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Six Ways to Use 'Self-Continuity' to Strengthen Your Retirement Plan

Try this Ancient Greek Concept to Better Prepare for Your Future
Wednesday, 17 February 2021

Six Ways to Use 'Self-Continuity' to Strengthen Your Retirement Plan

If you’re like most people, you’ve already put some thought into your retirement plans and the lifestyle you’ll lead. Hopefully, you’ve begun contributing to retirement funds or building other assets for your eventual retirement, too. You may have even thought a little about your age at retirement or brainstormed some specifics of where you’d like to be or what you’d like to be doing. These are useful and necessary parts of retirement planning. However, there is one extra step you can take that will make your decisions for the future even easier, and it’s an Ancient Greek concept called “self-continuity.”

Self-continuity involves imagining your future-self and relating to that person. It allows you to connect with who you will be in the future in a less abstract way, and it can increase your ability to prepare for that time in your life. Researchers have found that being able to relate and project yourself to that future-self in more vivid and realistic terms can make you more willing and capable to make the decisions that will benefit you the most in the future. This can be invaluable, of course, when planning your retirement.

Below are six techniques that will enable you to use self-continuity to bridge that gap between who you are now and who you will be in retirement.

The GameStop Frenzy

An Article by Ladenburg Thalmann
Monday, 01 February 2021

The GameStop Frenzy

Three weeks ago, GameStop (ticker: GME) was known as a store that millennials may have visited in their childhood to shop for video gaming consoles and accessories. That quickly changed when the price of GameStop stock surged more than 1,600% from January 11th to January 27th (source: Bloomberg) dominating the headlines and causing many market participants to ask the question “what in the world is going on?”. The thundering rise in GameStop’s stock can primarily be attributed to an underlying battle between small investors and hedge funds. Since we have fielded many questions on this story, we thought it may be best to provide some context around what has happened so far and how we think it relates to some of the bigger themes taking place in the market and economy today.

Planning for Retirement in Your Fifties

How to put yourself on firm financial footing as you approach retirement
Wednesday, 06 January 2021

Planning for Retirement in Your Fifties

In your 20’s, 30’s, and 40’s retirement can seem like it’s a lifetime away, but as you reach your 50’s it begins to feel much more pressing. If you are finding yourself approaching fifty and you’re not where you want to be with your retirement savings, don’t despair. It’s not too late to take steps to get yourself back on track.

Below are four areas for you to consider focusing on as you enter into your 50’s and begin buckling down on your retirement planning strategy.

How the Sandwich Generation Can Protect Their Retirement

Financial tips for those who juggle caring for aging parents while raising kids
Monday, 21 December 2020

How the Sandwich Generation Can Protect Their Retirement

If you’re part of the Sandwich Generation, you or someone you know are likely juggling the tasks of caring for aging parents and raising kids at the same time. This can be a Herculean feat, and you likely feel as if there’s never enough time, money, or energy to go around for all those depending on you, let alone time or resources for your own needs. This can seem especially so when it comes to having to manage finances for two generations on top of your own.

Though you may have conflicting feelings or struggle with guilt, it’s important to be sure that you’re focusing on your own financial needs, especially when it comes to retirement planning. It can feel impossible but, with discipline and planning, you can protect your retirement in a way that will allow you to launch your kids into a more secure adulthood and continue supporting your parents, too.

Here’s how you can better protect your retirement if you’re a member of the Sandwich Generation.

Developing a Long-Term Focus: Recency Bias and Reconsidering the Reinsurance Sector

Guidance for Overcoming the Urge to Think Short-Term
Monday, 07 December 2020

Developing a Long-Term Focus: Recency Bias and Reconsidering the Reinsurance Sector

One of the greatest pitfalls that investors need to be aware of is something called “recency bias.” This term refers to when current events or trends influence the decisions we make with our investments. Recency can be hard to avoid because it can affect us both intellectually as we review numbers, and also emotionally, which can create impulsive decisions. For instance, recency can lead to jumping on the bandwagon with recently well-performing stocks or assets, causing us to end up buying high and selling low. It can also cause us to get rid of what feels like a loss, only to have it turn around and perform well.

Successful investors look at long-term performance and make intentional decisions without falling victim to short-term performance and recency bias. The first step toward strengthening your investment decisions in this way is to understand more about how it can impact our decision-making.

Who Should Consider a Roth Conversion Now that the Stretch IRA Has Been Eliminated?

This Strategy Offers Another Way for Affluent Investors to Pass Along Their Wealth
Monday, 02 November 2020

Who Should Consider a Roth Conversion Now that the Stretch IRA Has Been Eliminated?

