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Retirement Seen Through Your Eyes

Retirement Seen Through Your Eyes

After you leave work, what will your life look like?

 

Provided by MidAmerica Financial Resources

 

How do you picture your future? If you are like many baby boomers, your view of retirement is likely pragmatic compared to that of your parents. That doesn’t mean you have to have a “plain vanilla” tomorrow. Even if your retirement savings are not as great as you would prefer, you still have great potential to design the life you want.

 

With that in mind, here are some things to think about.

  

What do you absolutely need to accomplish? If you could only get four or five things done in retirement, what would they be? Answering this question might lead you to compile a “short list” of life goals, and while they may have nothing to do with money, the financial decisions you make may be integral to achieving them. (This may be the most exciting aspect of retirement planning.)

    

What would revitalize you? Some people retire with no particular goals at all, and others retire burnt out. After weeks or months of respite, ambition inevitably returns. They start to think about what pursuits or adventures they could embark on to make these years special. Others have known for decades what dreams they will follow ... and yet, when the time to follow them arrives, those dreams may unfold differently than anticipated and may even be supplanted by new ones.

    

In retirement, time is really your most valuable asset. With more free time and opportunity for reflection, you might find your old dreams giving way to new ones. You may find yourself called to volunteer as never before, or motivated to work again but in a new context.

 

Who should you share your time with? Here is another profound choice you get to make in retirement. The quick answer to this question for many retirees would be “family”. Today, we have nuclear families, blended families, extended families; some people think of their friends or their employees as family. You may define it as you wish and allocate more or less of your time to your family as you wish (some people do want less family time when they retire).

 

Regardless of how you define “family” or whether or not you want more “family time” in retirement, you probably don’t want to spend your time around “dream stealers”. They do exist. If you have a grand dream in mind for retirement, you may meet people who try to thwart it and urge you not to pursue it. (Hopefully, they are not in close proximity to you.) Reducing their psychological impact on your retirement may increase your happiness.

 

How much will you spend? We can’t control all retirement expenses, but we can control some of them. The thought of downsizing may have crossed your mind. While only about 10% of people older than 60 sell homes and move following retirement, it can potentially bring you a substantial lump sum or lead to smaller mortgage payments. You could also lose one or more cars (and the insurance that goes with them) and live in a neighborhood with extensive, efficient public transit. Ditching land lines and premium cable TV (or maybe all cable TV) can bring more savings. Garage sales and donations can have financial benefits as well as helping you get rid of clutter, with either cash or a federal tax deduction that may be as great as 30-50% of your adjusted gross income provided you carefully itemize and donate the goods to a 501(c)(3) non-profit.1

  

Could you leave a legacy? Many of us would like to give our kids or grandkids a good start in life, or help charities or schools – but given the economic realities of retiring today, there is no shame in putting your priorities first.

 

Consider a baby boomer couple with, for example, $285,000 in retirement savings. If that couple follows the 4% rule, the old maxim that you should withdraw about 4% of your retirement savings per year, subsequently adjusted for inflation – then you are talking about $11,400 withdrawn to start. When you combine that $11,400 with Social Security and assorted investment income, that couple isn’t exactly rich. Sustaining and enhancing income becomes the priority, and legacy planning may have to take a backseat. In Merrill Lynch’s 2012 Affluent Insights Survey, just 26% of households polled (all with investable assets of $250,000 or more) felt assured that they could leave their children an inheritance; not too surprising given what the economy and the stock market have been through these past several years.2

 

How are you planning for retirement? This is the most important question of all. If you feel you need to prepare more for the future or reexamine your existing plan in light of changes in your life, then confer with a financial professional experienced in retirement planning.

 

MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@natplan.com.

www.mid-america.us

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 – www.bankrate.com/finance/financial-literacy/ways-to-downsize-during-retirement.aspx [2/28/13]

2 – wealthmanagement.ml.com/Publish/Content/application/pdf/GWMOL/Report_ML-Affluent-Insights-Survey_0912.pdf [9/12]

 


Weekly Economic Update

MidAmerica Financial Resources Presents:

WEEKLY ECONOMIC UPDATE

 

WEEKLY QUOTE

              

“Everybody needs beauty as well as bread, places to play in and pray in, where nature may heal and give strength to body and soul alike.”

