Wealth Management Blog | WrapManager | Retirement Planning (7)

Boomerang Kids and Your Retirement Plan

Posted by Seton McAndrews | CFP®, Vice President Investments

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:

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Retirement Planning

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

Pre-tax or After-tax Retirement Investment? - Doug's Quiz Corner

June 17, 2015

Quizmaster Doug Hutchinson has come up with another great quiz that explores pre-tax and after-tax options for retirement investing. Let’s see what the math has to say. Good luck! [+] 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

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

New eBook! Finding a Better Financial Advisor

November 6, 2014

How do you know whether your financial advisor has your best interest in mind or is simply doing just enough to fulfill their basic duties? This is an important question to ask yourself because the security of your future depends on your retirement lifestyle planning, investing, and wealth management strategies. While you take care of the many different aspects of your life, your financial advisor can help look after your future. This is one of the many advantages of hiring a financial advisor. But not all financial advisors act as fiduciaries, putting your best interest at the forefront of investment decisions. Your retirement plans may not be as safe as you think if you have put your trust in a financial advisor whose motives are unclear or who is incentivized to recommend certain financial products. Our new eBook, Your Guide to Finding a Better Financial Advisor, can help you understand the very important question above: how do I know whether my financial advisor has my best interest in mind? And how can you find a better financial advisor? [+] Read More

How to Fix 6 Common Retirement Mistakes

November 4, 2014

Mistakes in your retirement plan can have a big impact on your future retirement income. The good news is that there are relatively simple solutions to these kinds of mistakes. The key is to identify these mistakes before they’ve had time to become problems. Once you’ve identified them, you can take the appropriate measures to get back on track. In fact, using your financial advisor as a sounding board and involving your loved ones can help fix the following 6 common retirement mistakes. A Do-It-Yourself Mentality Many investors have a knack for taking care of themselves, whether it’s installing a new bathroom floor or investing on their own, but this do-it-yourself mentality can backfire when it comes to your retirement investment plan. [+] Read More

5-Star Mutual Funds May Not Be Your Best Option – New Study Finds

October 16, 2014

The Wall Street Journal recently asked Morningstar to conduct a study on “five-star” mutual funds, to get an idea of how many were able to maintain their top rating over 10 years (July 2004 – July 2014). What they discovered will likely surprise you. Of the 408 mutual funds reviewed, the majority of them no longer had five stars. This and another study by S&P Dow Jones Indices underscore the common fallacy that investing in a five-star mutual fund increases the likelihood of a positive long-term outcome.1 Determining which funds to invest in should go well beyond a five-star rating system. In fact, you need a financial advisor who is dedicated to your needs and specializes in independent and ongoing assessment of investment options. High net worth investors should consider separately managed accounts instead of mutual funds given potential tax and visibility benefits. [+] Read More

Two Heads are Better: Financial Planning with Your Spouse

September 25, 2014

Much like a successful marriage, the managing of your finances is like a flourishing garden. Proper care and attention can help it grow and thrive. An essential part of this is discussing and planning financial matters with your spouse. Not only can this help prepare both of you to manage the finances individually, it can actually help enhance your relationship and financial future. Make the best use of your financial advisor by having them review your finances with you both. You'll be happy you did. [+] Read More