Tax planning financial tips for 2019
Even though you are just beginning to prepare to file your 2018 tax return, it is important to also be thinking about your 2019 return. The changes to the tax code that were signed into law in December 2017 will impact your 2018 return and provide better understanding of your potential 2019 tax situation. Fortunately, it is the beginning of the year, so you have plenty of time to plan for 2019. At Financial Strategies, we believe that you absolutely should pay taxes. However, we also say that you should never pay a tax today that you can put off...
Saving for retirement when you’re in your 60s
Whether you’re looking forward to your last day of work or absolutely love what you do and aren’t in any hurry to retire, your 60s is a critical time to be thinking about retirement and financial freedom in concrete terms. Hopefully, you’ve been saving for retirement for many years. If not, you can certainly begin building your retirement savings, but it is very likely you will have to adjust your retirement date and your expectations for your future lifestyle. Either way, your 60s are a time to focus on your retirement game plan. Take a detailed inventory of your anticipated...
Saving for retirement when you’re in your 40s
According to the Transamerica Center for Retirement Studies, only 1 in 10 people in their 40s are “very” confident that they will be able to fully retire with a comfortable lifestyle. Although this statistic may seem sobering, it is important to remember that investors in their 40s are approximately halfway between their high school graduation date and their retirement date. Think back to your high school graduation. Does it seem like a long time ago? Remember, you have that much time ahead of you before retirement. There is no reason to lose hope. A comfortable retirement is possible. By focusing...
Year End Financial Planning Advice for 2018
2018 is coming to a close. While it is certainly a lot of fun to think about holiday parties, gifts, and time with family, it is also very important to remember to get your finances in shape for 2019 and beyond. Use this handy end of year checklist to prepare a financially successful 2019. Review your retirement plan contributions. If you’re able and haven’t maxed out your 401(k), now is the time to make an additional contribution. If you’ve maxed out your 401(k) and qualify for a Roth IRA, now is the time to start or max out that account....
3 Reasons Why You Should Choose a Fee-only Financial Planner
Most financial advisors are good people with good intentions. However, financial advisors are human and are subject to biases and influences just like any other person. Understanding how your financial advisor is compensated can help you evaluate the objectivity of his or her advice. We believe the best way to avoid biases and ensure our advice is always in our clients’ best interest is to service our clients using a fee-only advising model. We were one of the first fee-only financial planners in Milwaukee and have been members of the National Association of Personal Financial Advisors (NAPFA) since 1994. NAPFA...
Saving for retirement when you’re in your 50s
Your 50s is the time to think seriously about retirement planning. You’ve reached (or are close to reaching) your peak earning potential, hopefully you’ve found a satisfying and enjoyable career, and you have saved some money towards your post-employment life goals. Because you are closer to retirement, it is likely that you have a better vision of your retirement lifestyle. Although your exit from the workforce is still several years away, there are some important steps you can take while in your 50s to ensure your retirement plans allow you to have a comfortable retirement. Take inventory Now that you’re...
Saving for College vs. Saving for Retirement – What’s right for me?
Balancing saving for college with retirement savings is often a big concern for parents. According to a T.Rowe Price survey, 62% of parents are very/extremely concerned about saving for retirement and 58% have the same level of concern about saving for college. As with any other investment, planning ahead and understanding your options is the best way to achieve the desired outcome for both your retirement and your children’s education. While there is no one perfect solution for everyone, considering the following questions can help you balance saving for college with saving for retirement. How much assistance do you want...
First You Get Bored, Then You Become… Boring?
The idea of not working is hard to think about. Since the age of five, or even earlier, we have been going to school, and as soon as we are out of school we are looking for work and working. Whether you work in an office, outdoors, or as a stay-at-home parent, you are always working. So, what do you do when you leave work and the kids are grown? Imagine you are 30 years old. You are at a new job and working frantically to work your way up the ladder. You stay in the office from dawn to...
Is your financial advisor a fiduciary?
What is the fiduciary standard? Fiduciaries are regulated by the Securities and Exchange Commission (SEC) or a state’s securities regulators. No matter which governing body is overseeing the fiduciary, the goal is the same – to ensure the advisor places the interests of the client above his or her own interests. Fiduciaries have a duty of “loyalty and care,” which means that the advisor cannot buy securities for his or her own account prior to buying them for a client, and the advisor is prohibited from making trades that might result in higher commissions for the advisor or the advisor’s...
The Money Saving Challenge: 10 Ways to Get by on Less
In general, people spend considerably more than necessary. We spend money without even realizing how much we are spending. We leave the water running and our water bill goes up, or we buy an extra cup of coffee, or whatever little thing it may be. Overall, we spend money in unnecessary ways without realizing it. An easy way to save some money is to avoid this unnecessary spending. That is easier said than done. So many times, we spend the extra dollar without giving it a second thought. In order to spend money only where it is needed, it is...