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Planning an Early Retirement? Key things to consider.

A Change in Retirement Culture

Various factors are redefining how Americans approach retirement. We’re discovering more and more people are redefining the term ‘retirement.’ Many are no longer riding off into the sunset, never to work again. Maybe it’s due to the pandemic, out of financial necessity, or sometimes an overabundance of leisure time, but some retirees are now beginning to return back to the workplace. Many retired executives are starting their own part-time consulting businesses, for example.

Part-time work during retirement may be worth consideration as a part of your overall financial plan. This is especially important if you plan to retire early.

How long will your money last?

Another interesting factor that is redefining retirement is that life expectancies continue to increase over
time. For some, spending one-third of their lives in retirement is a possibility. Relying on qualified retirement plans and Social Security will be increasingly difficult. These retirement programs were not designed to provide perpetual income. Adding to the dilemma of increased longevity, qualified retirement plans have gradually shifted the savings responsibility from employers to employees.

Thus, your retirement assets as well as personal savings are in your hands. They will have to work longer
and harder to help fulfill your objectives, regardless of whether you retire early or not.

Wondering how your retirement plan stacks up? Schedule a Complimentary Call today!

Go it alone or hire a professional?

An often overlooked aspect of retirement planning is money management once retirement has begun. To
ensure that you have adequate retirement assets, your money may have to continue working for you
throughout your retirement years. In addition, consider inflation along with the amount of withdrawals from your qualified plans. Other assets will have a direct impact on the longevity of your retirement assets.

It is also important to note that early retirement may incur certain tax penalties on early withdrawals from retirement plans. All options need to be investigated. Before taking action consult your professional tax, legal, and financial advisors to determine the overall impact on your long-term financial goals.

Get Involved!

For many people, financial planning and part-time work have become essential components of a
comfortable retirement. By maximizing your personal savings you will increase your chances of reaching
your retirement goals. Remaining active and focused on your retirement objectives is particularly important if you are contemplating or are forced into early retirement.

Want to discuss these concepts, or your specific situation? Schedule a Complimentary Call today!

Parents Day is Tomorrow: How to Financially Care For You, Your Kids & Your Parents

July 24, 2021/in Budgeting, Children, Financial Planning, Savings Tips /by Jamie M. Lima, MBA, CFP®

Since 1994, the fourth Sunday in July has been celebrated as National Parents Day. This holiday was established with the purpose of “recognizing, uplifting, and supporting the role of parents in bringing up their children.”¹ As a parent, you have one of the most important jobs in the world – raising and encouraging the next generation. Some parents, however, may find that they’re sandwiched between raising their kids and caring for older loved ones. Aptly named the “sandwich generation,” those in their 40s and 50s may be feeling the pressure of being stuck in the middle. In fact, a recent study suggests almost half (47 percent) of adults are a part of the sandwich generation.²

If you’re a loving parent and adult child caring for parents of your own, how do you strike a balance between your financial wellbeing, your child’s needs and your parents?

5 Ways a Financial Advisor Can Bring Value to Your Post-COVID Life

July 15, 2021/in Behavioral Finance, Financial Planning /by Jamie M. Lima, MBA, CFP®

The events of last year may have taken a toll on your financial situation. For those who had a financial advisor during that time, they were guided through all the ups and downs of the market and their personal financial lives. If you are getting back into the swing of things, a financial advisor could be just what you need. We’ve identified five ways that a financial advisor can be valuable to you during the transition to a post-COVID life.

Getting a Divorce? Prepare for These 4 Financial Challenges

July 9, 2021/in Behavioral Finance, Budgeting, Divorce, Financial Planning, Taxes /by Jamie M. Lima, MBA, CFP®

Divorce is not only taxing emotionally and physically, but it can take a toll on both parties financially as well. You and your spouse will need to make decisions that not only affect you right now but also in the future. When it comes to the financial impact, here are some of the biggest challenges you may experience during a divorce.

