Retirement Education

The Psychology of Investing and Why It Matters for Your Retirement

The Psychology of Investing and Why It Matters for Your Retirement

There are many types of risks that investors might take in order to achieve their financial goals. They can insure themselves against market risk by having money in safe vehicles such as fixed annuities, Treasury securities, and CDs.

However, at times inflation can be higher than how much money might grow in these lower-risk vehicles, so that must be taken into consideration as well. Some types of financial risk can be reduced or eliminated by diversifying your portfolio while other types of risk are immune to this strategy.

But the most important issue is this: How do you see and perceive risk and then react to it? This is where the psychology of investing comes into play. Here’s a look at how it can affect your money and retirement in different ways. Read More

Safe Money Book

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Most public discussions and financial media on retirement planning cover accumulating assets and building up savings. They focus on the question of how to achieve a bigger nest egg. But retirement isn’t about accumulating assets — it’s about setting lifestyle goals, securing income to pay for those goals, creating protection strategies to safeguard your money, and managing risks. 

Ready to start preparing for a more secure future? Then request this three-part Safe Money Book series now.

Call us at 877.476.9723, toll-free, or click here to request your free, personalized Safe Money book copies.

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How Does Inflation Affect Retirement Planning?

how does inflation affect retirement planning

Inflation may not be the most exciting topic, but nowadays retirees may experience it first-hand for as long as 30 years or more. They can see its real effects on the purchasing power of their money over such an extended period.

Just think of what has happened to the cost of buying a new home over the past 30 years. Inflation has run rampant, and it can have such a big impact on retirement spending that it even warrants protection against it as part of an overall financial plan. Read More

Bonds and CDs – What Are Their Pros and Cons?

Bonds and CDs - What Are Their Pros and Cons?

Many financial advisors today tell their clients that once they reach retirement age, they should probably have at least some retirement savings housed in conservative, low-risk holdings. The question of how much money depends on many factors, including what someone’s personal risk tolerance is.

Often those holdings are made up of bonds, CDs, or other such instruments that don’t have the same volatility as stocks or stock funds do. That being said, these investments have their own set of pros and cons that can affect their performance over the long term. This is especially true when interest rates are low as they are now. Read More

How Have Investors Responded to the Covid-19 Pandemic?

How Have Investors Responded to the Covid-19 Pandemic?

There is no doubt that the pandemic has broad public health and economic impacts for millions of people.

From employment taking a hit and emergency funds being tapped to working-age and retirement-age households pivoting financially to deal with the unexpected, the effects have been widely felt.  

While a lot has happened in 2020, many people actually expected some sort of reversal in financial markets and economic conditions back in 2019, a survey found earlier this year.

According to Spectrem Group, an investor research firm, one of the biggest fears for investors in 2019 was a market downturn and ensuing economic downturn. While this didn’t happen then, the novel coronavirus pandemic brought it about in 2020.

A record-breaking market downturn and economy shutdown sparked fears of a recession. Since then, markets have recovered.

But investors continue to worry about the long-term effects of the recession that has hit the United States and other parts of the globe. Read More

Survey: Americans Increasingly Worry About Their Finances Due to Covid-19 Pandemic

Survey: Americans Increasingly Worry About Their Finances Due to Covid-19 Pandemic

In the wake of the coronavirus pandemic, a new study shows that Americans are becoming increasingly anxious about their finances.

Back in April, Fidelity asked 3,062 retired and working-age Americans about their concerns and what they were doing to shore up their confidence gap. In the survey, 60% of Americans said they were concerned about their finances now. Thirty-eight percent were extremely or very concerned, while over twenty percent were just moderately concerned.

Six in 10 (62%) Americans said they worried about job security, with 43% being extremely or very concerned. 51% of baby boomers said they were worried about their finances over the next 6 months. Meanwhile, 69% of millennials and 68% of Gen Xers also shared that concern. Read More

The Benefits of Working with Virtual Advisors

The Benefits of Working with Virtual Advisors

While times change, the need for quality financial guidance doesn’t. Many financial advisors do things old-school. Nevertheless, with everything happening right now, that might well be changing.

It may not be the most exciting topic around, but working with a virtual financial advisor can be beneficial in many ways.

