How to Build a Retirement Portfolio

How to Build a Retirement Portfolio

Posted in:

Published: July 5, 2018

When working and saving, the goal of your retirement portfolio is to earn as high a rate of return as you can while not taking so much risk that it will scare you into pulling out of the market during a downturn. Once retired, the goal changes. A different goal means a different portfolio. A retirement portfolio needs to produce reliable cash flows that last the rest of your life regardless of the variety of market conditions that occur over your retirement years. There are four primary ways you can construct such portfolios, and of course, numerous variations of each. 1. Total Return With

Sensible Money Ranked One of Best Phoenix Financial Advisors

Sensible Money Ranked One of Best Phoenix Financial Advisors

Posted in:

Published: June 22, 2018

In 2018, for the second year in a row, Sensible Money was ranked by an independent rating firm, AdvisoryHQ, as one of the top ten financial services companies in the Phoenix area. This reward is special as we were not required to pay a fee or buy an ad in a publication. (Many “top financial advisor lists” solicit expensive ads from the firms they select.) AdvisoryHQ explains their policy as follows, “All of our review and ranking articles are always 100% independently researched and written. Firms do not pay for their ranking or our award emblem. In fact, most firms do not

Our Next Free Online Retirement Planning Class – Best Retirement Investments

Our Next Free Online Retirement Planning Class – Best Retirement Investments

Posted in:

Published: June 14, 2018

Our next online retirement planning class, Best Retirement Investments will be Thursday, August 9, 2018. About the Class What are the best investments to use as you near retirement? Should you load up on dividend-paying stocks? Buy annuities that guarantee income for life? Or maybe you should follow an allocation model and use the “100 minus age” rule. In this free online class, we’re going to look at the best investments to use when investing for retirement. We’ll cover: Dividend-paying stocks and other high-income producing investments Four types of annuities – and who should buy them Mutual funds – and how to spot the best ones Bonds

When Can I Retire?  Two Calculations (And a Bit of Philosophy) to Find the Answer

When Can I Retire? Two Calculations (And a Bit of Philosophy) to Find the Answer

Posted in:

Published: June 1, 2018

The question is not “When can I retire?” it’s “When can I retire so I don’t run out of money in my lifetime?” Wouldn’t it be great if there were a simple answer to tell you how much you need to retire without financial worry? Everyone is different, and the right amount for you will be different than the right amount for your neighbor. However, there are calculations each of us can make to determine if we have enough to retire and live the life we want. Happy Retirees Plan Ahead While it makes sense to gauge how much you will need,

What Does a Financial Planner Do?

What Does a Financial Planner Do?

Posted in:

Published: May 4, 2018

I am a financial planner. I own and run a financial planning firm. Our primary job is to make a projection and a plan that shows you the decisions that you can make that will help you achieve long-term financial success. Should you pay extra on the mortgage or put it in your 401(k) plan? What type of insurance do you need? Should you refinance? Buy that stock or use a mutual fund instead? We have answers to these questions. In a nutshell, financial planners answer questions. How Financial Planners Answer Questions Financial planners gather information and financial statements and put the

3 Engineer-Like Ways to Test Your Retirement Income Plan

3 Engineer-Like Ways to Test Your Retirement Income Plan

Posted in:

Published: March 30, 2018

I’ve always found engineering fascinating, particularly when it comes to building something that will last. After all, when you build a skyscraper, you can’t have it fall. The same thing is true for building a retirement income plan – it needs to last. Early in my career, I realized I wanted to find a more engineering-like way to deliver financial planning advice. I wanted answers based on data, not on speculation. Yet, when I started in the financial planning business in 1995, providing answers based on data was not the norm. At that time if someone wanted to know if they

At What Age Should I Start Making 401(k) Withdrawals?

At What Age Should I Start Making 401(k) Withdrawals?

Posted in: ,

Published: March 20, 2018

The 401(k)suffers from a branding problem. If the name were more descriptive or catchy, people would pay closer attention to these savings tools. They are hugely beneficial–often including free money (yes, free) –and are currently the bedrock for most retirement savers. However, despite the benefits, two-thirds of workers do not take advantage of their company’s employer-sponsored 401(k)plans. Before we review the optimal ages for 401(k) withdrawals, and when you are required to make them, let’s look at the history behind 401(k)s. The basics 401(k) plans are employer-sponsored, retirement saving vehicles. They provide some tax advantages: they reduce your taxable income in the years

How Much Should I Withhold for Taxes in Retirement?

How Much Should I Withhold for Taxes in Retirement?

Posted in:

Published: March 11, 2018

Many upcoming retirees aren’t quite sure how taxes in retirement are calculated. It’s not all that different than the way they are calculated while you are working. Much like when you are working, you need to have an estimate of the amount of taxes you are required to pay so you know what amount to have withheld from pensions, Social Security, or other types of income. In this article we’ll look at a series of sample calculations so you can see how to calculate your tax withholding in retirement. We look at scenarios using both 2017 and the new 2018 tax

Best Retirement Investments for a Steady Stream of Income

Best Retirement Investments for a Steady Stream of Income

Posted in:

Published: March 5, 2018

As you near your 60’s, your prime earning and saving years will transition into a period of time where you get to enjoy the “fruits of your labor,” a.k.a retirement. We call this segueing from accumulation to decumulation, the period when you will be drawing from your accumulated nest egg. You need to find the best retirement investments so that you can generate regular income, without having to go back to work. Here’s an overview of the most popular income-producing retirement investments. 1) Immediate Annuities Immediate annuities provide guaranteed income immediately (hence the name). They are a form of insurance rather than

Inheritance Tax Checklist: Know Before You Sell

Inheritance Tax Checklist: Know Before You Sell

Posted in:

Published: February 27, 2018

When a client asks about inheritance taxes “it depends” are usually the first two words out of my mouth. Many people don’t realize that inherited assets—property, stocks, investment accounts, etc.—may be subject to taxes and that there are specific tax rules for each type of asset or account. So before you sell Uncle Oscar’s rare wine collection, make sure you know the rules! We are not talking here about estate taxes. Estate tax is assessed on the total value of everything you own; real estate, stocks, bonds, retirement accounts, businesses, farms, land, and it even includes the death benefit values of