Advisor Insights Blog

Have you planned for a purposeful retirement? Has retirement been what you expected? Has it been better or worse?

Our anecdotal observation is that clients with appropriately large cash balances are less stressed about market volatility. They simply don’t need the money any time soon and can reasonably expect (with no guarantees) for their investment balances to rebound.

Looking back, I value the wisdom I’ve gained through my diverse experiences far more than any trophy or certificate.

Here’s a little bit of info that should make us all be grateful to be eating a hamburger or hot dog during our family cookouts!

Our hypothetical primary parent covers her family’s expenses without a problem, but is well aware that she isn’t getting any younger. She’s always had a vague plan to get ready for her next life stage after her kids are out of the house. She now realizes that may not be the best idea. "Angela" works with our team here at Corner Post Financial Planning to figure out what she spends.

Here at Corner Post, we understand the frequent tension between the need to carpe diem and the possibility that you will live a long time (which requires money). That’s the reason to continually revisit your plan. Sometimes we must advise clients to rein in their spending. With the right lifelong habits and some good fortune thrown in, though, you just might be able to loosen up the purse strings.

Provided IRS regulations are followed, Roth IRAs provide tax-free growth and don't require distributions, as Traditional IRAs do. One way to get money into a Roth is to do a "conversion" of Traditional IRA money, but there are pros and cons to this technique.

Here we have a financial advice book that doles out quite a bit of grace, for a change. Morgan Housel's The Psychology of Money.

The increased chatter you’re hearing about rising property values is natural, probably because houses are a big chunk of many Americans' net worth. For those with an average level of assets–a very broad range from $50,000 to $499,999–home equity represents about 50 percent of their total net worth, according to the Census Bureau.

You may not want to talk with your family or other relevant parties about “if/when the worst happens,” but it is very important to do so. In fact, as long as you live, planning for "what if" is never really over.

While most of the time we encourage our clients to tune out the 24-hour news cycle, when the news hits our bank accounts, it’s a good time to reevaluate our current situation, including our goals, our spending, and our values.

It’s important to remember this bill is not law, and changes are likely. As always, we’ll be closely monitoring provisions that may affect you. We encourage you to visit with your team of professionals (financial planner, estate attorney, and CPA) if you have not updated your financial and estate plan in a while.

Financially, a Power of Attorney is a tremendously useful instrument. An agent can pay bills, write checks, make investment decisions, buy or sell real estate or other hard assets, sign contracts, file taxes, and even arrange the distribution of retirement benefits.

An enhanced life estate deed is a quite simple, yet utterly amazing, part of many successful estate planning strategies. Lady bird deeds are commonly used tools in Medicaid planning and probate-avoidance strategies because they allow the person retaining the enhanced life estate to retain complete power over the property.

Most estates are untaxed by the federal government, and most ordinary families can make good-sized intergenerational gifts with no tax and zero to very little paperwork. Here are two examples.

Typical articles on how to catch up on retirement savings tell you to max out your 401(k) and IRAs. I have concerns about how realistic this is. People who are behind aren’t accustomed to saving that much, let alone the $2,750 a month per person it takes to top off those accounts.

Maintaining debt in retirement comes with heightened risks that financial planners ultimately cannot quantify. There are just too many unknowns. The first risk I mentioned earlier, and that is having more of your income taken up by someone else, leaving less to pay for your desired lifestyle. The other concern I have is that the habits or mindset that led to this predicament haven’t changed, and that you will slowly impoverish yourself as you deplete your resources.

By sitting down, maybe for the first time, and looking at their spending, Lindsay and Esteban have identified the most important number in their whole financial plan: their monthly spending. Whether or not they are on track for their goal, as part of the planning process they will receive recommendations that are relevant to their individual situation.

We see it time and time again in our office: A financial plan seems like it would work, but inflation takes a big bite out of your spending power over time. We've developed a case study that presents this all-too-common challenge in an easy-to-understand example.

Our 40-something author runs the numbers on how much it may cost her to live when she's 100, if she spends like an average American. Are you ready for some eye-popping figures? Read on...

