- Ask an Advisor: I’m 55 With a $3 Million Net Worth and $5k in Monthly Expenses. Can I Retire Now?
I’m 55 and would like to retire now with a $3 million total net worth. I’m assuming my net worth will grow, on average, 5% until I’m eligible for Social Security. My house is paid off and my lifestyle is simple. I can live with $5,000 per month. Am I making the right decisions? –… read more…
- What Is Comprehensive Financial Planning?
Comprehensive financial planning serves as a roadmap for your finances. It allows you to set realistic goals, choose effective financial products and monitor your progress over time. A financial advisor can help you build a comprehensive financial plan based on your goals and personal circumstances. Here’s what you need to know. How Comprehensive Financial Planning Works… read more…
- Ask an Advisor: How Do I Cover $3,000 in Monthly Living Expenses? I’m 58 With $700k in Retirement Savings, But I Won’t Collect Social Security for 7 Years
I’m 58 and I have $700,000 in 401(k)s and IRAs. I have no credit card debt, no auto loan payments and no student loans. I sold my home in California and paid cash for a house in Texas, so I have no mortgage. I’m retired military and bring in about $2,200 per month after taxes.… read more…
- What Should Your Net Worth Be at Retirement?
As you approach retirement, your net worth is a key indicator of your financial preparedness. Net worth is a fundamental financial metric in retirement planning because it shows how much wealth you have accumulated and can use to support yourself after you stop working. The net worth varies according to a number of factors, including… read more…
- Lifestyle Trends and Problems Facing Ultra-High-Net-Worth Individuals
In decades past, millionaire status was well-known, and the subject of innumerable songs, TV shows, and movies. However, a million dollars is almost a modest sum by today’s standards, and an exclusive echelon known as ultra-high-net-worth individuals (UHNWIs) has wealth extending to the tens of millions. Yet, being a UHNWI entails more than just opulence.… read more…
- What Financial Advisor Clients Value More Than Returns, and Why
It won’t come as a surprise that when investors talk to their financial advisors, their top concerns these days are focused on inflation, market volatility and the possibility of a recession. And while any investor wants to maximize their gains, recent research published by the Insured Retirement Institute (IRI) indicates that right now, investors are… read more…
- 7 Major Financial Checkpoints: How Do You Stack Up?
When it comes to financial plans, your assets, cash flows and debts all influence the path toward your goals. While talking to a financial advisor can help you establish a comprehensive plan to reach your goals, you can use basic rules of thumb to gauge your current financial position. 1. Housing Ratio (Monthly housing costs)/(Monthly… read more…
- Differences Between Mass Affluent and High-Net-Worth Individuals
While ‘millionaire’ might not be as weighty of a title as it was decades ago, seven figures of wealth is a significant accomplishment that indicates success and stability. Mass affluent individuals, with their robust yet accessible wealth, form a vital economic backbone in the United States, while high-net-worth individuals (HNWIs) exert more influence across markets.… read more…
- What Is a Trade Line and How Does It Work?
When you open a new credit account you actually create what financial institutions refer to as a ‘trade line’. Essentially, a trade line is any credit account status and activity reported to credit reporting agencies by lenders. It mirrors your behavior in managing your debts, making it a key component of your credit profile. Here’s… read more…
- How to Find a Financial Advisor for the Ultra High Net Worth
Managing significant wealth comes with its own set of challenges and complexities. As an ultra-high-net-worth individual, you have unique financial needs and goals that require expert guidance and management. This is where a financial advisor tailored to your specific circumstances becomes invaluable. They can help you make a financial plan that fits your specific needs… read more…
- Ask an Advisor: My Wife Claimed Social Security at 65. Can She Collect the Max Spousal Benefit When I Retire?
My wife started collecting Social Security at age 65, but it’s a tiny amount. I am planning on retiring in two years at 65 (67 is my full retirement age). Can my wife collect spousal benefits of 50% of my full retirement benefits once I retire? – James Unfortunately, the likely answer is “no,” although… read more…
- ‘Advisor’ vs. ‘Adviser’: What’s the Difference?
“Advisor” and “adviser” are two terms used interchangeably when referring to someone who gives financial advice. While the former is more commonly used, the federal law that established how finance professionals are regulated uses the latter spelling. Whether you spell it with an “e” or an “o,” a financial advisor can help you set goals,… read more…
- Ask an Advisor: When Do I Have to Take RMDs from the 401(k) That I Inherited from My Wife? She Hadn’t Turned 72
I am 74 years old (I was born Feb 2, 1948). My wife and I both worked for Aetna, but have retired and have 401(k)s from work that are with Vanguard. I received her 401(k) as a spousal inheritance and maintain it in a separate account. I plan to take RMDs on her account but… read more…
- Ask an Advisor: Our Long-Term Care Insurance Now Costs $500 Per Month. We’re in Our Mid-70s and Have Paid $72k in Total. Should We Cancel Our Policies?
