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Supporting Your Children & Saving For Retirement – Are You Out of Balance?

One of the hardest balances to strike as a parent is when to step back and let your children create their own independence. Even when they grow into adulthood, they are still our kids. Wanting our children to be successful adults in today’s world means many parents are working to save for retirement while still providing for their children financially. If you are in this boat, know that you are not alone. A 2018 survey conducted by Merrill Lynch found that 79% of US parents provide financial support to their adult children, from groceries and phone bills to weddings and down payments on their children’s first homes. But at what cost?

Are you sacrificing your own future financial security for your children right now?

The good news is that there is such a thing as balance and this applies to your finances and family as well. Parents are well advised to begin by educating their children on budgeting, investing, the value in making their payments on time, and not using credit to buy things they want but don’t need. These lessons can be helpful at any age and as more millennials are leaving home later, parents have the opportunity to be a financial role model for their children and show them how to take concrete steps for monetary success.

Retirement will come whether you have savings or not, but there are ways to walk the tightrope of still providing for your children after they fly the nest, without creating a sense of entitlement or bankrupting your account. Contribute to your child’s savings, be clear on whether any money you provide is a gift or a loan with clear repayment terms for everyone involved, establish a purpose for the money, and timelines for how long you will you provide financial support – all of these ways can successfully allow you to help your kids without bankrolling them indefinitely.

Estate Planning is another valuable tool to ensure your money protects your heirs in the future. You can, for example, set up a trust for the benefit of your children into which other relatives can place money, perhaps to fund their college education. Or what if your child is twenty-five but still sits at home all day playing video games? You may want to create a trust that provides for them while still encouraging them to get a job and become an active part of the community. Not all trusts are the same and we want to help you understand the difference!

Our licensed attorneys can help you create a plan that protects your legacy and your children. Not just with the distribution of assets, but by relieving them from having to make potentially life-changing and difficult decisions in the future. Providing for your children financially is just one piece of the puzzle as a parent. To truly protect yourself and them you need to create a well rounded estate plan for the future, one that encompasses retirement and beyond. Attend one of our FREE seminars and a licensed attorney can answer all your questions about the future and doing what is best for your family.

 

 

 

Certain Uncertainties in Retirement

Two financial unknowns may erode our degree of confidence.

Provided by Ascent Wealth Management

 

Maybe you have been putting off planning for retirement because you think you have time, or you are not sure where to start. We are proud to share the following article from, Ascent Wealth Management, to help you manage your confidence and the uncertainties of retirement.

The financial uncertainties we face in retirement may risk reducing our sense of confidence, potentially undermining our outlook during those years.

Indeed, according to the 2018 Retirement Confidence Survey by the Employee Benefits Research Institute, only 17% of pre-retirees said they are “very confident” about having enough assets to live comfortably in retirement. In addition, just 32% of retirees were “very confident” in their prospects for doing so. (1)

Today, retirees face two overarching uncertainties. While each one can lead even the best-laid strategies awry, it is important to remember that remaining flexible and responsive to changes in the financial landscape may help you meet the challenges posed by uncertainty in the years ahead.

An Uncertain Tax Structure

A mounting national debt and the growing liabilities of Social Security and Medicare are straining federal finances. How these challenges will be resolved remains unknown, but higher taxes – along with means-testing for Social Security and Medicare – are obvious possibilities for policymakers.

Whatever tax rates may be in the future, taxes can be a drag on your savings and may adversely impact your retirement security. Moreover, any reduction of Social Security or Medicare benefits has the potential to increase financial strain during your retirement.

Consequently, you will need to be ever mindful of a changing tax landscape and strategies to manage the impact of whatever changes occur.

Market Uncertainty

If you know someone who retired (or wanted to retire) in 2008, you know what market uncertainty can do to a retirement blueprint.

The uncertainties have not gone away. Are we at the cusp of a bond market bubble bursting? Will the eurozone find its footing? Will U.S. debt be a drag on our economic vitality?

Over a 30-year period, uncertainties may evaporate or resolve themselves, but new ones may also emerge. Solutions for one set of financial or economic circumstances may not be appropriate for a new set of circumstances.

Scottish philosopher Thomas Carlyle said, “He who could foresee affairs three days in advance would be rich for thousands of years.” Preparing for uncertainties is less about knowing what the future holds as it is being able to respond to changes as they unfold. (2)

There will always be uncertainties to manage in life, but the right information and the right team behind you can help you be prepared for any situation. We want to assist you, not only with your retirement plans but to create an estate plan encompassing your entire legacy. For more information or for a consultation from one of our licensed attorneys attend one of our FREE seminars.

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

(1)  https://www.ebri.org/docs/default-source/rcs/1_2018rcs_report_v5mgachecked.pdf?sfvrsn=e2e9302f_2   [4/24/18]
(2)  https://www.brainyquote.com/quotes/thomas_carlyle_118785   [12/17/18]

One million dollars. How long your money will last in retirement.

CunninghamLegal – The Living Trust Lawyers

One million dollars. Think about when you were a kid and how the concept of one million dollars and being a millionaire seemed like something only encountered in movies. Reality, however is often stranger than fiction, and the truth is one million dollars in 2017 is a realistic number that deserves some conversation. Specifically, have you thought about and talked with your family and children about how far one million will take you in your retirement? Will you have enough money after working 20, 30, 40 years to live a comfortable life? Where will you live? Which state makes the most sense? Ok, that’s a leading question, but “making the most sense” is based on many variables such as lifestyle, weather, proximity to family and equally as important, the cost of living.

Top 5 states where your dollar will last the longest:
1. Mississippi
$1 million will last: 26 years, 4 months
2. Arkansas
$1 million will last: 25 years, 6 months
3. Oklahoma
$1 million will last: 25 years, 2 months
4. Michigan
$1 million will last: 25 years
5. Tennessee
$1 million will last: 25 years

Top 5 states where your dollar will last the shortest:
1. Hawaii
$1 million will last: 11 years, 11 months
2. California
$1 million will last: 16 years, 5 months
3. Alaska
$1 million will last: 17 years, 0 months
4. New York
$1 million will last: 17 years, 1 month
5. Massachusetts
$1 million will last: 17 years, 4 months

The rest of this article can be found on the USA Today site at How long one million will last in retirement