Enjoy your cold beer or your pink lemonade on the Fourth of July, but rather than dreading your return to work, decide you’ll increase your chances of financial independence by investing more in your future vacation.

When you or your spouse receives a pension from an employer that did not participate in Social Security, your benefits could be reduced.

A Q.C.D., sometimes called a charitable I.R.A. gift, is intended to accomplish two things. One, it gives you a chance to contribute up to $100,000 in a single year to a cause or charity. Two, you can count the entire amount of the Q.C.D. toward your R.M.D. for the year, and the Q.C.D. amount may not be included in your gross income.

The cost of long term care policies is trending up, up, up--if you can even qualify. Enter the hybrid policy, which is life insurance with a long term care rider. Learn about the advantages and disadvantages here!

For those with a Dependent Care Flexible Spending Account (FSA), there may be some good news on the horizon. The American Rescue Plan Act, signed into law by President Joe Biden, boosts the amount that companies can allow workers to deposit in their dependent-care FSAs for 2021. Employers can choose whether to make any modifications to their plans under these temporary rule changes but are under no obligation to do so.

This short article provides a brief overview of yield strategies that extend beyond buying government bonds.

Originally published in 2018, the message of this article is evergreen...Several areas of our lives need attention to prepare for the inevitable.

What financial lessons have you learned along life's journey that you wished you'd learned at a much younger age? Beth asks several friends to reflect.

As with the financial behaviors we discuss with our clients and their families, moderation and reasonableness are keys to sustaining results over time. Following common sense—rather than ever-changing diet fads and even USDA recommendations--should get most folks closer to that healthier look they want.

While a windfall scenario may seem unlikely to you, such things do happen, whether it's an inheritance, bonus, or surprise from another source. Many financial windfall situations end badly. Determine in advance that this won't happen to you.

Whether you prefer to work it out with pencil and paper or by computer, the main rule is to create and stick to the budget.

What have you put off that you could tackle today, or this year? Whether that is a tough conversation or saving for retirement, doing it now will probably be easier on you than waiting!

Has your life been tossed around this year? Forces outside our control can give our plans a beating, but let's make sure we stay on track.

Every stage in life--whether you're well into retirement, just starting out, or somewhere in between--involves financial decisions. Here are six areas to think about, from tax management to cash flow management and investing strategies.

The increased need for building supplies has driven up the price—making items such as lumber harder to come by. Despite the scarcity of supplies, rock bottom interest rates and spending more time at home have made home improvement projects large and small attractive to homeowners.

The average American thinks they need $1.9 million to comfortably retire, according to a survey, up $200,000 over last year's results, probably due to the coronavirus pandemic. But does that number even make any sense?

The only way I can think of to start turning bad years into good years is via daily efforts. Just like reading to your kids makes a difference over time, little daily actions like brown bagging your lunch, outperforming your peers at work, or starting and sticking with a side hustle help clear the way for you to improve your situation.

401(k)... SIMPLE IRA... SEP IRA... What's the best choice for your business?

For someone who’s in their 50s, one of the most important things to consider is whether you are saving enough for retirement. Most people are not, to be honest about it. I like to call this the CATCH UP DECADE. And the government even allows folks who are 50 and older to put more money into retirement accounts. Guess what they call this? Catch up contributions.

The biggest tradeoffs—or choices--in this decade usually revolve around paying off debt vs. saving for retirement vs. helping kids. How on earth can you do it all at the same time? You need to try.

Whether you call it retirement or financial freedom, asking whether you’re behind in saving now can make a big difference when it’s time to answer the question, “Can I stop working?” when you’re older.

Life expectancy, marital status, and employment plans are all factors at play in your decision of when to file for Social Security.

You have the power to adapt to keep your spirits aloft and free during difficult times. Here are 4 approaches I've taken during COVID-19. What's working for you?

As you prepare to retire, start migrating your life toward the home front by cleaning up your physical and digital space at work. And just as if not more important, organize your important information in one place if you haven’t done so already.

Going from getting regular paychecks to living off a combination of monthly Social Security and pension deposits as well as investments can be a major adjustment.

Your children or grandchildren may benefit greatly from the college planning you do for them today. There are a variety of options, depending on your situation.

