Wealth Management Blog | WrapManager | Retirement Planning (8)

Your Checklist to Starting Retirement with Confidence

Posted by Gabriel Burczyk | Founder & CEO

September 23, 2014

Your Checklist to Starting Retirement with Confidence

You’ve arrived at (or are fast approaching) retirement and you’ve worked hard to get here. Congratulations! We’ve prepared a list of items to consider and take care of to start your retirement with confidence. Think about this new stage in two ways:

1) Defining your goals and establishing all the great things you want to do; and,

2) Structuring your financial life so you can make it all happen

Just a little bit of time and planning can help make your retirement even more enjoyable and smooth.

Retirement Planning Strategy: 13 Steps for Success

1) Build an Investment Plan with Your Financial Advisor

An investment plan is your ultimate guidebook for retirement – the roadmap you can reference to see where you are on your retirement journey and to help you navigate issues that arise along the way. A comprehensive investment plan should include the following features:

Retirement Income: Which Accounts to Withdraw from First

September 10, 2014

Often times your fixed sources of income like Social Security and pensions will not fully meet your retirement income needs. This likely means you’ll need to tap into your investment accounts to increase your income. But which accounts should you draw from first, and when is the right time to take distributions? Here’s a general guide for choosing which accounts to draw down first and why. Remember, which approach you take depends on your unique situation and goals. [+] Read More

Popular E-book Helps You Face Retirement Planning with Confidence

August 28, 2014

Retiring in today’s world can seem to be a bit of a mystery. It used to be that when you retired, your company threw you a party then sent you home with a comfortable pension and health insurance. While times have changed, that doesn’t mean your retirement has to be any less comfortable or rewarding than your parent’s. In fact, with all the investment and planning options available today, you and your financial advisor can build a goals-based retirement plan that best suits your income needs, your future plans and your family’s unique situation. Our popular e-book, 5 Ways to Enhance Your Retirement Planning Strategy So You Can Face the Future with Confidence, provides you with an understanding of five of the most effective methods of planning for your retirement. [+] Read More

Social Security in Retirement: How Much Will You Get?

August 20, 2014

Should you count on Social Security benefits as an integral part of your retirement income plan? And how much? These are questions we hear often. There's a lot of confusion out there regarding social security benefits because misinformation abounds. With political issues, rhetoric becomes inflamed, and information is often used to sway opinion or policy. But when you're planning for retirement, misinformation is dangerous. What you need are solid answers about Social Security. Let's look at some of the most common questions surrounding Social Security in retirement. [+] Read More

Protect Your Nest Egg: 4 Financial Scams to Watch Out For

July 26, 2014

According to a recent MetLife survey, $2.6 billion is lost each year to financial scams aimed at seniors and retirees.1 Being aware of the common financial scams is a good first step in protecting your nest egg, but hiring a financial advisor as your sounding board could be your best defense. Your advisor may have seen the scam before and can help prevent it from happening to you. 4 Common Financial Scams to Look Out For and How to Protect Yourself 1) “Reduce the Interest Rate on Your Credit Card” If an unsolicited caller says they can reduce your credit card rate and asks for your existing credit card number and personal information, hang up.2 You can always call your credit card company directly if you want to negotiate rates. It is important not to give your social security number or credit card number to anyone but the most trusted companies you have a working relationship with. [+] Read More

How to Overcome 3 Common Retirement Planning Problems

June 30, 2014

Newfound Research, LLC, a Boston-based money manager specializing in tactical asset and risk management, published some insightful research focusing on issues that affect how investors plan for retirement. What they found is that retirees are facing somewhat of an uphill climb when it comes to successful retirement planning. People are living longer, have less guaranteed income, and are being met with an increasing cost of living. Common Retirement Planning Issues (Click image for larger version) Source: Newfound Research LLC. 1 Social Security Administration, as of 2013. 2 Employee Benefit Research Institute, as of 2011. 3 Federal Reserve Bank of St. Louis, as of 2013. 4 National Center for Education Statistics, 2013 dollars, as of 2012. 5 AARP Public Policy Institute, 2013 dollars, as of 2010. 6 United States Census Bureau, 2013 dollars, as of 2013. These issues serve to underscore the need for sound and thoughtful investment planning. [+] Read More

