Miscellaneous

By Terry Savage One in four Americans identifies as a caregiver, so how many do you think there are among you baby-boomer clients? Here are helpful financial resources for those taking care of elderly parents, special-needs kids, and other family members. Being a caregiver is a role that will fall to more and more of your baby-boomer clients, a generation ...

Stating that “Social Security is broke” is a false premise.  It is simply not true.  The fact is that Social Security is far from broke with nearly $3 trillion in Social Security reserves as of December 31, 2013.  According to the Social Security Administration’s Office of the Chief Actuary the OASDI Trust Fund started with $2.732 ...

By Elaine Floyd, CFP Setting up residence in a foreign country can look good for returning vacationers and retirees. However, living abroad raises a host of issues as far as taxes, estate planning, health care, and work are concerned. Here’s what you need to know to serve expatriates. The vacation was so good they now want to move there. What ...

By Taylor Smith All the do-it-yourself financial tools on the Web may tempt clients and prospects to question the value of hiring an advisor. Counter that trend by explaining what you can offer that Monte Carlo-based predictions cannot. Online investment calculators can be a little addictive. Just plug in a couple of numbers and voilà! The screen tells ...

By Elaine Floyd, CFP Baby boomers face seven key events in this last stage of life that will color their finances and investments. Help them prepare for these transitions with counseling, planning, and compassion. It can be dangerous to generalize about the baby-boom generation, but there are seven key events that nearly all of them will face as they ...

By Joe Mont Clients may be concerned about the lack of a cost-of-living increase from Social Security next year. Are any taking it a step further, like this author, who worries about how that will erode the effect of compound interest? Americans, who lost a combined $1 trillion in 401(k) retirement plans during the stock-market crash, could each ...

By Elaine Floyd, CFP Inflation has upped retirement plan, Social Security, and Medicare income and contribution limits for 2009. Keep these charts handy for client reviews and planning sessions. Inflation marches on, as higher consumer prices triggered cost-of-living adjustments in retirement plan contribution limits, Social Security benefits, and Medicare premiums for high-income beneficiaries, all due to take effect in 2009. ...

Here’s what he said: “It is a monstrous lie. It is a Ponzi scheme to tell our kids that are 25 or 30 years old today you’re paying into a program that’s going to be there.” Never mind that he’s spent the last week backpedaling on the statement, the words are out and the ...

By Donna O’Rourke Medicare Advantage plans provide more complete coverage, but finding the right one can be tricky. It’s time to do a Medicare health-insurance review if you or a close relative is 65 or older. Each year, from Nov. 15 through Dec. 31, you can join, switch, or drop your current prescription drug coverage plan. It is also the ...

By Elaine Floyd, CFP A 0% COLA doesn’t sound good, but given the level of inflation and various legislative actions, retirees have more purchasing power now than they did in 2008. Here are the newly released key numbers and some talking points to make with your clients. Is there a nice way to say “Stop whining?” Gas prices are ...

This is outrageous!  Without getting into the politics or addressing the real problem government must solve (finding ways to run a government that can live within its means) the idea that people who have paid potentially hundreds of thousands of their earnings into the Social Security system should be unable to receive the benefits they ...

By Elaine Floyd, CFP Distributing 4% from a traditional retirement portfolio is too risky, says Nobel laureate William Sharpe. He suggests investing in a series of zero-coupon bonds for a 4.46% withdrawal rate. Or why not give clients a choice: risk-free distributions with bonds or a variable rate based on a market portfolio? The 4% rule has become ...

By Knowledge@Wharton.com Plenty of attention has been given to the accumulation phase of retirement planning, often to the neglect of the distribution phase. In a recent conference, Wharton experts looked at the current state of this overlooked stage and discussed the strategies that will best serve clients. As baby boomers retire and start spending their nest eggs, ...

By Jeffrey Strain Lower-than-expected returns and unexpected expenses could reduce your nest egg. We’re saving a lot less than we did just a few years ago. This is bad news. When it comes to retirement, Americans should be saving even more than they think is probably necessary. The personal U.S. savings rate for November 2007 was -0.5% of disposable income, according ...