Don't let lack of awareness or an ostrich approach with your head in the sand keep you from addressing all the factors as best you can for your retirement. Most people need to plan to live a long time, making inflation, portfolio composition, and health and insurance issues incredibly important to consider, alongside other factors like your retirement dreams and consistent savings.

Medicare may not suffice if you need extended care. Generally speaking, it will pay for no more than 35 hours a week of home health care and only up to 100 days of nursing home care after a hospitalization. It may pay for up to six months of hospice care. If you or someone you love has dementia and needs to move into an assisted living facility, Medicare may not pay their room and board.

At the end of the day, it’s really about your risk tolerance. Current research shows that the average 20-year-old worker has more than a 25% chance of becoming disabled before they retire.

What changes have you resolved to make following the COVID-19 disruption? The coronavirus caught many unprepared for its draconian social and economic impacts. We can, however, learn from looking around us and take action moving forward to limit any personal upheaval caused by sudden loss of income, death, or incapacity. And we can work to build a greater sense of security by strengthening our skills and social networks.

Other deadlines, such as the IRA contribution deadline, have also moved, but the final extension deadline stays the same.

All federal student loans have been placed in administrative forbearance and automatic payments are paused from March 13 to September 30, 2020. During this same time period, interest rates are being set to 0%.

Here is a PDF detailing two critical features of the CARES Act, including provisions for COVID-related withdrawals from retirement accounts as well as the individual stimulus checks some taxpayers are receiving.

Already retired, retiring sooner, or retiring later....The process never really stops, as it must be constantly evaluated.

In the face of the market downturn after the COVID-19 outbreak, you may be in a unique financial situation.

Have you been able to dust off or acquire a skill during this time of “social distancing?” All of a sudden house cleaning, home education/teaching, menu planning, and laundry--tasks many of us have outsourced--are more wisely done at home, at least for the very short term.

The $2 trillion “Coronavirus Aid, Relief, and Economic Security” (“CARES”) Act was signed into law this last week. The CARES Act is designed to help those most impacted by the COVID-19 pandemic, while also providing key provisions that may benefit retirees. Here are the most important provisions.

With Social Security providing a significant foundation of most retirees' monthly incomes, it's important to know what you can expect your benefits to look like.

We financial planners face this time perspective challenge with clients every day. Talking about future long-term care needs and just straight up aging cause many to simply freeze up.

The SECURE Act makes modest changes designed to help workers save more for longer and, if they’re retired, hold on to those funds a few more years before having to pay taxes on them.

When a big lump sum enhances your financial standing, you need to think about the immediate future, the near future, and the decades ahead. Many people celebrate their good fortune when they receive sudden wealth and live in the moment, only to wonder years later where that moment went.

Care must be taken not only in the setup of a special needs trust, but in the management of it as well. This should be a team effort. The family members involved should seek out legal and financial professionals who are well versed in this field, and the resulting trust should be a product of close collaboration.

The RMD rules have changed, and there's no longer a maximum age for traditional IRA contributions.

The lesson this long bull market has taught is simply that the bad times in the stock market may be worth enduring. Good times may replace those bad times more swiftly than anyone can anticipate.

These miscalculations can create serious challenges in retirement.

Good stewardship of our resources, including time and relationships as well as money, is important to achieving any sense of security and control in life.

Two suggestions: One "to-do" and one "don't do."

You can control what happens to your IRA assets after your death. While you cannot put an IRA into a trust, using beneficiary designations may be an effective estate planning tool.

Do you need health, home, life, disability, and extended care coverage? Some insurance needs change at this phase of life and should be reevaluated.

While knowing your credit score may be important, it may be more vital to review your credit report to correct any errors that may be hurting your score and take the necessary steps to improve your credit profile.

The attitudes and habits formed in childhood can determine your child’s health in their adult years. Here are some ideas for parents who are looking to raise healthy children who grow up to be healthy adults.

Get started by asking your insurance agent if they have an inventory checklist, which may help you remember to include items that you might otherwise overlook.

Having a family requires all types of considerations. Insurance is one of them, including: life, health, disability, home, auto, and extended care.

