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Category: Retirement

Why A Roth Conversion Can Be A Smart Retirement Strategy

By Lineweaver Financial Group
June 08, 2017 Category • Roth, IRA, Retirement

There are many options when it comes to retirement, and it can be hard to know which is right for you. One of those options a ROTH IRA conversion, can be a great strategy for some people. First, aquick refresher on how a ROTH IRA differs from a Traditional IRA. With a Traditional IRA: 1. You receive an upfront tax deduction on your annual contributions 2. Growth is tax-deferred growth until its withdrawn 3. Withdrawals are taxable as ordinary income 4. There are penalties if you take withdrawals before the age of 59 5. You have required minimum distributions (RMDs) that begin at age 70 With a ROTH IRA 1. Your contributions are front loaded meaning you use after-tax dollars for your contributions 2. Growth is tax-free 3. Withdrawals are never taxed 4. Earnings can be taken income-tax-free if you are at least 59 and have had the ROTH IRA for at least 5 years 5. There are no required minimum distributions ever! If you currently have a Traditional IRA, but some of the

Is an Annuity the Right Retirement Option for You?

By Lineweaver Financial Group
May 04, 2017 Category • Annuity, Annuities, Annuity Alternatives, Retirement, Life Insurance, Dividend, Stocks, Bonds Ladder

Annuities can be great tools. Often, fixed annuities can offer higher interest rates than your bank account, a CD, or even Treasury Bonds, and they do it all with comparatively low risk. But, there are many alternatives that may be far better options for some people. One of the downsides to some annuities is that your portfolio cant grow if youre taking the interest as distributions, and there can be surrender charges as well.The 65-year-old retiree will see the value of his or her $500,000 stay the same over 10 years, and if you factor in an annual inflation rate of 3%, your purchasing power for that same $500,0000 will only buy $350,000 worth of goods. If that scenario doesnt seem ideal for you, here are a few alternatives you might consider. Dividend-paying stocks that pay monthly and quarterly dividends can be good annuity alternatives. With the help of an experienced advisor, you may be able to even buy a collection of dividend-paying stocks that will not only pay you more income

How Much Money Do You Really Need To Retire?

By Lineweaver Financial Group
March 24, 2017 Category • Retirement, Retirement Planning

Life is full of uncertainty. What your career will bring, changes in your family, your health, and the market. And these are just a few! So its hard for anyone to predict the future, but there are really only two ways to figure out how much you need for retirement. And, as youll see, one offers a better future for most. 1. Save What You Can Its no secret that many people are putting off or avoiding saving for retirement. A recent article on CNN.com shared that about 26% of workers said they and their spouse have saved less than $1,000 for retirement, according toa reportfrom the Employee Benefit Research Institute. Another 16% said they have between $1,000 and $10,000 stashed away for retirement. While some of those are no doubt younger workers who have time to save, some are likely not. Its highly doubtful that theyd be able to retire at all on that! Some financial planners point out that planning retirement spending around your current income might not make sense. Many people drastically

Are You Spending Your Legacy?

By Lineweaver Financial Group
March 10, 2017 Category • Legacy, Retirement, Retirement Planning

Are You Spending Your Legacy? Retirement is supposed to be a well-earned reward a time when you can stop worrying about the day-to-day struggles of your career, and everything that went with it. A time to enjoy your family, and to scratch a few things off your bucket list. Confronted with so much freedom, it can be tempting to do all those things without considering a plan going forward. While we find that most of our clients arent afraid of running out of money for themselves, many of them do want to leave a legacy to help their children or grandchildren. So how can you ensure that youll be able to have the retirement you want and still help your loved ones? It all comes down to your spending rate. To find your rate, start by adding up your expenses, and subtract that from any non-portfolio income you might be receiving in retirement. That can mean things like rental property income, annuity income, or even Social Security. The amount left over is what youll need to withdraw. You

What Level of the Retirement Pyramid Have You Reached?