2021 Is Halfway Over: How to Conduct a Mid-Year Financial Checkup

July 6, 2021/in Behavioral Finance, Budgeting, Financial Planning, Investments, Retirement Planning, Tax Management /by Jamie M. Lima, MBA, CFP®

Summer is finally in full swing, meaning we’re already about halfway through 2021. After a year like no other, we’re all excited to enjoy the warm weather with friends and family. If you have some time over the coming weeks, take a moment to slow down and check up on your financial wellbeing.

Here are six things you can do right away to make sure your goals are being met and your finances are in good shape before heading into the second half of 2021.

5 Ways to Find Your Financial Independence This Year

July 3, 2021/in Budgeting, Financial Planning, Investments /by Jamie M. Lima, MBA, CFP®

The Fourth of July is an exciting holiday that marks the independence of our nation with the signing of the Declaration of Independence. As you celebrate with hot dogs, fireworks and pool parties this year, consider this: 2021 could be your year to start finding financial freedom of your own.

Achieving financial independence is a goal that almost everyone has. It brings you the personal freedom to do what you want. For most Americans, however, debt is a significant roadblock. In fact, the average adult has around $90,460 in debt.¹ This includes all types of consumer debt such as credit cards, personal loans, student loans, mortgages and auto loans.

The good news is, there are strategies to pay down debt and work toward financial independence. How can you do this? Here are five actionable ways to start working towards more financial freedom this year.

Understanding Inflation: What Investors Need to Know

June 29, 2021/in Financial Planning, Investments /by Jamie M. Lima, MBA, CFP®

Following a year of economic instability, it appears that many of us are turning our attention to something that’s been around for decades, but has recently piqued national interest – inflation. In fact, a recent study found that people are Googling the word “inflation” at a rapid rate, with a peak not seen since 2008.¹

Since the start of the COVID-19 pandemic, six major stimulus bills totaling around $5.3 trillion have passed. With these efforts to alleviate pandemic-fueled financial strife, are inflation levels being impacted?

Fed Chair Jerome Powell has said that inflation is likely to pick up as the economy recovers from the pandemic, but he believes it will be temporary. Powell has also stated that the central bank plans to keep short-term rates anchored near zero through 2023.²

As you consider any potential changes to inflation we may be seeing this year, here’s a reminder about what inflation is and how it can affect you and your investments.

Hiring an Advisor? Here are 3 Reasons Fee-Only Advisors are Different

June 22, 2021/in Financial Planning /by Jamie M. Lima, MBA, CFP®

Considering hiring an advisor? Here are a few reasons why a #feeonly advisor can save you money and some headaches.

Interest rates remain low. Should you refinance? 3 Things to Consider…

June 22, 2021/in Budgeting, Financial Planning, Interest Rates, Real Estate /by Jamie M. Lima, MBA, CFP®

If you purchased your house when interest rates were higher than current record lows, you might be wondering: should I refinance? You’d think the answer would be simple: a lower interest rate is better, right?

However, the right choice really depends on your situation.

And with the way fees and mortgage interest work, a refinance can sometimes be a bad deal.

Here are some key questions to consider:

Did You Know a Digital Detox Could Improve Your Finances? Here Are 5 Tips to Help Reset Your Spending Habits

June 13, 2021/in Behavioral Finance, Budgeting, Financial Planning /by Jamie M. Lima, MBA, CFP®

Smartphone usage increased dramatically during pandemic as more people lost their jobs, were furloughed or adhering to stay-at-home orders.

While smartphones can provide endless entertainment, they can also be bad news for your budget. In fact, the combined global monthly amount that consumers spent on apps and games peaked in May 2020 at $9.4 billion, a 25 percent gain on the monthly average in 2019.¹

While that’s all fun and games (no pun intended), it may be time to do a “digital detox.” Here’s why it could be good for you mentally and financially, plus five tips to help yourself unplug.