Joe Lucey

Yogi Berra once said, “You’ve got to be very careful if you don’t know where you are going, because you might not get there.”

When it comes to retirement, plenty of people get there — but it may not be what they expected because they either didn’t plan, or their financial strategy didn’t help keep them on the path to their goals. The difference between a satisfying retirement and one with financial concerns may be correlated with how early and how well you plan.

In some ways, what you may hear about creating a financial strategy for retirement can sound similar to the advice high school graduates receive when applying to colleges: Develop a strategy for your dream retirement, one that you are most likely to achieve, as well as a fallback option or two. And remember that retirement planning is personal, so you’ve got to do what’s right for you.

That means taking into account all the people you’ll need to provide for, your assets, your income and savings rate from now until retirement, your investment goals, your timeline, your tolerance for market risk … there’s a whole spectrum of things to consider. That’s one reason why it’s  important to develop a relationship with a financial advisor who can help not just to develop a financial strategy, but to adapt that financial strategy as your circumstances may change. We can help you with that by creating a financial strategy utilizing both investment and insurance products that can help you work toward your long-term financial goals.

One of the first steps to retirement planning is figuring out how much income you’ll need once you stop earning a paycheck. Based on data gathered by the Bureau of Labor Statistics in 2014, the average retired household spends $40,938 per year.

 

Retirement planning is a complicated process because there are so many unknowns, like not knowing how long you’ll actually live. However, there are many tools available at your fingertips, and we are just a phone call away. Remember, it helps to figure out how much savings you may need to retire, so you can create a well-thought-out financial strategy.

One of the prominent media stories that emerged in the 2016 presidential election was the need for constant fact checking among the candidates. While many “untruths” are labeled as lies, often a case can be made that information was cherry picked, taken out of context, incomplete, misconstrued or misinterpreted.

However, that’s not to say that out-and-out lying is uncommon. One researcher asserts that 60 percent of people tell, on average, two to three fibs during a typical 10-minute conversation.

Why so common? A recent study found that dishonesty grows with repetition. Scientists posit that the first time a person tells a lie, he or she tends to feel guilty. That’s (human) nature’s way of curbing an implicitly incorrect behavior. However, over time, the more lies one tells, the less guilty he or she feels, indicating that the brain somehow adapts to this illicit behavior.

Research has demonstrated that lies appear to escalate more when there is an element of self-interest: The more an individual benefits from lying, the more likely he or she is to lie repeatedly. The lies get bigger, and that self-conscious feeling of guilt tends to get suppressed.

Despite its prevalence, we tend to feel guilty when we suspect someone of lying, which is one reason why we’re often duped. Men and women lie with equal regularity, but often for different reasons. Psychologist Robert Feldman says women are more likely to lie to make the person they are talking to feel good, while men lie most often to make themselves look better.

With holiday shopping and festive menu planning, it is easy to lose track of things that are less exciting – like taxes and money management. Knowing that, I have compiled a short checklist of 5 things that, if done now, can save you considerable money before the year is over. The best part is they are quick to do, so you will be back to celebrating in no time!

1. Get yourself organized. As year-end statements  and tax forms begin to show up in the mail, file them into a tax binder or folder. You might keep that folder next to where you usually sort mail to make this easy. Having your documents in one place can go a long way towards managing the cost of tax preparation.

2. Make an additional contribution to your retirement plan. If you have a traditional (non-Roth) retirement plan or a traditional IRA and are under 70½, you can save money on taxes by making a qualified contribution. The contribution will decrease your taxable income, and you get the benefit of boosting your nest egg! I know that holiday budgets can be tight, but the benefits of investing in your peace of mind will last longer than your Christmas tree.

3. Look into tax loss harvesting. If you can use a reduction in your taxable income this year, consider selling some underperforming stocks before December 31. Capital losses in excess of your gains of up to $3,000 can be used to offset your taxable income, and any excess can be rolled forward to 2017.

4. Keep track of your holiday budget. With the excitement of the season, it is easy to lose sight of your spending. Remember that the best predictor of your retirement success is your ability to save. Use a formal budget to manage how much you spend on gifts, holiday parties, shopping for the holiday table and eating out. A holiday does not have to break the bank to be memorable.

5. Criminals don’t take a Christmas break! Identity theft is a threat year-round, but especially so during the holidays. Now is a good time to request your free credit report. I recommend using www.AnnualCreditReport.com – it’s one of the few outlets that is truly free (no credit card required). Be sure to monitor the activity on your credit cards and bank statements a little more closely. Don’t let crooks go holiday-shopping on your dime!

Finally, remember that the best way to avoid wasting money and time is to make sure you have the right strategy in place for your retirement. Don’t leave your security and peace of mind to chance!

Call us today at 952-460-3260 or click here to set up your free 60-Minute One On One Retirement Readiness Lab™ With A Certified Financial Planner Professional.

We are here to help through the holidays and into 2017!