agdev, Author at Retirement Renegade

The Importance of Financial Planning in Nashville

financial planning Nashville - Legacy Builders Wealth Management

Nashville, the vibrant capital of Tennessee, is known for its rich history, thriving music scene, and booming economy. As the city continues to grow and attract new residents, the importance of financial planning for Nashville locals cannot be overstated.

In this article, we will delve into the significance of financial planning for individuals and families in Nashville, highlighting the unique financial challenges faced by residents in the area and the benefits of working with a local financial planning firm like Retirement Renegade.

Understanding Nashville’s Unique Financial Landscape

Nashville’s diverse economy, with thriving industries such as healthcare, tourism, and technology, creates a dynamic environment for wealth accumulation. This vibrant economic landscape offers numerous opportunities for residents to build their financial portfolios. However, it also presents unique financial challenges that must be addressed to ensure long-term financial stability. Some of these challenges include:

Fluctuations in the cost of living: The cost of living in Nashville has been steadily increasing over the years, which can impact your financial planning strategies. It’s essential to work with a financial planning firm in Nashville that understands these fluctuations and can help you adjust your financial plans accordingly.
Variable income streams: Nashville is home to a diverse workforce with various income streams. Some residents have steady salaries, while others have irregular income from freelance or entrepreneurial pursuits. A financial planning firm in Nashville should be well-equipped to help clients manage variable income streams and create strategies tailored to their unique financial situations.
Increased housing prices: Nashville’s booming real estate market has led to a surge in housing prices. This increase can have a significant impact on your financial plans, whether you’re a homeowner or looking to invest in property. A financial planning firm in Nashville should be able to help you navigate this complex market and make informed decisions about real estate investments.
Planning for taxes and regulations: As a resident of Nashville, you’ll need to be aware of local and state tax regulations that can affect your financial planning. It’s essential to work with a financial planning firm that is well-versed in these regulations and can help you optimize your tax strategies and ensure compliance.
Diversification and risk management: Nashville’s dynamic economic landscape calls for a diversified investment approach to minimize risk and maximize returns. A financial planning firm in Nashville should have the expertise to help you create a diversified portfolio tailored to your specific needs and risk tolerance.

The Retirement Renegade Difference

Andrew Winnett, the founder of Retirement Renegade, has a compelling personal story that illustrates the importance of financial planning and the value of working with a local financial planning firm. After his father’s untimely passing and witnessing his mother’s struggle with managing her finances, Andrew set out to find alternative financial products that offered guarantees, security, and financial peace of mind. His dedication and passion for helping others led to the creation of Retirement Renegade.

Benefits of Working with a Local Financial Planning Firm

Partnering with a local financial planning firm like Retirement Renegade offers several advantages to clients seeking to build and protect their wealth in Nashville. These benefits include:

Knowledge of the Nashville market and its unique financial landscape: A local financial planning firm has a deep understanding of Nashville’s dynamic economic environment and the challenges it presents. This knowledge enables them to provide tailored financial advice and strategies that take into account the specific conditions of the Nashville market.
Tailored financial planning services to meet clients’ individual circumstances: Every client’s financial situation and goals are unique. A local financial planning firm like Retirement Renegade can offer personalized financial planning services designed to address each client’s specific needs and objectives.
Access to a team committed to providing comprehensive financial planning services: Retirement Renegade has a dedicated team of professionals who are committed to offering a complete suite of financial planning services. This includes retirement planning, tax planning, insurance, and estate planning, ensuring that every aspect of their clients’ financial lives is well-coordinated and seamlessly integrated.
Strong community connections: A local financial planning firm has strong ties to the Nashville community and can leverage these connections to help clients access a network of professionals, such as attorneys, accountants, and insurance specialists. This collaborative approach ensures that clients receive the best possible advice and support.
Commitment to Ongoing Education and Training: Retirement Renegade places a strong emphasis on staying current with the latest financial trends and regulations affecting the Nashville community. As a member of the National Association of Certified Financial Fiduciaries (NACFF), their commitment to ongoing education and professional development ensures that they consistently deliver the highest level of service to their clients.

Conclusion

In summary, financial planning is crucial for Nashville residents looking to navigate the unique challenges and opportunities that the city presents. By working with a local financial planning firm like Retirement Renegade, you can create a tailored financial plan that helps you achieve your long-term financial goals while addressing the specific needs and concerns of living in Nashville. To learn more about Retirement Renegade and how they can help you with your financial planning needs, visit their website or contact them today.

How does the Nashville financial landscape affect my financial planning strategy?

The Nashville financial landscape, characterized by its diverse economy, can influence your financial planning strategy by presenting unique challenges and opportunities. Understanding these factors, such as fluctuations in the cost of living, variable income streams, and increased housing prices, is crucial in developing a tailored financial plan that addresses your specific needs and goals.

How can a financial planning firm in Nashville help me achieve my short-term and long-term financial goals?

A financial planning firm in Nashville can help you achieve your financial goals by creating a customized financial plan that takes into account your unique circumstances, risk tolerance, and objectives. They can provide expert advice on investments, retirement planning, tax planning, insurance, and estate planning, ensuring a holistic approach to managing your financial life.

What types of financial planning services are offered by Retirement Renegade?