     

- John Muir

      

   

WEEKLY TIP

             

Think about putting 50% of your future pay raises into your workplace retirement plan, where those dollars could grow and compound nicely for your future.

  

   

WEEKLY RIDDLE

            

Christine likes grapes but not potatoes. She likes squash but not lettuce, and peas but not onions. Following the same rule, will she like pumpkins or apples?

  

Last week’s riddle:

What flies without wings, fuel, muscles, feet and a fuselage?   

   

Last week’s answer:

Time.

September 15, 2014

    

SUMMER SPENDING SPREE LIFTS RETAIL SALES

They increased 0.6% in August, easing some anxieties about a possible slowdown in personal spending. Core retail sales (which exclude auto, gas, food, and home improvement purchases and more closely match the consumer spending aspect of GDP) improved 0.4% last month, and were up 4.1% year-over-year. The Commerce Department also revised July’s headline retail sales gain up to 0.3%.1

   

CONSUMER SENTIMENT HITS A 14-MONTH PEAK

At a reading of 84.6, September’s preliminary Thomson Reuters/University of Michigan consumer sentiment index was 2.1 points above its final mark for August. Not only that, it advanced to its highest level since July 2013. Household income expectations also hit their highest level in almost six years.1

     

GOLD DESCENDS AGAIN, OIL SLUMPS ON IEA FORECAST

Settling Friday at $1,231.50, the precious metal fell 2.8% last week on the COMEX, undercut by dollar strength. Silver posted the same weekly loss, ending the week at $18.55. After the International Energy Agency reduced its 2015 world demand forecast for oil, NYMEX crude slipped 0.6% Friday to settle at $92.27.2

  

INVESTORS WAIT, WONDER WHAT FED WILL SAY

Bulls took a breather last week, mulling whether recent economic indicators might lead the Federal Reserve to issue a slightly more hawkish policy statement this Wednesday. Across five trading days, the S&P 500 retreated 1.10% to 1,985.54, the NASDAQ 0.33% to 4,567.60 and the Dow 0.87% to 16,987.51.3

  

THIS WEEK: On Monday, investors will consider data on August factory output in the U.S. and China. Tuesday offers the August Producer Price Index as well as Q3 earnings from Adobe Systems. Wednesday, the Fed wraps up its September policy meeting and the August Consumer Price Index appears; Wall Street will also parse earnings news from General Mills, Lennar and FedEx. Thursday, Census Bureau data on August building permits and housing starts accompany the latest initial jobless claims figures and earnings from Oracle, Red Hat, Rite Aid, Pier 1 Imports, Cintas and ConAgra Foods. Friday, the Conference Board presents its August leading economic indicator index and G20 finance ministers and central bankers meet in Australia.

  

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+2.48

+11.02

+15.37

+6.47

NASDAQ

+9.36

+22.92

+23.90

+13.91

S&P 500

+7.42

+17.95

+18.08

+7.64

REAL YIELD

9/12 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.49%

0.81%

1.59%

1.81%

 


Sources: online.wsj.com, bigcharts.com, treasury.gov - 9/12/144,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

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Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser.
MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to NPC.

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 - reuters.com/article/2014/09/12/usa-economy-retail-idUSL1N0RD0OS20140912 [9/12/14]

2 - proactiveinvestors.com/companies/news/56782/gold-logs-5-day-slump-wti-drops-06-at-9227--56782.html [9/12/14]

3 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [9/12/14]

4 - markets.wsj.com/us [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F12%2F13&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F12%2F13&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F12%2F13&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F11%2F09&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F11%2F09&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F11%2F09&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F13%2F04&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F13%2F04&x=0&y=0 [9/12/14]

5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F13%2F04&x=0&y=0 [9/12/14]             

6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/12/14]

7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/12/14]

 

 





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