Retirement Compass

Tim discusses some of the top financial news from late May. The Stonebridge team can help with their various accounts in putting together a set financial plan for retirement The big current issue is the debt ceiling debate which was before Congress at that time. Back at 2011 when this issue was up again and how the market was affected by a brief government shutdown while the ceiling was worked out  There also is recent news that parents are continuing to spend down their retirement savings early to help out their children with things like house payments and other issues

Prices are going to be up for nearly everything involving vacation planning for this summer - hotels, airfare, meals, etc. But taking that summer trip should still be on your agenda. Tim and Jeff discuss why this is important. Getting away from work is good for the mind. Tim says there are many things to do that aren't extravagant or expensive, such as going to a nearby lake Jeff says you can check for deals that could make your trip less costly, such as when airline flights occur that could save money by staying an extra day  Planning for retirement is just as important as planning a vacation, and like travel planning, sometimes a small tweak can make a big difference PLUS - at the end, since this originally aired on Mother's Day weekend, Tim suprises his mother with an on air phone call to wish her a happy Mother's Day.

The so-called Baby Boomer generation has been retiring for a number of years, but the next group, referred to as Gen X, is on the cusp of their retirement years. This podcast focuses on the latter group and the preparations they need to make in planning for life after working.            It is never too early to prepare for retirement, but people looking to retire in the coming year or two need to get their plans in order, or start putting one together, so that their retirement savings can be put to work in the areas where they are most needed           Social Security as it stands now shouldn't be a factor for boomers, but for younger retirees, there may be changes such as delaying the full retirement age and/or older age for maximum benefits, or perhaps even reduced benefits           Two things which can help anyone planning for retirement are taking advantage of catch up contributions for those over age 50, and tax planning so that withdrawals of funds from any type of account can be made as tax efficiently as possible. This might include doing Roth conversions and pay taxes now at potentially lower rates in exchange for tax free withdrawals in the future

Remember that 80's phenomenon the Rubik's Cube, the six sided puzzle where you need to make every side the same color. There are a lot of parts to get right, and retirement planning can be the same way. Tim and Jeff discuss how this analogy fits and how the pieces can be arranged so that your retirement plan - i.e. Rubik's Cube - can be solved correctly. Takeaways All the pieces of a Rubik's Cube, or any other puzzle for that matter, need to properly fit together. And so it is with retirement planning, where income needs to be coordinated with taxes, as well as Medicare and other benefits The growth vs. safety battle is a constant retirement planning issue. How much of each does your plan need? And how do those needs change as you get older? A good advisor can recognize what you need and can help make sure your money is properly arranged so that you have the right balance Income and tax strategies can affect other areas of planning, such as the cost of Medicare premiums that are income based if yours is too high. Also, the right charitable giving strategies can bring down the amount of Federal income tax you need to pay. So many aspects of the plan affect the other areas, which is why all the pieces need to be arranged in a way that makes it work for you

Retirement comes with a lot of potential risks, but two stand out – longevity and health care – because they are big unknowns. Jeff Gove addresses these as well as more known factors such as taxes and being prepared.   The Retirement Compass process takes planning into account through age 95 to address the issue of longevity. Their software gives a probability of success for each individual plan Health care is expensive and Medicare plans have numerous options available – one of which can fit any situation. However, long term care is not covered by Medicare and needs to be addressed separately Most people don't think about control of taxes, but in retirement you can determine when and how you can pay them. You also have control of your tax bracket, which will help determine the amount of taxes you pay

Tim and Jeff, along with Scott Nachtigal, are the three founders of Stonebridge Insurance and Wealth Management. This episode talks about their background, how Stonebridge got started and how each came to become part of the team, as well as their personal lives and families. Jeff originally wanted to go into the medical field. After some time in the service, in college at Evangel in Springfield, Missouri, and managing a local motel, he got a job with a financial services business in Kearney, Nebraska. Eventually he, along with Tim and Scott, who were co-workers, left that business to start Stonebridge. Tim graduated with a degree in finance from the University of Nebraska at Kearney. He, along with Jeff, is a Kearney native. He came to join Jeff and Scott while attempting to sell them advertising for a student publication at UNK. He works in the branch office in Lincoln while Jeff and Scott maintain the main office in Kearney as well as a branch in Grand Island. Stonebridge is not only a wealth management group, but also a full service insurance agency, not only with financial services but also with car, home, and other common types of insurance as well as with Medicare. They wanted to provide clients with plans to fit their financial and retirement needs, not just products or investments.

