Michael R. Weston, Ch FC

07/20/2020

Could you be doing more to boost your savings? Try these 6 challenges to help you break bad habits and build your money-management skills: https://bit.ly/2WE8Pnd

These creative challenges encourage spenders to become savers.

07/20/2020

In 2020, only a quarter of Americans were confident they'd have enough money saved to live comfortably throughout retirement, according to a poll conducted by Principal.

Getting professional financial help can be beneficial for a number of reasons. A financial professional can offer advice on making a comprehensive plan for how much to save for retirement, what accounts to use, and what to invest money in. If you opt to work with a professional, you'll want to make sure you find someone with the right credentials who charges reasonable fees. You can get recommendations from friends and family or visit NAPFA.org to find an advisor in your area. Talk with any professionals about the scope of their work and make sure you're choosing someone you're comfortable with to guide you.
(Source: Motley Fool)

07/20/2020

Safety may be the word of 2020. What do you think of when you hear that word?

When it comes to retirement, you should think about how safe your savings are from unnecessary risk.

07/17/2020

Financial Fact Friday:

44% of Workers Are Procrastinating on Retirement Investing, and It Could Hurt Them Big Time!

New data from Transamerica reveals that almost half of workers aren't putting enough thought into how their retirement cash is invested. In fact, 44% say they prefer not to think about or concern themselves with retirement investing until they get closer to the age at which they plan to exit the workforce for good.
(Source: Fool)

07/16/2020

FACT or FICTION: You can have unexpected sources of income.

FACT: For example, a Health savings account (HSA) can be one of them! You're probably familiar with health savings accounts (HSAs) if you have a high-deductible health insurance plan -- one with a deductible of at least $1,400 for an individual or $2,800 for a family. Money you put into this account reduces your taxable income this year, and if you use the money for medical expenses, you won't owe any taxes on it at all. What most people don't realize is that it's also a great place to stash your retirement savings. Normally, you can withdraw money for non-medical expenses, but you'll pay taxes on it plus a 20% penalty. But once you turn 65, this penalty goes away and your HSA becomes similar to a traditional IRA, with two key differences. The money is still tax-free if you use it for medical expenses, and you don't have to take required minimum distributions (RMDs) from your HSA once you turn 72, so you can leave the money in your HSA as long as you'd like.
(Source: Fox Business)

07/15/2020

The Internal Revenue Service just made it easier for people to give back the required minimum distributions from their retirement plans they may have taken too soon this year. Americans were told they did not have to take required minimum distributions this year as part of the CARES Act, the stimulus package aimed at helping people and businesses overcome financial hardships the crisis caused. Typically, retirees have a 60-day rollover period for distributions from certain retirement accounts. Under the new rule, Notice 2020-51, that rollover period has been extended to Aug. 31 — meaning anyone who took an RMD beginning Jan. 1 can roll it back into their accounts.
(Source: Market Watch)

07/15/2020

Wealth Wednesday Tip #471: The Social Security office WILL NOT call you to request information or payment due to coronavirus or office closures.

When it comes to scammer tactics it’s important to remember a few things. Social Security or other government agencies will never do these things, per the SSA; Call you to request information or payment due to coronavirus or office closures; Threaten to arrest you because of an identity theft problem; Require you to put money into a protected account; Ask you for payment by gift card, wire transfer, internet currency, or by mailing cash; Tell you to make up a story to tell your family or bank employees about why you need gift cards or cash. Older Americans are considered an easy target for scammers and con artists. Knowing some of their favorite tactics can give you a leg up in protecting your identity and finances.
(Source: Money and Markets)

07/13/2020

The coronavirus pandemic has not only pressured Americans’ retirement savings but it has also upended the very timing of retirement for many, accelerating financial decisions and forcing people to understand their options for income and health care.

Among those leaving the workforce between January and April, 60% say they planned to retire rather than return, according to a report by the National Bureau of Economic Research.

07/13/2020

What plan do you have to protect your savings through retirement?

We are here to help, let's talk!

07/10/2020

Financial Fact Friday:

Surprisingly Few Americans Have Postponed Retirement Due to COVID-19!

New research finally offers some good news in what has been a rough few months for the economy and personal finance. The coronavirus pandemic has caused economic havoc, driving the country into a recession and leading to a record number of people becoming unemployed in a very short time frame. Amid this chaos, it may seem as though postponing retirement is a smart choice if you still have a job. Surprisingly, though, very few workers have decided to do that. In fact, research from Northwestern Mutual released this month revealed that only 5% of workers have decided to leave the workforce later than planned.
(Source: Fool)

07/09/2020

FACT or FICTION: The IRS is allowing more people to draw from their retirement accounts without penalty.

FACT: In addition to people who lost their jobs during the pandemic, the tax agency now says individuals who experienced a reduction in pay or were supposed to start a job – but experienced a delay due to the virus – can access their savings. Further, people who lost a job offer over the past three months can do so, as can people who suffer adverse financial consequences due to the impact of the virus on their spouses. Earlier this year lawmakers approved legislation that gives individuals greater flexibility to tap retirement accounts as a means to help them weather the financial effects of the virus. People can take up to $100,000 from their 401(k) retirement stash without being subject to the 10 percent penalty – so long as the funds are used for coronavirus-related financial needs. Individuals will, however, have to pay income taxes on the money.
(Source: Fox Business)

07/08/2020

About half of retirees are able to maintain their spending levels—in other words, their lifestyles—during their first five years of retirement.
On the other hand, half aren’t. That’s according to a study by the federal government’s Consumer Financial Protection Bureau (CFPB), which looked at retiree spending habits over a 22-year period ending in 2014.

Obviously, retirees are like snowflakes: no two are alike. Yet the study says most tend to have one important thing in common: They usually spend more in their first five years of retirement than at other times, and then it begins to decline. For example, if you’ve dreamed of traveling the world, checking things off from your bucket list and so forth, you’re more likely to do so in the early stages of your golden years than the latter ones, when you may be slowing down. And it’s not just splurging in Italy or taking the grandchildren to Disney World. The CFPB cites an external study by the Employee Benefit Research Institute, which notes that retirees also tend to buy fewer clothes, fewer home furnishings and other things as time goes by.
(Source: Market Watch)