Retirement Portfolio Solutions

02/02/2023

Investment and Planning Ideas to Start 2023 on the Right Foot

Now that we have closed the books on 2022, this is a great time to review major processes and to create a plan for the new year. No question that 2022 was a challenging one for all of us, advisors and clients alike. So, now is the time to make sure you take a moment to review what has worked, what didn’t work, and to set yourself up for an amazing year ahead.

It has been traditional for advisors meet with each client once a year and perform a comprehensive review of their financial plan. This would include reviewing all planning areas such as insurance, estate planning, cash flow planning, debt management, retirement planning and so forth.

Review your investment thesis and consider rebalancing.
The market environment and economic conditions are constantly changing. This means that it is more important now than ever to be reviewing your investment goals on a regular basis.

Based upon how the market environment is and how the current economic conditions are (interest rates, inflation prints) will guide your investment thesis, and also help identify whether or not you should be tax-loss harvesting (or even tax-gain harvesting)

A best practice while dealing with markets this volatile is to dollar-cost average over a period that feels comfortable taking into consideration your time horizon and the amount of cash being put to work.

Consider a Roth Conversion. We have a unique opportunity right now to perform Roth conversions at a discount as the market is down over 20%. Therefore, we want to take advantage of this opportunity while the market is still down so that you can can get a lot of tax-free growth on the converted assets—assuming the market rebounds, which we believe it will eventually.

Retirement Portfolio Solutions will be glad to perform a complimentary review of your portfolio and goals. Contact us today and let’s get 2023 off to a great start!

09/22/2020

In order to become and STAY financially healthy you must give your money regular attention! Reference this handy Money Wellness Checklist to see what you should be doing weekly, monthly and yearly.

03/31/2020

Your Finances Amidst this Crisis.

The headlines of how COVID-19 will impact the economy and potentially lead to a recession are all a cause for concern. The overall impact of the extreme slowdown and virtual shutdown of so many businesses is yet to be seen. However, many elements of how to manage any financial crisis still apply.

Financial survival through this hinges on the financial planning you do before you feel the impact of the crisis, during the period if you are affected, and when things eventually revert back to normal.

FIRST...DON’T PANIC!

Selling everything right now is usually not the best tactic. If you are in the retirement ‘red zone’ - defined as 10 years before retirement or in retirement and heavily weighted in stocks and mutual funds you may not have been well diversified between safe and risky investments. Wait until the market rebounds at least somewhat – we likely won’t get back to where we were before this started and look at rebalancing your investment mix.

If you are within 5 years of retirement then regardless of what experts are predicting, it’s probably a good idea to plan now for withdrawals.

Have a minimum of 3 months of expenses saved for emergencies:

No one could have predicted this pandemic but it shows how truly important it is to have a cash buffer. However we are talking about any kind of emergency. You never know how long you might need to cover expenses in the event of a loss of income. The rule of thumb is to 3 – 6 months of expenses in a savings account. If you find it hard to save consider opening a separate emergency savings account, and setting up automatic deposits into that account.

Stay focused on the long term and your goals :

Remember, the important thing is to stay diversified and focused on your long-term goals. Call us today with any questions 484-919-5423.

03/16/2020

Is any portion of your retirement portfolio protected from this? Unless you have more money than you could possibly spend in retirement these losses could be detrimental to your quality of life in retirement.

Those who have a "floor of 0" haven't lost a penny. Contact us to learn how zero can be your hero in a down market.

09/18/2019

Beware of THE RETIREMENT RED ZONE!

The "Retirement RED ZONE." This zone equates to the 10 years before and the 10 years after you choose to retire. It's crucial not to make any irrevocable mistakes in the retirement red zone as they can impact the rest of your retirement. Such decisions as:

When do you choose to start taking Social Security benefits?
When do you choose to retire?
Which options do you choose for Social Security?
If you are married, do you choose a benefit for your spouse or not?

AVOIDING POTENTIALLY IRREVOCABLE DECISIONS IN RETIREMENT

Most of the time after you make decisions regarding your Social Security, you cannot undo them. However, there are factors within your control such as your spending habits, your risk, and your retirement date: and factors outside of your control such as market returns; inflation; the economy; and unemployment.

Contact us today for your complimentary Retirement Checkup and a FREE copy of our Guide:

"Maximize Your Social Security Income - Secrets to Increase Your Cashflow in Retirement."

This guide will walk you through the hundreds of ways to turn on Social Security and help you avoid some of the most common mistakes that retirees make when claiming their Social Security benefits.

Retirement Portfolio Solutions specializes in retirement planning, annuities, insurance reviews, long-term care, and estate planning. We specialize in providing strategies and guidance for those who are seeking a better lifestyle in retirement.

