- Why It’s Important to Set Financial Goals for the Future
Planning for your financial future can feel overwhelming, but setting clear financial goals is one of the most effective ways to take control of your money and build lasting security. Whether you’re dreaming of buying a home, saving for your child’s education, or preparing for retirement, having specific objectives helps you stay focused and motivated.… read more…
- Understanding Portability of the Estate Tax Exemption
Estate planning could seem daunting, but it can also be made simpler by understanding key concepts. One of which focuses on the “portability” of estate tax exemption. Portability is a provision that allows a surviving spouse to add any remaining federal estate tax exemption from the deceased spouse to their own. Here’s how it works.… read more…
- Ask an Advisor: I’m 55 With a $3 Million Net Worth and $5k in Monthly Expenses. Can I Retire Now?
I’m 55 and would like to retire now with a $3 million total net worth. I’m assuming my net worth will grow, on average, 5% until I’m eligible for Social Security. My house is paid off and my lifestyle is simple. I can live with $5,000 per month. Am I making the right decisions? –… read more…
- What Is Comprehensive Financial Planning?
Financial planning is more than just budgeting or saving for retirement—it’s about creating a clear and holistic strategy to manage your finances in a way that aligns with your life goals. Comprehensive financial planning takes this approach a step further by addressing every aspect of your financial life, from investments and taxes to estate planning… read more…
- Ask an Advisor: How Do I Cover $3,000 in Monthly Living Expenses? I’m 58 With $700k in Retirement Savings, But I Won’t Collect Social Security for 7 Years
I’m 58 and I have $700,000 in 401(k)s and IRAs. I have no credit card debt, no auto loan payments and no student loans. I sold my home in California and paid cash for a house in Texas, so I have no mortgage. I’m retired military and bring in about $2,200 per month after taxes.… read more…
- What Should Your Net Worth Be at Retirement?
Your net worth is a key measure of financial preparedness for retirement, reflecting the wealth you’ve accumulated to support yourself after work. While factors like income and gender affect net worth, age is a major determinant, with net worth typically increasing as you grow older. Comparing your net worth to averages can help you gauge… read more…
- Lifestyle Trends and Problems Facing Ultra-High-Net-Worth Individuals
In decades past, millionaire status was well-known, and the subject of innumerable songs, TV shows, and movies. However, a million dollars is almost a modest sum by today’s standards, and an exclusive echelon known as ultra-high-net-worth individuals (UHNWIs) has wealth extending to the tens of millions. Yet, being a UHNWI entails more than just opulence.… read more…
- What Financial Advisor Clients Value More Than Returns, and Why
It won’t come as a surprise that when investors talk to their financial advisors, their top concerns these days are focused on inflation, market volatility and the possibility of a recession. And while any investor wants to maximize their gains, recent research published by the Insured Retirement Institute (IRI) indicates that right now, investors are… read more…
- Differences Between Mass Affluent and High-Net-Worth Individuals
Though the title “millionaire” may carry less prestige than in the past, achieving seven-figure wealth remains a significant marker of success and stability. Mass affluent individuals form a crucial economic backbone with accessible wealth, while high-net-worth individuals (HNWIs) wield greater market influence despite being fewer in number. Understanding the traits and strategies of these groups… read more…
- What Is a Trade Line and How Does It Work?
When you open a new credit account, financial institutions create what is known as a “trade line.” A trade line is a record of a credit account, including its status and activity, as reported by lenders to credit reporting agencies. It reflects your borrowing and repayment behavior, playing a significant role in shaping your credit… read more…
- How to Find a Financial Advisor for the Ultra High Net Worth
When managing substantial wealth, there are unique challenges and complexities that require specialized attention and expertise. As an ultra-high-net-worth individual, you face distinct financial needs, opportunities and goals. This careful balance demands tailored strategies from expert financial professionals to ensure optimal growth and protection while aligning with your long-term goals. A financial advisor can help… read more…
- Ask an Advisor: My Wife Claimed Social Security at 65. Can She Collect the Max Spousal Benefit When I Retire?
My wife started collecting Social Security at age 65, but it’s a tiny amount. I am planning on retiring in two years at 65 (67 is my full retirement age). Can my wife collect spousal benefits of 50% of my full retirement benefits once I retire? – James Unfortunately, the likely answer is “no,” although… read more…
- ‘Advisor’ vs. ‘Adviser’: What’s the Difference?