Retirement Renegade offers a comprehensive suite of financial planning services, including investment management, retirement planning, tax planning, insurance, and estate planning. Their personalized approach ensures that every aspect of your financial life is well-coordinated and tailored to your specific needs and objectives.

How can I ensure that I am choosing the right financial planning firm in Nashville for my needs?

To choose the right financial planning firm in Nashville, consider factors such as the firm's expertise, reputation, commitment to ongoing education and training, and the range of services they offer. Schedule a consultation to discuss your financial goals and assess whether the firm's approach aligns with your needs and preferences.

How does Retirement Renegade stay updated on the latest financial trends and regulations?

Retirement Renegade is a member of the Financial Planning Association Nashville, which ensures they stay up-to-date with the latest financial trends and regulations affecting the local community. Their commitment to ongoing education and training enables them to provide the highest level of service to their clients.

What role does ongoing education and training play in the success of a financial planning firm in Nashville?

Ongoing education and training play a crucial role in the success of a financial planning firm in Nashville, as it ensures that their team stays current with the latest financial trends, regulatory changes, and investment strategies. This enables them to provide informed and effective advice to their clients.

How can a financial planning firm in Nashville help me manage the fluctuations in the cost of living and housing prices?

A financial planning firm in Nashville can help you manage fluctuations in the cost of living and housing prices by developing a tailored financial plan that accounts for these factors. They can provide advice on budgeting, saving, investing, and insurance strategies to help you navigate the local financial landscape and achieve your financial goals.

What are the key elements to look for when choosing a financial planning firm in Nashville, TN?

When choosing a financial planning firm in Nashville, TN, look for key elements such as expertise in the local market, a commitment to personalized client service, a comprehensive range of financial planning services, adherence to fiduciary standards, ongoing education and training, and a collaborative approach to financial planning. These elements indicate a firm that is well-equipped to help you achieve your financial goals.

Top Practices of the Best Wealth Management Firms in Nashville

top wealth management firms nashville - legacy builders wealth management

In the ever-evolving financial landscape, wealth management firms play a crucial role in guiding clients toward their long-term financial goals. Nashville, a burgeoning hub for finance, is home to many reputable wealth management firms that offer comprehensive services to help clients build, protect, and grow their wealth. In this article, we will discuss the best practices of wealth management firms in Nashville and explore why partnering with one of these firms can be the key to achieving financial success.

Comprehensive Wealth Planning

One of the hallmarks of top wealth management firms in Nashville is their commitment to comprehensive wealth planning. These firms take a holistic approach to their clients’ financial lives, analyzing income, expenses, investments, insurance, estate planning, and tax strategies to create a tailored plan that aligns with their clients’ goals and values. By offering a complete suite of financial services, wealth management firms in Nashville ensure that every aspect of their clients’ financial lives is seamlessly integrated and well-coordinated.

Personalized Client Service

The best wealth management firms in Nashville prioritize personalized client service. They understand that every client’s financial situation and goals are unique, and as such, they take the time to get to know their clients on a personal level. This allows them to create customized financial strategies that are tailored to each individual’s specific needs and objectives.

Utilizing Cutting-Edge Technology

Leading wealth management firms in Nashville harness the power of cutting-edge technology to provide their clients with the most accurate and up-to-date financial information. By leveraging sophisticated investment tools, advanced analytics, and innovative financial planning software, these firms can optimize their clients’ investment portfolios, monitor risk, and ensure that their financial plans remain on track.

Adherence to Fiduciary Standards

The top wealth management firms in Nashville operate under a fiduciary standard, which means they are legally obligated to act in the best interest of their clients. This is particularly important when it comes to managing clients’ investments, as it ensures that the firm’s recommendations are free from conflicts of interest and solely focused on helping clients achieve their financial goals.

Ongoing Education and Training

The best wealth management firms in Nashville prioritize ongoing education and training for their team members. By staying current with the latest financial trends, regulatory changes, and investment strategies, these firms can provide their clients with the most informed and effective advice.

Collaborative Approach

Top wealth management firms in Nashville often adopt a collaborative approach, working closely with other financial professionals such as attorneys, accountants, and insurance specialists. This ensures that all aspects of their clients’ financial lives are considered and that their financial plans are as comprehensive and effective as possible.

Proactive Communication

Successful wealth management firms in Nashville understand the importance of proactive communication. They regularly update their clients on the progress of their financial plans, discuss any changes in their financial situation, and address any concerns that may arise. This open line of communication helps to build trust and foster long-lasting relationships with their clients.

Retirement Renegade Difference

In a competitive market like Nashville, finding the right wealth management firm to help you build, protect, and grow your wealth can be challenging. Retirement Renegade stands out from the competition, offering personalized service, comprehensive financial planning, and cutting-edge technology to help you achieve your financial goals. Let’s explore the unique advantages of choosing Retirement Renegade as your partner for financial success.

Expert Team of Professionals

Retirement Renegade boasts a team of experienced and dedicated professionals who are committed to helping clients achieve their financial goals. Our team stays up-to-date with the latest financial trends, regulatory changes, and investment strategies through ongoing education and training. This ensures that our clients receive the most informed and effective advice, tailored to their individual needs and objectives.