01/21/2019

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗚𝗼𝗮𝗹𝘀 𝗳𝗼𝗿 𝟮𝟬𝟭𝟵

𝘓𝘦𝘸𝘪𝘴 𝘊𝘢𝘳𝘳𝘰𝘭𝘭 𝘸𝘳𝘰𝘵𝘦, “𝘐𝘧 𝘺𝘰𝘶 𝘥𝘰𝘯’𝘵 𝘬𝘯𝘰𝘸 𝘸𝘩𝘦𝘳𝘦 𝘺𝘰𝘶 𝘢𝘳𝘦 𝘨𝘰𝘪𝘯𝘨, 𝘢𝘯𝘺 𝘳𝘰𝘢𝘥 𝘸𝘪𝘭𝘭 𝘵𝘢𝘬𝘦 𝘺𝘰𝘶 𝘵𝘩𝘦𝘳𝘦.”

As we embark on the New Year…and January has come and almost gone (!)…take some time to think about your financial goals for the year which can have a tremendous impact not only in the coming year but for your financial future.

Think about the amount of time that you spent researching and booking your last vacation. Did you spend more time planning your vacation or your financial future? I’ll venture to guess in most cases, vacation wins this battle. Naturally it is a more pleasant and fun activity but think of it this way – getting your finances in check today will allow you to have more vacations in the future!

Your goals should address your current circumstances and future needs, wants and wishes. Review your budget, retirement, education funding, estate planning, risk management, asset management and emergency fund strategies. Not to bring this in the mix but look at all the unfortunate Federal Employees that are struggling to pay their bills because they may not have had an emergency fund. In fact almost 80% of American workers live paycheck to paycheck which puts them in a difficult situation in times of crisis.

It is wise to sit down with a financial advisor to review your financial goals and have their guidance but here are some tips to point you in the right direction:

Set a personal savings goal for the year

Don’t just pick a random number. Look at your income, what your expenses are, and determine how much you could realistically save each month. You should have both a monthly and yearly savings goal. Figure out how much you want to save in your retirement accounts (that is 401k, IRA and ROTH) and your savings account. If your company has a match on the 401k or ROTH 401k that’s free money so make sure you save pretax up to the match at least. If you can put additional money aside and qualify consider adding to a ROTH in 2019 (you can also still contribute to your 2018 ROTH until April 15th).


Review your portfolio regularly

This environment is not one to just ‘set it and forget it’ we have experienced the intense volatility in the stock market and it’s important to keep your eye on your portfolio and rebalance periodically to make sure you have the right allocation for your risk tolerance and stage in life.


Track your expenses

It’s usually easy to figure how much you make in a month (trickier if you are an independent contractor) but if you don’t know how much you spend in a month that will seriously hinder your ability to budget. That’s why tracking your expenses is so crucial. First, you’ll want to keep track of what you spend in a month on rent/mortgage, utilities, and other bills– generally your fixed monthly expenses. Then you’ll need to figure out what you spend on eating out, entertainment, travel and all other discretionary expenses. If you’re like most people you don’t have a clue so pull out your credit card bills for the last 3 months and write it all down. Numbers will usually be higher during the holidays. If you usually pay cash for your purchase then save receipts.


Pay down credit card debt

If you have credit card debt, paying it off should be a major goal of 2019. Interest rates on credit card debt are extremely high and you can’t deduct any of it so it’s the debt you absolutely want to get rid of first. Any credit card debt costs you far too much money and if a choice has to be made between this and saving money - hands down get rid of the debt first. It can snowball ridiculously quickly!


Open a credit card that will get you rewards you’ll actually use

The credit card options are endless these days. I’m sure for most of us there isn’t a week that goes by without receiving a handful of them. If you don’t have credit card debt, and are in control of your spending and budget, it might be a good time to get a card with great rewards points. Whether you opt for a cash rewards card or a travel card, make sure the rewards offered are ones you’ll actually cash in on as you don’t want to leave points on the table. For example don’t get a travel card if you don’t plan on traveling much.


Manage your Risks

Not having enough or the right insurance in place could wreak havoc on any financial plan. For example are you and your family financially prepared if you face a dramatic event such as disability, a Long Term Illness or the sudden death of yourself or your spouse? Have a professional review your various insurance policies. We offer this complimentary service.


Automate savings and bills to simplify life

Put those payments on autopilot through your bank and employer, so you never miss one. Any credit card payments over 90 days in arrears usually gets reported to the credit bureaus and will negatively impact your credit score.


Review your Estate Plan

Make sure you have a Will and Advanced Healthcare Directive (aka Living Will in place). Check that all primary and contingent beneficiaries on your accounts are exactly as you would like – any life change such as marriage, divorce, death calls for a review of your designations. We offer this complimentary service.


