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You’ve heard the old expression about putting your money to work for you, but what job are you going to give it? There are many different ways to invest and save your money but you have to know what results you’re trying to achieve. When you think about your finances, ask yourself what does money represent and what do you want to get out of your money? There are many things you may look to accomplish, but the three primary things you hope to obtain are growth, safety, and liquidity. The question we get a lot is what investment can achieve all three of these? Unfortunately, that’s the silver bullet of investing. You’re just not going to find it. So the key is building a portfolio that’s diversified by trying to accomplish two of the three qualities. Once you figure out the ‘job description’ of a specific account, you can determine what you want to do with the money. Let’s look at investments that will help you get safety and liquidity. The first and most common is cash. Many people like to move more and more into cash as they get into retirement. Another option is savings bonds, which used to be used much more in prior decades. Something to think about with liquidity is it comes in different forms. You might need the money next week, in six months, or in a year. Different timeframes allows for different investment options. If you’re looking for liquidity but you want to get growth out of your investments, the place most people turn is the market. We’d be dealing with individual stocks, bonds, ETFs, and mutual funds. This gives you the possibility of growth but also the option to access your money at any time. Now let’s think about getting growth but also keeping the safety quality. Real estate is an investment that many people choose because it typically holds its value and appreciates over time. Annuities might also be in that category but it depends on the type of annuity. That’s something your advisor can assist you with. The most important thing you can do is determine which objectives you have for each account you have and that’s where having a plan comes into play. We can look through your portfolio and see how balanced you are and whether you’re meeting those objectives. As you move forward, think about these qualities when evaluating an investment and it should make your decisions a little easier. Use the timestamps below to hear a specific segment. 0:32 – What does qualities of money mean? 1:19 – The best investment to achieve all three 2:23 – Diversification is key 4:04 – How to get safety and liquidity. 6:30 – Different types of liquidity 7:58 – Liquidity and growth. 9:11 – Growth and safety 11:14 – Biggest thing for you to think about 13:08 – Here’s what we recommend Thanks for listening! For additional financial resources, visit us online here: https://www.flemingfinancialservices.com/

We’ve been spending a lot of time on the podcast discussing financial literacy and where the majority of people are falling short as it relates to planning and investing.   As we move forward this week, let’s start by talking about retirement concerns we continue to see. One of the biggest we’ve found is voluntary unemployment. The idea of giving up the career we’ve built and voluntarily give it all up to transition to a new chapter. Many times you might even be at the top of your game, and it can be a stressful and scary decision.   That’s why you want to as buttoned up as possible when it comes to your plan. The key question is to answer is how prepared and how knowledgeable do you feel today about retirement?   As we’ve pointed out before, a financial literacy quiz found that scores were actually lower in 2020 than they were in 2017. Many people did not pass the test and there wasn’t any section where scores were higher than 50%. That tells us that most people aren’t able to answer that question very well.   The good news is that many people in 2020 have at least been able to get a small preview into retirement because of the pandemic. Have you been able to spend less and be comfortable? Are you having trouble finding things to do when you’re at home all the time? These things have made people rethink retirement and whether they’re truly ready to transition.   So as you’re thinking more about that next chapter and what you need to do to get there, it’s critical that you get accurate information when it comes to finances. Whether that comes from us or other resources, you want to make sure you get it right. That’s why we’re clearing up a few misunderstandings on this show.   The first one we’ve seen comes with investing in bonds. Do you know how these change base on interest rates? Nancy will break it down on the show and explain exactly how the investment works and what causes the value to increase and decrease.   The next misunderstanding deals with small company stocks and dividends. Would you expect the yield to be higher or lower with a small company versus a large company? In general, the blue chip companies will pay a higher dividend because they are generating more revenue while the small company might have higher growth potential.   The third misunderstanding we want to clear up is actively managed funds and exchange traded funds. Only 28% of people in the survey knew the difference between the two, and most people will often lump them all into the category of mutual funds and assume they’re all the same thing. One big key is actively managed funds will have higher fees because someone is making investment decisions and managing the fund. You’ll want to compare the differences and understand the benefits of paying the higher amount for an actively managed fund, which we can help you sort through.   Hopefully this show will help you make better investing decisions, which is critical as more and more Baby Boomers move into retirement. We’re always here to help you with this so reach out and set up a complimentary consultation.   Use the timestamps below to hear a specific segment.   1:23 – A big concern we’ve found 2:40 – Financial literacy scores for 2020 4:52 – Being home this year allowed people to get a preview of retirement 5:58 – Clearing up misunderstandings 6:46 – Investing in bonds 9:07 – Small company stock 10:41 – Actively managed and Exchange Trade Funds 13:54 – Other categories of the financial survey that find 15:15 – Example of lifestyle changes that impact planning 17:23 – Make sure all of your affairs are in order   Read more and get additional financial resources here: https://www.flemingfinancialservices.com/ 