By Lineweaver Financial Group
February 23, 2017 Category • Retirement, Retirement Planning,

When it comes to retirement planning, its hard to know where to start. Many people put it off for years, only to discover that theyve put themselves at a distinct disadvantage. They often have to sacrifice to catch up financially, or work for far longer than they would have otherwise. When we talk to clients, they are interested in two things: they want to maintain their quality of life while saving for retirement, and they dont want to make sacrifices once they have retired. Weve put together a helpful guide that can help you do just that! To simplify the many options available to you, weve laid these out like a pyramid you shouldnt think about progressing to the next level before youve completed the other levels from the base up. We think that this makes it easier to understand by helping clients strategically, thoughtfully, and thoroughly build the retirement of their dreams, and to have a roadmap to understand what they should be doing now, and what comes next. Level one: Make

Can You Retire Earlier Than You Thought?

By Lineweaver Financial Group
February 07, 2017 Category • Retire, Retirement, Retire Early

Your retirement portfolio may look pretty good right now. Were in the midst of a bull market, and still enjoying the effects of the so-called Trump rally. You may be looking at those balances and thinking maybe for the first time This might be an actual possibility, and sooner than I thought! But there are many things to consider before you make the jump. For example, what if the market declines? Do you have the right insurance in place? What about taxes will you retire into a higher bracket, or maybe a lower one? Here are a 4 important retirement planning considerations before you make that big decision. 1. Healthcare Healthcare is a huge concern for most retirees, and with the current uncertainty about the future of the ACA, it can make it hard to know what the best plan is. Some retirees incorrectly assume that at the age of 65, Medicare eligibility immediately eliminates your healthcare costs. According to an estimate by Fidelity Investments in August of 2016, the average

Time is ticking….. Less than six months to take advantage of two vital Social Security pay-out strategies

By Lineweaver Financial Group
December 07, 2015 Category • Social Security, Social Security Benefits, Retirement, Retirement Planning

With the passage of the 2015 Budget Bill, two important Social Security claiming strategies called File Suspend and Restricted Application are going away for everyone under age 62, whether you are in retirement or thinking about retirement. Understanding these changes, and taking certain steps prior to this enactment, can mean thousands more in lifetime benefits for you, your spouse, and your family. The benefits of these two disappearing strategies are best explained in two common scenarios: Scenario #1 Your spouse collects her spousal benefit (50% of your full retirement benefit*) while you File Suspend your own retirement benefits to age 70 to take advantage of Social Securitys higher Delayed Retirement Credit (i.e., SS increases 8% per annum after FRA). Scenario # 2 Your spouse files for early SS benefits at age 62. When you reach your FRA* you file a Restricted Application that entitles you to 50% of her projected full benefit, while deferring your retirement benefits to

Social Security Benefits Unchanged

By Lineweaver Financial Group
November 23, 2015 Category • Social Security, Social Security Benefits, Retirement Planning, Retirement

No help for the middle class. Social Security Benefits Unchanged.Again While the politicians have their political debates promising the moon, the middle class has again taken it on the chin. There will be no cost of living increase in 2016 Social Security payments. In fact, this no-increase decision has only happened three times since 1975 2010, 2011 and now again in 2016. In all the years since 1975 there have only been three years with no increase- 2010, 2011 and now again for 2016. The argument is that Cost of Living Adjustments (COLA) are designed to help recipients cope with inflation. But, while the real cost of energy has declined, and pushes the overall rate of inflation down, a number of everyday items has remained the same, if not increased. For example, when was the last time you saw a dozen eggs plummet in costs? The other difficulty of course, is we are living longer lives, partially due to medical advances, and what appear to be increasing expensive drug regimens. It

Heading into the Homestretch

By Lineweaver Financial Group
August 24, 2015 Category • Retirement, Retirement Planning, Retirement Tips

If retirement is just around the corner, here are some tips you might want to consider in preparation for the big day. Protect your 401k. If your plans are to retire in the next 12 months or so, you might want to consider getting ultra conservative in your 401k. If you plan on taking your 401k and rolling it over to an IRA, protect your current balance from potential market declines by moving into a common 401k option, a stable value fund. You could give up some upside potential, but you may sleep better at night knowing you have limited downside risk. Even if retirement is more than 12 months away, get the 401k ready for the future. Now is probably not the time to be taking on additional risk; the opposite could be your best option. But be careful using bonds; many 401(k) investors invest in bonds to reduce risk and lock in more stable returns. But if interest rates continue to rise, bond fund returns could suffer. Dont jump from the frying pan into the fire! Pick pension option. If

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