Wealth Management Blog | WrapManager

Seton McAndrews

CFP®, Vice President Investments

Medicare Changes and Your Retirement Plan

Posted by Seton McAndrews | CFP®, Vice President Investments

August 26, 2015

Medicare Changes and Your Retirement Plan

Back in 2013, we wrote about the differences between Medicare Parts A and B, as well as supplementary coverage options to help readers with their retirement planning. Given recent legislative changes to Medicare, we feel it’s time to revisit the topic.

Discussing medical costs and coverage with your financial advisor is wise because medical costs can constitute a sizable portion of post-retirement budgets. As changes are made to programs like Medicare, it’s important to stay abreast of developments and integrate changes in to your wealth planning strategy.

One of the difficult aspects of planning for the future is trying to anticipate unknowns such as medical costs. You never know if you’ll enjoy perfect health in the coming year or if you’ll find yourself at the doctor’s office frequently. Insurance like Medicare helps to temper the risk of the unknown, but you should still be prepared for out-of-pocket costs.

Boomerang Kids and Your Retirement Plan

July 30, 2015

More and more adult children are living with their parents and grandparents, according to a Pew Research study. The 2013 study shows that nearly three in ten young adults ages 25 to 34 (29%) have lived with their parents in recent years, and 78% of these boomerang children say they’re satisfied with their living arrangements.1 Even if the adult children and their parents or grandparents are satisfied with the day-to-day living arrangements; it’s imperative that you examine how this situation is affecting your retirement plan. Supporting adult children can certainly take a toll on your retirement planning by potentially throwing off your timeline or the amount of money you are able to save. Your financial advisor can help you to see how the figures add up in your current situation. However, only you can strike a balance for your family between providing enough support to set your children on a productive course without undermining your own financial well-being. As you work to strike that balance, consider the following: [+] Read More

Gradual Retirement Planning

July 15, 2015

There is no doubt that Americans are working longer than ever before. Of those ages 65 and older, about 18% are still working. This is a stark contrast to the 10.8% of the same age who worked in 1985. 1 For some, this is good news as plenty of people view working late in life as a means of keeping active. In retirement planning terms, many are choosing what is called a “gradual retirement” - a retirement plan to ease into life as a retiree. The movement toward gradual retirement has gained steam in recent years and it may soon become the new normal. [+] Read More

Don't Be Fooled: How to Avoid Financial Scams

April 1, 2015

With April Fool’s Day upon us, you might find that your toilet paper has been replaced by duct tape, a mysterious For Sale sign has appeared in your front yard, or that your milk has been colored green with food coloring. These harmless pranks may make you smile, but there are more serious “pranks” that cross the line: financial scams. Increasingly, fraudsters are targeting senior citizens. According to a widely cited 2011 study by MetLife and the Center for Gerontology at Virginia Tech, the amount of financial loss suffered by seniors each year is estimated to be at least $2.6 billion!1 [+] Read More

Make Giving Part of Your Tax Planning Strategy

February 18, 2015

This year giving a monetary gift to your spouse, favorite charity or individuals you care about could be one of the best moves you make this tax season. Taking advantage of the gift tax is a smart tax planning strategy if you are in search of ways to help those you care about and save money on your annual tax bill. There are a couple of things to keep in mind when utilizing the gift tax. [+] Read More

Researching Money Managers

January 28, 2015

Money manager strategies can be likened to the fuel for your retirement plans. Much like gasoline in a car or wind for a sailboat, money managers can propel your investment plan forward along the way to your retirement goals. As such they need to be researched and monitored closely. How do you know if your money manager’s performance is real? What should you look for in a good money manager? What are things to watch for? While each person’s approach is different, these are important questions to ask, especially if you’re noticing any of the following with your current or prospective money manager. [+] Read More

Welcoming a New Family Member: Retirement Lifestyle Planning

December 24, 2014

The addition of a new family member is a wonderful and life-changing event! Your new family member may be a new spouse, a new son- or daughter-in-law, a new child, or a new grandchild. Along with celebrating this new family member’s arrival, consider how you may need to make changes to your retirement lifestyle planning. The following helpful reminders can help you to start your new family member on firm financial footing. [+] Read More

Give the Gift of Financial Peace of Mind

December 10, 2014

The holiday season gives families the chance to get together for quality time and festivities, but it also presents you with an important opportunity – to have a constructive conversation with your family about your finances and estate plan. If you’ve been meaning to have this discussion but haven’t started it yet, the holidays are a perfect time to do it. While it may be difficult at first, the benefits to everyone will be worth it. Fidelity Investments found that 86% of parents felt peace of mind after having conversation with their children, yet only one-third of parents and children agree about the right timing for these conversations.1 [+] Read More

Estate Planning Alert - Is the Stretch IRA Going Away?

November 19, 2014

For years, Stretch IRAs have been used as estate planning tools to help pass on tax-deferred wealth even longer. By using a Stretch IRA, the IRA owner designates a younger-generation member of the family as the beneficiary of the IRA. Under current law, the beneficiary can elect to receive the RMD (required minimum distributions) based on his or her longer life expectancy. This method allows younger beneficiaries to potentially enjoy decades of tax-deferred (or in the case of Roth IRAs, tax-free) withdrawals. [+] Read More

It's Time to Review Your Fixed Income Portfolio

November 13, 2014

Many investments view their fixed-income portfolio as a "safe haven" of sorts. Though each investor's goals are unique, fixed-income portfolios are often designed to help preserve principle, generate retirement income and potentially reduce overall portfolio volatility. Just like you do with stocks, it’s essential to make sure your fixed income portfolio is diversified. And although interest rates remain low,1 as Winston Churchill once said: "An optimist sees the opportunity in every difficulty."2 Take the time to work with your financial advisor to review your fixed income portfolio. Here are a few things to discuss. [+] Read More