Month: March 2024

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Why DIY Financial Planning Is Not Getting You Much

Financial planning will always be in fashion as all of us want to secure our future and to do that there are various options. You can hire a professional like David Snavely or you can invest your money on your own. These days, there are many do-it-yourself financial planning options.

There are retirement calculators, websites with guides, and tech apps to help you get the best financial advice. Anyone can easily download these automated algorithm-based investment resources that will help you decide what you should buy, hold, or sell.

Should You Do It Alone?

If you understand financial concepts as you might be a perfectly capable savvy investor then you can apply your knowledge to your portfolio. But still, there are some factors that you need to know that can affect your success big time. The following are a few things you should consider:

  • Do you have the time?

Making an investment plan is not just talking to your friends and family for advice and making some little investment in stocks and some other options. You will need to research to make good financial choices. Anyone investing their money must read those financial prospectuses every single time.

It is good to disappear into the world of finance on your laptop rather than listing yourself in search of money after your retirement. You need to give your time to financial planning before spending time with your partner because what will they do if anything happens to you? Most people shouldn’t mind discussing their do-it-yourself plan with professionals and you can also take help from them to manage the rest of your portfolio.

  • You Might Not Be As Professional As You Think:

It is great news if you have been successful in investing money for the past few years but everyone knows how unpredictable the stock market and other sectors are. Everything goes smoothly when the market is stable but problems come when there’s a correction. Some question arises in those situations like:

  • How are you protecting yourself from the downside? 
  • Do you even know about the products completely?
  • How to safeguard your income stream? 

An experienced financial adviser like David Snavely knows all the current financial strategies, tax law changes, and more. He’s seen hundreds of people and helps them with finances. He has probably helped more clients than you think of with problems similar to yours.

  • Are You Capable Of Keeping Your Emotions Out Of It?

The amount you are about to invest in a financial product is yours for your future and your legacy. It is usually common for people to make mistakes as they panic due to some instability in the market and they sell their shares at low rates to prevent further damages. Sometimes this panic also encourages them to buy as they get greedy and buy high in a good market. You must have someone experienced who can talk you through those impulsive decisions.

  • Everyone Rookie Needs A Pro:

You need a professional or team of professionals behind you when it comes to planning your financial future. That team of professionals includes financial advisers along with others like tax experts, estate attorneys, and insurance professionals. All of them, collectively build a plan that helps you meet your future financial goals. Saving money was so much easier when you were a kid as you just needed to drop some quarters into a piggy bank. Now as we get aged, we need to save money for student loans, credit, and mortgages. You need financial help from a professional like David Snavely no matter how fantastic you are at the accumulation of your financial life.

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Smart Moves to Make Your Money Last in Retirement

You need to agree with us here that the most risky years of your retirement are the five before you leave the 9-to-5 world. However, some financial advisers will tell you that the most risky five years are after you have forsaken a steady paycheck. Both of these notions are not wrong as they have some substance in them.

At retirement, you need to learn to live on Social Security, a pension, or a lifetime of wealth accumulation through a retirement plan. The biggest worry among old folks approaching or in retirement is making their money last as long as they possibly can. Credentialed financial advisers like David Snavely share their advice with their clients to help them understand these intriguing questions. 

We hope the following insights help you make your money last a lifetime.

1. Keep Your Fixed Expenses In Check: 

There is a clear difference between what is necessary for retirement and what is just nice. Keeping a check on the expenses will make it much easier for your money to last in retirement.  You need to keep your funds for essential must-have expenses first.

2. Take Steps To Maximize Your Social Security Benefits: 

Claiming Social Security may make sense for your retirement plan if you are retiring early. If you are still working, you may find many of your SS benefits clawed back if you earn a good amount of money. 

3. Consider Some Guaranteed Income:

When everyone has a pension and Social Security, retirement planning becomes super easy because they will have a steady and regular income stream. You can subsidize your fixed income if you have worked a job with good money.

Social Security was not meant to replace your preretirement income, and only a few people have pensions. People with guaranteed income and Social Security can have peace of mind and they can enjoy their retirement. With that, they can cover their necessities, like housing and food.