The biggest fear that anyone has for retirement is running out of money. No one wants to be forced to work if they’d prefer not to, and that’s where income planning comes in. You might be surprised to know that less than half of all people are financially literate when it comes to retirement. Most people aren’t clued in on all the different aspects of planning and it can cause a lack of confidence in your financial future. But it’s not the individual’s fault. It just means more education is need and that’s the goal for this podcast. After all, education is crucial to proper planning because we can base our decisions on correct information. There are a dozen different areas of planning and that requires advisors to spend time with their clients and help them understand the benefits and risks for every decision they make. You’ll find that our process for planning is more extensive than most, but our goal is to give each client a sense of ownership in their plan. And that’s done by making sure they are looped in on each piece of the plan and why it’s a part of the overall process. We’ll provide a couple examples on the show of times where mistakes can be made if you don’t have a complete understanding of an investment and how we worked with them to improve their situation. Income planning is such a big piece to a successful retirement so let us help you build a portfolio that will provide you with the life you want to live. Give us a call us 480-632-8770 and let’s start putting a plan together. Use the timestamps below to hear a specific segment. 2:00 – Why we’re talking retirement income 3:55 – Income literacy 5:12 – This is why having a planner is important 6:55 – How we help give you a sense of ownership in your plan 7:58 – Example of a client not fully understanding an investment 9:16 – The benefit of behavioral coaching 12:03 – 12 areas of retirement planning 13:32 – Our process is more extensive than most 15:44 – A lot of income considerations   Read more and get additional financial resources here: https://www.flemingfinancialservices.com/ 

As we approach the end of the year, people start thinking more about taxes and want to find ways to lessen their tax burden. One area where you might already be lessening your tax burden and not fully realize it is through charitable donations. The holiday season brings that out even more so we want to make sure your contributions are being incorporated into your financial planning as we close out 2020. On this episode of My Smart Retirement, Sean and Nancy will tell you about the three most significant tax changes that came with the Tax Cuts and Jobs Acts (TCJA_ from a few years ago. You might already know about these adjustments, but it’s important that everyone is aware of how they effect tax planning because it can be significant. The first we want you to know about is that if you are making a cash contribution to a charity, you are allowed to deduct 60% of your adjusted gross income for that cash contribution. For example, if you have $100,000 of AGI and you make a contribution of $57,000, you can deduct that full amount. And don’t worry, an excess can be carried over into the next year. Another thing the TCJA repealed is the ability to deduct a donation that’s used in exchange for buying a seat to a game. You used to be able to deduct 80% of that donation to a college or university but that’s no longer allowed. For many of the sports fans in our area, this has been a significant shift in their planning. The third major change is that any charitable contribution in an amount greater than $200,000 has be documented in writing. Most charities will send you a letter thanking you for your donation or contribution so make sure you hang on to that. With the changes in these laws, you have to itemize all your deductions for the charitable deductions to work. This is because standard deduction increased by a significant amount. The Tax Policy Center estimates that 9 out of 10 individuals will claim that standard deduction. To help you understand when its best to use an itemized deduction, we’ll also break a few scenarios where this can be applied. Plus, we’ll share some strategies you might consider as you look to lessen that tax burden. If you have any questions about charitable donations or tax planning after listening to the show, give us a call us 480-632-8770 and let us help you hold on to more of the money you’ve earned. Use the timestamps below to hear a specific segment. 1:40 – Cash contribution deductions 2:19 – Another thing the TCJA repealed 4:18 – Third change has to do with getting record of your contribution in writing. 7:47 – The big caveat in this discussion 8:52 – What if you aren’t itemizing your deductions? 10:54 – Charitable donations as an RMD 13:10 – Another tip for itemizing deductions For additional financial resources, visit us online here: https://www.flemingfinancialservices.com/ 

