Feeling insecure about the SECURE Act? Here’s what you need to know
What is the SECURE Act? The SECURE Act was put into action on January 1st, 2020. SECURE stands for ‘Setting Every Community Up for Retirement Enhancement’. One of the main goals of this act is to encourage more employers to set up retirement plans and encourage more employees to participate, so that Americans are more prepared for their retirement. Let’s break it down into the important changes: Benefits for long-term part-time workers Because of requirements for how many hours an employee must work in a year, most part-time workers were not able to participate in their employer’s retirement plan. The...
Money and marriage – financial tips for newlyweds
Mixing your finances with your romances can be tricky. It doesn’t feel romantic to talk about money when it’s so much more fun to dream about a beautiful future together. However, it’s important to remember that somehow you have to finance that future. Talking about money doesn’t kill dreams – it makes them come true. Comprehensive financial discussions about marriage finances are especially important for newlyweds because studies show that money fights are the second leading cause of divorce. Couples financial planning can help ensure you and your spouse are on the same page about this vital issue. Start by...
New job? Bring your coffee mug and your 401(k)
Your 401(k) is probably a big chunk of your retirement savings, so it’s important to weigh all your options and pick the one that makes sense. For the most part, your first option is to rollover your 401(k) savings into an IRA; this gives you maximum control of your money while offering more investments choices than you would typically find within a qualified retirement plan. One of the main differences between an IRA and a 401(k) is that with a 401(k), the employer chooses the investment options and establishes the rules, which typically vary from plan to plan. With an...
Financial Strategies Tips – After Parkinson’s Diagnosis
According to a recent study, nearly 60% of Americans feel they have not done enough financial planning and 34% have done nothing at all. I have been in the financial planning profession for 30 years, and I am not surprised. It seems to me that very few people have done a thorough job planning for their financial future. Even if you are the exception, and have done extensive financial planning, changing life situations can play havoc on your plan. What happens if a job changes, or a loved one passes away, or if you are diagnosed with Parkinson disease? How...
Our observation: Going gracefully into retirement depends on your generation
Being fee-only financial planners, we at Financial Strategies Inc act in your best interests by removing the incentive of commissions from our compensation model. We work for you and you alone. But we’ve noticed lately a few trends in retirement planning. Based on our experience and some research, we have been able to make some generalizations about how each of the generations in the workforce today— Millennials, Gen Xers (Ys, too) and Baby Boomers — are preparing for retirement. It’s eye-opening and might help you understand your retirement planning. Millennials: born between 1980 and 1996; currently age 23-39 Yoo-hoo, are...
Tax planning financial tips for 2019
Even though you are just beginning to prepare to file your 2018 tax return, it is important to also be thinking about your 2019 return. The changes to the tax code that were signed into law in December 2017 will impact your 2018 return and provide better understanding of your potential 2019 tax situation. Fortunately, it is the beginning of the year, so you have plenty of time to plan for 2019. At Financial Strategies, we believe that you absolutely should pay taxes. However, we also say that you should never pay a tax today that you can put off...
Saving for retirement when you’re in your 60s
Whether you’re looking forward to your last day of work or absolutely love what you do and aren’t in any hurry to retire, your 60s is a critical time to be thinking about retirement and financial freedom in concrete terms. Hopefully, you’ve been saving for retirement for many years. If not, you can certainly begin building your retirement savings, but it is very likely you will have to adjust your retirement date and your expectations for your future lifestyle. Either way, your 60s are a time to focus on your retirement game plan. Take a detailed inventory of your anticipated...
Saving for retirement when you’re in your 40s
According to the Transamerica Center for Retirement Studies, only 1 in 10 people in their 40s are “very” confident that they will be able to fully retire with a comfortable lifestyle. Although this statistic may seem sobering, it is important to remember that investors in their 40s are approximately halfway between their high school graduation date and their retirement date. Think back to your high school graduation. Does it seem like a long time ago? Remember, you have that much time ahead of you before retirement. There is no reason to lose hope. A comfortable retirement is possible. By focusing...
Year End Financial Planning Advice for 2018
2018 is coming to a close. While it is certainly a lot of fun to think about holiday parties, gifts, and time with family, it is also very important to remember to get your finances in shape for 2019 and beyond. Use this handy end of year checklist to prepare a financially successful 2019. Review your retirement plan contributions. If you’re able and haven’t maxed out your 401(k), now is the time to make an additional contribution. If you’ve maxed out your 401(k) and qualify for a Roth IRA, now is the time to start or max out that account....
3 Reasons Why You Should Choose a Fee-only Financial Planner
Most financial advisors are good people with good intentions. However, financial advisors are human and are subject to biases and influences just like any other person. Understanding how your financial advisor is compensated can help you evaluate the objectivity of his or her advice. We believe the best way to avoid biases and ensure our advice is always in our clients’ best interest is to service our clients using a fee-only advising model. We were one of the first fee-only financial planners in Milwaukee and have been members of the National Association of Personal Financial Advisors (NAPFA) since 1994. NAPFA...