Month: June 2016

Assertive Tax Management Can Increase Spendable Retirement Income

Retirees can get their financial A-game on by acting on the difference between asset location and asset allocation. Retirees fixated on income and traditional deductions could do well by shifting their focus to tax management instead. Applying a financial planner’s tax management expertise can offset the impacts of taxes that often go unrecognized. Tax management, especially in retirement, is a frequently overlooked aspect of personal finance. However, it’s also an opportunity for improvement under the watchful eyes of a skilled and knowledgeable retirement planning specialist. Three causes of negative tax impacts are inaction, inattention and unfamiliarity, all of which...

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Investors’ Portfolios Often Defy Their Stated Risk Tolerances

A systematic view can help align asset allocations with risk tolerance. Many consumers’ investment allocations are inconsistent with their tolerance for risk, leaving them overexposed to loss during volatile market swings. Utilizing a color-coded system can visually connect assets to allocations, providing a meaningful, at-a-glance perspective. Retirees jeopardize their financial foundation when gaps exist between their investment portfolios and tolerance for risk. This misalignment is seen frequently by investment advisers and can leave retirees overexposed to loss during periods of market volatility. Besides their shared desires for financial security, travel, leisure and good health, many of today’s retirees are...

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Longevity Uncertainty Reduces Retirement Planning’s Certainties

Longer lifetimes drive demands on assets and insurance industry innovation. Life’s increasing longevity complicates many aspects of retirement planning, from income to taxes to healthcare. New insurance products can provide many facets of protection – and in a pivot from tradition – guarantee that premiums paid will ultimately benefit the buyer or a designated beneficiary. The uncertainty of longevity complicates retirement planning and begs the inevitable questions: How much money is enough, and what are the best ways to make it last a lifetime, if not longer? While there are no guarantees, combining a problem-solving mindset with a knowledge...

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Late-Year Tax Planning Can Deliver Year-Round Benefits

Forecasting and pro-active adjustments can lessen the load at tax time, and also help retirees keep more of their monthly Social Security. Retirees and other taxpayers who wait until January 1 or later to impact their prior year’s tax situation are mostly out of luck. A proactive approach beginning in September or October, that utilizes a combination of historical data and forecasting, can generate additional spendable income each month in the following year. Similar to the fourth quarter of a football game, October – December is a crucial time for game-changing tax decisions. But without a proactive tax management...

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Autonomy and Assurances Accelerate Annuity Adoption

Investors find comfort in annuity guarantees amid the decline of traditional pension plans. The recent growth of annuity sales, particularly the fixed index type, can be traced to investors’ desire to create their own pension plan, and fears that abrupt market losses would leave little time for accounts to recover. A variety of features make fixed income annuities attractive to investors considering retirement, but one underlying statistic may be behind their motivation to create their own pension plan. According to a post by the Economic Policy Institute in January, 2013, the number of private-sector employers offering a defined benefit...

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