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There are, among the many things newly weds would learn with time, financial challenges that need to be overcome if the marriage is going to be a financial success. All too often financial strategy is not something considered along with planning the events that lead up to the altar and takes a back seat until the festivities are over. However, preparing a financial strategy for after the honeymoon is as important, some would say even more important, than planning for the reception.

Traditionally, thinking about a financial strategy for newly weds takes place within the traditional box, and very little thinking occurs outside of that box. Traditional financial planning has to do with selling yourself for the best available price in your field in the job market. There is, of course, nothing wrong with that, until that way of thinking runs into traditional forces that govern the market place. Traditional places of employment can disappear under the impact of market forces, so that it becomes necessary to have in one’s mind some untraditional means of income that have nothing to do with breaking the law and/or harming others. Continue reading ‘Newly Weds and Financial Matters’ »

Planning your retirement? Here is a short task list to complete before you skip out the door that will help with your finances. These should be done in partnership with a financial planner to eliminate any mis-steps that could have far reaching consequences.

Create An Asset Allocation Strategy You are Comfortable With. Spreading your investments in your retirement accounts in a variety of holdings will help you deal with the ups and downs of the stock and bond market, and keep your savings somewhat stable. Traditional investment strategies suggest that the younger you are, the more risk you can absorb. Those who are preparing for retirement should consider shifting to a more conservative mix. Many financial planners are suggesting target-date mutual funds, based upon age group, which gradually get more conservative as the investor gets closer to retirement. It also is important to remember that your money may have to last 25 – 30 years, so it is important that the allocation strategy is not too conservative as you move into retirement. You will need to keep up with inflation.

Only you know what you are comfortable with, so talk to your financial planner. Trust yourself to make the decisions right for you.

Plan Your Income Stream. Before you stop working, determine how much money you will take each year from your retirement accounts and Social Security. Some financial planners recommend you take only 4% of your retirement funds each year, with a 3% increase each year to cover inflation. However, in current economic conditions, you should consider putting off dipping into your investments until the market has recovered to some extent, or reduce your withdrawals below the 4% level. You also have no need, at this point, to increase the withdrawal until inflation is once again positive. Continue reading ‘Planning Retirement? Improve Your Financial Success’ »