Collaborative and Comprehensive Approach

At Retirement Renegade, we believe that a collaborative approach is essential for a comprehensive and effective financial plan. We work closely with other financial professionals, such as attorneys, accountants, and insurance specialists, to ensure that all aspects of our clients’ financial lives are considered and well-coordinated. This integrated approach leads to more efficient and effective financial strategies and a smoother path to achieving your financial goals.

Long-lasting Relationships

We understand the importance of building long-lasting relationships with our clients. At Retirement Renegade, we prioritize regular updates on the progress of our clients’ financial plans, discussing any changes in their financial situation, and addressing any concerns that may arise. This open line of communication helps to build trust and foster strong relationships, ensuring that our clients feel confident and well-informed about their financial journey.

In conclusion, choosing Retirement Renegade as your wealth management partner in Nashville offers a range of unique advantages that can significantly enhance your financial well-being. Our commitment to personalized service, comprehensive financial planning, and the latest technology ensures that our clients receive the highest level of guidance and support. To learn more about our services and how we can help you on your financial journey, visit our website or contact us today.

Why should I choose a wealth management firm in Nashville with a CFF on their team?

Choosing a wealth management firm with a Certified Financial Fiduciary (CFF) ensures that the professional managing your wealth is held to a high standard of ethics and expertise. A CFF is legally obligated to act in your best interest, providing unbiased and objective advice based on your unique financial situation and goals.

How can I verify if a wealth manager at a Nashville firm is a Certified Financial Fiduciary?

You can verify a wealth manager's CFF certification by asking them directly, checking the National Association of Certified Financial Fiduciaries (NACFF) website for their listing, reviewing their website and marketing materials for the CFF designation, or requesting references from other clients who have worked with the professional.

What types of services can I expect from wealth management firms in Nashville?

Wealth management firms in Nashville typically offer a range of services, including financial planning, investment management, retirement planning, tax planning, estate planning, risk management, and insurance planning. They may also provide specialized services for high-net-worth individuals, families, and businesses.

Can a family wealth management firm in Nashville help me plan for my family's financial future?

Yes, a family wealth management firm in Nashville can help you plan for your family's financial future by developing comprehensive strategies to grow, protect, and distribute your wealth. They can assist with estate planning, tax planning, risk management, and investment management, while considering the unique needs and goals of your family.

How do wealth management firms in Nashville with Certified Financial Fiduciaries ensure they act in my best interest?

CFFs at wealth management firms in Nashville are legally obligated to act in your best interest as a fiduciary. This means they must provide objective, unbiased advice and prioritize your financial goals over their own interests or any potential commissions from financial products they recommend.

What should I look for when choosing the best wealth management firm in Nashville?

When choosing the best wealth management firm in Nashville, consider the firm's reputation, experience, range of services, fees, and the credentials of their professionals, such as CFF certification. Look for a firm that prioritizes personalized client service, utilizes cutting-edge technology, and has a proven track record of success.

How do wealth management firms in Nashville stay up-to-date with the latest financial trends and regulations?

Wealth management firms in Nashville stay up-to-date with the latest financial trends and regulations by prioritizing ongoing education and training for their team members, attending industry conferences, subscribing to relevant publications, and staying informed about any changes in tax laws or financial regulations that may impact their clients.

Achieving Your Financial Dreams with a Financial Planner in Nashville

certified financial planner in Nashville - Legacy Builders Wealth Management

For many people, achieving financial success and building a lasting legacy is a top priority. This journey can be fraught with challenges and obstacles that may seem insurmountable. However, partnering with a financial planner in Nashville can make all the difference in navigating these challenges and reaching your financial goals. In this post, we will explore the advantages of working with a certified financial planner in Nashville and why Retirement Renegade should be your top choice.

Finding the Best Financial Planner in Nashville

In a city like Nashville, with its thriving economy and diverse population, it’s essential to find the right financial planner to help guide you on your path to financial success. The best financial planner in Nashville will possess the necessary credentials, such as being a certified financial fiduciary (CFF), and have a proven track record of helping clients achieve their financial goals. When searching for the right professional, consider factors such as their areas of expertise, communication style, and the level of personalized attention they provide. By taking the time to research and evaluate potential financial planners, you’ll be well on your way to forming a partnership with a trusted expert who can help you navigate the complexities of personal finance and build a lasting financial legacy.

Expertise and Knowledge

A Certified Financial Fiduciary (CFF) is a financial professional who has completed specialized training and certification to uphold the highest standards of ethical conduct when providing financial advice to clients. The primary responsibility of a CFF is to always act in the best interest of their clients, prioritizing the clients’ needs above their own interests or those of their firm. This commitment to ethical conduct ensures that clients receive unbiased and trustworthy advice, helping them make informed financial decisions.

To become a Certified Financial Fiduciary, an individual must meet specific requirements and complete a certification process. The steps to becoming a CFF typically include:

Eligibility: Before pursuing the CFF certification, a financial professional must have a minimum of five years of experience in the financial services industry. This ensures that they have a solid foundation of knowledge and experience to build upon during the certification process.

Education: Candidates must complete a comprehensive, one-day training course approved by the National Association of Certified Financial Fiduciaries (NACFF). This course covers various topics, including fiduciary standards, ethical considerations, investment strategies, risk management, and regulatory compliance.

Examination: After completing the training course, candidates must pass a certification exam to demonstrate their understanding of the CFF principles and their commitment to upholding the fiduciary standard.