The terms “advisor” and “adviser” are often used interchangeably, leading to confusion about whether there’s a meaningful difference between the two. At first glance, these words appear to be simple variations in spelling, but their usage and implications can vary depending on context. From legal and professional designations to stylistic preferences in writing, understanding the… read more…
- Ask an Advisor: When Do I Have to Take RMDs from the 401(k) That I Inherited from My Wife? She Hadn’t Turned 72
I am 74 years old (I was born Feb 2, 1948). My wife and I both worked for Aetna, but have retired and have 401(k)s from work that are with Vanguard. I received her 401(k) as a spousal inheritance and maintain it in a separate account. I plan to take RMDs on her account but… read more…
- Ask an Advisor: Our Long-Term Care Insurance Now Costs $500 Per Month. We’re in Our Mid-70s and Have Paid $72k in Total. Should We Cancel Our Policies?
My wife and I bought long-term care policies 25 years ago when they were relatively cheap. Now, our premiums have increased for the third time to over $500 per month and will rise again in six years. I figure I’ve already paid about $72,000 in premiums. Now, in our late 70s, I’m trying to decide… read more…
- What Is a High-Yield Corporate Bond?
Corporate bonds, which are a type of debt security, function as a tool for corporations to raise capital. A high-yield corporate bond offers higher interest rates than a typical corporate bond because it carries a higher risk of default. The “high yield” refers to the greater interest or coupon rate that investors receive as compensation… read more…
- Here’s How to Help Your Child (or Grandchild) Buy a Home
Saving for a down payment can be a significant obstacle for first-time homebuyers. If a child or grandchild is struggling to become a homeowner, you may want to help them out with the assets you’ve managed to accrue. A recent report from J.P. Morgan outlined several techniques that can help parents and grandparents lend a… read more…
- Ask an Advisor: I’m 5 Years Away From RMDs But Recently Lost 30% of My 401(k). Should I Stay Aggressive to Regain My Losses or Rebalance?
When I retired in September 2022, my 401(k) was invested aggressively (90/10 split between stocks to bonds) and lost approximately 30%. I left the 401(k) invested in mutual funds in hopes it would gain back some of the losses. A year later it has gained back approximately 20%. I’m not required to take RMDs for… read more…
- Ask an Advisor: What Should I Do With the Annuity I’m Inheriting? Take a Lump Sum, Roll it Over or Defer Payments?
I recently learned that I am the beneficiary of an annuity in the amount of $54,845 from a friend. I was given choices on how to receive the money: lump sum, roll it over or defer the payments over a certain number of years. I don’t have anything saved for retirement and I don’t know… read more…
- Personal Representative vs. Executor: Key Differences
Personal representatives are tasked with managing estates when people die, either according to the terms of their will or the state laws that govern certain successions. An executor is a type of personal representative who’s specifically designated in someone’s will to carry out their final wishes and distribute their assets. A financial advisor can be… read more…
- What Financial Advisors Have to Say About the ESG Controversy
Environmental, social, and governance (ESG) investing has become a fiercely debated trend within the financial sector. While some view ESG factors as crucial considerations, others argue these criteria are politically motivated and detract from returns. Financial advisors say that personal values, such as ESG, can guide a viable investment strategy. However, they add, investors focused… read more…
- Are Trust Distributions Taxable?
Dealing with trusts and their tax rules can be confusing, especially with different types of distributions and varying tax brackets for beneficiaries. A financial advisor can help you manage these details and understand how they affect your situation. Here are some key details to consider. How Trusts Work Trusts are intricate legal arrangements used for… read more…
- Ask an Advisor: I’m 49 With $500k in Savings But ‘I’m Concerned’ About Retirement Income and Annuities Are ‘Too Expensive.’ What Are My Options?
I’m 49 years old and I’ve had a steady job for over 15 years now as a government contractor. I plan to retire at around 65. I have $500,000 in savings between my 401(k), IRA and individual savings accounts. I’m renting, I don’t have any debt and I have a small family of three. I’m… read more…
- What Is GDC for Financial Advisors?
A gross dealer concession (GDC) gets paid to a brokerage firm when a financial product is sold by a salesperson or financial advisor on commission. These products include securities like stocks, bonds or mutual funds, as well as insurance products like annuities or long-term care. A percentage of that GDC will also get paid to… read more…
- Ask an Advisor: Is it Better to Work With an Independent Advisor or One From a Large Firm?
Is it best to work with an advisor who’s independent or part of a large firm? I am not investment savvy and I’m entering retirement. I need to make sure I hire someone or a firm that is going to help and maybe is somehow insured. -Sharon That’s a great question, Sharon. I’ll provide some… read more…