CategoriesFinancial QB TV Videos, Income Planning, Retirement Income by

Medicare and Income; Be Careful Taking that IRA Distribution

When people retire, they often wonder what to do with the money in their 401(k) from their former employer. Be careful about withdrawing all the money at once just because you can. While there’s no tax penalty for withdrawing after age 59 ½, taking a large amount at once can impact your Medicare costs if you’re over 63. Read More

CategoriesAsset Allocation, Capitalism, Economics, Financial Planning, Financial QB TV Videos, Retirement, Risk by

3 Government Policies that Destroy Retirement

As a financial advisor, I’m sometimes told to be ‘neutral’ about politics when discussing your money. But when it comes to securing your financial future, there’s no room for gray areas. Let’s talk straight about three policies that, no matter who promotes them, won’t help you retire better.

Higher Taxes: There’s simply no way that paying more taxes will increase your returns or improve your retirement lifestyle. More taxes only mean more of your hard-earned money out the door and less for you to enjoy life.

Regulations in Banking and Investments: The more the government steps into the financial industry, the harder—and more expensive—it becomes for you to grow your wealth. This only distorts markets, raises your costs, and puts your retirement at risk.

Inflation: Inflation isn’t a mysterious force—it’s a result of government policies and printing money. When inflation rises, your dollar buys less, making everyday life, not to mention retirement, more expensive.

You deserve an advisor who’s not just going through the motions but actively working to reduce taxes, boost returns, and protect your freedom to live the life you envision. Retirement should be about what you want, not what gets taken from you.

 

 

 

 

CategoriesFinancial Planning, Financial QB TV Videos, Retirement, Retirement Income by

Retired and Buying A Car? This Can Help You Decide.

Life still happens in retirement and at some point you will need a newer car. When deciding whether to buy a new or used car, it’s essential to weigh the pros and cons of each. Let’s break down the key factors:

  1. Depreciation
    • New Car: The moment you drive a new car off the lot, it loses a significant portion of its value—around 20-30% in the first year. While you get the latest technology and features, you’re also paying a premium for that newness.
    • Used Car: A used car has already gone through its biggest depreciation phase, which means you avoid the steep drop in value. Buying a car that’s a few years old can give you nearly the same benefits as a new car at a much lower price.
  2. Reliability & Warranty
    • New Car: Buying new means you get the manufacturer’s full warranty, which can give peace of mind for several years, and you know the car hasn’t been in any accidents or mishaps.
    • Used Car: While older cars may require more maintenance, many come with certified pre-owned (CPO) warranties. With the proper research, a used car can still be highly reliable, and you may even find models with the remainder of the original warranty.
  3. Cost
    • New Car: New cars typically come with higher price tags and higher insurance premiums. You’re also likely to pay higher taxes on a new car.
    • Used Car: Buying used means you’re getting a vehicle at a lower price, which can reduce your overall expenses. In addition to a lower purchase price, insurance is generally less expensive.
  4. Financing Options
    • New Car: Dealers often offer lower interest rates or special financing deals on new cars.
    • Used Car: Interest rates for used cars are usually higher, but since the initial cost is lower, the total amount financed is still smaller.

Should You Pay Cash for a Vehicle?

Paying cash for a car can be a smart financial move if you have the funds available. Here’s why:

  1. Avoiding Interest
    When you pay cash, you don’t have to worry about paying interest on a loan, which can save you thousands of dollars over time. This keeps the true cost of the vehicle lower.
  2. No Monthly Payments
    Paying in cash means you own the car outright, and you won’t have to deal with monthly car payments. This frees up room in your budget for other financial goals or unexpected expenses.

However, paying cash might not always be the best option:

  • Depleting Savings: If paying for a car in full would significantly drain your savings or emergency fund, financing may be the better option. A low-interest loan could allow you to keep cash on hand for other needs.
  • Investment Opportunities: If you can secure a low-interest rate on a car loan, it might be wiser to finance the car and invest the money you would have used. If your investments earn a higher return than the loan’s interest rate, financing is a better choice.

There is no one-size-fits-all answer to whether buying new or used is better or if you should pay cash. It ultimately depends on your financial situation, priorities, and long-term goals. For those looking to minimize costs, a used car and paying in cash often make sense. If you want the latest features and a full warranty, a new car with financing may be the right choice.

Confused on how to make the best decisions towards your retirement and making sure those decisions will allow you to stay retired? Make sure to contact me.

 

 

 

 

 

 

 

 

 

 

 

CategoriesCapitalism, Economics, Financial QB TV Videos, Retirement Income by

Why Taxing Unrealized Gains is Absurd

There has been increasing talk of taxing unrealized capital gains, especially targeting individuals with assets over $100 million. While this might sound like a good way to ensure the ultra-wealthy pay their “fair share,” there are significant downsides to this approach. Lets explore three reasons why taxing unrealized gains is wrong and how it could eventually affect everyday investors if the policy trickles down. Read More

CategoriesFinancial Planning, Financial QB TV Videos, Retirement, Retirement Income, The Stock Market by

The Declining Financial Security of Retirees in Today’s Economy

In just four years, the financial landscape for retirees has shifted dramatically, placing many in precarious situations. While retirement was once a time to enjoy the fruits of decades of labor, today’s retirees are finding themselves navigating a sea of economic challenges that threaten their financial stability. The rising cost of living, the inflated costs of maintaining home equity, and the volatile stock market are all contributing factors. These challenges make it clear that retirees are worse off today than they were just a few years ago. Read More

CategoriesFinancial QB TV Videos, Investor Education, Retirement Income by

Do Elections Affect Your Retirement?

As election seasons roll around, the political climate intensifies, bringing with it a wave of speculation and uncertainty. Many people find themselves wondering if the outcome of elections will impact their retirement plans. While it’s true that elections can influence various aspects of the economy and financial markets, the real issue often lies in the sentiment and security of the retiree. Here, we will explore three key areas where elections might affect your retirement and emphasize that proper planning is the best way to prepare for post-election changes. Read More

CategoriesFinancial Planning, Financial QB TV Videos by

Understanding Financial Advisor Compensation: No Moral High Ground

When it comes to hiring a financial advisor, understanding how they get paid is crucial. The compensation structure not only influences their advice but can also affect your financial outcomes. However, one should not assume that any particular compensation method holds a moral high ground over another. Let’s explore the various ways financial advisors charge for their services and why none inherently stands as more ethical than the others. Read More