Today Tim and Jeff discuss the Stonebridge Retirement Compass, their way of formulating a complete retirement plan for each individual client, and the five components of it - income, growth, tax, health care and estate/legacy planning. The process was developed because the Stonebridge team to wanted to show folks that there is more to retirement planning than just investments. Clients who contact Stonebridge want to find out more about tax planning or Social Security strategies that their current advisor or CPA doesn't or can't provide information on. The Retirement Compass can help them with these issues and other details about a comprehensive plan which addresses these needs and many others. Income can affect the cost of Medicare premiums as well as taxes. The Retirement Compass takes these things into account so that people are not paying more than they need to for each of these things, which helps keep more money in their own pocket, not the government's.

Tim and Jeff interview Miguel Rios, a product specialist and research strategist with Blue Rock about the Total Income and Real Estate Fund. Takeaways The fund is set up for income and capitol appreciation. In its ten year history, the fund has paid a quarterly dividend averaging 5.25% annual interest It primarily invests in real estate of all kinds, commercial and residential The main differences between this fund and typical mutual funds concern the amount of illiquid securities it can invest in – 95% as opposed to 15% in a typical mutual fund – and also features regular intervals for liquidity, as opposed to the daily liquidity found in regular mutual funds

Today Tim and Jeff are joined by Alex Bobbin, a senior investment analyst at Brookstone Capitol Management. Takeaways The main topic is called a structured note, which is an alternative investment that combines a zero-coupon bond with an options package. They are positioned for investors primarily for income production There are two versions with different call dates. But each follows a stock index that can pay from 7-14% with a lower degree of risk than traditional stock or bond investments Risks involved include issuer risk involving the banks that issue these notes, market risk in case it drops more than thirty percent, liquidity risk and there is a cap on the percent of gain if the market index goes higher than that

A retired University of Kansas professor, Dr. David Eckert, recently talked in an interview about how what he thought retirement was going to be like is different from the reality of it. Tim and Jeff expand on this subject in today's podcast. Takeaways You need a plan not only for your finances, but also with what you are going to do with your time. This could include hobbies, volunteer work, even part-time employment As advisors, Tim and Jeff include this as part of their Retirement Compass planning process, as well as staying with clients throughout their retirement as their needs change Married couples may have differences in ages that could affect the timing of their retirements. One could be retired while the other is still working. Making sure each other can deal with their individual situations is optimal

Most baby boomers don't have access to pensions, and with the longer lifespans of today, chances have grown that they may run out of money. Health care and inflation are huge concerns. The Retirement Compass process takes inflation into account, as well as health care, growth, legacy planning and, of course, income. Takeaways Tim also answers listener questions concerning free time in retirement, rebalancing assets as retirement approaches Organizing accounts and statements before getting a plan put together with an advisor Tim also announced the birth of his second daughter June 21st. Hattie Jo weighed in at just under seven pounds. Mother and baby are doing fine

In this episode Tim and Jeff talk about the biggest concerns retirees have going into retirement. Takeaways Running out of money is the biggest concern of retirees. One of the big reasons for this is the possibility of going into long term care, which is expensive and rising in cost faster than regular inflation Longevity risk - the possibility of living a longer life than you might expect - is also a big concern Market risk concerns people because for those still working, most of their money is in 401K accounts, which have only market investment choices. When the markets are down, such as in 2022, this lowers the amount of savings available

Along with financial planning for retirement, it's important to also plan for what to do with their time to avoid boredom and the possibility of depression. Takeaways The recent pandemic put many people into a situation where they couldn't see family or friends. Finding a way to help ground oneself to stay mentally and emotionally level is an important aspect of post-working life Ways to fill one's time could include some volunteer work, hobbies, or part-time employment. These and other activities help keep a person engaged and mentally active Some people identify themselves by their job, and retirement takes that identifier away. Finding a new way to relate to life can be a great way for these people to transition into a post-working lifestyle

