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Tag: financial security

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...

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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...

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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...

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Planning for Marriage: Financial Tips for Women

  Planning for marriage should involve more than just picking out invitations and deciding whether you should serve chicken or fish at the reception. More importantly, you’ll want to take a look at how marriage will impact your financial situation. And while there are a number of issues you’ll need to think about, careful planning can increase the likelihood that you’ll have financial success as you enter this new chapter in your life. Consider a prenuptial agreement If either you or your future spouse has or may inherit substantial assets, or if either of you has children from previous marriages, you may want to consider a prenuptial agreement. A prenuptial agreement is a binding contract between future spouses that defines the rights, duties, and obligations of the parties during marriage and in the event of legal separation, annulment, divorce, or death. A prenuptial agreement typically addresses the following areas: Assets...

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Social Security Claiming Strategies for Married Couples

Deciding when to begin receiving Social Security benefits is a major financial issue for anyone approaching retirement because the age at which you apply for benefits will affect the amount you’ll receive. If you’re married, this decision can be especially complicated because you and your spouse will need to plan together, taking into account the Social Security benefits you may each be entitled to. For example, married couples may qualify for retirement benefits based on their own earnings records, and/or for spousal benefits based on their spouse’s earnings record. In addition, a surviving spouse may qualify for widow or widower’s benefits based on what his or her spouse was receiving. Fortunately, there are a couple of planning opportunities available that you may be able to use to boost both your Social Security retirement income and income for your surviving spouse. Both can be used in a variety of scenarios, but...

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The Sandwich Generation: Juggling Family Responsibilities

  At a time when your career is reaching a peak and you are looking ahead to your own retirement, you may find yourself in the position of having to help your children with college expenses while at the same time looking after the needs of your aging parents. Squeezed in the middle, you’ve joined the ranks of the “sandwich generation.” What challenges will you face? Your parents faced some of the same challenges that you may be facing now: adjusting to a new life as empty nesters and getting reacquainted with each other as a couple. However, life has grown even more complicated in recent years. Here are some of the things you can expect to face as a member of the sandwich generation today: Your parents may need assistance as they become older. Higher living standards mean an increased life expectancy, and you may need to help your...

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The Traits of a Good Investor and How Women Can Make the Most of Them

Women are increasingly taking responsibility for managing their own money. That includes those who in the past may have left investing to a spouse because they were busy raising a family or had no interest in the subject, but who have since found that divorce, a spouse’s death, or the need to help a parent have forced them to learn some investment basics. However, many women, including high-level professionals who are experts in their field, may not feel confident about their investing abilities.If you’re one of them, you may have more going for you than you think. Traits such as patience, willingness to confront and deal with mistakes, and recognizing when help is needed can benefit portfolio returns, particularly for a long-term investor. Even risk aversion, sometimes a problem for women who are concerned about their investing abilities, can be an advantage if it’s applied wisely. Feel you aren’t as...

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Social Security: What Should You Do at Age 62?

Is 62 your lucky number? If you’re eligible, that’s the earliest age you can start receiving Social Security retirement benefits. If you decide to start collecting benefits before your full retirement age, you’ll have company. According to the Social Security Administration (SSA), approximately 74% of Americans elect to receive their Social Security benefits early. (Source: SSA Annual Statistical Supplement, 2012)Although collecting early retirement benefits makes sense for some people, there’s a major drawback to consider: if you start collecting benefits early, your monthly retirement benefit will be permanently reduced. So before you put down the tools of your trade and pick up your first Social Security check, there are some factors you’ll need to weigh before deciding whether to start collecting benefits early. What will your retirement benefit be? Your Social Security retirement benefit is based on the number of years you’ve been working and the amount you’ve earned. Your...

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The Retirement Income Gender Gap – Dealing with a Shortfall

When you determine your retirement income needs, you make your projections based on the type of lifestyle you plan to have and the desired timing of your retirement. However, you may find that reality is not in sync with your projections, and it looks like your retirement income will be insufficient to meet your estimated expenses during retirement. This is called a projected income shortfall. There are many reasons why women, on average, are more likely than men to face a retirement income shortfall. Because women’s careers are often interrupted to care for children or elderly parents, they may spend less time in the workforce. When they’re working, women tend to earn less than men in similar jobs, and they’re more likely to work part-time. As a result, their retirement plan balances and Social Security benefits are often smaller. Compounding the problem is the fact that women often start saving...

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