Are you thinking of paying off your mortgage before retiring? According to a Center For Retirement Research study most, but not all, households would be better off for it. Is paying it off right for you? As with many things in life and finances – it depends. To get the conversation started, ask yourself – do you want to stay in your house during retirement? Is it in the right city? Will you be able to take care of it as you age? Other key things to consider:
Risk: Will the after-tax return of paying it off exceed the after-tax cost of the mortgage payments? If you have more funds to invest in the market and you’re comfortable with the risk of stocks, carrying the mortgage could make sense.
Assets: If you’re conservative and hold most of your assets in bank accounts and CDs, paying off the mortgage could work in your favor – the interest you’re paying out probably exceeds the interest you’re earning in the bank account. If the assets are in a taxable investment portfolio and you’re earning more on the investments than you’re paying out on the mortgage, paying it off may be your best bet.
Taxes: For most people who itemize tax deductions, mortgage payments are fully deductible; the after-tax cost of the payments could be substantially less. In general, the higher your marginal tax bracket and the larger your mortgage interest payments, the greater the tax benefit of keeping the mortgage.
Retirement costs: Retirement brings its own risks, like increased medical costs. You may need a financial pool to cover them. If you have large amounts of assets, this may have little impact. But for most, it has major consequences. If you use your financial assets to pay off your mortgage, you’ll have to continue contributing to your portfolio to compensate for the withdrawal – which may be difficult, or even impossible.
Peace of mind: There are many legitimate factors to consider when thinking about paying off your mortgage before retiring – not all of them are logical. Owning your home outright and not having to worry about paying on it during retirement could be a major life goal and will provide you with a sense of security.
Call our office today. We can help you determine if paying off your mortgage is a better option than carrying it into retirement.
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Plan your time out to avoid stress. Think ahead about your day and write a to-do list to decide which tasks are most important!
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Did you know? - Life expectancy at birth in the U.S. was 51.7 years in 1916. Life expectancy at birth was 78.6 years in 2016. Thus, life expectancy has increased by 10 years every 37 years (source: National Vital Statistics Report, BTN Research).
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Retired – but looking for work? You’re not alone. A 2016 Federal Reserve study found one-third of retirees at all income levels change their mind and return to full- or part-time work – that’s nearly double 1985 figures, and the number is expected to keep rising.
There’s more than one reason to pick up a job after you retire. Retirees in lower-income brackets often return to work for supplemental income. But returning to work isn’t always based on need. The study revealed the majority of retirees who reverse course and return to work do so because retirement life doesn’t prove as appealing as imagined.
Life expectancies now average 15 years beyond retirement age. With that much time, it’s easy to become bored with retirement leisure and feel disengaged since work is a source of identity and purpose. And when money is no longer a pressing issue, options open up, especially in today’s economy.
Today’s gig economy is characterized by the rise of independent contractors and freelancers making money through apps and social media on their own schedule. While the lack of a steady income might not be the most reliable when planning for retirement, it can work out well if you’re already in retirement. Retirees can take advantage of the benefits of the gig economy, most notably, freedom and flexibility, while avoiding its potential pitfalls, such as financial uncertainty or lack of time.
The most common example of a gig is driving for Uber or Lyft. A beautiful day to drive some golf balls – or a great day to drive for extra cash? As a retiree, you get to decide.
The opportunities for work are many. Tired of the career you had preretirement? Indulge in the job you wanted that didn’t make the pay cut. Follow your passions, old or new, such as performing in a band or writing a blog. Did you love your career? Leverage your skills, expertise and contacts as a consultant. Or use what you learned at your old company to start your own small business. With so many options, the question might not be whether or not you should pick up a side-gig in retirement, but which one should you choose.
It’s never too late to pursue your dream job, and retirement might just be the best time to do so. Call our office today. We can help you decide whether reversing your retirement is right for you.
