retirement income Archives - The Segrust Group

Volatility Do’s and Dont’s

May 20, 2023May 20, 2023Cliff Cadle

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...

Closing a Retirement Income Gap

March 3, 2015March 19, 2021Cliff Cadle

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,...

Pay Down Debt or Save for Retirement?

November 4, 2014March 19, 2021Cliff Cadle

The most important decision you can make is to take action and get started now. The sooner you decide on a plan, the sooner you can begin to make progress. If you decide to prioritize paying down debt, make sure you put in place a mechanism that automatically directs money toward the debt so you won’t be tempted to skip or reduce payments. Pay Down Debt or Save for Retirement? You can use a variety of strategies to pay off debt, many of which can cut not only the amount of time it will take to pay off the debt but also the total interest paid. But like many people, you may be torn between paying off debt and the need to save for retirement. Both are important; both can help give you a more secure future. If you’re not sure you can afford to tackle both at the same...

Retirement Income Investing: Beyond Annuities

October 13, 2014March 19, 2021Cliff Cadle

Retirement Income Investing: Beyond Annuities One of the challenges of investing during retirement is providing for annual income while balancing that need with other considerations, such as liquidity, how long you need your funds to last, your risk tolerance, and anticipated rates of return for various types of investments. Annuities may be seen as a full or partial solution, since they can offer stable income or guaranteed lifetime payments (subject to the claims-paying ability of the issuer). However, they’re not right for everyone. A well-thought-out asset allocation in retirement is essential. While income investments alone are unlikely to meet all your needs, it’s important to understand some of the most common non-annuity investments that can provide income as part of your overall investment strategy. Bonds: retirement’s traditional backbone A bond portfolio can help you address investment goals in multiple ways. Buying individual bonds (which are essentially IOUs) at their...

A Retirement Income Roadmap for Women

September 19, 2014March 19, 2021Cliff Cadle

More women are working and taking charge of their own retirement planning than ever before. What does retirement mean to you? Do you dream of traveling? Pursuing a hobby? Volunteering your time, or starting a new career or business? Simply enjoying more time with your grandchildren? Whatever your goal, you’ll need a retirement income plan that’s designed to support the retirement lifestyle that you envision, and minimize the risk that you’ll outlive your savings. When will you retire? Establishing a target age is important, because when you retire will significantly affect how much you need to save. For example, if you retire early at age 55 as opposed to waiting until age 67, you’ll shorten the time you have to accumulate funds by 12 years, and you’ll increase the number of years that you’ll be living off of your retirement savings. Also consider: The longer you delay retirement, the...

Retirement Advisor Council: The Retirement Plan Sponsor

March 31, 2014March 19, 2021Cliff Cadle

Retirement Plan Sponsor Series: Partner with a Professional Retirement Plan Advisor and Achieve Higher Participant Retirement Readiness Scores A fundamental research study of 400 employers that sponsor a 401(k) or 403(b) plan found that sponsors who partner with a Professional Retirement Plan Advisor enjoy superior outcomes in many areas. In particular, partnering with a Professional Retirement Plan Advisor entirely dedicated to retirement plans helps plan sponsors enhance the retirement readiness of employees. Professional Advisors Enhance Participant Retirement Outcomes Enhancing the retirement preparedness of plan participants is a primary objective of many plan sponsors. Increasingly, sponsors look to their Advisor and service provider to keep participants apprised of personal progress toward achieving retirement readiness. The study provides evidence partnering with an Advisor entirely dedicated to retirement plans may confer plan sponsors an edge: The vast majority of participants in plans that partner with such an Advisor receive an indicator of their personal retirement readiness. Going one step further, most sponsors partnering with an Advisor entirely...

Social Security Claiming Strategies for Married Couples

April 17, 2013March 19, 2021Cliff Cadle

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...

Reverse Mortgages

October 26, 2012March 19, 2021Cliff Cadle

What are reverse mortgages? Older individuals who own their homes often find themselves “house rich and cash poor.” Developed to address this dilemma, a reverse mortgage provides funds–all at once or over time–to an older homeowner by drawing against the equity built up in the residence. Unlike “forward” mortgages, reverse mortgages are not repaid on a monthly basis. The total loan (including the accumulated interest) is repaid when the last surviving borrower sells the home, permanently vacates the property, or dies. In most cases, the funds the homeowner receives may be used for any purpose: to supplement a fixed income, to pay for at-home medical care, or to see the world. For an individual facing a retirement income shortage or an increased dependency on medical care, reducing home equity with a reverse mortgage may be preferable to selling the home to raise much-needed cash. A reverse mortgage can have drawbacks,...