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
2014 is now over, and a new year is in front of us. In my video (click on the image below), I briefly do a recap on 2014, and then lay out my arguments for a long term approach, diversification, and reasons why I think being fully invested is wise, particularly as I continue to be optimistic for the foreseeable future. Click on the video below for 10 minutes of my thoughts. Hi there! Mike Brady with Generosity Wealth Management: a comprehensive, full-service, wealth management firm headquartered right here in Boulder, Colorado. Today want to talk about the 2014 ... Read More
I’m entering my 24th year working with clients. I did financial plans for people decades ago, and usually, those that did reach their goals did so not because they bought mutual fund A instead of mutual fund B, or this investment over another, it had to do with having the right behavior and keeping the big questions in mind. Ben Carlson wrote an absolutely wonderful blog that I’ve linked to below. He says very succinctly what I say all the time, and truly believe. Here’s his list of 7 Simple Things Most Investors Don’t Do Look at ... 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
The earliest you can start receiving your social security is at age 62, full retirement age is 66 (for people born between 1943 and 1954), and the latest you can delay it is until age 70. At full retirement age 66 you’re entitled to 100% of your amount, but if you take it early at age 62 you receive 75% of that amount. If you wait until age 70 then you get 132% of the full retirement amount. So, when should you take it? Let me just say there is no exact right time to take it that is applicable ... 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
The first quarter is now behind us, but all the excitement happened in the first week of April! After reaching new highs, the unmanaged stock market indexes pulled back a little bit, so the question we have to ask ourselves is “what does this mean for the rest of the year?”. Good question, and one I answer in the below video: Hi, this is Mike Brady with Generosity Wealth Management, a comprehensive full-service wealth management firm headquartered right here in Boulder, Colorado, and today I want to talk about the first quarter review and the rest of the year ... 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 been my experience that when people don’t reach their financial goals it’s not because they failed to buy stock A over stock B, or bought this mutual fund over another. Most of the time, it’s the bigger questions they’ve failed to answer, like “am I spending more than I earn?” or “what happens if I lose my spouse?”. What is the dynamic value Generosity Wealth Management brings to the table? A = helping clients answer and address these issues, and keep the big picture in mind. For a full discussion of this, listen to my short video where I ... 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
I was recently asked “what are some characteristics or traits you’ve noticed in people who seem to reach their goals?”. Hmmmm…..good question. I suppose I could be completely self-serving by saying “they click on my videos in my newsletter” but that’d be too obvious. So, I’ll start off by saying “they treat their life and goals like a business”. For the rest, you should watch the video. Good morning. Mike Brady with Generosity Wealth Management, a comprehensive full-service wealth management firm headquartered right here in Boulder, Colorado, although I have clients in many different states. Today, I wanted to ... 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
I’ve met with literally thousands of people over my 21 year career. Many people have asked “how can I be rich?”. The question is so difficult to answer. Besides the obvious “win the lotto” and “hope you inherit tons of money”, most of us will increase our probability of reaching our goals if we simply spend less than we make, save religiously, invest wisely, and avoid catastrophic financial events. Your ability to make saving a habit is one of the first steps. Perhaps you’re already a good saver. Whether you’re a great saver or wish you could be better, I ... 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
While the official unemployment rate is decreasing, the “participation” ratio is decreasing. This means less people as a percentage of the total population are actively searching for full time work. Some of those leaving the workforce are retirees, but the graph to the right is interesting because it shows the decrease from those in prime working ages. This shows how bad the employment is, even beyond the unemployment figures. The graph below shows the huge gains women have made in the past 60 years. CLICK FOR COMMENTS & BIGGER GRAPHS ON THE EMPLOYMENT-POPULATION RATIO 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
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The Dow Jones Industrial Average is an unmanaged, price-weighted index of 30 large capitalization stocks with dividends reinvested.
The Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged, market capitalization weighted index of 500 widely held stocks, with dividends reinvested, and is often used as a proxy for the stock market.
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.