Background check: Candidates must undergo a thorough background check to ensure that they have no history of unethical conduct, financial mismanagement, or regulatory violations.

Code of Ethics: Upon receiving their CFF certification, financial professionals must pledge to adhere to the NACFF’s Code of Ethics and Standards, which outlines the fiduciary duties and responsibilities that they must uphold when providing financial advice to clients.

Continuing Education: To maintain their CFF designation, certified professionals must complete annual continuing education requirements. This ensures that they stay up-to-date with the latest industry trends, regulatory changes, and best practices in financial planning.

Comprehensive Financial Planning

Working with a comprehensive financial planner in Nashville means that you’ll receive a complete evaluation of your financial situation. This includes analyzing your income, expenses, investments, insurance coverage, and retirement savings to create a holistic financial plan. A comprehensive financial planner will ensure that all aspects of your financial life are considered and aligned with your goals and values.

Customized Strategies

Every individual’s financial goals and circumstances are unique. A financial planner in Nashville will take the time to understand your specific needs and create a customized plan tailored to your objectives. Whether you’re looking to save for retirement, fund your child’s education, or simply create a stable financial foundation, a financial planner can develop the strategies to help you achieve these goals.

Objective Advice

A financial planner in Nashville, such as those at Retirement Renegade, operates under a fiduciary duty to act in your best interest. This means that they provide objective, unbiased advice without being influenced by commissions or incentives from selling financial products. By working with a trusted financial planner, you can be confident that the recommendations provided are solely focused on helping you achieve your financial goals.

Accountability and Support

One of the most significant advantages of partnering with a financial planner in Nashville is the ongoing support and accountability they provide. A financial planner will not only help you create a financial plan but will also monitor your progress and make adjustments as needed. This ongoing relationship ensures that you stay on track to achieve your financial goals, even as your life circumstances change.

Financial Education

A financial planner can be an invaluable source of financial education. They can help you understand complex financial concepts, investment strategies, and tax laws that impact your financial plan. By working with a financial planner in Nashville, you can gain the knowledge and confidence to make informed decisions about your financial future.

Peace of Mind

Lastly, working with a financial planner in Nashville can provide peace of mind. Knowing that you have a professional guiding you through the complexities of personal finance can alleviate stress and help you feel more secure about your financial future. By entrusting your financial planning to a qualified professional, you can focus on what matters most to you while knowing your finances are in good hands.

Conclusion on Partnering with a certified financial planner in Nashville

As you can see, working with a financial planner in Nashville offers an array of benefits that can help you navigate the complexities of personal finance and achieve your financial goals. Whether you’re just starting your financial journey or looking to refine your existing financial plan, a certified financial planner in Nashville can provide the expertise and guidance you need.

Take the first step towards building your financial legacy by contacting Retirement Renegade. Our team of dedicated professionals is ready to help you make your financial dreams a reality. To learn more about our services or to schedule a consultation, visit our website or call our office today.

In the competitive world of financial planning, it’s essential to choose a financial planner with a proven track record and excellent reviews. At Retirement Renegade, we pride ourselves on our commitment to our clients’ success and satisfaction. Don’t just take our word for it – read our financial planner Nashville reviews to see why we’re the preferred choice for individuals and families seeking financial guidance in the Nashville area.

By partnering with a certified financial planner in Nashville, you can rest assured that your financial future is in capable hands. Don’t wait to start building the financial legacy you’ve always envisioned – contact Retirement Renegade today

What services do financial planners in Nashville typically offer?

A financial planner in Nashville typically offers a range of services, including retirement planning, investment management, insurance planning, tax planning, estate planning, and education funding strategies.

How do I know if a financial planner in Nashville is a Certified Financial Fiduciary (CFF)?

To verify if a financial professional is a Certified Financial Fiduciary (CFF), you can take the following steps:

Ask the professional: The simplest way to find out if a financial advisor is a CFF is by asking them directly. A certified professional should be able to provide documentation or proof of their CFF designation.

Check the National Association of Certified Financial Fiduciaries (NACFF) website: You can visit the NACFF's website (https://www.nationalcffassociation.org/) to verify a financial professional's CFF certification. The NACFF typically maintains a searchable directory or list of professionals who have earned the CFF designation. You can search for the professional's name in the directory to confirm their certification.

Review the professional's website and marketing materials: A CFF will often display their designation on their website, business cards, or marketing materials. Look for the "CFF" acronym alongside their name or in their list of credentials.

What is the difference between a fee-based and fee-only financial planner?

A fee-based financial planner earns income from both fees paid by clients and commissions from selling financial products. A fee-only financial planner, on the other hand, earns income solely from the fees paid by clients, ensuring objective and unbiased advice.

How often should I meet with my financial planner in Nashville?

The frequency of meetings with your financial planner will depend on your individual needs and the complexity of your financial situation. Generally, it's a good idea to meet with your financial planner at least once a year to review your financial plan and make any necessary adjustments.

Can a financial planner in Nashville help me with tax planning?

Yes, many financial planners in Nashville have expertise in tax planning and can provide guidance on tax-efficient strategies to help you minimize your tax liability and maximize your financial growth.

How do I choose the right financial planner in Nashville for my specific needs?

To choose the right financial planner in Nashville, consider factors such as their credentials, areas of expertise, communication style, and personalized attention. It's also important to read reviews and gather recommendations from friends, family, or colleagues to find a planner with a proven track record of success.