1 https://www.federalreserve.gov/econresdata/feds/2016/files/2016053pap.pdf
2 https://www.bls.gov/careeroutlook/2017/article/older-workers.htm
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Overview:
On March 5, 2018, the Internal Revenue Service (IRS) released Revenue Procedure 2018-18 to announce changes to certain tax limits for 2018, including a reduced contribution limit for health savings accounts (HSAs).
The new tax law enacted late last year—the Tax Cuts and Jobs Act—changed the consumer price index for making annual adjustments to the HSA limits. Based on this new index, the IRS lowered the HSA contribution limit for individuals with family coverage under a high deductible health plan (HDHP) from $6,900 to $6,850. This change is effective for the 2018 calendar year. The IRS’ other HSA and HDHP limits for 2018 remain the same.
Action Steps:
Employers with HDHPs should inform employees about the reduced HSA contribution limit for family HDHP coverage. Employees may need to change their HSA elections going forward to comply with the new limit. Also, any individuals with family HDHP coverage who have already contributed $6,900 for 2018 must receive a refund of the excess contribution in order to avoid an excise tax.
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Shop smart at the grocery store. The next time you need to go shopping, eat a snack beforehand, always use a shopping list and choose 100 percent whole-wheat or whole-grain bread and crackers.
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Two out of three millennials (66 percent) expect to change jobs within the next five years. Millennials were born between 1981-97 and are age 21-37 in 2018 (source: 2016 Deloitte Millennial Survey, BTN Research).
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Since this is National Consumer Protection Week, today’s article tells you what to do to avoid losing money when marketing claims prove inaccurate.
Gather pertinent information. Find the company’s return and exchange policies. Time limits for retail returns can range from seven to 90 days. Locate your receipt, contract/warranty, order number, model number and previous communication. If you don’t have a receipt but paid with a credit card, find the purchase date on your statement. For in-person returns, bring the card you used and your ID.
Choose your form of contact. Face-to-face and phone conversations make it easier to connect on a personal level and appeal to a service person’s compassion. Address them by name, relate your problem and ask, “Can you help me?” When you’re seeking a simple fix or want to create a communication trail, use email. Including words like “cancel” or “refund” may bump your email to a priority list since some systems look for such keywords.
Stay calm. Don’t expect a resolution in 60 seconds. Be patient, respectful, specific and concise. Know what you want: a replacement, a refund or other type of compensation. But wait to see what they offer before stating your goal. You can always counter, and their suggestion may be better than you expect. Document each interaction with the date, person you communicated with and what you were told.
Escalate if needed. When you can’t settle your issue through customer service, ask to speak to a manager or write a short letter to an executive. Or check the company’s Facebook page to see if they respond to customer service matters there. If nothing else works, you can file a complaint with the Better Business Bureau. Make sure your statements are accurate and complete; once you submit your complaint, it can’t be edited. Like review sites, the BBB posts complaints online. So it’s important to remember you are legally responsible for what you say. If you want to go farther, you can complain to your state attorney general’s office or take the business to small claims court.
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
The TSG Financial Team, Paul Essner and Bryan Pendrick, are proud to sponsor HCP PAC Spring Fundraiser & Advocacy Day this past Monday & Tuesday in Albany, NY. We had the pleasure to meet with state legislators and HCP members such as Assembly Member, Michaelle C. Solages, the Director of Gurwin Home Care Agency, Nancy Geiger and the CFO of Family Home Care Services, Jeffrey Maynard to advocate for Home and Community Based Care.
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
Choose a way to celebrate small wins that doesn't involve food. Buy a new workout outfit or pair of running shoes or share your success with friends!
Securities offered through Securities America, Inc. Member FINRA (www.finra.org)/SIPC (www.sipc.org).
Advisory services offered through Securities America Advisors, Inc. Risk Strategies, TSG Financial, and the Securities America companies are separate entities.
Securities America Inc. & Securities America Advisors do not offer Insurance Products. Insurance Products offered through many fine Carriers. Securities licensed in: AZ, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, LA, MD, MA, NJ, NY, NC, OH, OR, PA, SC, TX, UT, VA, DC . The third-party comments displayed are not verified, may not be accurate and are not necessarily representative of our client experience.
