If we know that on average our money is losing a value of between 2-3% yearly, then we know that in 20 years from now our money will have lost about half of its value. Or simply put, in 20 years our cost of living will double. That means if you make $50,000 per year now, you’ll need to be making around $100,000 in 2041 to maintain the same standard of living you have today. So what is your plan in retirement to double your income in 20 years?
What if you're age 55 or older and you just don't want to wait until age 62 to retire? Many of you are stuck in that 50-58 age range where the thought of retirement can be a little scary. Let's look at some options.
High Blood Pressure is often referred to as the silent killer of human beings. It has no obvious symptoms to indicate something is wrong. Many people don't even know they have it. It develops slowly over time and although it can't be cured but it can be managed. Your retirement plan has a similar killer...inflation.
Yearly portfolio returns are literally meaningless in retirement and conversations about them put me into a deep REM type sleep. The only thing that matters in retirement is that you don't run out of money (also known as purchasing power). That's it! It turns out that "beating the market" or an imaginary benchmark in retirement doesn't really matter if you don't have two nickels to rub together and you're looking for a job when you could be hanging out with your grandkids.
With the Russian invasion of Ukraine, we’ve seen first hand how world events can affect the markets here in the United States. We’ve seen lots of market volatility since the beginning of the year. But guess what? The market is always volatile. And the reason for that is many investors make all their decisions based on emotion. And by doing this they blur the lines between volatility and risk. Risk and volatility are not the same thing. In fact, they aren’t even remotely related.
The secret to investing is complex. There is no silver bullet, there is no pill to take, there is no hot new stock, etc. Everyday we are bombarded by advertisers trying to sell us quick fixes to complex problems.
If you are about to retire or already retired, chances are you've been approached or heard a pitch from an Annuity Salesman. (I'm referring to after market annuities in this blog. Not the annuity option available from your NRECA R&S Plan).
When reviewing the key differences between Roth accounts and Traditional accounts, it’s important to ask yourself: “When is the most advantageous time to pay tax on my income?”
Many investors understand the basics of Roth conversions, however just as many do not. In this blog we will discuss the basics of Roth conversions as well as why you might do them, when you might do them and how you actually do them.
When you retire from your cooperative you have several options on how to receive your R&S pension. For example, you can take it as series of payments, you can take it as a lump sum distribution or you can do a combination of both. For those of you interested in the lump sum distribution, I want to make sure you avoid a critical mistake that I have seen retirees make.
Let's Make A Deal! (With your R&S Pension)
You probably hear the term “financial plan” often, but what does that mean?
The picture associated with this blog shows what the average investor not working with an advisor often does.
It depends on your goals, your long term financial plan, your age even factors into things here. Let's just run through these options real quick.
As your advisor we are a walking talking insurance plan hired to protect one of the largest assets you own, your retirement nest egg. The difference being that unlike most insurance plans we protect you before a disaster strikes, not after the damage has been done.
Retirement has two doors. One leads to a chance of success. One leads to certain failure. Which door will you choose?