What should I expect during my initial consultation with a financial planner in Nashville?

During your initial consultation, your financial planner will discuss your financial goals, needs, and concerns. They will gather information about your current financial situation and help you understand the services they offer. This meeting is an opportunity for you to ask any questions you may have and determine if the planner is the right fit for your needs.

Are Annuities A Bad Investment? Here’s What You Need To Know

are annuities a bad investments or good investments?

Annuities are a type of investment that can provide you with a steady stream of income over time. But are they a good option for you? Here’s what you need to know before making your decision.

What are Annuities?

An annuity is an insurance product that pays you a fixed amount of money each year, based on the terms of the contract. The money is paid out regardless of whether or not you sell the contract beforehand.

Why are Annuities Popular?

Many people choose annuities because they offer stability and income potential. Annuity payments are usually tax-free, so they can be a good option for people who want to save money tax-wise. Additionally, annuities tend to be low-risk investments, so they may be a good choice for people who are worried about their financial security in retirement.

4 Reasons to Purchase an Annuity

Annuity expert Stan Haithcock says that there are only four reasons to purchase an annuity. He came up with a clever acronym to help you remember those reasons in case some shady annuity salesperson stops by your house.

According to Stan Haithcock, you should only buy an annuity if you need to solve one of the following issues.

P = Principal Protection – Do you want to lose the money you put into a product or would you rather keep it safe?
I = Income for Life – Do you care if you have a stream of guaranteed income that you can’t outlive, or do you prefer surprises every month?
L = Legacy – Is leaving your kids something when you die important to you, or do you think it’s better if they pull themselves up by their own bootstraps?
L = Long Term Care – Do you worry about your money getting eaten up by nursing home costs or are you so amazingly fit and genetically superior that you will never need long term or confinement care?

Did you notice that nowhere on that list was a question that said, “Do you want a red-hot investment vehicle with the potential to rock your portfolio?”

That’s because I agree with Stan, annuities are not investments. At least the types of annuities I most often recommend to my clients are not investments. Nor should they be marketed as such.

For retirees and those about to retire, an annuity has one primary purpose. That purpose is to convert a portion of your idle cash into a contractually-guaranteed, tax-advantaged income stream.

In a previous blog post, I wrote about the old-fashioned “three-legged stool” approach to retirement that is faltering in our unstable economic environment.

As you might recall, the stool’s three legs are personal savings, pension, and Social Security. Devouring those legs to the point of fragility are the money-eating termites of inflation, ineffective qualified plans, taxes, and useless politicians. Having an annuity in the mix can help you slow down the erosion and keep your stool from tipping over.

Evaluate Your Risk of Annuities Before Investing

An annuity is the only contractually-guaranteed way to grow your wealth with less risk than you incur using more speculative vehicles.

As Stan says, you choose an annuity for what it WILL do, not what it MIGHT do. When you invest in other kinds of products, you are willing to assume more risk because the investment MIGHT pay off. There are no guarantees and zero predictability. That makes planning for retirement challenging and stressful.

When you choose the right kind of annuity to meet your goals and objectives, you will get safe, sane returns, and reliable income you can never outlive. I can help you discover more about annuities, life insurance, and other fun and useful products to grow and protect your wealth.

In other words, if you want a non-sleazy, credible, dashing young financial professional on your money dream team, contact me. I will help you design your perfect post-work life and help you clarify your goals, risk tolerance, and attitudes toward money.

Five Things Most People Don’t Understand About FDIC Deposit Insurance

Some retirees object to moving their cash from a low-interest-paying bank account or CD to another type of “safe money” instrument because there is no FDIC insurance on those financial vehicles.

This common fear stems, in part, from the fact that many younger retirees had parents who grew up during the Great Depression and have told them horror stories about bank failures. Nearly 9,000 banks failed between the late 1920s and 1930s, and Americans lost deposits equivalent to $140 BILLION in today’s dollars.

Since its creation by Congress in 1933 and through its deposit insurance coverage created a year later, the Federal Deposit Insurance Corporation (FDIC) has gained Americans’ confidence and trust. Since that time, no depositor has lost a penny due to a bank failure.

Unfortunately, some retirees continue to cling to a handful of myths about the FDIC and deposit insurance that can mislead them into overstating its’ ability to protect all their savings and investments.

Here are a few of the most common myths about the FDIC and its deposit insurance.

1. The FDIC will keep your money safe from fraud.

Typically, if your bank account has been compromised through unapproved access, fraud, or theft, you are only responsible for the first $50 of unauthorized funds. But this is due to Federal regulations and NOT FDIC insurance.

2. If I keep all of my accounts in the bank, the FDIC protects me.

Some people refuse to move their retirement money from their bank’s investment office because they believe that FDIC insurance covers every dollar they have in the bank, regardless of the type of accounts. However, FDIC insurance only covers specific kinds of accounts, like checking and savings. It does not protect any investments or insurance purchased through the bank. Talk with reliable retirement financial planning service provider before you keep all of your accounts in the bank!

3. FDIC insurance covers mutual funds.

Many people favor investing in mutual funds because they promise higher rates of returns than things such as Certificates of Deposit. They often purchase these from a bank, thinking that the FDIC automatically protects them. However, funds invested in mutual funds are NOT deposits. The FDIC or other federal agencies do not insure them.

