Should You Have a 401(k) or a Retirement Plan?

Should You Have a 401(k) or a Retirement Plan?

One could safely argue that nearly every American worker contributes to a 401(k) or similar plan.

In fact, that is exactly what so-called financial experts recommend we all do in order to ensure that we’ll have a financially successful retirement, isn’t it? So why, then, do an ever-increasing number of folks who are retiring (or nearing retirement) fall significantly short when it comes to their financial readiness?

Of course, several reasons may account for this unfortunate situation. Maybe folks aren’t saving enough money in their 401(k)s? Or maybe they are choosing the wrong funds in which to invest their money? Or maybe their particular 401(k)s aren’t that great? And so forth. In my humble opinion, however, every reason you can name really amounts to a symptom of one underlying issue: the absence of a real retirement plan.

Although many equate signing up for a 401(k) at work as retirement planning, in the true sense of the term, it’s not. Retirement planning starts with understanding and clarifying your goals, evaluating alternate courses of action, and coming up with the most effective means to get you to your intended destination. Then, on an ongoing basis, reevaluating those choices to ensure that things are moving on schedule and/or doing any needed fine tuning. In my experience – from the folks I have spoken with – this doesn’t usually happen when people sign up for 401(k)s.

Am I suggesting that contributing to your 401(k) is a bad idea? Obviously, it would be irresponsible for me to make that definitive statement without first examining your specific 401(k) plan. On the other hand, are you sure that your 401(k) is what will deliver the retirement you desire? How did you reach that determination? Was it through careful consideration – or a guess? I think you get my point.

Happy retirement!

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It's YOUR retirement! Be sure to get the SOLID advice that will help you protect the rest of your future. Call us today at 877.656.9111 or visit us on the web to schedule your no-strings-attached consultation!

The Danger of Luck-Based Retirement Planning (and How to Avoid It)

Think About It: Should the success or otherwise of your retirement plan be based entirely on how well the stock market does? Here's a proven, common-sense way to gain some certainty in your planning:



It's YOUR retirement! Be sure to get the SOLID advice that will help you protect the rest of our future. Call us today at 877.656.9111 or visit us on the web to schedule your no-strings-attached consultation!

Do Retirees Need Life Insurance?

Do Retirees Need Life Insurance?

“Conventional wisdom” seems to overwhelmingly support the view that it would be a terrible financial

move for a retiree to buy or continue to own his/her existing life insurance. But is this conventional wisdom a savvy move in YOUR particular situation? Obviously, common sense would dictate that the answer to this question should – just as in any other realm of retirement planning – depend on your particular needs, rather than so-called conventional wisdom.

Income Replacement

Traditionally, financial advisors have recommended life insurance as a means to replace the income of a breadwinner in the event of sudden death until dependents – usually minor children – are able to financially fend for themselves. If this is your main focus and the reason you bought life insurance in the first place, it would only make sense that whenever that “risk” no longer exists, you’d have no need for that life insurance coverage. Why pay for something you don’t need? This, by the way, is the reasoning – and justification – behind the school of thought that retirees do not need life insurance. But does it always make sense?

Financial Inheritance/Legacy

Not everyone purchases life insurance solely for the purpose of replacing income. In certain instances, a retiree may want to leave behind a specific amount of financial inheritance to loved ones beyond what would be left of their nest eggs, if any. In such a case, life insurance could become an excellent tool for providing the desired amount – for virtually pennies on the dollar. 

Of course, deciding whether or not you might need life insurance as a retiree requires careful planning and consultation with a savvy financial advisor – whom I’m guessing has no preconceived stance on this issue, one way or the other, so that you can expect an unbiased, realistic, and factual assessment from them in order to make a sound financial move. 

In the interest of fairness and full disclosure, I must mention that when it comes to this particular subject, I am not a straight yes-or-no vote. Instead, I am 100 percent in the corner of common sense and personal case-by-case consideration.
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It’s your financial future, no one else’s. Be sure to get the professional advice that will help you protect YOUR money from unforeseen challenges. Call us today at 877.656.9111 or visit us on the Web to schedule your no-strings-attached consultation!

Surprise Benefit? Did You Know You Can Collect Social Security Benefits for a Former Spouse?

Surprise benefit? Did you know you can collect Social Security benefits for a former spouse?

When it comes to collecting Social Security benefits, one of the last things that most of us would

consider among the range of options is the possibility of claiming benefits based on the earnings record of an ex-spouse. Believe it or not, however, Social Security rules provide for such an option, which works beautifully if your ex-spouse made/makes a lot more money than you.

General Requirements

In order to be eligible to collect benefits based on your ex-spouse’s earnings record, your marriage must have lasted 10 or more years, and you must be at least age 62 ̶ although, ideally, you’d want to be at your full retirement age as determined under Social Security guidelines so that you can receive the full amount. Your ex-spouse only needs to be eligible for his or her benefit, meaning he or she doesn't have to be receiving benefits for you to collect. Additionally, you must be unmarried to claim using this route. The other thing is that unless your ex-spouse is already receiving social security benefits, you’d need to wait two years after your divorce before applying.

The good news is that your ex-spouse does not have to be unmarried. In fact, the benefit paid out to you as an ex-spouse will not impact the amount that your ex-spouse and his or her new spouse (if they choose to remarry) receive. By most accounts, this is a good thing.

Angela’s Surprise Benefit

Angela’s social security benefit, based on her own earnings record, would be approximately $580/month when she reaches her full retirement age of 66 later this year. Prior to our conversation, she was under the impression that was her best option, compared to about $414, based on her late husband’s earnings record. Angela lost her husband a little less than 3 years ago, but in my interview with her, I discovered that this was her second marriage. Prior to meeting her second husband, she was married to a now-retired top business executive for nearly 19 years. That changes everything! Because she is currently unmarried and had a prior marriage to someone who made a lot more money than she did. 

After some research and calculations, it became apparent that Angela could collect about $1,053/month in ex-spouse benefit. Remember, not only is this an incredibly good situation for her, but this benefit is not going to reduce the amount that her ex-husband (and/or his wife) is receiving. So everyone on both sides of the equation should be happy – at least theoretically speaking.

Are you sure that your Social Security strategy will get you the most that is legally due you? For more about this and other powerful strategies that could boost yours and your loved ones' Social Security income, download a complimentary copy of SECURE YOUR FUTURE special report.

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It’s your financial future, no one else’s. Be sure to get the professional advice that will help you protect YOUR money from unforeseen challenges. Call us today at 877.656.9111 or visit us on the Web to schedule your no-strings-attached consultation!

Which Is the Most Important? "How Much" or "Where" You Invest