If you’ve saved diligently for retirement – or your parents have – and you’ve accumulated a sizable nest egg, recent rule changes affecting retirement distributions could seriously impact your financial strategy.

The Setting Every Community Up for Retirement Enhancement Act of 2019, more commonly called the SECURE Act, was signed into law in December 2019. It was sweeping legislation that included significant provisions to increase access to tax-advantaged accounts and prevent retirees from outliving their money, but it also eliminated a strategy many affluent investors have been relying on.

Three Ways Retiring at Different Ages Might Affect You and Your Spouse’s Retirement Plans

Planning Together Ensures You'll Understand One Another's Expectations

Monday, 19 October 2020

Three Ways Retiring at Different Ages Might Affect You and Your Spouse’s Retirement Plans

Nearing retirement is an exciting time. It’s the culmination of the many years you’ve spent working hard and diligently following your retirement plans, and for many, it can be an incredibly meaningful and rewarding phase in your life.

Retiring is a very personal decision, and everyone must decide their own perfect timing. This means that couples aren’t always going to be retiring at the same time. Should you find you and your spouse in the position of retiring at different ages, here are three things you should know.

15 Money Habits You Should Be Practicing if You Want to Achieve Financial Freedom

Achieving Financial Security is Just A Few Steps Away

Monday, 28 September 2020

15 Money Habits You Should Be Practicing if You Want to Achieve Financial Freedom

What is stopping you from achieving financial freedom? Often in life, the biggest hurdle we have to overcome is ourselves. Too often our mindset or our emotions get in the way of us achieving the goals that we’ve set. This is especially true in our financial lives. Whether it’s the feeling of being too overwhelmed by the task set before you, such as saving for a house or retirement, or it’s unhealthy habits you’ve picked up like late night shopping, it’s easy to feel ill-equipped, disparaged, or completely overwhelmed when it comes to tackling your money.

However, money doesn’t have to be this gargantuan, all-consuming burden in your life. It’s possible to overcome these hurdles and take control of your financial reality, and it starts with learning a few healthy money habits. We’ve put together a list of 15 of our favorite money tips that can turn you into a financial guru in no time.  We hope you to try implementing some of these into your own life, then watch as your financial independence blossoms. 

Your Retirement Tax Prep List

Review These Reminders Before December 31 Each Year

Wednesday, 19 August 2020

Your Retirement Tax Prep List

Utilizing qualified retirement plans and individual retirement accounts (IRAs) for your retirement planning is a smart move – after all, earnings on these tax-advantaged accounts grow tax-deferred or even tax-free. In order to make sure you get the most out of them, as well as stay up to date with all account requirements, review the below reminders each year.

There’s More to Financial Planning Than Just Having an Investment Strategy

Portfolio Returns are Only One Piece of Your Planning Puzzle

Monday, 20 July 2020

There’s More to Financial Planning Than Just Having an Investment Strategy

You max out your 401(k) contributions, you contribute regularly to your IRA and you’ve diversified your portfolio in order to reduce your overall risk. This is a thoughtful and strategic financial plan, right?

Well, not exactly. Although many people believe a consistent investment strategy sets them up for their desired financial future, the truth is that investing is only one piece of the puzzle when it comes to financial planning. If your investments are the only thing you’re being thoughtful and strategic about, you’re missing several crucial steps in protecting your financial future. Below we’ll discuss a three-part plan to help you discern where you may have holes in your current financial plan.

Part 1: Goal Planning

Regardless of what stage of life you’re in, you have short- and long-term goals. Maybe you want to get married and buy your first home, maybe you’re focused on getting the kids through college debt-free and buying a vacation home, or perhaps it’s your dream to retire early and travel the world. In any scenario, you can’t properly plan for the future until you know what you want. Once you’ve clarified your goals, you can devise a strategy to achieve them.

2020 Second Quarter Investment Market Report

Wednesday, 08 July 2020

2020 Second Quarter Investment Market Report

This year, investors have been treated to a rare real-world lesson in the mathematics of investing—namely, the fact that after a market decline, it takes a greater market recovery to get back to even.  The first quarter saw a frightening downturn that delivered 20% losses across the U.S. and developed foreign markets.  Then we experienced a breathtaking 20% gain in the second quarter, the fourth-best quarterly rise since 1950.  Work out the mathematics, and virtually all indices are still showing a loss for the year.

You can see this dynamic everywhere you look.  The Wilshire 5000 Total Market Index—the broadest measure of U.S. stocks—fell 20.70% in the first three months of the year, then gained 22.69% in the ensuing quarter.  By the mathematics of the market, investors in the index are still down 2.88% so far this year.  The comparable Russell 3000 index is down 3.48% in the first half of 2020. 