4. Treasury securities are protected by FDIC insurance.

Treasury securities, including T-bills, are not covered by deposit insurance. Redemption proceeds, interest, and principal from treasury securities are covered, however, when deposited into your bank account, up to the $250,000 limit.

5. Safe deposit boxes are insured by the FDIC.

FDIC deposit insurance offers no protection for money, and valuables kept in a safe deposit box.

As you can see, FDIC insurance covers actual bank deposits and no other products a bank may offer its’ customers.

Other types of financial vehicles, such as annuities and life insurance, have their own unique protection protocols in place if the company fails. At the same time, the Securities Investor Protection Corporation (SIPC) provides coverage for securities investors.

If you are hesitant to move your money out of underperforming bank accounts because you fear losing FIDC protection, I suggest that you do a bit of research.

Learn more about the FDIC and SIPC and the different ways annuity and insurance companies work to protect their clients.

While bank and insurance company failures do happen, a tighter regulatory environment, along with a more educated consumer base, has made those failures a lot less likely.

8 Keys to Financial Wisdom For Your Successful Retirement

8 Pieces of Financial Wisdom to avoid money mistakes

“Times are changing, society’s values are shifting, and the financial system is evolving. Are you still following 20th-century advice?” – Andrew Winnett

A rapidly-changing economy and constantly morphing financial systems have rendered much of the sacred canon of money advice incomplete, obsolete, or just plain wrong.

So, whether you are getting your financial wisdom from your parents, colleagues, or television pundits, you need to avoid these tarnished pearls of wisdom. Economic survival post-COVID-19 requires all of us to take a different approach to our finances, especially if we plan on ever being able to retire.

Here are a few nuggets of financial wisdom that are long past their expiration date. Unfortunately, these stinky nuggets continue to spread through the population like bad cat memes and ice bucket challenge videos. Check these out before you make an embarrassing and potentially costly money mistake.

1. You should buy term insurance and invest the rest.

Buying term and investing the difference, also known as BTID, is a philosophy developed by insurance advisor A.L. Williams. It is regularly spouted by financial entertainers such as Suze Orman and Dave Ramsey. Because tons of books already exist on this subject, let’s not get bogged down in details in this short article.

Succinctly stated, the problem with BTID is that you have to invest the difference for it to work. Most folks don’t, especially in perilous financial times. When their premiums start to go up, insureds tend to let their policies lapse and spend the difference. It’s a flaw in human nature that all the slick BTID marketing has failed to overcome.

Insurance does have a place in your financial health plan. But that place is not what you may think. Do yourself a favor and make an appointment with a financial advisor conversant in how smart people use life insurance to grow and protect wealth. Hint: They rarely buy term and invest the difference.

2. Find a great company and work there until you retire.

Back in the good old days (the 70s and 80s,) Dad donned his lime green leisure suit and headed off to work at ABC Widget Company. After 25 long years of ingratiating himself to his bosses and never missing a single sales meeting, Dad retired with a pension and a gold watch. He probably still believes that you will too.

Bureau of Labor Statistics reports make it apparent that a scenario of starting and ending your career with a single employer is highly unlikely. The Bureau says the average American changes jobs ten to fifteen times in their lifetime and spends under five years in every position.

This isn’t necessarily a bad thing, though. Because if you transition strategically, improving your salary and benefits each time, you have a chance to improve your financial situation dramatically. Staying at one job might give you a sense of stability and security, but the trade-off is less money than you might have earned elsewhere. Toss the gold watch and go where you are valued.

3. Your home is your biggest ASSET.

No, Virginia, it’s not. When you have something that puts money IN your pocket, it’s an asset. When you have something that takes money OUT of your pocket, it’s a LIABILITY.

Unless you rent your home out, it won’t be putting money into your bank account. Instead, your house will probably be a black hole that vacuums up every penny of disposable income you have. You’ll be paying for things such as roofs, HVAC, appliances, landscaping, and plumbing, to name just a few. Homes can be more expensive than you imagine.

Think long and hard before deciding to purchase one. If you’d like to own real estate, consider investing in a duplex or small apartment complex. Doing so will allow you to live in one unit and rent the rest to create cash flow for investing.

4. The correct asset allocation can be determined using your age

Your parents, siblings, or co-workers might have told you that you should invest your age (in percentages) in bonds and put the rest in stocks. The “60-40” rule means that if you are 40, you should have 40% in bonds and 60% in stocks. But, in an age of artificially low interest rates, bonds are no longer the profitable investment they used to be. Even government-backed bonds are sitting at deficient levels. You can and should do better.

5. A student loan is "good debt."

In the 1970s, only around 10% of the population had college degrees. Spending time and money to get a degree made sense because it helped set you apart from all those other job candidates. A degree demonstrated initiative and drive to prospective employers.

These days, thanks to a tsunami of student loan money, nearly everyone has a degree. From the Uber driver to the local barista to that guy walking around with a sign that says “Zombies Are Coming, ” we are now a population for whom degrees are a given.

In 2019, over 35% of Americans had at least a 2-year college degree. Yet, it is now evident that college is no longer the golden ticket to success.

