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Category: Retirement Planning

2020 Required Minimum Distributions

2020 Required Minimum Distributions

For those who aren’t aware, the CARES Act had already waived 2020 Required Minimum Distributions (RMD). But there was a slight oversight with regard to people who had already taken their RMDs as many retirees do in January each year. Well, last week, the IRS announced that for anyone who already took their RMDs for 2020 can roll those assets back into their retirement account as long as it is done by 31 August 2020 as the 60-day rollover period…

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Market Expectations for the Next 30 Years

Market Expectations for the Next 30 Years

As usual, there are many different scenarios being discussed at the moment. The COVID second wave, economic struggles, interest rate projections, more fiscal stimulus, corporate bankruptcies, and on and on we go. This is applicable to the world of traders, not investors. Investors don’t invest to make a quick buck. Long-term investors – which is a redundant term – invest because it is a prudent choice to expand capital over time, not overnight. With all of the above uncertainties, it…

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Preparing For “What-Ifs”

Preparing For “What-Ifs”

We are now a little more than two months out from the bear market lows. As the swift recovery ensued, I started hearing stories of investors who sold out of their portfolios around DJIA 19,000 “because the market was going lower.” They were right for the blink of an eye. With the market now back above 26,000, when are those investors supposed to get back in? I have to pose the question because getting back in is always the hardest…

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Dividend Bear Markets

Dividend Bear Markets

An astute reader of last week’s blog post, Equities in Retirement: A 30-Year Case Study, asked a great question: “How much of a maximum decline in annual dividend income (based on prior historical experience) should one be prepared for?” In other words, during dividend bear markets, what level of income decline should we expect? The obvious answer is that I do not know because even the worst-case historical event is only the benchmark until something even worse comes along. So,…

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Equities in Retirement: A 30-Year Case Study

Equities in Retirement: A 30-Year Case Study

Whenever I ask soon-to-be retirees what the ultimate goal of investing in retirement is, the most common answer I hear is: I don’t want to run out of money. Pretty straightforward, right? Here’s the problem. When I ask many of those same individuals what the primary objective of their retirement portfolio is, this is the typical response: Preservation of principal. Whether retirees realize this or not, those two goals run almost exactly counter to one another. If your goal is…

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4 Stages of a Bear Market

4 Stages of a Bear Market

All bull markets must come to an end. Many of the gains of the last few years were abruptly wiped out in just a month’s time. The argument could be made that bear markets are healthy and are sometimes referred to as a feature, not a bug. I’ve come to believe that there are four stages of a bear market, each with their own emotional issues and include at least two decision points that could arise on our journey through…

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10 Charts About Retirement Every Retiree Should See (2020)

10 Charts About Retirement Every Retiree Should See (2020)

As a Retirement Planner, each year I eagerly await the release of J.P. Morgan’s Guide to Retirement. It is essentially a booklet of retirement charts filled with great information impacting retirees. Making it even better, it often highlights things that are regularly overlooked by just about anyone (including professionals) planning for retirement today. With that in mind, I have selected 10 charts that I think everyone transitioning into retirement should see with a little commentary on each. Every chart comes…

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5 Actions You Can Take During a Bear Market

5 Actions You Can Take During a Bear Market

Right about now, investors and advisors are kicking themselves for not having sold about two weeks ago. Some are still considering selling. Investors who say the thought hasn’t crossed their mind are probably lying to themselves. It’s easy to say to ourselves, “I KNEW I SHOULD HAVE SOLD!” because hindsight is always 20/20. But the truth is, we didn’t know because we can’t know. That’s truly the toughest part of my job. I live, eat and breathe this stuff and…

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Will Your Family Be Torn Apart After You Pass?

Will Your Family Be Torn Apart After You Pass?

Every parent’s nightmare is that your family will be torn apart over money when you pass. I will let you in on an ironic little secret about the inheritance you hope to leave. Money makes people crazy! If you have not planned appropriately – and sometimes even when you have – it is very possible that your family will be torn apart over dollars and cents and over your “stuff.” Because money makes people crazy. Children who ordinarily get along…

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The Challenges Facing Retirees Today

The Challenges Facing Retirees Today

Believe it or not, retirement is still a relatively new concept, by historical standards at least. People have only really been “retiring” for about 150 years – back to the time of Chancellor Otto Van Bismarck. In 1883, Chancellor Otto Von Bismarck of Germany had a problem. Marxists were threatening to take control of Europe. To help his countrymen resist their blandishments, Bismarck announced that he would pay a pension to any nonworking German over age 65. Bismarck was no…

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