When it comes to addressing your long-term care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach for long-term care.

We commonly recommend a bucket strategy for clients. Learn more here!

In my practice, I routinely see individuals and families fail to put basic safeguards into place that would help them in the event of sudden illness, death, or incapacity.

Do you have dreams or life goals that you want to realize within 10 or 20 years, including retiring from your business or employer? Now is the best time to financially strategize for those ambitions. Whether you retire before or after age 50, an early start on your strategy might be instrumental in the pursuit of your objectives.

Not all gifts are taxable. Work with a tax professional to learn about annual exclusions, lifetime exemptions, and exceptions for tuition and payment of medical bills.

While every household has their reasons to help their adult children, it’s important to keep your retirement strategy on track. It’s not only a matter of replacing the money that you are taking out of retirement accounts or investments, but you’re also losing time. The growth that may occur with investments or compound interest is a phenomenon that happens over decades. In that situation, you can replace the money you took out, but you can’t replace its potential.

What’s the best strategy to avoid running out of money in retirement? Know how much you can spend each year, and if you potentially have several decades to live, keep a good part of your nest egg invested aiming to benefit your future self.

By involving your kids in the discussion of where the family wealth will go when you are gone, you encourage their intellectual and emotional investment in its future. Pair values, defined goals, and clear purpose with financial literacy and input from a financial or legal professional, and you will take a confident step toward making family wealth last longer.

While the last 10-plus years have seen some big ups and downs for the benchmark S&P 500, the index has never closed more than 20% below a recent peak in that span, meaning the current bull market is more than 10 years old.

Retire healthy. Retire financially literate. Retire with purpose.

The Senate Special Committee on Aging says that American elders lose $2.9 billion in fraud per year. That’s spread among 78 million Americans over the age of 65. One in five of that population has some sort of cognitive issue, a number that rises to more than half when narrowed to people 85 and older.

An HSA can potentially offer a pool of tax-exempt dollars for health care, a path to tax savings, and even a possible source of retirement income after age 65.

The only thing you can know about unexpected expenses is that they’re coming – for everyone. But having an emergency fund may help alleviate the stress and worry associated with a financial crisis. If your emergency savings are not where they should be, consider taking steps today to create a cushion for the future.

The S&P 500, as we know it today, was introduced in March 1957. It tracks the market value of about 500 large firms that are listed on the Nasdaq Composite and the New York Stock Exchange. The S&P is structured to include companies from across the sectors of the business community, in an effort to represent the breadth of the U.S. economy.

The law does not require a will to be drawn up by a professional, so you could create your own will, with or without using a template. If you make a mistake, however, you will not be around to correct it. When you draft a will, consider enlisting the help of a legal, tax, or financial professional who could offer you additional insight, especially if you have a large estate or a complex family situation. Remember, a will puts power in your hands.

ABLE accounts give families with children who have special needs a new way to save and invest for future needs and expenses.

A breakdown of the advantages of the two basic types of IRAs, the Traditional and the Roth.

The realities of retirement may surprise you. While some numbers are favorable, such as a higher standard deduction for those 65 and older, other statistics are concerning, especially as they relate to senior women.

By focusing on your health, eliminating harmful habits, and employing preventative care, you may be able to improve your self-confidence and quality of life. You may also be able to reduce expenses, enjoy more of your money, and boost your overall financial health.

This Christmas season, absolutely go ahead and participate in the Angel Trees, the food drives, the Senior Santas. It’s part of the fun. But consider if you can commit to a regularly scheduled donation throughout 2019. You might be surprised by how much good you can do.

This Christmas season, absolutely go ahead and participate in the Angel Trees, the food drives, the Senior Santas. It’s part of the fun. But consider if you can commit to a regularly scheduled donation throughout 2019. You might be surprised by how much good you can do.

Tax breaks, excludable gains, possible credits, and larger standard deductions for seniors.

A single retiree may pay as much as $500-1,000 per month for private health insurance. For a couple, the monthly premiums can surpass $2,000. These are ballpark figures; fortunately, seniors without pre-existing health conditions can locate some less expensive plans offering short-term coverage, albeit with high deductibles. If you find yourself in this situation, what are your options?

