Thinking About Retirement

Your retirement is unique to you, you should be able to live as you desire, not according to some formula. But that will take long-term planning, a bit of discipline, perhaps making tough decisions and a modicum of luck. Here are a few tips.

See the detail ... Thinking About Retirement

A Basic Financial Planning Checklist

The most common financial planning mistake Advisors identify about potential clients is not so much a particular bad decision, but rather those seeking support often have ignored many parts of basic financial planning. This article identifies some good, basic questions any individual should ask themselves to understand whether an Advisor should be a consideration. Areas include:

• Insurance Planning
• Cash Flow Planning
• Estate Planning
• Tax Planning
• Basic Investment Planning
• Basic Retirement Planning

  Source and more detail: Basic Financial Checklist

 

Retirement, RMD's and 529 Changes Coming

Last week Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which makes a list of changes to retirement account rules. Two big changes for RMD's: ... 

1. For anybody turning age 70.5 in 2020 or later, RMDs will begin with the year in which you reach age 72 rather than the year in which you reach age 70.5.
2. if the owner of an IRA/401(k)/403(b) account dies in 2020 or later, then the beneficiary of the account will have to fully distribute the account within 10 years of the original account owner’s death. This so-called “stretch IRA” distribution rules have mostly been eliminated. 

Source: Retirement and 529 Changes from the SECURE Act

How Long to Keep Financial Records

Over time, we all collect and many save financial information that seems to just accumulate. I even saw a box in the garage that was labeled 1976 Tax Returns (OMG). I came across this article that offers guidance for what to keep and how long. Within the article, they also provide templates for documenting assets, financial advisory contact information and more. Here are the links:

Financial Ducks in a Row - the source article
Financial Stuff Organizer - templates for consolidating information
Financial Recordkeeping - a list (from article to print)

Get Organized - Personal Financial Files

Everyone needs to keep certain personal financial files more or less permanently. But which files should you keep, and why do you need to keep them? How long should you keep them and in what format? AAII provides a good summary as well as detail to understand what and how long financial and other important documents should be held.

Source: AAII Get Organized!

Things to Know about Trusts

The article below has details about a Trust - a Financial Tool
1. It is Revocable or Non-Revocable
2. A Trust can protect assets
3. It's not for certain Retirement accounts
4. A Trust can assist after death
5. Confidentiality is more certain
6. May save on Taxes
7. Trusts can be expensive
8. You need to enlist a Professional
Source: 8 Things to know about Trusts

A good article for anyone interested in creating or checking their financial plan.

From the Humble Dollar "Thanks to the proliferation of online calculators, it’s now possible for individuals to piece together their own lifetime financial plan. Here is a roadmap to guide anyone through the years ahead. Check out the 18 steps below. Depending on your situation and how much financial progress you have already made, some steps may be unnecessary".

Read... The Humble Dollar Money Guide - Your Financial Plan

Financial Independence - not just being a millionaire

One of the first couple books I became interested in when I started working in the corporate world were Your Money or Your Life and The Millionaire Next Door. (short summaries provided). Bottom Line is 'Live beneath Your Means' and 'Pay Yourself First'. The model offered by both are valuable, but as in most plans it is important to have a diversified approach - i.e. not being dependent on simply one approach or methodology for success. 

I have been following The Dividend Growth Investor blog. Reason - to understand how individuals can leverage a relatively safe investing approach of compounding dividends from well-managed companies. It too much to summarize, but below is a link to a great post for those with 15 to 20 years from retirement and want to create a supplemental income source to 401K distributions.

Read The Dividend Crossover Point ... highlighting how to create a long term plan to have to create income (dividend income) to exceed living expenses - financial independence!  

Financially ... 2018 Not So Good ... How 'bout 2019?

I am a Lifetime Member of AAII, and today attended a presentation by Lauren Rudd on what to expect from Wall Street in 2019. Below are my notes and takeaways:

1) The S&P performance n 2018 has not performed this poorly since 2018.
2) You must have some portion of your investments in equities
3) Holding Cash is NOT the solution
4) 2019 will be an okay stock market performance year
5) 2020 is looking like a real possibility for a recession or market correction
6) Diversified portfolio across multiple asset classes is #1
7) The best action one can take when the market 'tanks' ... nothing. 
8) Follow the data - the market has/will always go up
8) The market is emotional and reacts to the news and media
9) Stock interest? Look for companies with continual increasing dividends
10) Going forward expect volatility and don't react

How to Become the Millionaire Next Door

Author: One of the most influential books I’ve ever read in terms of shaping my thoughts on personal finance and helping me figure out what to do. This is one of a few books I read at my financial low point, along with Your Money or Your Life and The Total Money Makeover, that really helped me figure out a new direction with my money and my overall life.
Read 'How to Become ..."

How Much of an Emergency Fund Do You Need?

Most financial advisers agree that consumers should keep some readily available cash in a very safe account in case they face an unforeseen expense ranging from car or home repairs to big health-care costs to the loss of a job. Article inlcudes calculator links. Read: BottomLine Personal Emergency Fund

How to Build an Easy Investment Portfolio

“Set and forget” investing isn’t sexy, but it works. In fact, lazy investing is so effective, a study from Fidelity found that the best performing investors had either forgotten about their accounts or even crazier—they were dead.

The facts show that most financial advisors fails to beat the market, and instead, smart investors try to match the market that has an average return of 7% ...that’s pretty solid! Source: How to Build an Easy Investment Portfolio

Why Dividends are Important

Statement #1: A single dollar invested in the stock market in 1950 would be worth $123 today. 
Statement #2: The same dollar invested in the market in 1950 with dividends reinvested would be worth $1,144 today.
Read quinnscommentary

Do THIS Before Investing (beyond just saving)

Here are ten things that you really should do before you even consider investing in anything beyond your savings account or your retirement plan. Starting with ... make your net worth your personal financial number and ... pay off all credit card debt and ... eliminate bad spending habits and ... read more

Millenniels: Are They Saving for Retirement?

1974/76 to 1994/2000. Take your pick of the various birth date ranges suggested for millennials. Regardless ... they are old enough to know better or so you would think ... but. 

... and yes, they can afford to save. What seems they can't do is set their financial priorities and standard of living.

Source: QuinnsCommentary

Millennials, where do you stand in savings?

Retirement Investing - Asset Allocation

Some facts of life:
1. The stock market is emotional, volatile and impossible to forecast.
2. You must have investment in it to keep up with inflation (the hidden eroder of wealth)
3. You (and advisors) CANNOT consistently pick a winning stock
4. Academia has recognized diversification and asset allocation as significant!
Whether you are young or not-so-young, understand Asset Allocation. This can be witnessed by the crop of new 'Robo-Investing' firms like Wealthfront, Personal Capital, etc.

Great Online Financial Calculator

Although a 'For Sale' service, WebWinder has over 100 financial calculators from Home Mortgage, Car Loans, Future Value of Money, etc. It also has calculators for comparing two purchases like 'do I keep my car or buy a new one' ... incorporating maintenance, depreciations and lots more costs we forget. I used it to find cost difference of upgrading a three year old car and it validated the new car would cost twice as much over a 5 year period than keeping our current vehicle. Link http://www.webwinder.com/

60 Rules of Personal Finance

Here are 60 Simple Rules for Personal Finance worth scanning periodically.

http://goo.gl/Prb2Pg

Financial Advice/Articles

Below are readings an information that are always of value:
20 Reasons Why You Need and Emergency Fund