Consult with an expert financial planner like David Snavely about setting up a guaranteed retirement savings plan for a regular income stream.

4. Have A Spending Plan For Retirement:

No, we are not going to advise you about budgeting here, but having a clear spending plan helps you big time. With these plans, you can ensure you have money for the most important things.

This is where you need to stop regular spending on exciting stuff like extended travel, luxury shopping, or going out with friends. A good spending plan will help you afford valuable things in retirement. A fabulous financial planner can help you determine what type of things you need to support your dream retirement.

5. Don’t Ignore Inflation:

To be honest, we all heard from our grandparents or parents how cheap something used to be.  The increase in prices of things is called inflation. Inflation will significantly affect your buying power if you retire for 30 years. Things will get more expensive as you age, and your money will decrease. A proper inflation plan will help you avoid running out of money in retirement.

6. Make Healthier Choices Now:

Being healthy is always expensive, but in the long term, it is considered cost-effective. If you are sick, you will spend money on medication that you might spend on other useful things. Making healthier choices today can reduce your healthcare costs in retirement. 

7. Have Tax Diversification On Your Retirement Assets:

You would have some tax-free income, so invest in different options to get a regular income. As per David Snavely, it will help you minimize your taxes during retirement.

Whether you are concerned about running out of money in retirement or think you are set for retirement. Developing a retirement plan to ensure you and your loved one are financially set for the rest of your lives is very essential. Consult a top-rated financial advisor for your needs.

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Types of Retirement Income Sources

Retirement is a phase of life that probably every person on earth encounters and all of those people want to enjoy that period. When someone retires they want a main source of income to manage their life well for that they need to start preparing advice while they are working.

They can invest in a single option or they can choose various methods for getting retirement income. All of this heavily depends on your level of retirement planning. According to David Snavley, Some people enjoy their retirement life with Social Security, however, others choose more diversified income streams such as 401(k)s, annuities, pensions, and more. 

When your golden years arrive these following retirement income sources you may be able. If you need help planning for retirement and need income streams, consider working with a financial advisor.

1. Social Security: Social Security does not have any explanation as it is the most common income stream that most retired folks survive on. You get a percentage of pre-retirement earnings in this. The purpose of this method is to supplement your income in retirement and give you a small and regular retirement amount successfully. The amount you get every month depends on the age of the retiree at which you claim Social Security. 

2. Working: The truth is that many retired people do maintain some type of employment while you may want to retire and never think about working again. Many people choose consulting, freelancing, working part-time, or going back to work full-time. There are various factors like poor stock market performance and inflation that cause many retirees to continue to work. Some studies found that retirees in the workforce increased by 3.5 million in the last three years. 

3. Retirement Accounts: Hopefully, you were saving some money in a retirement account during your working years. These accounts are essential retirement income sources for many aged people. These accounts allow you to invest in various assets, including mutual funds and ETFs. 

4. Annuities and CDs: Annuities are one of the most secure options for guaranteed, regular income for people as per David Snavley. They are low-risk financial products that an insurance company offers to people after retirement when they invest in it. In exchange for this insurance product, they pay out income to you at regular intervals. You can start getting payments immediately after you have them paid out at a later date.

Certificates of deposit (CDs) are another way to invest and make retirement money. These low-risk accounts are offered by banks and credit unions, and you are only going to get money after the maturity date. You can ensure that they pay one after another If you invest in CDs.

5. Pension: Pensions are the best benefit plans that generate regular income for employees after they retire. How much of the pension amount is paid out to the employees depends on the employer and the amount of time you work in the company. In general, the pension amount is 50% to 85% of your working income in retirement.  

6. Bonds: Bonds are investment options that could bring regular income for you after retirement. These financial products are like CDS with low-risk and fixed investments. With a bond, you’re loaning money to the government in exchange for regular interest payments.
Preparing for Retirement is necessary for people to enjoy that phase of their life. However, an expert financial advisor like David Snavley can help you determine what is the best product for you for retirement income. But takes a good amount of time to evaluate multiple factors into account, like taxes and inflation.