In this episode Jeff looks at various stages of people's lives and how they relate to saving for retirement. Takeaways In the younger years when first starting a career, needs include covering any future financial obligations with insurance, especially life and home. Then starting to save for retirement is the next priority Pre-retirement starts to get serious when people get to around age 50. Some people want to retire sooner, and health insurance is the biggest concern for them Getting too closer to retirement age brings other priorities, including whether or not to pay off a mortgage, long term care insurance, and other possible needs

Inflation is going to impact retirement. In fact it is the biggest concern retirees have, according to a recent study. Takeaways  With inflation running high compared to recent years, retirement portfolios need to grow but also have a safety component so basic needs are met. A solid retirement plan balances these areas With interest rates low, safe investments don't have the growth potential they had in the 80's when rates were higher  Longevity also plays a factor, especially in regard to taking Social Security 

Today Tim goes solo to discuss four areas that help retirees enjoy a more comfortable life after their working years are over. Takeaways Having little or no debt, especially high interest credit card debt. Stonebridge uses the Dave Ramsey program to help retirees pay off what debts they have A written income plan is needed to determine what is needed for regular expenses.  Having employer sponsored assistance, which in most cases is a 401K savings program but can also be a pension, as well as guaranteed monthly income

People are not getting much growth to so-called safe money investments such as savings accounts or money markets, leaving much riskier ways to try and achieve growth. But buffered ETFs are an off-the-beaten path tool that could work in some portfolios. In this episode, Bennett Thayer of Innovator ETFs joins Tim and Jeff to discuss this investment vehicle. Takeaways The buffered ETF was formed in 2018. It gives the holder upside exposure to a degree against indexes like the S & P 500 or Russell 2000, and built in buffers at 9, 15 or 30 percent on the down side They are designed to help people in preservation mode such as retirees by providing them a way to still be invested in the stock market with its earnings potential way above what banks offer, and also limit the losses in case of a market correction It also provides liquidity, where money can be made available quickly for when it may be needed, as opposed to an annuity-type investment where liquidity can be limited

These are the most popular vehicles for savings in retirement. Tim and Jeff discuss what they are and positives and negatives concerning each. Takeaways Traditional and Roth IRAs have different types of tax advantages. The traditional is tax deferred so the savings come up front, while the Roth brings you tax free growth and withdrawals but you pay taxes on what you put in 401Ks are provided by employers and have a limited number of choices to invest your savings. IRAs have much more flexibility in the kinds of things money is invested in, not just stocks and bonds 401K money can be placed into an IRA, but there are specific ways to do it to make it tax efficient. These are discussed so you can be sure that you are not paying a bunch of taxes when it may not be necessary

Small business owners have numerous challenges in running their business. But they also face challenges when it comes to retiring. A recent survey showed over a third of small business owners don't have a retirement plan. Takeaways There are IRA options available, including a SEP Simple IRA for businesses with under 100 employees Self-employed 401K for people who work for themselves with no employees

Life insurance has obvious advantages when you are younger and need to protect a family in case of a tragedy. But in retirement, life insurance can have other advantages in the right plan. Takeaways It is the most tax efficient way to transfer wealth Proceeds from a policy are tax free Some policies can also be used to pay for long term care by allowing holders to use the death benefit for that purpose

Women have their own unique challenges when it comes to retirement, especially given that they outlive their partners or spouses more often than not. Proper planning can help assure a surviving spouse that they have the income to continue their lifestyle after a partner passes away. Takeaways Health care concerns also play into this, especially long-term care Statistics show that women age 65+ are more likely than men to live below the federal poverty level Proper planning can help prevent this from occurring

Tim discusses tax rates and how possible coming increases could effect retirement planning and how a plan can make income distribution as tax efficient as possible. Takeaways Importance of investing choices in 401Ks Importance of financial literacy Creating a budget to get a grasp on expenses  