Monitor Your Credit and FICO Scores

Credit monitoring can help you spot errors or signs of identity theft, so you can take steps to address them. Errors on your credit report are more common than you might think - and they can affect your credit score. Solution – get a copy of your credit reports and correct all errors by contacting the bureaus.

You're entitled to one free credit report, once a year, from each of the three credit reporting agencies -- Equifax, Experian and TransUnion. Order your free credit report either individually at each of the bureaus or at ANNUALcreditreport.com. Avoid other sites as they will try and charge you. Higher FICO scores mean lower interest rates and can save you thousands of dollars. So definitely try to boost your score before you apply for a loan.


Monitor progress toward your goals

You can’t measure what you don’t track. Commit not to just starting the year off on the right financial foot but to monitoring your plan through the year, say, at least quarterly.


Meet with a Financial Professional

Even if you think you’re doing a fine job managing your money and finances, asking a financial professional to review your plan and give you a second opinion could go a long way toward helping you reach your financial goals. Contact us for a complimentary no obligation review.



Caroline L. Andresen
Financial Advisor
Retirement Portfolio Solutions
321 S. Valley Forge Rd.
Devon, PA. 19333

484-919-5423
www.retiresolution.com

12/13/2018

Year-end Financial Checklist:

It’s the busy holiday season and it likely sounds like a horrible time to take on more to-dos. Yet, if you start checking in with your financial situation now-ish, you could make progress on your goals before next year starts.
Everyone’s situation is different and complexities are inevitable. But here are a few tasks you might want to consider squeezing in before 2018 comes to an end.

• Take stock of your finances, including debt and savings. While it can feel painful and emotional to do so it will give you a baseline to help you decide what to do next. Then set your financial goal or goals for next year. If you need a starting place try save more this year and the year before if possible. Find ways to reduce your debt if any.

Whatever your goals are write them down somewhere and choose a starting point to try to attain them. Get specific with costs as well. Are you planning any large expenditures in 2019? Having some overall goals makes you more likely to achieve them.

• Confirm beneficiary designations: Make sure your current designations are still in line with your estate plan especially when divorce, remarriage, death, blended families etc. come into play. Any major life change means you should absolutely review your beneficiary designations.

• Max out your 401(k) and find other ways to save. Now is the time to contribute the maximum amount to your 401(k), if you have one and have the funds to do so. If you are under 50, you can contribute up to $18,500 in 2019. If you are 50 or older, you can contribute another $6,000. The perks of pre-tax contributions coming from your paycheck are reducing your taxable income, and at the same time, forcing you to save.

To save more, consider opening up a Roth IRA which allows you to put after-tax money aside that grows tax-free at a time of year where you have a good idea of your annual income.

This year, the maximum amount workers can contribute to a Roth IRA is $5,500 — if you’re younger than 50. That goes up to $6,000 in 2019.

It’s a fabulous way for anyone to save if you are under the income thresholds.

• Fund Health Savings Account (HSA): For 2018, those in high-deductible health-insurance plans can sock away as much as $3,450 before taxes. For families, the figure is $6,900, and those age 55 and older can contribute an additional $1,000.

Spend flex dollars: Unused funds in Flexible Spending Accounts are typically forfeited at year’s end, so make sure to tap them for eligible health and medical expenses by December 31st. Some plans offer a “grace period” of up to 2 ½ months to use FSA money. Other plans may allow you to carry over up to $500 per year to use in the following year. Bottom line, check with your employer to confirm your plan’s deadlines.

• Reduce capital gains taxes: Any capital losses you realize before December 31 can be used to offset your gains. If your net losses exceed your gains, you can offset an additional $3,000 of ordinary income; any losses beyond that limit can be carried forward to future tax years.

• Take required minimum distributions (RMDs): If you’re 70½ or older, you’re required by the IRS to take RMDs from certain retirement accounts by December 31—or face a penalty equal to 50% of the sum you failed to withdraw. If you turned 70½ this year, you have until April 1, 2019, to take your first RMD, albeit with potential consequences.

Whatever your goals are, be intentional about them and take action. No one plans to fail but many fail to plan. Let us help set you up for success.

09/18/2018

Good Retirement Advice for Women...

Here's why it's often not a good move to start your retirement at the same time your husband does

08/04/2018

Are you Retirement Ready? If not - contact us and we can help.

SmartAsset's retirement prep checklist can help you figure out if you are in good standing for retirement. See if you check all the boxes or if you need...

07/26/2018

Crucial to review and update your beneficiary designations after any life change situation. It will trump your will! We perform a complimentary review to make sure your intentions are properly in place.

Beneficiary designations can overrule your will. It's important to know how this works for retirement accounts and insurance policies.