How to Survive the Recession (relatively) Unscathed

Monday, 15 June 2020

How to Survive the Recession (relatively) Unscathed

While the recent volatility in the stock market, the likelihood of an economic recession, and the proliferation of a global pandemic has had a deep impact on nearly everyone’s portfolio, our clients experienced little to no impact on their retirement income due to our three-bucket investment approach.

Here’s how: our number one focus at TriCapital is to put plans in place to help make sure our clients never run out of money. One of the tools we use to accomplish that goal is our three-bucket approach to asset allocation. Since 1926, large stocks have returned about 10% per year while government bonds have returned between 5% and 6%i so we want our clients to have a significant allocation to stocks in order to benefit from the higher return. However, stocks are also more volatile than bonds and we don’t want to have to sell stocks in order to produce the income our clients need when they are down a lot. To deal with this challenge, we divide our clients’ portfolios into three “buckets”. Here’s a description of each bucket and the process we use to manage our clients’ retirement income.

Oil Prices in Free Fall: How We Went From Peak Oil to Negative Oil

Wednesday, 20 May 2020

Oil Prices in Free Fall: How We Went From Peak Oil to Negative Oil

Just when we thought we had finally seen it all, the COVID-19 pandemic forced oil prices into the negative for the first time in history. Producers were paying as much as $37.63 per barrel as of April 20 to get buyers to take oil off their hands. While one might think finding buyers willing to be paid to accept free oil might be easy, the sharp drop in demand in recent months has lead to a massive oversupply of oil such that buyers have nowhere to physically store it. Some producers have reportedly paid nearly $100,000 per day to lease oil tankers that enable them to store their oversupply at sea.

How We Got Here

How did we go from peak oil prices of $150 per barrel 15 years ago to negative pricing recently? In short, coronavirus has acted like a lead foot on the brakes of a car and air travel worldwide, with safety restrictions severely limiting flights, requiring workers to stay home and non-essential businesses to temporarily close. At the same time, both China and India – two of the world’s largest importers of crude – shut their borders in attempts to contain the coronavirus outbreak.

Phased-In Normalcy

Monday, 20 April 2020

Phased-In Normalcy

By now, you’ve heard reports that the White House has announced federal guidelines for the easing of social distancing orders that have been put in place to slow the spread of the coronavirus. The leadership of different states will have the final say, of course, but the guidelines offer some indication of when we can expect to start congregating again without gloves and masks.

There are three phases in the proposed guidelines. (We are apparently in Phase 0 currently.)

CARES Act Signed into Law –Brings Relief to Millions of Americans

Sunday, 29 March 2020

CARES Act Signed into Law –Brings Relief to Millions of Americans

On March 27 the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to address the unprecedented public health and economic crisis related to COVID-19.

This $2 trillion bill is meant to impact both individuals and businesses and contains significant tax-savings measures. It could affect prior tax years while also creating immediate cash-flow.

Impact on Individuals

Stimulus Checks

Perhaps the most impactful provision for American citizens is the CARES Act’s promise of cash payments of up to $1,200 per single individual and $2,400 for a married couple. Parents will also receive an additional $500 per qualifying child. Payments are phased-out for individuals with incomes greater than $75,000 and for married couples filing jointly with income greater than $150,000.

Provisions are such that payments will be based on 2018 tax returns, though, like the Affordable Care Act’s tax premium credit, there is a true-up related to the amount for which you are eligible on your 2020 tax return. Nonresident aliens, dependents and estates and trusts are not eligible for a stimulus check.

Retirement Plan Rules

Since this bill aims to generate more access to cash, it loosens retirement fund rules. In particular, it waives the 10 percent early withdrawal penalty for distributions up to $100,000 for coronavirus-related use. It also allows for the federal income tax on such distributions to be paid over a three-year term. Finally, these distributions can be contributed back into the retirement fund within three years with no impact on that year’s contribution limit.

The CARES Act also adds flexibility regarding loans from certain retirement accounts when used for coronavirus-related needs. The loan maximum is now the lesser of $100,000 or 100 percent of the accrued benefit. Repayment is also now delayed.

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Advisory Services are offered through TriCapital Wealth Management, Inc Securities offered through Triad Advisors member FINRA / SIPC. TriCapital Wealth Management, Inc. is not affiliated with Triad Advisors. We are licensed to sell Insurance Products in the following states: North Carolina, and South Carolina. We are registered to sell Securities in the following states: Delaware, District of Columbia, Florida, Georgia, North Carolina, Ohio, Pennsylvania, South Carolina, and Virginia.

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