The concept of retirement planning is completely different than it was 30 or 40 years ago. Longevity risk – the result of people living longer – is forcing people to make sure what savings they have last for as much as forty years. Tim and Jeff discuss how it has changed and the different kinds of tools available to help in today's environment. Takeaways: Few of today's retirees have pensions most have to rely on their 401K savings how that money can provide income

People are most worried about running out of money in retirement. Jeff and Tim talk about some ways that having a solid financial plan can help alleviate these fears and help put money where it is needed most. The biggest concerns include: Rising costs of health care, especially long term care Inflation Having money on hand for emergencies

Inflation is an increasingly huge topic in the current news, as the U.S. is experiencing inflation rates higher than any seen since the late 1970's. Today Tim and Jeff discuss why inflation has to be accounted for in a solid retirement plan to be sure there is enough growth potential to cover higher costs which are surely coming in any future years – not only for ongoing regular expenses but also for unexpected expenses and covering health care costs, which rise at nearly double the rate of everything else.

Legacy planning is the final piece to a solid retirement plan. But it is an important one in regards to what your loved ones final wishes are for having things properly distributed to whomever they want. Tim and Jeff discuss the process for a proper legacy plan, which includes taking into account tax implications for the estate. They also discuss other do's and don'ts of retirement planning in the opening portion of the show.

We have all seen inflation skyrocket in recent months to the highest levels in years. And retirees on a fixed income feel it more than any other age group. Tim and Jeff stress the importance of planning around inflationary times, and making sure your income keeps up with the ever rising prices of everything, especially including health care which goes up at around double the rate of most other goods.

Tim and Jeff are now involved with the Dave Ramsey Smartvestor Pro program, this podcast and the next will discuss Ramsey's 7 baby steps toward financial independence. On this podcast, they dive into the first four steps.

Tim and Jeff discuss group retirement plans, such as 401Ks, Pension plans, and more. They also go through some specific situations that folks may be involved in when dealing with these accounts.  

Tim and Jeff take a look at what could be on the horizon if President Biden's tax proposals are passed.

Tim and Jeff talk about why getting a second opinion is a wise decision for those approaching retirement, and discuss some questions that you should be asking about your retirement plan.

Tim and Jeff discuss tax planning strategies for retirees as we head in to 2021.

Tim and Jeff discuss 401K's and common questions they hear about them. How do 401K's work? How are they taxed? What is inside of a 401K?

This episode discusses: Traditional vs. Roth IRA's How Social Security income can affect taxes Various issues involving capital gains

Tim and Jeff discuss what us means to have a legacy plan, and the importance of leaving a legacy. How are legacy and long-term care planning intertwined? This along with much more on this weeks podcast.

Tim Kulhanek and Jeff Gove answer some common questions that retirees have about annuities: Why annuities are a popular product? Why they are so misunderstood? The different types of annuities ? What fees can be involved?

They go over: - The rules - Planning for taxes in regards to how you take it  - What people can do before they retire to help mitigate the tax burden on their Social Security income

Talking points include: - Experiences with clients on what to do if offered one of these packages - Health insurance is a huge factor - is a Cobra plan part of the package? - Do you qualify for a subsidy for insurance under the Affordable Care Act? - Don't let your emotions cloud your decision on whether to accept a VSP

What is an annuity? The different types of annuities vary greatly, so how do you find out which annuity is right for you? 

What are you doing to maintain your own mental health during this pandemic? For those who remember, what was life like during past major pandemics? 

This episode discusses how the latest market news involving the pandemic has changed the way Stonebridge serves clients and potential clients. They address using new technologies like Zoom to conduct virtual meetings which are not face to face, as well as secure electronic document signing. They also discuss whether volatility is the new normal.

This episode takes a look at long term care, and ways to account for paying for it such as various insurance or annuity products. Also 3 things to think about in putting a personalized plan together.

This episode centers in on the importance of comparing your portfolio to some kind of benchmark, such as the S&P 500 or other financial item. It also focuses on allocation strategies such as using the Rule of 100, as well as defining true diversification and why it is important to have it in your plan.

This episode focuses mainly on income planning. It focuses further on four areas a good retirement plan needs to address - safety, income, growth and liquidity.