What Military Strategy and 401K Inservice Withdrawals Have In Common

June 26, 2014

You don't have to wait until you retire to take advantage of a 401K rollover and all the benefits that come with it. A 401K inservice withdrawal can be just what you need to advance your retirement strategy and create new investment options. In fact, it's not unlike a general gathering all of his troops together, examining the mission, and positioning everyone where they'll do the most good. Just as this wise general can be ready for whatever comes his way, a 401K inservice withdrawal can enhance your retirement income strategy while you're still working, thus preparing for a promising future. 401K Rollovers While You're Still Working Many 401K plans allow you to rollover a portion (or all) of your 401K into your IRA while you're working without incurring any of the penalties associated with early withdrawals. Normally, if you're under the age of 59 1/2, a 401K withdrawal could be subject to a 10% early withdrawal penalty and be treated as ordinary income, thus raising income tax concerns. These penalties could take quite a significant bite out of your retirement savings. [+] Read More

How High Income Earners Can Still Contribute to Roth IRAs

June 25, 2014

If you have not contributed to a Roth IRA recently because your income is too high and you’re not sure you’re allowed to, read this article. There’s a way you can make non-deductible contributions to a Traditional IRA (non-deductible IRA), then take that money and move it into a Roth IRA. With this method, you can take advantage of the tax-free growth and tax-free withdrawals that a Roth IRA provides.1 There are a few steps to this process, so consulting with your financial advisor and tax professional is a good idea. How to Convert Money into a Roth IRA Let’s say your investment portfolio consists of a 401(k) and a taxable brokerage account. You max out your 401(k) every year, and you’re looking for a way to get more tax-free growth out of your investments. You are also interested in a retirement income strategy that provides you tax-free income (Roth IRA),1 but you cannot contribute to one because you make more than $191,000 (married filing jointly) per year.2 [+] Read More

Are Target Date Funds Hurting Your Retirement?

June 23, 2014

If you’re invested in target date funds, or your employer offers them as part of your 401(k) or another retirement plan, you may want to consider whether they are a good investment option for you. Target date funds are automated investment products that do not take into account your personal financial circumstances and needs, and they do not adapt to changing market conditions. As a result they may not be effective products for helping you reach your long-term retirement goals, and in some cases they could even add risk to your portfolio over time – hurting your retirement. Why Are Target Date Funds so Popular? The appeal of these funds is generally their “auto-pilot” feature – you pick a fund that matches your retirement date, and the fund will diversify your assets and gradually become more conservative as you near retirement.1 For this reason, some may perceive them as low risk investments, but there are issues with this view as you examine target date funds more closely. [+] Read More

2 Steps to Help You Fight the Effects of Inflation on Your Retirement

May 23, 2014

As we get older, spending habits tend to change and some things become a bit pricier. For example, health care expenses could rise and you may decide to increase your charitable contributions instead of travelling so much. Because of these changing spending habits and price increases, inflation for several items can be higher for those over 62.1 Our advice? Plan for it! A properly designed portfolio and investment plan that accounts for rising expenses can help you plan for them before they occur. We’ll touch on how to do that below. Retirees Experience Higher Inflation Relative to Other Consumers A recent study by JP Morgan shows that since 1985, inflation has increased at a faster pace for those aged 62 and older (the grey line, CPI-E, in the chart below). Older Individuals Experience Higher Inflation (Click chart for larger version) Source: JP Morgan Asset Management. *CPI-E is an experimental index from BLS that is based on elderly households with the referenced individuals at age 62 and older. **CPI-U is also referred to as Headline CPI. Source: Based on Consumer Price Indexes, BLS, J.P. Morgan Asset Management. Data as of December 31, 2013. [+] Read More