The Economic Policy Institute identified this shift as far back as 2015 when it observed that “…
Workers with a four-year college degree saw their hourly wages fall 1.3 percent from 2013 to 2014, while those with an advanced degree saw an hourly wage decline of 2.2 percent.”

(https://www.epi.org/publication/even-the-most-educated-workers-have-declining-wages/)

Our current higher education is a bloated, inefficient, and overpriced relic of bygone days. Having a student loan hanging over our heads has not proven to be synonymous with financial success.

6.You should always pay off your mortgage early if possible.

The keyword here is “always.”

You see, paying off a mortgage early, like many financial decisions, depends on your goals, risk tolerance, and current financial situation rather than some set-in-concrete rule.

Intuitively, getting out from under a heavy debt load seems like a great idea. But what if you have a low interest rate on your mortgage? What if you had a mortgage that was, say, 2.7%?

Would the extra dollars you use to pay off that mortgage early be better used to invest in an alternative investment where you might be able to earn twice as much? It’s something to think about.

The opposite is also true.

If your mortgage is locked into an uncomfortably high rate, paying it off early might make sense. Either way, you need to seek an expert’s advice before doing something you might later regret.

7. You should have an emergency fund to last 12 months.

You hear this a lot, especially during the pandemic. Overall, the concept is sound. You DO need an emergency fund. However, if you are financially stable with little debt, six months of emergency savings should be sufficient. Remember, unless you are following specific cash management strategies that allow your money to work more efficiently, emergency dollars become lazy money. That is, they sit around in low-interest money market accounts or CDs and do nothing.

Once used, you lose these dollars, along with the opportunity for them to work harder for you. The current financial crisis has made it clear that every dollar you have needs to do the work of three or four.

8. Retirement should be built on a three-legged stool

Personal savings, pensions, and social security are the legs of a formula for retirement bliss known as the “three-legged stool.” The 21st Century has rendered this strategy useless, however.

Less than 15% of Americans have or will receive pensions (defined contribution plans) when they retire. That’s because employers wanting to shift the burdens and costs of retirement from the company to the employees, eagerly embraced “qualified plans” like 401ks and IRAs.

Making fee-laden, choice-restricted plans work to their advantage is entirely up to the employee. To date, the results of this experiment in the transfer of responsibility have been less than spectacular.

A 2019 survey by Gobankingrates.com revealed that almost 65% of Americans will not have enough money when they are ready to retire. This includes those with 401k and IRA money.

To sum it up, times are changing, perhaps even faster than most of us are willing to admit. It makes sense to filter the advice we use to create better financial outcomes through an entirely new set of lenses. It also makes sense to build a team of trustworthy, competent financial advisors who have the training, tools, and skillsets to help you discover the truth about money.

Coronavirus Has Exposed Retirement Financial Land Mines

coronavirus and retirement financial planning facts

If you’re like most people, you are somewhat, if not entirely, burned out on the whole coronavirus situation.
It’s understandable given the tsunami of confusing information directed at us over the past few weeks.

However, I advise you not to allow burnout to keep you from taking a closer look at how your finances fared during the pandemic. You need to look for weaknesses in your current money strategy and discover ways to eliminate those weak links. If you’re like most people, isolation, self-quarantine, and time off work gave you time to think about what matters most to you. You may have discovered how important it is to have contingency plans in place when disasters and economic downturns arrive.

What experts are saying about surviving financially after Coronavirus?

You probably also concluded that having reliable streams of income is essential, whether it’s to keep you afloat during a pandemic or to ensure that you have a retirement that is less stressful and more enjoyable. While we don’t know precisely what the world after COVID-19 will look like, most experts agree that it will be radically different in several key ways. If you want to survive financially, with your retirement blueprint intact, then you need to know what experts are saying about the new normal.

Researchers recently surveyed a cross-section of working Americans to discover how the pandemic has altered their financial situations and shifted their areas of concern.

According to the survey, the use of savings as a backstop against the economic hardships created by job loss was a common occurrence. 63% of respondents surveyed worried about having to dip into this pot of cash and eventually running out of money later. Directly related to that loss of savings is, of course, the real fear of not having enough money in retirement. 30% of respondents also indicated that their stimulus checks, designed to help reboot the economy, are either being saved or used for necessary living expenses such as food. Few people are using them to buy consumer goods beyond those required for survival.

This means that the $1,200 stimulus checks received by most Americans will have a negligible impact on the economy as a whole. It seems as if we won’t be able to cure the effects of the coming recession by throwing money at it as we have done during past financial crises. That will make for a long road to full recovery.

What HAS the coronavirus taught us as far financial lessons are concerned?

Well, for one thing, it has hammered home the need to be prepared for health issues that will arise now and in the future. Coronavirus shone a spotlight on our fragmented and weak medical system and the high costs associated with long term illnesses. More people than ever have started asking questions about how they can protect their retirement cash and assets against the economic devastation of chronic or life-threatening diseases, accidents, or injuries.

Another thing, as I mentioned previously, is that many people have begun to understand how vital income planning is. People who plan to retire or downsize their lives within the next five years MUST have streams of income in place.

Often, the advisor who helped a person during the accumulation phase of their financial life is not qualified to set up this kind of income plan. The reason for this is that a typical financial advisor doesn’t have enough specialized knowledge about safe money products. Such knowledge is necessary for helping clients make the right choices to create lifetime income. When you are putting together an income plan, be sure to seek the advice of a qualified safe money expert who understands the right way to use products such as annuities, life insurance, and other risk-averse products.

