Incorporating Giving Back into Your Year-End Financial Planning

If you’re incorporating giving back as part of your year-end financial planning, there are many ways you can do so.

You can make an impact while receiving tax benefits by giving as part of an approach to charitable giving. You may want to consider philanthropic giving. Which addresses the root cause of social issues and requires a more strategic, long-term strategy, versus donating which tends to be more occasional giving.

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Looking for Safety and Income

Recently I spoke to a successful couple in their late 40s who had aspirations of retiring within the next ten years and hopefully sooner.  They had kids soon to be entering their college years and hoped they were saving and investing enough to reach their retirement goals.  Given the amount of volatility in both their equities and bonds, they wanted to explore options for:

  1. An alternative place to store cash safely that could be accessed if needed
  2. A way to protect a portion of their assets from loss but could also be used to create income

With the desire for retirement to come sooner than later, they realized that taking a significant loss to their assets could make it difficult to have the amount of income they desired.  

If you’re looking for both safety and income in your investment portfolio, you’re not alone. Many investors seek out investments that will provide them with a reliable stream of income, as well as the potential for growth.

There are a number of different investments that can offer both safety and income.

1 – When it comes to investing, many people are looking for ways to preserve their capital and generate income. Treasury inflation protected securities (TIPS) can provide both of these benefits.

TIPS are government-issued bonds that offer protection against inflation. The principal value of a TIPS increases with inflation, as measured by the Consumer Price Index (CPI). When the TIPS matures, the investor receives the inflation-adjusted principal or original principal, whichever is greater.

TIPS also offer a fixed rate of interest payments. Interest payments are made semi-annually and are based on the adjusted principal. Because TIPS pay interest based on the adjusted principal, their coupon rates are generally lower than comparable nominal bonds.

TIPS can be an attractive option for investors looking to protect their purchasing power and generate income. However, it is important to remember that TIPS are subject to market risk and interest rate risk. As with any investment, you should carefully consider your own investment objectives, risks, and time horizon before investing in TIPS.

2 – Annuities can be a great way to generate income in retirement. An annuity is a contract between you and an insurance company, where you make a lump sum payment or series of payments, and the insurance company agrees to pay you an income for life.

There are two types of annuities: immediate and deferred. Immediate annuities start paying out income right away, while deferred annuities begin paying out at some point in the future.

Annuities can be a great way to ensure a steady stream of income in retirement, but there are some things to consider before investing. Annuities are subject to market risk and interest rate risk, and they may also have high fees and charges. Be sure to carefully consider your own investment objectives, risks, and time horizon before investing in an annuity.

3 – Private lending can be a great way to generate income. With private lending, you loan money to individuals or businesses and receive interest payments in return.

Private lending can be a great way to earn higher returns than you would get from traditional investments such as stocks or bonds. However, it is important to remember that private lending is a risky investment, and you could lose some or all of your principal.  Also, it’s important to consider what assets are backing your investment in case things do not work out as planned.  This provides some level of downside protection to obtain the return of your investment.  Be sure to carefully consider your own investment objectives, risks, and time horizon before investing in private lending.

4 – Permanent life insurance can be a great way to generate income in retirement. With permanent life insurance, you make payments into a policy over the course of your lifetime. The death benefit from the policy is then paid out to your beneficiaries after you die.

Permanent life insurance can be a great way to ensure a steady stream of income in retirement. It is important to remember that whole life insurance policies have guarantees against loss.  Yes, they may not have returns equivalent to investments but for the safe storage of money with moderate growth I don’t know of anything better. Be sure to carefully consider your own investment objectives, risks, and time horizon before investing in permanent life insurance.

There are a variety of options available for generating income in retirement. Which option is best for you will depend on your own investment objectives, risks, and time horizon. No matter what your retirement goals are, there are options out there to help you achieve them. Do your research and talk to a financial advisor to find the best way to provide safety and income for yourself in retirement. All of these options can help you achieve both safety and income in retirement. Talk to a financial advisor to see if one or more of these options is right for you.



Thinking About Delaying Retirement? Here’s What to Consider

If you’re unsure about retiring and are considering delaying retirement, you must consider if you have enough retirement savings. Do this before making your decision. Examining retirement savings benchmarks and having a comprehensive financial plan that outlines specific actions are the first steps toward knowing if you should delay your retirement. Also, some questions to ask yourself to help determine your retirement readiness include:


Drawing Social Security Early and Still Working? Here’s What You Need to Know.

Some people decide to retire early and start drawing Social Security early. Many people are unable to live out their retirement plans due to inadequate retirement savings. In addition, many are spending retirement working another job.

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The Fed Is Rising Interest Rates: Will It Impact You?

Interest rates are rising again as The Fed continues working towards raising the target interest rate to a “terminal rate,” or endpoint, of 4.6% in 2023. The terminal rate implies a quarter-point rise next year but no decreases, with a goal to slow spending and help curb the inflation rate as it stretches the dollar.

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Is Now the Suitable Time to Sell Your Home?

There are several reasons why now may be a suitable time for you to sell your house. Depending on your situation, here is what you should consider in your decision:

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5 Things to Consider When Starting Estate Planning

One thing to keep in mind about starting estate planning is not to set it and forget it. As life changes, your estate plan should too.

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How to Find Financial Help

Personal finance refers to how you make money, save money, build wealth, and protect your assets. It’s an essential part of life as it impacts how you live today and what your life will look like in the future. If you’d like to take control of your finances to meet various financial goals, rest assured many resources can help. Below are some ideas to help you find financial help.

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The Real Costs of Buying a Home

When you’re ready to buy a house, it’s essential to consider the upfront costs and ongoing expenses outside of taxes, utilities, and home maintenance.

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5 Retirement Savings options- Which is Suitable for You?

Suppose you already know your retirement savings options; congratulations! You’re on your way to a more financially secure retirement. You must continue to save and determine other retirement savings vehicle strategies that may be appropriate for your situation.

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