Scott Peterson |
Categories
Today’s retirees are healthier, wealthier, happier, safer, freer, more educated, more equal, more charitable, and more technologically advanced than any previous generation. Ironically, the wonderful advancements that current retirees are blessed with are also the root of the problems that retirees will face.
We often hear the following questions from people we work with: What will happen with my estate upon my death? Who will look after my spouse and help them make good financial decisions when I am gone? If either my spouse or I become disabled, who will look after us and who will help us to not make poor financial decisions as we age? When we pass away, what will happen to our hard-earned savings...
Scott Peterson |
Categories
Once in a very great while, there comes a year in the economy and the markets that serves as a tutorial—in effect, an advanced class in the principles of successful long-term, goal-focused investing. 2020 was such a year. On December 31, 2019, the Standard & Poor’s 500-Stock Index closed at 3,230.78. This past New Year’s Eve, it closed at 3756.07 —15.76% higher. With reinvested dividends, the total return of the S&P 500 was 17.88% From...
A fiduciary is a person or organization that acts on behalf of another person or persons, putting their client’s interest above their own in all instances. Being a fiduciary requires being bound, both legally and ethically, to act in their client’s best interest. In essence, they are the guardians of their client’s money. Commissioned salespeople are not considered fiduciaries because they are representing a product or a company, not the individual to whom they are...
Bob and Patricia are 60 years old and would love to retire as soon as possible. It's not uncommon to meet people like Bob and Patricia who have been saving diligently, setting money aside into their 401(k)s, making wise investments, and living below their means with a desire to transition into retirement as early as possible. Unfortunately, health insurance for them to retire before age 65 can now cost as much as $2,000 per month...
Scott Peterson |
Categories
Anytime the blended price of America’s 500 largest companies (S&P 500) drops by 34%, you know that there is something significantly wrong going on. This is the fourth time we have experienced this magnitude of decline in my thirty-four year career and every time such an event comes around, we tend to surmise that, “this time it is different”. We conclude this because the details of each crisis are fundamentally different from anything we have...
Scott Peterson |
Categories
We are all on information overload these days, so I am trying to only share information with you that is pertinent and that directly impacts your situation as a retiree. Our government sprang into action this past week to create an unprecedented stimulus package to combat the financial effects of the coronavirus. The new law resulting from this stimulus is called the Coronavirus Aid, Relief, & Economic Security Act or the CARES Act. The CARES...
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” - Winston Churchill As I watch the emotional reaction of investors during market turbulence, I concur with Churchill as I see individual investors categorize themselves into two separate camps. They are either victims or they are opportunists. Beyond reminding the self-prescribed investment victim of the overwhelming historical evidence of the resiliency of the stock market, there is little that...
As 2019 came to a close, the president signed into law a sweeping series of changes that will affect how we save for retirement as well as the distribution of IRA proceeds. The new law is officially entitled the Setting Every Community Up for Retirement Enhancement Act, but it is more commonly known as the SECURE Act. This new law includes both welcome changes as well as some controversial elements. As I said, the changes...
Scott Peterson |
Categories
For the new retiree, it’s a huge challenge to create a plan to transition a career’s worth of accumulations into a retirement full of income that needs to last until the end of life. There are so many factors to consider and every retiree’s situation is unique. So copying your retired neighbor’s plan won’t work. It all comes down to the question: How am I going to create an inflation-adjusted stream of income from my...
Mark Whitaker |
Categories
Data breaches, once a fairly rare occurrence, have become more frequent as hackers become more skilled in their ability to extract personal data from popular social media sites such as Facebook and Twitter. And while we commonly hear about breaches from these large, global organizations, it’s important to remember that small businesses are just as likely to experience a data breach, meaning the information that is stored at your CPA’s office, your attorney’s office, or...
Some retirees have paid hundreds, sometimes thousands, of dollars unnecessarily to the IRS in the past year because they didn’t know the tax exclusion I am about to introduce to you. If you are over age 70.5, have an IRA, and donate to charities, you are likely overpaying taxes if you aren’t aware of the changes that occurred at the beginning of 2018 and how those changes impact your tax liability. The information I’m sharing...