Finally, coronavirus has revealed the debt monster.

People who have been laid off or have lost their businesses are learning some painful lessons about how much despair and anxiety debt can create. Many of us now question our decisions to purchase new cars, homes, and high-ticket items. We may wonder if the loan taken out for Jr’s college was worth the problems we are now experiencing.

I predict that in the future, people will be a lot more careful about how they spend their money and will better understand the concepts of compounding, inflation, and lost opportunity costs. While it may take some time and will undoubtedly be painful at first, I believe that our nation will be able to move past the pandemic and achieve some measure of economic recovery. It could take years, though, so we need to prepare mentally, financially, and physically for what lies ahead.

We will want to look at our finances in an entirely different way, realizing how much thoughtful, data-driven planning can help us overcome setbacks. We will also need to reformulate our current income and retirement plans to include new realities brought about by the pandemic.

It will not be impossible to accumulate wealth or retire after coronavirus.

Still, it will require us to take a fresh approach to how we view finances and to partner with advisors who have our best interests in mind.

Find Out Why Annuity Is Perfect After Or During The Pandemic

financial planning after pandemic and all about annuity

“Most investors consider the consistent rise in share price as a proxy for safety. Often not true!” ― A K Asnani.

Writing this in a pandemic-impacted world, I realize that many of us are at a loss as to what is happening right now in the markets. If you’re like most people, you’ve probably looked at your statements and wondered if there is any good way to protect what remains of your wealth. After experiencing the recent wild mood swings on Wall Street, you want and need to build a fortress around your savings.

Perhaps in the past, you felt compelled to chase after returns in order to create a lifetime income because interest rates were so low. You felt pressured to catch up and didn’t want to run out of money in retirement or have to work longer than you expected.

However, the price for getting those higher returns was seeing your life savings beaten and battered by the market. Once the dust settled and you did the math, it’s likely you didn’t come out ahead at all.

What is an Annuity?

Simply defined, an annuity is a contract between you and an insurance company that typically blends elements of both investing and insurance. You can either contribute a lump sum, such as a roll-over from a qualified plan, inheritance, or windfall, or you can make payments over time. Your earnings grow tax-deferred.

Why annuities are a perfect choice during and after COVID-19?

Looking forward to life after COVID-19, you may be seeking something that can give you some growth without loss of your principle, especially if you’re over 50. That’s when a fixed index annuity can become the cornerstone of your plan to create a more secure and worry-free retirement.

Annuities offer some solace to those worried about market volatility. They are expressly designed with the idea of providing better returns than other safe-money vehicles such as CDs and savings accounts.

It’s likely that your financial advisor, colleague, or family member tried to talk you out of annuities, saying they were too conservative and that you’d lose out when Wall Street rallied. Maybe that was somewhat true back in your 20’s and 30’s. But as you near retirement age, it’s critical to avoid losing even a penny of the money it took you years to accumulate. Annuities are the only products available that offer guarantees that you won’t lose your principle.

Why you should have an Annuity?

Here are a few reasons why I believe that if you are 50 or older, you should consider having an annuity as part of your overall retirement strategy.

1. Annuities are NOT difficult to understand and manage

Many financial planners counsel against annuities because they claim they are too complex for people to understand. However, with the help of an expert who is well-versed in the many features of modern annuity products, you will be able to find the annuity that best suits your goals.

Your annuity specialist will help you discover exactly what to expect from your annuity and how to get the most out of it. He or she will sit down with you, explain the features of your contract, and show you how it fits in with the rest of your retirement blueprint. Annuities are, in my opinion, far easier to understand than the majority of other financial vehicles in the marketplace.

2. You DO have access to your money

Many people mistakenly believe than having an annuity is like putting your money in a safe and then putting that safe into a locked storage shed and throwing the whole thing into the deepest part of the ocean. In other words, they’ve been misled into thinking that buying an annuity means your money is locked up tight and you can never touch it. It’s a myth that many advisors who don’t specialize in safe money continue to parrot.

What most people don’t realize is that nearly every annuity available allows you to withdraw a portion (usually up to 10%) of the amount you put in or earnings, whichever is greatest, during the first few years of the contract, or “surrender period.” While there may be some tax implications for doing so, there is no penalty.

Your advisor will counsel you on the tax implications should you ever need access to those funds in case of an emergency. While it is wise to avoid taking out money from your annuity if, at all possible, it is comforting to know that you have that option. Some annuities also provide for access if you or a loved one needs long-term care or is terminally ill. Ask your annuity expert about those options.

3. Annuities allow you to have protected lifetime income

Many people combine an annuity with other types of protected lifetime income, such as a pension and Social Security. This trifecta of guaranteed income sources means you’ll have payments for as long as you live, even when the account balance is exhausted. If you have a 401(k) plan, an annuity can complement and augment that plan, allowing you to generate income. In fact, Congress recognized the potential relationship between 401(k)’s and annuities and passed the SECURE Act. This legislation now makes it easier for employers to offer annuities in their 401(k) plans.

Annuities in the 21st Century are robust, multi-faceted products that offer distinct advantages, like guarantees, that others don’t provide. A properly structured annuity will provide you with protected lifetime income that you can’t outlive.

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