TIPS AND STRATEGIES TO HELP YOU CREATE FINANCIAL STRENGTH!

When your spouse dies. 63% of the time when a spouse dies, it’s the man. According to the NIH, when this happens, on average the widow (or the wife) lives another 12 years. 3 things happen in short order when someone dies. Income decreases by as much as 50% with the possible loss of social security and pension. Taxes increase the following year because single tax rates are more punishing than married rates. If the deceased had an IRA or 401K, the widow still has to take Required min distributions but now at higher tax rates. Expenses go down but not by as much as you think. Only 20% on average per the Government Accountability Office. Think about it this way. Variable costs like medical and food, etc. will decrease but what about fixed expenses. My FIL passed in December. Jill’s Mom still has the house to contend with. All of this is to say please build these types of scenarios into your plans. If you have questions, feel free schedule some time to speak with me.

Are you looking for a reliable source of income in retirement? Annuities may be the answer! Watch this video to learn how annuities can provide guaranteed income and simplify your retirement plan. Say goodbye to financial worry and hello to a comfortable retirement!

Are past financial slip-ups haunting your investment decisions? You're not alone. In this insightful video, @erinkennedytv and Darryl delve into expert advice on navigating investment and financial choices after making mistakes. From acknowledging past blunders to crafting a brighter financial future, discover actionable strategies to thrive in your retirement journey.

When it comes to deciding on the right time to start Social Security benefits, there are various factors that come into play. One of the key considerations is your full retirement age, which typically ranges from 66 to 67, depending on the you were born. Opting to collect benefits before reaching your full retirement age can result in a reduction in the monthly amount you receive. For example, starting at age 62 can mean receiving only about 70% of your full retirement age benefit. This reduction can have a significant impact on your long-term financial security. Another important factor to consider is your life expectancy. If you anticipate living a long life, delaying the collection of Social Security benefits may be a wise decision as it can result in higher monthly payments in the long run. Additionally, if you are married, your decision can also affect your spouse's benefits, particularly if they are eligible for spousal or survivor benefits based on your earnings record. Understanding the implications of when to start collecting Social Security benefits is crucial in ensuring financial stability for both you and your loved ones. Ultimately, the decision of when to begin collecting Social Security benefits is a personal one that should be carefully considered based on your individual circumstances. However, I do want to highlight one important point. The decision is not life or death. I've had so many people come to me, profess that they hate their job, but then stay (in the job they hate) for 2 more months to increase their benefit. We are not algorithms. We are not spreadsheets. We are people and it's ok to not always make the 100% most optimal decision. Consulting with a financial advisor or utilizing online calculators can help you weigh the pros and cons of starting benefits early versus waiting until your full retirement age or even later. By taking the time to evaluate your options and considering factors such as life expectancy and spousal benefits, you can make an informed decision that aligns with your long-term financial goals.

If a tree falls in a forest and no one is around to hear it, does it make a sound? Here’s another question. If you talk about retirement planning and don’t mention annuities, did you talk about retirement? Look, when it comes to discussing retirement planning, one topic that often sparks mixed reactions is uttering the word annuity.. The mere mention of the word can sometimes evoke a sense of apprehension or skepticism. It’s like you’ve uttered a 4 letter word; even though there are actually 7 letters in the word annuity. Ha ha. Despite my attempt at levity, this is an important point. Annuities are a fundamental component of retirement planning that cannot be ignored. Recently, a guy asked me if I was gonna be peddling annuities while reaching my retirement class. My first reaction was - OUCH! But then I laughed a little. I don’t promote anything when I teach; however annuities are an essential part of retirement education. It’s actually impossible to explore retirement planning without addressing them. Kiplinger recently tackled this topic by presenting both the advantages and potential drawbacks. The article pointed out the costs and complexities associated with annuities and urged individuals to approach them with caution. ABSOLUTELY. However, it also highlighted the benefits, such as tax-deferred growth, the increased diversification that comes from offloading some longevity risk to an insurance company, and the promise of dependable income streams. The importance of income was underscored by a study conducted by Blackrock, the large asset manager and a company that does not even sell annuities. Their study revealed that incorporating guaranteed income from annuities, in combination with strategic decisions regarding Social Security and how your money is invested - can lead to greater financial security in retirement. Maybe they are for you; maybe not, but annuities, when approached thoughtfully and used correctly, can play a valuable role in creating safety, simplicity and financial strength in retirement.

Here’s a rule that messes with people’s heads. It’s about Roth accounts and it’s called the 5 year rule. When it comes to planning for a secure and comfortable retirement, understanding the intricacies of retirement accounts and investment rules is crucial. One such nuance that often confuses individuals is the five-year rule associated with Roth contributions. Essentially, this rule determines the tax and penalty implications of withdrawing earnings from a Roth account within a certain time frame. It's important to note that this rule specifically applies to the earnings portion of the account, not the initial contributions. The clock for the five-year rule starts ticking from the moment the first contribution is made to the Roth account, and it is essential to keep track of this timeline if you anticipate needing to access the earnings in the future. So, Roth accounts are great but this tidbit can be confusing. While the rule may initially seem complex, understanding its implications can help you make informed decisions about your retirement savings.

There is an investing philosophy that I love. It's called segmenting, and let me tell you, it's a game-changer when it comes to planning out your finances for the long haul. So, picture this: you've got your retirement savings all nicely sorted out, and you want to make sure you're making the most of your hard-earned cash. That's where segmenting comes into play.