Regardless of what you know about annuities, you’ve probably heard an opinion about them. This investment tool, like any other, can be good or bad for your personal retirement plan, but is it? Well, we’ve gotten a lot of questions about annuities recently because of all the market volatility. People are looking for ways to create reliable income and the annuity will always be a product that comes up in the conversation. So we want to use this episode of My Smart Retirement to educate you about how they work, why people choose them, and what our experiences have been. Maybe the biggest thing we want to stress throughout the conversation is to do your homework. Ignore what you’ve heard about annuities and take the time to get the facts and become informed. They might not work for your goals but they might be exactly what you need. Every tool is valuable if used correctly and that’s no different with annuities. One thing we’ve found is that the majority of people who need annuities are usually approaching retirement. The ages we normally see are between 55 and 75 with the peak around the early 60s. But when you get to this age, don’t just look up information online. This is such a nuanced product with so many different options that you need to take a detailed approach to planning. That’s something we would be happy to work with you on. Give us a call and take advantage of our complimentary retirement plan. Use the timestamps below to hear a specific segment. 1:08 – Why we’re talking about variable annuities today 2:09 – Annuities for many people are emotionally-driven 4:01 – Investments as a tool   6:41 – Get the facts and then form an opinion 8:11 – Annuities have been evolving from income to growth 11:20 – Indexed annuities 12:24 – First thing you need to decide 15:37 – Planning becomes key 17:06 – Look deeper into annuities 18:33 – Who needs an annuity?   Read more and get additional financial resources here: https://www.flemingfinancialservices.com/ 

If we’ve learned anything over the course of 2020, it’s that health needs to be a priority for all of us. The focus goes beyond the pandemic, which is obviously at the forefront right now. But mental health issues have risen through the year and the usual causes of death are still as prevalent as they always are. It’s great to see that more and more people are paying attention to their health because it plays a huge part in your finances and retirement. On this episode of My Smart Retirement, Sean and Nancy will talk about the role health plays in our lives. This topic isn’t one that we’ve spent a lot of time on the show but we want to change that because there’s no retirement to enjoy without good health. We feel retirement is about being relaxed and enjoying life and it all starts with taking care of your body and your mind. Over the course of the show, we’ll talk about a few different areas of health in retirement, beginning with nutrition. It’s easy to look at the cost of eating healthy and the time it takes to cook nutritious meals, but think about how much it could save you over the course of your life in healthcare bills. Then you have to talk about exercise as the next piece of the process. People can become complacent in retirement and lose the drive to stay active without a job to go to every day. Exercise doesn’t have to be over the top either. It can be an hour walk each day or gardening or even Pickleball. As long as you stay consistent and active, it will pay dividends over time. We’ll also talk more about life insurance and the role it plays in a plan. Decisions will be impacted by your health, as will your options, so this is something else to think about when taking care of yourself. Health should always be a priority but it’s easy to overlook when life gets busy. Hopefully this episode will help you refocus and remember what’s important. Use the timestamps below to hear a specific segment. 0:32 – Health issues are at the forefront right now.   3:26 – What’s the cost of not getting correct nutrition? 6:27 – Other leading causes of death   8:04 – Along with nutrition, pay attention to exercise   10:27 – Retirement is about being relaxed and living a long life. 12:42 – Life insurance    15:30 – Ways to have a healthier, longer life 17:40 – Stress management   Read more and get additional financial resources here: https://www.flemingfinancialservices.com/ 

