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Projecting Health-Related Expenses in Retirement

In Asset Allocation, Retirement Planning by Chip Hymiller

For many, the largest unknown during retirement and a source of much concern and worry is the potential for “extraordinary”  health-related expenses.  These costs including Medicare, Medicare Supplement, prescription drug coverage, dental, vision and out-of-pocket costs (deductibles and co-pays) can vary greatly at an individual level. When working on a Retirement Feasibility or Portfolio Sustainability Analysis for clients, we are …

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Understanding Required Minimum Distribution (RMD) Rules

In Asset Allocation, Company News, General Financial Planning, Personal Financial Planning, Retirement Planning by Chip Hymiller

Required Minimum Distribution (RMD) Fast Facts: Required Minimum Distributions (RMDs) are based on: December 31st account values and… A person’s life expectancy There is currently no annual RMD requirement on Roth IRAs Neglecting to take a RMD can result in a penalty of 50% on the amount of the required to be withdrawn Required Minimum Distributions: A Deeper Look Those …

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Planning for Life in a Retirement Community—Things To Consider

In Asset Allocation, Company News, General Financial Planning, Retirement Planning by Chip Hymiller

There is no doubt that people are living longer and enjoying a higher quality of life in their retirement years.  Given the high demand of retirement communities, which can include independent living and assisted living alternatives, many are taking a proactive approach in evaluating and moving into these communities—prior to health changes that could warrant the necessity to move in. …

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A Look Back on Black Monday: October 19, 1987

In Asset Allocation, General Financial Planning, Investments, Market Review, Personal Finance, Personal Financial Planning, Retirement Planning, The Economy by Chip Hymiller

It’s hard to believe that it’s been 30 years since “Black Monday,” the day the stock market declined a whopping 22.6%! Although I was merely a sophomore in high school, I remember the day quite well.  Having my first real job and being a “saver” by nature, I had just become interested in investing.  I had recently invested in a …

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You are Never Too Old (or too Young) for a Roth IRA!

In Asset Allocation, General Financial Planning, Personal Financial Planning, Retirement Planning by Chip Hymiller

The ability to contribute to Roth IRAs can represent one of the most beneficial financial planning decisions that people can make for their future.  Roth IRAs were established by the Taxpayer Relief Act of 1997 and while most people are aware of the name, they may not be fully aware of all of the benefits. A Roth IRA is an …

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Estate Tax Planning: Be Proactive and Know Your Options

In Asset Allocation, Estate Planning, General Financial Planning, Retirement Planning by Chip Hymiller

The federal estate tax generally only applies to those who die with assets that exceed $5,490,000 (in 2017).  While only about 0.2% of the population is subject to the estate tax, those who are impacted can be faced with a significant estate tax liability as the estate tax rate quickly exceeds the 40% mark! Here is a simple example of …

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Sequence of Returns Risk: Considerations for New Retirees

In Asset Allocation, General Financial Planning, Investments, Retirement Planning, Tax by Chip Hymiller

Research has shown that the timing of one’s retirement can be important – especially as it relates to investment returns in the early years of retirement. Someone who retired just prior to the “Great Recession” could have experienced significantly larger portfolio “drawdowns” than someone who retired during a period of economic expansion and higher investment returns.

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Economic Snapshot

In Asset Allocation, Investments, Market Review, Retirement Planning, The Economy by Chip Hymiller

The Economic Snapshot is a sampling of a number of widely followed economic and financial market statistics.  Beacon Financial Strategies utilizes these and other economic indicators as a gauge of the general financial health of the economy when making investment decisions. The purpose of the information contained in this post is to provide you with a general gauge of domestic economic …

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Part 3: 10 Years From Retirement, What is Your Financial Focus?

In Asset Allocation, Personal Financial Planning, Retirement Planning, Tax by Chip Hymiller

This article is the third of a three part series titled: 10 Years from Retirement, What is your financial focus? In Part 1, we discussed the importance of tracking and managing your living expenses, as well as, making projections around how much you will spend in retirement.  We also stressed the importance of making strategic Social Security decisions. In Part 2, we explored pension decisions, …

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2017 Tax Law Changes

In Asset Allocation, Cash Flow and Budgeting, General Financial Planning, Personal Financial Planning, Retirement Planning, Tax by Chip Hymiller

Happy 2017! As we begin a new year, it’s always important to re-examine certain elements of your financial plan – especially things that relate to tax planning. Here are a few of the more common items that may impact your financial situation this year. Social Security & Medicare Part B For those receiving Social Security, there is a cost of living …

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Part 2: 10 Years from Retirement, What is Your Financial Focus?

In Asset Allocation, General Financial Planning, Retirement Planning by Chip Hymiller

In Part 1, we discussed the importance of tracking and managing your living expenses, as well as, making projections around how much you will spend in retirement. We also stressed the importance of making strategic Social Security decisions. In this article, we wanted to spend some time addressing pension decisions, ideas for strengthening your personal balance sheet and helping you think through how much money you will likely need during retirement.

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Part 1: 10 Years from retirement, what is your financial focus?

In Asset Allocation, Cash Flow and Budgeting, Personal Finance, Personal Financial Planning, Retirement Planning by Chip Hymiller

If you’re 10 years or so away from retirement, you’ve probably spent at least some time thinking about what your life will look like after retirement. How will you manage the transition? Will you travel, take up a new sport or hobby, or spend more time with friends and family? Should you consider relocating? Will you continue to work in some …

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Tax Free IRA Gifts To Charities Are Now Allowed

In Asset Allocation, Charitable Gifting, General Financial Planning, Retirement Planning, Tax by Chip Hymiller

For those of you who are charitably inclined and over the age of 70 ½, we have great news that could impact your charitable gifting strategy!  In December 2015, Congress made permanent the ability for taxpayers to divert their required minimum distribution directly to a qualified charity. The ability to make this charitable election, technically called a Qualified Charitable Distribution …

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Fiduciary Responsibility FAQ for 401k Plan Sponsors

In Asset Allocation, Corporate Sponsored 401k Plans, Retirement Planning by Chip Hymiller

The Employee Retirement Income Security Act of 1974 (ERISA) imposes strict standards of conduct on fiduciaries who have discretion over the administration and investment of 401(k) retirement plans and plan assets. ERISA and its fiduciary rules apply to defined contribution plans like 401(k) plans, ERISA 403(b) plans and also defined benefit plans. Who are plan fiduciaries to 401(k) plans? Basically, …