Financial Alternatives News and Insights

• Review your marginal tax brackets for ordinary income and capital gains rates to decide which account to withdraw from.

• Don’t make the mistake of overfunding retirement accounts at the expense of your brokerage (taxable) accounts. It’s important to have non-retirement assets for flexible spending and savings goals. If you haven’t set up a taxable brokerage account, perhaps this is the next move to make for any money leftover that you haven’t found a home for

• End of year provides you with the opportunity to think about managing liabilities. Consider the relative advantage to paying down debts with assets. What is the tax impact of doing so? Would it make a difference to your peace of mind?

• eMoney helps uncover cash or other assets that aren’t working hard for you.

• eMoney helps you set and achieve your retirement goals and other objectives such as funding college expenses.

• eMoney helps you better understand your position now and how it can be impacted over the years.

• Every family should create a Family Emergency User Manual. This is your family’s financial and operational blueprint in case an unexpected crisis happens.

• Communicate or leave a Trail on How to Find your User Manual.

• Consider gifting to family members or charities during your life so you’re able to enjoy seeing others benefit from your generosity.

• Develop the habit of reviewing your estate planning documents and beneficiary designations on a regular basis. We recommend doing this at least every two to five years at a minimum and always after any significant life event.

• Even a young adult should have the following estate planning documents: Advanced Health Care Directive, Financial Power of Attorney, Beneficiaries for accounts, Last Will and a Digital Will.

• One early retirement study noted that a withdrawal rate of 4% is relatively safe. 

• Many researchers have evaluated withdrawal rates and related issues since then - proposing adjustments to the traditional 4% rule. 

• One such proposal, the Target Percentage Adjustment (TPA) suggests modifying your withdrawals year by year. 

• Being flexible in the face of market downturns and inflation can allow you to increase your withdrawals in retirement.

• Life Insurance is not complicated. It was made confusing by those that profit from this confusion

• Every policy is either term insurance or term insurance attached to a savings/investment

• Insurance is for dying, investments are for living; don’t combine the two.

• By combining insurance with investments, it is harder to get the cheapest insurance and optimal investment selections.

• The estimated cost for healthcare in retirement is upwards of $285,000 for a couple.

• Costs for women are expected to be higher then men.

• Much of the costs are from Medicare Part B and D premiums, as well as out of pocket co-pays and deductibles.

In response to rampant financial exploitation of senior investors, the SEC is now requiring financial institutions and services firms to ask for trusted contact information. Having a trusted contact could prevent you from losing substantial amounts of wealth due to fraud or fraudulent activity.