You don’t have to take time out of your busy schedule to go to an office location. Nor do you have to worry about the logistics of what it would take to make that appointment.

You don’t even have to be in the same city as where your financial professional resides. Virtual advisors use communication methods such as videoconferencing, email, the internet, and (for some) even texting to stay in contact with their clients.

If you aren’t working with a virtual financial professional yet, here’s a look at how it can be beneficial in the short and long run. Read More

How Long Can Bear Markets Like Coronavirus Has Reached Last for?

How Long Can Bear Markets Like Coronavirus Has Reached Last for?

If you have any money in the market, chances are you have heard of recent slumps in U.S. market indexes.

From February 21st to February 28th, the Dow Jones Industrial Average index fell 12.4%. That drop was quickly followed by a couple of record setters in March. The worst drop in three decades came on March 13th.

The Dow fell 10%, its then-worst decline since the 1987 Black Monday market crash. Then, on March 16th, the market indexes had another record-setting drop. The Dow fell 12.9% and the S&P 500 declined 12% in one day, respectively.

On the whole, investor concerns over the novel coronavirus and the oil supply feud between Russia and Saudi Arabia have sent global financial markets into a tailspin. For those on the cusp of retirement, the timing couldn’t be worse.

Of course, every market is different. As a result, no one can be 100% sure of what will happen next. Even so, what might retirement investors face in the near future?

The decline has actually taken us into bear territory, which is typically defined a market drop of 20% or greater.

But as Peter Oppenheimer, chief global equity strategist at Goldman Sachs, observes, there hasn’t ever been a bear market spurned by a viral outbreak. Read More

Watch Your Debt As You Plan for Retirement

Watch Your Debt As You Plan for Retirement

Tune into a financial show on TV or the radio dial, and chances are you have heard it.

The retirement income shortfall among Americans has been a hot topic in the financial advisory community for a long time now. But, surprisingly, what hasn’t received as much attention is the issue of carrying debt into retirement.

It’s a serious matter. More retirees are carrying larger amounts of debt into their non-working years than ever before.. With its rapid pace of growth, this trend is threatening to further disrupt the retirement plans of many seniors.

According to blogger Chris Farrell, the median total consumer debt for retiree-led households (age 65+) was $31,300 in 2016.

That was 250% more than it was in 2001 ($12,250) and nearly 450% more than the level in 1989 ($7,250). Some 60% of senior households carried some of debt, up from 42% in 1992.

Other studies have similar findings. According to one study by researchers at the Ohio State University, among households ages 55-70, some 75% of households had some sort of debt load. That is up from 64% of households in 1989.

As Farrell mentioned on a podcast with NextAvenue: “Over the past ten years — since the financial crisis — one thing that is really striking is how much debt consumers have taken on, particularly in the past couple of years. And people over 60 are increasingly comfortable taking on debt.” Read More

6 Retirement Trends That Can Affect Your Financial Future

6 Retirement Trends That Can Affect Your Financial Future

Retirement today isn’t the same as your grandparents’ or even your parents’ retirement. It’s a whole new ballgame. Many trends are changing the face and length of retirement as we know it.

Retirees today face the possibility of a much longer retirement lifespan than their predecessors. They also have several issues to contend with that, for the most part, their forebears didn’t have as much pressure to address. What are those issues?

Rising health costs, changing definitions of a traditional retirement, increasing costs of living. And, in the present time, an uncertain global landscape and its economic effects. All of this can make retirement tricky to navigate, let alone to enjoy a financially comfortable lifestyle.

Here are a few retirement trends that are likely to change at some point during your post-career years — and that might affect you in the process: Read More

Next Steps to Consider

  • Start a Conversation About Your Retirement What-Ifs

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    Start a Conversation About Your Retirement What-Ifs

    Already working with someone or thinking about getting help? Ask us about what is on your mind. Learn More

  • What Independent Guidance
    Does for You

    independent vs captive advice

    What Independent Guidance
    Does for You

    See how the crucial differences between independent and captive financial professionals add up. Learn More

  • Stories from Others
    Just Like You

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    Stories from Others
    Just Like You

    Hear from others who had financial challenges, were looking for answers, and how we helped them find solutions. Learn More

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