Creating cash flow every month isn’t an accident, it’s a deliberate act of spending wisely and saving for the future with a budget. When there’s money to invest, many look to professional advisers, because for most, managing your finances is not a do-it-yourself activity. But even with help, you still need to develop your own risk tolerance, financial goals and life events along a timeline. There are several risk tolerance tests available online and through various financial institutions. They ask probing questions that can help you establish a baseline for your financial decision making process. After having your test evaluated, you may discover you’re not who you think you are. For example, a type A “driver emotive” personality, may have a portfolio that’s aggressive, but his risk tolerance test results may actually reveal a moderate conservative. Many 401(k) portfolios don’t match up well with their participant’s risk tolerance test results. Tom Hegna, best selling author and economist, often talks about this when he addresses purchasing financial products for retirement. Watch the video interview at: https://youtu.be/3mLkh2jtykU.
It’s important to establish a financial timeline that reflects the many life events along the way; like getting married, having children, buying a home, saving for college and weddings, contributing to a retirement plan, creating funding for long term care and leaving a legacy. But the most important part of creating a financial timeline is establishing life expectancy, especially for funding retirement and the long term care and medical events that occur as seniors grow older. The Guinness Book of World Records documented that a woman in France named Jeanne Calment was the longest living human at 122 years, 164 days at the time of her death. Gerontologist Dr. Aubrey de Grey says the person who will live to 150 years has already been born. So developing a life expectancy report and a risk tolerance test are two critical steps in developing a financial profile.
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Creating cash flow every month isn’t an accident; it’s a deliberate act of spending wisely and saving for the future. Many consumers look to engage a professional adviser, because for most, managing your finances is not a do-it-yourself activity. ...
Released On: 1/21/2017
Views: 2953
Money market funds, CDs and savings accounts were the safe money havens of the past. But today, they’re crediting rates are so low, taxable and eroded by inflation. You worked hard for your money, so you need to make your money work hard for you. ...
Released On: 1/20/2017
Views: 3026
After the market meltdown of 2008, investors and savers alike want to have safe alternatives for portions of their money. Many near or in retirement just can’t afford another major downturn in the market, so conservative options need to be sought ...
Released On: 1/19/2017
Views: 2996
It doesn’t matter what game you like to plan, there are strategies and tactics to learn to become successful at any sport. The same is true of tax code. There are three basic moves to make that can positively affect the taxes due on your 1040. Wa ...
Released On: 1/18/2017
Views: 2504
Every investor should have a financial profile that includes a risk-tolerance assessment, timeline goals and a retirement or estate strategy. It becomes the reference point for all your money decisions and any plan alterations that will occur. Wa ...
Released On: 1/17/2017
Views: 2477
It’s really troubling in the information age an investor can’t seem to secure the true cost of their investments or consulting advice. Even when you Google—the front of all knowledge—most financial products disclosures don’t reveal the total cost ...
Released On: 1/16/2017
Views: 2652
Elder care in retirement is the greatest economic threat to seniors. Medical expenses and long-term care costs can exceed $220,000 for a married couple during their golden years, and living longer could increase the costs even further.
Released On: 1/14/2017
Views: 2813
The number-one concern of retirees is they may be outliving their money, but their number-one compliant is paying taxes during retirement. Focusing on taxes needs to be coordinated with the purchase investment products to determine investor suita ...
Released On: 1/13/2017
Views: 2565
Most retirees don’t focus on required minimum distributions. Some don’t even know what RMDs are. Only a few seniors have a handle on them and are aware of the penalties for not complying with the laws that govern RMDs.
Released On: 1/12/2017
Views: 2709
Retirement income just not just triggering a lifetime annuity and just setting it and forgetting it. Portfolio income needs many investment positions to generate retirement income to age 100.
Released On: 1/11/2017
Views: 2547
It is impossible to be in the advisory business, be altruistic and be profitable? Is there such an inherent conflict of interest between advisor and investor that the compensation models that exist today need to be scraped? The Department of Labo ...
Released On: 1/10/2017
Views: 2403
Many modern portfolio proponents use the risk-return theory of the efficient frontier to measure market returns against risk exposure. The goal is to optimize returns with the least amount of risk. If portfolio performance falls below the efficie ...
Released On: 1/9/2017
Views: 2631
More than ever, seniors in or near retirement are struggling to create a reasonable lifestyle in their golden years. Many have mortgages, short debt and family obligations, such as long-term care costs for their aging parents and unpaid college l ...
Released On: 1/7/2017
Views: 2722
Sooner or later most seniors will experience some type of morbidity or illness event during retirement. Some retirees live in single story homes, with limited or no steps at all. Walk-in bathtubs, nonskid tile and support bars can help, but they ...
Released On: 1/6/2017
Views: 3176
You’re probably being pummeled with Medicare literature in the mail, but what’s really covered? The topic is overwhelming, thanks to the complicated coverage policies. Watch the interview with retirement specialist Curt Chojnowski.
Released On: 1/5/2017
Views: 2589
Depending upon your risk tolerance and the state of your health, you may want to consider TAMRA compliant cash value life insurance designed for accumulation and not necessarily as a death benefit.Watch the interview with retirement specialist Cu ...
Released On: 1/4/2017
Views: 2532
Most seniors and retirement advisers focus on qualified plan monies. But there are non-qualified monies that could make the difference between experiencing retirement prosperity or retirement poverty. Watch the interview with retirement specialis ...
Released On: 1/3/2017
Views: 2490
The nations of the world continue to print money, expand their governments and obligate their taxpayers with debt they can’t repay. The world economy is so interconnected, that when the first domino falls it will cause a rippling effect of a worl ...
Released On: 1/2/2017
Views: 3260