(866) 966-9724

Category: Retirement Planning

Mutual Funds vs. ETFs vs. Hedge Funds

Differentiating the Major Fund Types

There comes a time in many conversations I have, where I can see the nervousness build. When I see that happen, I know exactly what is going on.  There is a question about an investment or strategy, but they are afraid to ask it. Maybe it’s out of fear of looking uninformed. Maybe it’s out of fear of the answer itself. Either way, I would like to tell you now, loud and clear: PLEASE ASK ME! I love answering your questions. It’s literally why I do what I do. I want to help people solve problems and put them on a solid financial path. So, in this vein, let me answer a common question, you may be afraid to ask. What differentiates Mutual Funds, Exchange Traded Funds (ETFs), and Hedge Funds? A Mutual Fund is a company. That’s the best way to think about it. That company owns securities, such...

Continue reading
Debt ceiling update

Debt Ceiling Update

On May 1, the Secretary of the Treasury informed Congress that the U.S. could default on its debt by June 1 if legislators do not raise the nation’s debt ceiling.1 This announcement was not a surprise.  The U.S. officially hit the debt ceiling in January but were able to stave off any immediate effects through the use of “extraordinary measures.”  (These are essentially accounting tools the government can use to pay its bills without authorizing any new debt.)  The Secretary’s recent message was to let Congress know those measures are close to being exhausted.  Without raising the debt ceiling, the U.S. will not have the money it needs to pay its debts.  Should a default actually happen, the economic consequences could be severe.  But even if Congress staves off the unthinkable, simply going down to the wire can have negative effects on the markets.  To explain why that is, it’s...

Continue reading
Market volatility newspaper article

Volatility Do’s and Dont’s

Between rising interest rates and a recent spate of bank failures, there’s a lot of uncertainty in the economy right now.  This, in turn, has brought volatility back to the markets.  It’s no surprise, then, that many of my clients, friends, and family have asked me what investors should be doing about it.  So, I thought I would write it down: Five Do’s and Don’ts During Times of Market Volatility 1. DON’T panic and make emotional decisions.   During times of uncertainty or fear, humans are prone to make decisions based on their “fight or flight” response.  Yes, this is even true of our financial decisions!  When market volatility strikes, many people make knee-jerk decisions simply so they can feel like they are doing something.  So they can feel “in control.”  But think about when you’re driving a car, and you see an animal in the road.  What happens when...

Continue reading

Frustrated Yet?

If you are paying any attention to the news or even just the conversations wafting through the office, you have heard the concerns regarding the world and domestic economy. Inflation is the highest it has been in decades – meaning EVERYTHING costs more – and retirement accounts are being hammered by it all, begging the question… FRUSTRATED YET? If you’re like most investors, the answer is an emphatic YES!  But then the real question, especially after the recent market uncertainty and volatility, is “What can you do about it?” While we at the Segrust Group don’t pretend to have all the answers, our clients—people just like you—would tell you that we have enough to take away the frustrations.  The good news is, «Salutation», my team and I are here to help our clients navigate the current market environment. (Following is an example of how this letter should be customized for...

Continue reading

Closing a Retirement Income Gap

When you determine how much income you’ll need in retirement, you may base your projection on the type of lifestyle you plan to have and when you want to retire. However, as you grow closer to retirement, you may discover that your income won’t be enough to meet your needs. If you find yourself in this situation, you’ll need to adopt a plan to bridge this projected income gap.    Delay retirement: 65 is just a number One way of dealing with a projected income shortfall is to stay in the workforce longer than you had planned. This will allow you to continue supporting yourself with a salary rather than dipping into your retirement savings. Depending on your income, this could also increase your Social Security retirement benefit. You’ll also be able to delay taking your Social Security benefit or distributions from retirement accounts. At normal retirement age (which varies,...

Continue reading

Wealth Due to Inheritance

What is it? Introduction If you’re the beneficiary of a large inheritance, you may find yourself suddenly wealthy. Even if you expected the inheritance, you may be surprised by the size of the bequest or the diverse assets you’ve inherited. You’ll need to evaluate your new financial position, learn to manage your sizable assets, and consider the tax consequences of your inheritance, among other issues. Issues that arise in connection with an inheritance If you’ve recently received a bequest, consider the possibility that the will may be contested if your inheritance was large in comparison with that received by other beneficiaries. Or, you may decide to contest the will if you feel slighted. If you’re the spouse of the decedent, you may elect to take against the will. Taking against the will means that you’re exercising your right under probate law (governed by the statutes of your state) to take...

Continue reading

Members of the Military: Personal Financial Planning

Service branches offer campaigns and educational programs to service members and their families. The Air Force, Navy, and Army each require that respective members receive financial education, training, and counseling. Also, the Department of Defense established MilitarySaves.org to help service members and their families plan for their financial futures. Special Savings Program If you’re deployed in a designated combat zone or in support of a contingency operation, you have a unique chance to earn a high interest rate by participating in the Defense Department’s Savings Deposit Program (SDP). The SDP pays 10% annual interest on account balances up to $10,000. Contact your local military office for more details. Other survivor benefits Death Gratuity pays a one-time lump sum to eligible beneficiaries of a service member who dies within 120 days of retirement, or as a result of non-hostile action, or as a result of hostile action in a designated combat zone...

Continue reading

Healthcare in Retirement

What health care benefits are available in retirement? Health care in retirement is available from many sources. Government programs (such as Medicaid and Medicare) offer numerous health care benefits. However, you may need to purchase supplemental health insurance or Medigap, as well. Most Americans are eligible to begin receiving Medicare benefits at age 65, but qualifying for Medicaid may require some planning on your part. In addition to these resources, you may also be entitled to military health care benefits if you are a veteran, retired servicemember, or the spouse or widow of a veteran or retired servicemember. Continuing care retirement communities and nursing homes also offer health care services for older individuals. Depending on your specific needs and circumstances, you may use any number of these resources during your retirement years. Medicare In general Medicare is a federal health insurance program created in 1965. Medicare primarily assists those who...

Continue reading