“Am I ready to retire?” If it’s not the most common question asked during retirement planning, then it’s definitely near the top. Everyone wants to what kind of shape they’re in financially and if they are in a position to transition to that next chapter. Everyone’s answer is going to be different and it depends on a variety of factors, but there are some questions you can ask yourself to get a better sense of where you stand. That’s what we’ll do on this episode of My Smart Retirement. Join us as we lay out five questions and tell you why each is so important when it comes to your retirement. We’re covering spending, assets, budgeting, investing, and income planning. These are all key pieces of a comprehensive plan and it’s why this is good starting point. If you don’t do as well on this quiz as you hoped, we’re here to help you build a plan that will give you the confidence you need to retire. Connect with us and set up a time to meet and we’ll run through all of these areas and more. Speaking of investing, you probably saw how the market reacted to positive vaccine news this week. We all welcome the progress towards getting the pandemic under control and investors showed that. Sean and Nancy will lead off this show with their reaction to what we saw from Wall Street this week and what it could mean for value stocks and interest rates. It’s going to be a busy show but hopefully you’ll get a lot of valuable information along the way. Use the timestamps below to hear a specific segment. 1:03 - Vaccine announcement was big news for the market 2:03 - What does this mean for interest rates? 3:10 - The DOW was up as well 3:57 - ‘Dumpster Diving’ in the market 6:29 - Are you prepared for retirement? First, do you know how much you have?  8:53 - Do you know how much you spend? 11:59 - Do you know how much risk you have?  13:58 - Do you know what you’re paying in fees? 15:21 - Do you know what your retirement income streams will look like?  For more on this show and additional financial planning resources, visit our website: https://www.flemingfinancialservices.com/

As if 2020 hasn’t been volatile enough, now we’re left sorting through election results days after voting has ended. Although it appears Joe Biden is set to become the 46th President of the United States, plenty of questions remain about policy and the financial impact it could have on investors. So as we wait for the dust to settle, let’s try to answer the questions, what now? Nancy is flying solo on today’s episode of My Smart Retirement and she wants to provide updates for those that are slow to act while things remain in limbo. The first thing we’ll talk about is what could things look like if all the results hold, meaning Democratic president, Republican Senate, and Democratic House. Divided government is typically positive for investors as it likely means taxes won’t see significant changes in the near-term. That’s the item many people have questions about immediately because it affects every single one of us. It’s also a part of the financial planning process that we target as adjustments are being made. The other areas Nancy will update you on the during the show are stimulus, policy, interest rates, and more. There’s a lot to be factoring in and it’s important to remain proactive with your financial future. That’s what we can help you with and hopefully this show will provide you with a little more clarity after an unsettled week. Nancy will answer all these questions, plus tells you about an exciting finding scientists have made on the moon! Use the timestamps below to hear a specific segment. 0:39 - Exciting announcement from NASA 1:44 - What we know about the election right now 2:48 - If Republicans hold the Senate, what we need to know about taxes 4:22 - Fiscal stimulus & other spending 6:18 - What we’re looking ahead for when building retirement plans  8:28 - Divided government could mean a positive for investors 9:43 - What recent history tells us  11:26 - Financial achievements for President Trump 13:15 - Prop 208 in Arizona  14:39 -  Change will always happen so be proactive   Contact: Website: https://bit.ly/31DO9OW Phone Number: 480-632-8770

On today's show, Sean and Nancy give their take on where the major financial markets currently stand. They address some common concerns they have heard from their clients and give advice on how to navigate those challenges. Contact: Website: https://bit.ly/31DO9OW Phone Number: 480-632-8770