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Category: Retirement Planning

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

Living for Today and for Tomorrow

By Lineweaver Financial Group
August 01, 2016 Category • Retirement Planning, Financial Planning

Life is about finding the right balance, whether it be with diet, exercise, or your finances. Do we sacrifice today for a richer future, or do we live it up today and worry about the future when it gets here? Most of us are trying to manage multiple goals at the same time; that is true in our financial lives also. Enjoy life today; pay off debt; save for future goals.retirement, children and their education; build emergency funds; or build funds for a future large purchase. Do Americans have financial balance in their lives? The results of a recent survey from Bankrate indicate the answer is no. Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses--enough to help cushion the blow of a job loss, medical emergency or some other unexpected event--according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all! Only 48% of respondents to a Federal Reserve

Portfolio Stress Test

By Lineweaver Financial Group
June 06, 2016 Category • Financial Planning, Retirement Planning, Diversification

Review Your Investments Before the Next Panic. Better to Act than React. This time last year who would have thought that the price of oil would drop to todays levels? Or that slowing growth in China would send shivers through the market? Barely seven years after the financial crisis, it already feels like a distant memoryand rosier than it was. Test your own recollection of the bear market: Do you remember correctly that between October 2007 and March 2009, the U.S. stock market dropped in price by 57%? Most investors build retirement portfolios with one goal in mindto maximize returns. Does that take into account reality? Probably not. On the other hand, you need to understand the cost of being overly cautious also. Risk and returns frequently go hand-in-hand. If losses cannot be tolerated, then long-term return will be decreased along with risk levels, which will mean that retirement goals must be reassessed. If you think stocks cant fall by at least 50% again, you are wrong. If

Asset Allocation Review

By Lineweaver Financial Group
May 16, 2016 Category • Financial Planning, Retirement Planning

The underlying principle of asset allocation is to diversify your investment portfolio among several different asset classes in an effort to reduce the risk and volatility of your overall portfolio and potentially improve your overall returns. Even if youve already constructed a plan, changes to your investment profile such as time horizon or risk tolerance may require adjustments to your asset allocation plan. The plan you established last year may not be appropriate this year as a result of economic fluctuations or changes in your personal or financial circumstances. Your allocation to international investments might not make as much sense this year with slowing foreign growth and heightened terrorist concerns. To start the review run through a quick exercise of determining your exact current asset allocation, on a percentage basis; add up your exposure to stocks, bonds, cash or otherwise. Then simply ask yourself: What type of market am I allocated for? Obviously, a bull market portfolio

Avoid Costly Financial Mistakes

By Lineweaver Financial Group
April 21, 2016 Category • Retirement Planning, Financial Planning

Learn from the mistakes of others so you dont follow the same path With the combined decades of experience in financial planning of the advisors at The Lineweaver Financial Group, we have witnessed mistakes made by people planning for and living out their retirement years. Some of the mistakes are costly emotionally and others have been costly financially. Today we share some of the mistakes that are common, so you can use this information to evaluate your own situation and ongoing plans. We are not going to look at the rare unlikely mistakes, but rather focus on those we see commonly. Ignore significant financial drops- Most of our clients have one thing in common. They have enough money to live out a comfortable retirement as long as they dont lose it. Over the years weve taken great pride in helping our clients hold on to what they have. Forgetting About Income Taxes- Just because we retire does not mean income taxes go away. During retirement income tax planning can be even more

Congress Makes Charitable Contributions from IRA’s Tax Free. Forever!

By Lineweaver Financial Group
February 04, 2016 Category • Retirement Planning, Financial Planning, Charitable Contributions, Tax

Are you at least 70 , and want to build regular charitable contributions into your legacy plan using excess funds in your IRA? In the past, you had to worry that the government might decide that donation was considered taxable income, which meant you would either had to either contribute more to cover the shortfall or give simply give less. The good news is you never have to worry about that again because the Federal Government has made a permanent change to IRA gifting. Starting 2016, charitable donations of up to $100,000 per year made from your IRA funds are no longer subject to any tax because the donation is excluded from your taxable income. That means, for those of you so inclined to give-back, you can integrate a regular annual donation into your retirement plan. And, since the law refers to Individual Retirement Accounts, your spouse can do likewise with his or her IRA funds. A little good news for your kids. Theres also a provision in the new law that you might want to mention

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

Year End Tax Tips

By Lineweaver Financial Group
November 02, 2015 Category • Tax, Education Programs, Retirement Planning, Financial Planning

There are some basic tried and true tax planning tips that can be applied each and every year. While these may not be new and exciting, they are highly effective and proven to minimize your tax bill. Here is a brief highlight of the tax planning maneuvers you should still be considering for 2015: Defer Income: Income is taxed in the year it is received. If possible defer year-end bonuses from employers to 2016 if you feel that income will place you in a higher tax bracket in 2015. If you are self-employed you may consider delaying billings until late December so that the payments are not received until 2016. Also consider accelerating income into 2015 if you feel you will be in a lower tax bracket in the current tax year. Bunching Itemized Deductions: Consider paying real estate taxes due in early 2016 in 2015, pay medical bills ahead, or make charitable deductions earlier to enable you to get past the itemized deduction threshold in 2015. Charitable Deductions: You may wish to consider

What is a Financial Plan?

By Lineweaver Financial Group
October 01, 2015 Category • Financial Planning, Retirement Planning

The average American faces an uncertain economy and more options for saving and investing than ever before. Its easy to feel overwhelmed or confused, unless you find a way to understand the big picture. Yet few have a plan in place. Only 31% of financial decision makers in families say they have created a comprehensive financial plan either on their own or with professional help, according to the 2012 Household Financial Planning Survey conducted by the Certified Financial Planner Board of Standards. Whats the most expensive thing youll ever buy in your lifetime? The answer probably isnt a big-ticket item like a new TV, car or home. When you put money into a retirement nest egg, youre buying your retirement. According to the Employee Benefit Research Institute, 46% of all American workers have less than $10,000 saved for retirement and 29% of all American workers have less than $1,000 saved for retirement. Vacation planning takes precedence over retirement planning for a large segment

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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