Here we summarize the changes to the savings maximums on the most common retirement account types.

There is no “generic” retirement experience, and therefore, there is no one-size-fits-all retirement plan. Each individual, couple, or family should have a strategy tailored to their particular money situation and life and financial objectives.

Your charitable gifting can have real impact even if you don’t have a fortune.

Think about what financial independence (or greater financial freedom) means to you. How do you want to spend your time? Should you continue in your present career? Should you stick with your business, or sell or transfer ownership? What kinds of near-term possibilities could this open for you? What are the concrete financial steps that could help you defer or reduce taxes in the next few years? How can risk be sensibly managed as some or all the assets are invested?

Whether you want to accomplish in 2019 what you did not quite do in 2018, or further the positive financial trends underway in your life, now is the time to look forward and plan.

As you approach and enter retirement, the "sequence of returns"--or the market's actual year to year performance--matters a lot more than it did early in your earnings years.

If you save consistently for long enough, your retirement account's earnings may start to exceed your contributions.

A family legacy can have multiple aspects. It can include much more than heirlooms and appreciated assets. It may also include guidance, even instructions, about what to do with the gifts that are given. It should reflect the values of the giver. What are your legacy assets?

What is the point of starting today, some young adults wonder? The point can be expressed in two words: compound interest.

Employer contributions of any size to retirement plans are commendable, to be sure, but employees should be aware that there may be little connection between the match percentage and how much they need to set aside for retirement.

If you are being exploited financially, or seem at risk of such exploitation, that person will be alerted and called to action. An old saying states that money never builds character, it only reveals it. The character and morality of your trusted contact should not waver upon assuming this responsibility. If given sensitive information about your brokerage accounts, that person should not sense an opportunity.

Medicare takes a little time to understand. As you approach age 65, familiarize yourself with its coverage options and their costs and limitations. Certain features of Medicare can affect health care costs and coverage. Some retirees may do okay with original Medicare (Parts A and B), others might find it lacking and decide to supplement original Medicare with Part C, Part D, or Medigap coverage.

Put $1,000 under a mattress and in 20 years, you're likely to have less real money than what you started with.

What are the warning signs that an elder may be losing the ability to handle finances? What can adult children and grandchildren do now to make future decisions less stressful?

The added benefit of projecting substance through an appropriate work uniform is that it can add actual value to your work product by giving you more time to think about important matters.

The newly affluent are especially susceptible to lifestyle creep. Live well, but not extravagantly. After years of law school or time toiling at start-ups, getting hired by the right firm and making that career leap can be exhilarating – but it should not be a gateway to runaway debt.

Hope is not a strategy. When you save and invest with goals in mind, you make a commitment. From that commitment, a plan or strategy emerges. In contrast, others will save a little here, invest a little there, and hope for the best.

Having too much debt can be stressful. It can ruin relationships. Get a plan to get rid of it.

No investment is risk free, but an annuity may offer an intriguing investment choice for the risk averse. If you are seeking an income-producing investment that attempts to either limit or minimize risk, annuities may be worth considering.

Have you ever heard the simple suggestion to "get it in writing"? Well, there's a reason this is a good idea. It can help all parties to an agreement stay honest. It can even help you stay honest with yourself about your plans, goals, hopes, and dreams!

Rules of thumb for determining whether your retirement savings are in a state of emergency, and what to do about it.

In logging on regularly, you may do your part to help the SSA detect and ward off criminals who could use your identity to collect or file for benefits.

More often than not, an individual or couple who goes through a financial planning process will discover that they need to make a change. Here are some typical adjustments we recommend.

Prudent trust management is a legal duty in almost all U.S. states. Irresponsible trust management may lead to legal trouble for a trustee.

How you get around, take care of your home, and manage your time and relationships are key non-financial considerations to ponder BEFORE turning in your notice!

Life is unpredictable, and legal judgments can reach long into your future (including grabbing future wages).

Care must be taken not only in the setup of a special needs trust, but in the management of it as well. This should be a team effort. The family members involved should seek out legal and financial professionals well versed in this field, and the resulting trust should be a product of close collaboration.