It is no secret that women traditionally had little to do with family finances or retirement planning. Over time, women have come a long way, especially as their presence in the workforce expanded and income increased.
When it comes to investing, what is “RISK”? RISK can be defined by the opportunity to gain significant money at the RISK of losing significant money. For most people RISK is defined by feelings. “I lost a lot of money in 2008 so I don’t like RISK!” or “My parents lost everything during the last recession when I was a kid, so I hoard my money!” Those things are relevant but can get you in trouble if that is all you are basing your decision on.
A lot of investors are legacy-minded. This means leaving a monetary impact for family or friends is top priority to them. In this article, I’m going to focus on those situations where the transfer of assets is done after someone has passed away through a beneficiary designation.
Do- Diversify your portfolio. This may sound cliché but it is vitally important. Diversification acts as an insulator against the ups and downs of the market. Don't- Try to time the market! Market timing is making investment decisions based on the expectation that the market will go up or down in the short term.
Lately, I have been getting this question frequently. For some folks, it’s the first time they’re hearing about tax-free growth. For others who have been saving in a Roth for a long time, or are converting pre-tax dollars to Roth IRA, they have never really considered just how beneficial tax-free growth truly is. This is especially true when you have a 10, 15, even 20+ year timeline.
Now, more than ever, the workplace is in constant change. The level of education and direction regarding what is for most people the largest portion of their retirement, your 401k or 403b, is solely put on your shoulders. With little direction, you may only have an 800 number or website to give you some assistance to help you decide the best direction for your future. We believe that education is key for everyone who is trying to save for retirement and has a goal to strive for. This is the perfect time to begin working with a qualified Financial Advisor to better understand your options.
As a financial and retirement planner, I have learned that people hate paying taxes. The truth is, the history of taxation is a complicated one full of wars, audits, jail time, and factions of society that were created in rebellion to the idea itself. To make things worse, the “rules” laid out by the IRS when it comes to tax are extremely complicated, ever-changing, and leave a ton of room for discretion. So, how might one go about reducing or entirely removing the IRS as a benefactor to their retirement investment they have worked so hard to save?
For retirees that wish to truly enjoy their retirement but still want to provide a legacy, setting priorities and finding a balance will be key. Most would agree that ensuring one's stability in retirement should be the top priority. The first step to ensuring you can enjoy retirement is to make sure you have enough money saved in the right type of accounts to make this happen.