My wife and I bought long-term care policies 25 years ago when they were relatively cheap. Now, our premiums have increased for the third time to over $500 per month and will rise again in six years. I figure I’ve already paid about $72,000 in premiums. Now, in our late 70s, I’m trying to decide… read more…
- What Is a High-Yield Corporate Bond?
Corporate bonds, which are a type of debt security, function as a tool for corporations to raise capital. A high-yield corporate bond offers higher interest rates than a typical corporate bond because it carries a higher risk of default. The “high yield” refers to the greater interest or coupon rate that investors receive as compensation… read more…
- Here’s How to Help Your Child (or Grandchild) Buy a Home
Saving for a down payment can be a significant obstacle for first-time homebuyers. If a child or grandchild is struggling to become a homeowner, you may want to help them out with the assets you’ve managed to accrue. A recent report from J.P. Morgan outlined several techniques that can help parents and grandparents lend a… read more…
- Ask an Advisor: I’m 5 Years Away From RMDs But Recently Lost 30% of My 401(k). Should I Stay Aggressive to Regain My Losses or Rebalance?
When I retired in September 2022, my 401(k) was invested aggressively (90/10 split between stocks to bonds) and lost approximately 30%. I left the 401(k) invested in mutual funds in hopes it would gain back some of the losses. A year later it has gained back approximately 20%. I’m not required to take RMDs for… read more…
- Ask an Advisor: What Should I Do With the Annuity I’m Inheriting? Take a Lump Sum, Roll it Over or Defer Payments?
I recently learned that I am the beneficiary of an annuity in the amount of $54,845 from a friend. I was given choices on how to receive the money: lump sum, roll it over or defer the payments over a certain number of years. I don’t have anything saved for retirement and I don’t know… read more…
- Personal Representative vs. Executor: Key Differences
Personal representatives are tasked with managing estates when people die, either according to the terms of their will or the state laws that govern certain successions. An executor is a type of personal representative who’s specifically designated in someone’s will to carry out their final wishes and distribute their assets. A financial advisor can be… read more…
- What Financial Advisors Have to Say About the ESG Controversy
Environmental, social, and governance (ESG) investing has become a fiercely debated trend within the financial sector. While some view ESG factors as crucial considerations, others argue these criteria are politically motivated and detract from returns. Financial advisors say that personal values, such as ESG, can guide a viable investment strategy. However, they add, investors focused… read more…
- Are Trust Distributions Taxable?
Dealing with trusts and their tax implications can seem like a labyrinth of legal terms and financial jargon. Trust distributions might be taxable, with the tax liability potentially varying based on factors such as the type of trust, the kind of distributions, and a beneficiary’s tax bracket. With the help of a capable financial advisor,… read more…
- Ask an Advisor: I’m 49 With $500k in Savings But ‘I’m Concerned’ About Retirement Income and Annuities Are ‘Too Expensive.’ What Are My Options?
I’m 49 years old and I’ve had a steady job for over 15 years now as a government contractor. I plan to retire at around 65. I have $500,000 in savings between my 401(k), IRA and individual savings accounts. I’m renting, I don’t have any debt and I have a small family of three. I’m… read more…
- What Is GDC for Financial Advisors?
A gross dealer concession (GDC) gets paid to a brokerage firm when a financial product is sold by a salesperson or financial advisor on commission. These products include securities like stocks, bonds or mutual funds, as well as insurance products like annuities or long-term care. A percentage of that GDC will also get paid to… read more…
- Ask an Advisor: Is it Better to Work With an Independent Advisor or One From a Large Firm?
Is it best to work with an advisor who’s independent or part of a large firm? I am not investment savvy and I’m entering retirement. I need to make sure I hire someone or a firm that is going to help and maybe is somehow insured. -Sharon That’s a great question, Sharon. I’ll provide some… read more…
- Family Offices and Ultra-High-Net-Worth Families
Does your wealth management strategy feel inadequate? In the complex world of wealth management, ultra-high-net-worth families often find themselves needing more personalized and comprehensive services than traditional wealth advisory firms can provide. This is where the concept of family offices comes into play. Family offices are private wealth management advisory firms catered particularly to ultra-wealthy… read more…