​The COVID pandemic has changed nearly every aspect of society. It’s changed the way we work, the way we learn, and even the ways in which we travel and dine. The pandemic also disrupted the economy and the financial markets, triggering record unemployment and bringing the longest bull market in history to an end.
 
Given the financial volatility we have seen during the pandemic, you might think that Americans are also changing their retirement strategies. However, a new survey from Forbes and YouGov suggests that’s not the case.
 
The survey reached out to 9,675 people to learn more about their retirement planning. Many of the questions and answers focused on three main areas:

As the COVID pandemic hit the economy, the government passed the CARES Act to provide assistance to those who were impacted. One piece of the CARES Act allows 401(k) and IRA account holders to withdraw up to $100,000 without paying an early distribution penalty. They can also pay the taxes over a three-year period.1
 
While the pandemic may have created unemployment and other financial emergencies, few Americans are tapping into their retirement savings. According to the survey, only 4% of respondents took a 401(k) hardship withdrawal and 5% took a hardship withdrawal from an IRA.2
 
Most of those who took a withdrawal were younger in age. Among those ages 25 to 34, 8% reported taking a withdrawal. However, among those 55% and older, only 2% said they took a withdrawal from a retirement account.2

While few respondents said they had tapped into their retirement savings, 11% said they planned to work longer before retiring. Those ages 45 to 54 were most likely to give this response.2
 
The decision to work longer may be due to market volatility in 2020. However, it also could be due to a surprising reason - employers suspending their 401(k) matching contributions. Nearly 4% of respondents said their employers had suspended matching contributions, but that number could increase.2 In the years following the 2008 financial crisis, nearly 20% of employers with more than 1,000 employees suspended their matching contributions.3
 
If you’re concerned about volatility or if your employer has suspended contributions, consider meeting with a financial professional. Working longer is an option, but it’s not your only option. A financial professional can help you implement the strategy that’s right for your goals and needs.

In the survey, only 5% of respondents said they had made a significant change to their asset allocation and only 4% said they had lowered their 401(k) or IRA contributions. In fact, 72% of respondents said they hadn’t made any changes to their retirement strategy at all.2
 
While sticking to a long-term strategy is generally a good idea, there may be times when a change is warranted. If you haven’t reviewed your strategy recently, now may be a good time to do so.
 
Let’s talk about your strategy and whether it’s still right for your goals. Contact us today at Trusted Advisors Group. We can analyze your strategy and help you make adjustments where needed. Let’s connect today and start the conversation.
 
1https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
2https://www.forbes.com/sites/advisor/2020/05/11/how-covid-19-has-changed-retirement-planning/#7f6080b6830d
3https://www.forbes.com/sites/advisor/2020/04/10/covid-19-employers-suspending-401k-matching-contributions/#30e0b7cd285f
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20418 - 2020/9/17

​Thinking about retiring in the next year? If so, this is an exciting time. After a career that has likely spanned decades, you can now look forward to the next chapter of your life.
 
While you’re probably excited to retire, it’s important that you don’t make the leap too early. It’s not uncommon for retirees to realize that they weren’t quite ready to leave the working world. The result is that they return to work in some capacity.
 
You can avoid that outcome by making sure you’re fully prepared before you pull the trigger on retirement. Before are four financial milestones that could indicate you’re ready for retirement. This list isn’t comprehensive, but if you meet these four major markers, retirement may be in your near future.

​A budget is always a valuable financial tool, but it’s especially important in retirement. A budget helps you control your spending and make sure you’re on-track to hit your financial goals. Without a retirement budget, it can be easy to fill your newfound free time with costly activities like travel, dining, and shopping. If you spend too much in the early years of retirement, you may not have enough assets left in the later years.
 
Unfortunately, many Americans don’t regularly use a budget. In fact, according to a 2019 poll from Debt.com, nearly a third of all households don’t use a budget.1 If you’re among that group, now may be the time to start using one. A budget could be the key that helps you maintain your assets and your income through a long retirement.

Emergencies happen. There is always the potential for a home repair, costly medical procedure, or other unplanned expense. As you get older, the possibility of a costly medical bill may be even more likely. While Medicare may cover most of your care, it doesn’t cover everything. In fact, Fidelity predicts that the average 65-year-old couple will spend $295,000 out-of-pocket on health care in retirement.2
 
An emergency fund can help you handle medical costs, home repairs, or any emergency bill that may pop up. When you’re working, it’s often advised to have a few months worth of living expenses in an emergency fund. However, in retirement you may want to plan for a longer period of time. After all, you no longer have a salary to replenish the emergency fund.

​For many of us, debt is a fact of life. From mortgages to car payments to student loans and credit cards, debt is often a necessity. As you reach retirement though, debt can be a serious financial burden. Every dollar you spend servicing debt is a dollar that isn’t used to cover living expenses or to grow your assets. Debt could force you to drain your retirement assets more quickly.
 
If you have significant levels of debt, especially high-interest credit card debt, you may want to rethink retiring soon. Develop a plan to tackle that debt and free up cash flow. A financial professional can help you implement a strategy.

Finally, perhaps the most important question to answer is where your income will come from in retirement. You’ll likely receive Social Security benefits, and you also may have retirement savings in a 401(k) or IRA. Perhaps you also have a pension, annuity, or other source of income.
 
A retirement income plan maps out exactly how your income will be generated and how much income will come from each source. A financial professional can help you develop a plan that protects your assets and maximizes your income. They also may be able to help you generate income that is guaranteed for life, no matter how the market performs or how long you live.
 
Think you’re ready to retire? Let’s talk about it. We can help you analyze your needs, goals, and concerns and implement a strategy. Contact us at Trusted Advisors Group today and let’s start the conversation about your next chapter.
 
