1. Fact vs. Opinion. Facts can be proven, can be duplicated, and can be observed.
Opinions refer to a particular person’s (or group’s) feeling, thought, judgment, belief, estimate, and/or anything that is not 100 percent true and can’t be proven. It is important to distinguish fact from opinion when working on your finances. Make sure your advisor verifies all recommendations. Your money is at stake!
2. Uncle Sam was busy at work last month closing alleged loopholes in Social Security.
Everyone eligible for Social Security is affected by the changes, except widows/widowers. The Bipartisan Budget Act of 2015 was signed into law on November 2, 2015. In essence, it has eliminated some Social Security retirement distribution choices. The changes could cost thousands of dollars in Social Security benefits, depending on your date of birth and marital status. It is important to review your situation with a competent advisor experienced with the new rule on Social Security, and consider doing it as soon as possible. There are deadlines attached to the new law.
3. Home Equity is one of the least used assets in planning and is an excellent source for accessing cash.
It is important we have plenty of cash on-hand. Unexpected events occur. Loss of job, disability, medical expenses, replacement of air conditioner, a car, or a roof are just a few of these events. Secure the financing when you don’t need it! Financial institutions probably won’t let you borrow the money when you do need it . It will help you sleep better at night knowing you have access to cash
4. Do you think your current income marginal tax rates are high?
A married couple earning $100,000 in 2015, and filing a joint tax return, would be in the 25% marginaltax bracket. A couple in 1946 making the same amount of money, adjusted for inflation, would be in the 34% marginal tax bracket. This is a 36% increase over today’stax rates. What is your planning strategy if taxes increase in the future? Remember, higher taxes means less money in your pocket for lifestyle expenses.
5. What is the ultimate financial strategy at retirement?
It is the ability to consume assets without the fear of running out of cash. This technique substantially increases cash flow, and usually reduces taxes at the same time. Is it too good to be true? Remember, they thought Galileo was a lunatic because he said, “the earth revolves around the sun, and the sun does not revolve around the earth.” It does work, but it requires extraordinary and counter-intuitive thinking. Interested? Give us a call and we will schedule a time to talk