Wealth Management Blog | WrapManager | Retirement Planning (5)

Are You Sacrificing Retirement Savings for College Expenses?

Posted by Katie O'Connor | Director of Client Services

November 30, 2016

Are You Sacrificing Retirement Savings for College Expenses?

If the answer is “yes,” you are among the 67% of parents who said that saving for their kids’ college education is more important than saving for retirement, according to an August 2016 T. Rowe Price Survey. The survey also produced some other insightful, “you’re not alone” data: T. Rowe Price found that 28% of parents have student loan debt (either for their kids or themselves), and 5% have student loan debt for both. The survey also revealed the average amount of student debt for parents that participated in the study was $27,078 – and that’s just for the parents themselves. The average amount of student loans for their kids was $10,768.¹

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Retirement Planning 529 Plans

The Contrarian Nature of Bearish Forecasts

October 19, 2016

There seems this growing feeling that the market is on shaky ground. As an investor, you may feel it too: the presidential election is unique to the point of being wild, Europe appears to be in disarray, corporate profits have seen better days, GDP growth in the U.S. has been lower than average. Perhaps that is why a recent Bloomberg survey of forecasters said they expect the S&P 500 to finish the year 1% lower. They cited some of the concerns mentioned above, but also pointed to negative sentiment tied to rising interest rates, elevated stock valuations, and the aging business cycle.1 The question for investors is: is it time to rethink portfolio strategy, perhaps favoring a defensive posture? [+] Read More

“Phasing Out”: The Art of the Gradual Retirement

August 31, 2016

Many retirees or those pondering retirement know: sometimes it’s difficult to let go. After spending decades being hard-wired to go to work week-in and week-out—and in many cases enjoying it—just retiring cold turkey can be a lot to process. That’s why many people opt to “phase out” instead, incrementally weaning themselves away from work and towards retirement. Call it, a “gradual retirement.” [+] Read More

How Team Sports Can Affect Retirement Planning

August 25, 2016

The Olympics ended with a spectacular closing ceremony, the event showed competition is alive and well and the United States topped the medal table once again! Thinking about sports does not generally equate to thoughts about retirement or saving for retirement, but a new TD Ameritrade study demonstrates how the two can actually be closely related. The findings of the study may surprise you. [+] Read More

There’s Still Time: Backdoor Roth Conversions

August 3, 2016

Two years ago we wrote an article about how high income earners—who are generally excluded from Roth IRAs because of income levels—could still technically contribute to Roth IRAs if they used the right methods. We wrote that “high income earners could make non-deductible contributions to a Traditional IRA (non-deductible IRA), then take that money and move it into a Roth IRA.” This method allowed income earners access to the benefits of the Roth IRA, which notably are: the ability to grow your money tax-free and also make tax-free withdrawals. [+] Read More

Planning for Taxes in Retirement

June 2, 2016

Planning for a multi-decade retirement requires planning and tax planning should be one of your major considerations. Wise retirement investors create a plan that will provide adequate income year after year, but if you don’t take taxes into consideration, your income may be significantly reduced over the long run. [+] Read More

Getting the Better of Market Volatility in Your Retirement Plan

May 11, 2016

The market endured a bumpy start to the year, but it also displayed strong resilience over the last few weeks to rally back into positive territory. Investors should use this experience to remember an important lesson: even when market volatility seems pronounced and temptations run high to shift away from stocks, the market can also overcome the short-term headwinds and recover quickly. The first three months of the year offer us a case and point: Figure 1. S&P 500 Year-to-Date (the lapses in the graph are trading holidays) [+] Read More

How Marital Status Affects Retirement Benefits

April 20, 2016

Changes in marital status can have a big impact on your retirement planning. Retirement account balances, eligibility for pensions, and even Social Security benefits can all be affected by divorce or death. It’s a common misperception that living singly will be half as expensive as living as a couple. In fact, expenses generally drop only about 20% due to housing, insurance, and other costs. What can you do now to prepare for the possibility that your marital status may change later on? Let’s take a look at the ways retirement benefits could be affected. [+] Read More

How to Keep Your Retirement On Track

March 23, 2016

Starting to save for retirement is an important first step toward achieving your goals. That said, retirement planning can seem overwhelming at times. The timeframe is long, and the future seems unclear. As you create a plan and develop your investment portfolio, however, you’ll see how having a solid plan can make you feel more confident about the future and ensure that you have attractive options available to you. Creating a plan is just the first step, however. After you have a plan in place there are still actions you should take on a regular basis to keep you on the right track, steadily pressing forward to your ultimate goal: a successful retirement. The following tips can help you to keep your retirement on track. [+] Read More

The Best and Worst States to Retire – Retirement Lifestyle Planning

March 1, 2016

Whether you’re hoping to move closer to family, downsize your home, or live in a place you’ve always dreamed of, many people choose to relocate during retirement. In fact, relocating can be an effective part of your retirement lifestyle planning, especially if you consider the financial implications of your new chosen home state. As you make decisions about relocating, you can use each state’s tax rules to your advantage to potentially save thousands of dollars. Perhaps, more importantly, you can benefit even more if you can find a state with tax rules that align well with your personal retirement goals. If you’re leaving a large sum of cash to you children, you might consider choosing a state with very low estate taxes. [+] Read More