Retirement planning is a complex puzzle, and structuring your retirement income is one of its most critical pieces. With life expectancies increasing and economic uncertainties persisting, ensuring a sustainable income stream throughout retirement is more challenging than ever. Numerous strategies and “rules” have emerged to guide retirees in managing their finances, such as the Rule of 240 Paychecks, the ‘Die With Zero’ Rule, the Rule of 1,000 Hours, the Rule of Four Futures, the Rule of $1,000, the Rule of 55, the 80% Rule, the 4% Rule, and the Rule of 25. Each offers a unique perspective on how to approach retirement income, from withdrawal rates to early retirement funding. While these rules provide valuable frameworks, they often overlook critical realities about retirement that can make or break your financial security. This article explores these strategies and emphasizes the importance of a balanced income approach, the unpredictability of life expectancy, and the non-linear nature of retirement. Read More
More Americans than ever are living longer lives. But with longer life comes a higher risk of neurological diseases—especially Alzheimer’s and Parkinson’s. These conditions not only affect memory and movement, but they also come with long-term care needs that can drain both your finances and your quality of life. Read More
Traditionally, retirement meant stopping work entirely around age 65 and relying on pensions and Social Security. However, as pensions become rarer and life expectancy increases, many are reconsidering their approach. The COVID-19 pandemic also reshaped the workforce, prompting some to retire early while others delayed retirement to navigate economic uncertainty. In 2023, workforce participation among those 65 or older exceeded 20% for the first time in over 50 years, highlighting a shift toward extended employment.
For those not ready to stop working completely, phased retirement offers a smoother transition, providing financial stability and an opportunity to adjust emotionally and socially to post-work life. Read More
Political news is everywhere, dominating conversations and stirring emotions. It’s tempting for investors to react to these developments, whether it’s debates over tariffs, inflation concerns, or discussions about immigration policies. But making changes to your portfolio based on political headlines—or what you think might happen—is rarely a wise move. Read More
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
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:
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.
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.
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.
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:
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.
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.
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
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
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
In recent years, discussions about inflation have dominated headlines, kitchen tables, and policy debates alike. A key factor in these discussions is the role of minimum wage increases, often overlooked amidst broader economic narratives. As voters, we play a pivotal role in shaping the economic landscape, including decisions on minimum wage policies. This blog aims to shed light on how voting for higher minimum wages can influence inflation and, subsequently, the cost of everyday goods and services.
Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power. While it is influenced by a multitude of factors, one of the more direct factors is the cost of labor—specifically, the minimum wage. Read More
