benefits. Here’s where to start Where to Get Your Social Security Statement Read More
With increasing life expectancies, there is a very real risk of outliving your money or not living in the lifestyle you’d like. This article is how to plan for a 30 Year Retirement, with some great suggestions about the retirement plan you create. One of the best things I do for my clients is the planning, creation, and monitoring of a retirement plan. This is not only before retirement, but after as well. If you don’t have a retirement plan already, my best advice is to get one as soon as possible, and I’m always here to help. Plan for ... Read More
Are you interested in talking with me about your finances and investments but not sure if we’re the right fit? I have clients of all portfolio sizes, ages, employment, and stages of life. What I like to do is make a difference in someone’s life. Frankly, it’s just as rewarding for me to work with a young couple who are serious about planning and saving for their future as it is to manage portfolios and wealth for business owners and retirees. Don’t be shy. If you’re curious about whether we’d be a right fit, give me a call and we ... Read More
The 3rd Quarter 2011 is over and I have a slightly longer video this week because I want to address the current environment and how things may shape up going forward. A big theme is my advice to assess your overall plan and risk tolerance, and also to ensure you’re looking at both positive and negative points of view on the markets instead of just one view over the other. I send my newsletter and videos on a weekly basis, so if you watch only a few througout the year, at least watch my more comprehensive quarterly videos. Click to ... Read More
Last quarter a client of mine asked my permission to refer his friend to me. He didn’t want to offend me by giving out my business card without my okay. I’m hereby giving everyone permission to offend me! What this conversation led me to understand is that I haven’t done a very good job communicating that Generosity Wealth Management has the knowledge, infrastructure, and expertise to help out your friends, family, and those you care about. I work with clients seeking to grow, preserve, and distribute their wealth in an efficient manner to ensure the well being of themselves, their ... Read More
According to this article, you can withdraw 4.5% out of taxable accounts per year and your money will last at least 30 years under most scenarios. I don’t have his supporting material to double check his numbers, but I do know there are a lot of variables involved in coming to this conclusion. Do you know what your number is for retirement? Contact me and I’ll try to help you figure that out. LINK TO FULL ARTICLE Read More
Most Americans have less than $25,000 saved for retirement. If you’re reading this, you’re probably not that person. But, let’s be honest. Those of us that are delaying consumption, investing well, and planning for our retirement will be asked to subsidize those who are not doing the same. What does this mean for you? Continue to do all the things that will put you in place for a good retirement. Especially, get a retirement plan together so you know what it will start to look like with what you currently have and are currently saving. Let me know if I ... Read More
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The Nasdaq Composite is an unmanaged, market capitalization weighted index of stocks listed on the Nasdaq Stock Exchange, and are reported as price return without reinvestment of dividends.
Indexes are often used as a proxy for the stock market and cannot be invested in directly.