1https://www.prnewswire.com/news-releases/fewer-americans-are-budgeting-in-2019----although-they-think-everyone-else-should-300824384.html
2https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
*Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.  Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. 20416 - 2020/9/17

How much is your Social Security benefit worth? Social Security can provide you with an estimate of your benefit at retirement, but that’s in terms of how much income you’ll receive each year. How much would that income be worth if it were valued as a lump sum asset, like your 401(k) or IRA balance?
 
There’s no easy answer to that question. It depends on a few factors, like the amount of your benefit, when you file for benefits, and how long you live. A writer from the Washington Post recently attempted to estimate the value of Social Security benefits.
 
He assumed a monthly benefit amount of $1,500 dollars, which is pretty close to the average benefit of $1,503 in December 2019.1 According to the Social Security Administration, a $1,500 monthly benefit for a 65-year-old man with typical life expectancy, has a value of $200,910. For a 65-year-old woman, the value is $218,085.2
 
These values increase when you include Social Security cost-of-living adjustments, also known as COLA. These are annual benefit increases to help seniors keep up with inflation. When you factor in historical COLA, the value of a 65-year-old man’s $1,500 monthly benefit increases to $266,105. For a woman, the value increases to $295,350.2
 
Social Security provides a helpful foundation to fund your retirement, but you’ll likely need additional assets, like a 401(k), IRA, annuity, or even a pension. Fortunately, there are steps you can take to increase your Social Security income, such as:
 
Work longer. Your Social Security benefit is based on an average of your highest-earning 35 years of compensation. By working longer, you may be able to replace some of your lower-earning years from earlier in your career with higher-earning years. That could significantly increase your benefit amount.3
 
Delay filing. You get your full benefit if you file at your full retirement age (FRA), which is between 66 and 67 for most people.4 However, you can increase your benefit by delaying your filing past your FRA. You can delay all the way to age 70, and you receive an 8% credit for each year you wait. That means if you delay your filing from age 66 to age 70, you could increase your benefit by 32%.5
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today Trusted Advisors Group. We can help you analyze your needs and options, and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2https://www.washingtonpost.com/business/2020/05/14/thanks-social-security-you-are-probably-better-shape-retirement-than-you-think/
3https://www.ssa.gov/oact/progdata/retirebenefit1.html
4https://www.ssa.gov/benefits/retirement/planner/agereduction.html
5https://www.ssa.gov/benefits/retirement/planner/delayret.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov 20362 – 2020/8/20

Starting college is supposed to be a milestone moment, not just for the student, but also the parents. You pack up the car and make the drive to your child’s dorm. You may set up furniture, meet their roommate and even take a tour of campus. Eventually, the move-in process ends, and it’s time to leave your child on their own, ready to start the next chapter.
 
COVID changed that experience for many families, just as it has impacted nearly every corner of society. Many colleges moved their classes online. And many schools that previously planned on opening in-person reversed those decisions.1
 
No matter where your child is attending school, it’s a costly proposition. In-state public schools had average tuitions of $11,260 for the last school year. For out-of-state public schools, the average cost is $27,120. Private schools are even more costly, at an average tuition of $41,426.2
 
That’s a difficult expense, even during normal times. But it may be more challenging in the current environment. Perhaps you’ve lost a job or seen reduced income. Or maybe you’re worried about your financial future as the pandemic continues to impact the economy. The cost of college only compounds these issues.
 
Fortunately, there are some steps you can take to manage the cost and protect your financial future. Below are a few steps to consider:

​Budgeting and cutting expenses are always helpful strategies, but they’re especially important during times of crisis. This doesn’t just apply to paying for college, but also saving for retirement and other financial goals.
 
Take some time to go through your monthly expenses and look for areas to cut back. You also may be able to work with your lenders to minimize some bills. Many mortgage companies, credit card companies, and others are offering forbearances during this crisis. You may be able to put your payments on hold. Contact your lenders for more information.

Tapping into your retirement accounts could be an option, although it may have some adverse consequences for your finances in the future. If you have a Roth IRA, you can always withdraw your contributions without facing penalties or taxes.
 
You could also take distributions from your IRA or 401(k) via the CARES Act, which was passed earlier this year. Under the CARES Act, you can withdraw up to $100,000 from a 401(k) plan with no penalties and the ability to pay the taxes over a three-year period. That could be an option to cover tuition payments.3
 
However, even if you don’t pay penalties, a distribution from a retirement account could have other consequences. You’ll not only lose the distribution amount, but all future tax-deferred growth on those funds. That could limit the amount of assets you have available when you retire. Explore all options before tapping into your retirement funds.

Another option is to simply reevaluate the college experience. If your child’s school has moved to online only, consider whether it makes sense to pay in-person tuition for an online education. Perhaps your student could transfer to a community college or even an online-only school at a far lower rate. They can earn credits and then transfer back to their desired college when in-person classes are back in session. It reduces the cost, without a substantial change to the learning experience.
 
We’re here to help you explore all your options in paying for your child’s education. Let’s connect soon and start the conversation. Contact us today at Trusted Advisors Group.
 
 
1https://www.insidehighered.com/news/2020/08/12/hundreds-colleges-walk-back-fall-reopening-plans-and-opt-online-only-instruction
2https://www.usnews.com/education/best-colleges/paying-for-college/articles/what-you-need-to-know-about-college-tuition-costs#:~:text=Among%20ranked%20National%20Universities%2C%20the,News%20in%20an%20annual%20survey.
3https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20361 – 2020/8/20
​

​The coronavirus pandemic has touched nearly every aspect of our lives. Perhaps nothing has been impacted as much as the way we work. While millions of Americans have lost their jobs during the pandemic, those who remain employed have seen their work change drastically.
 
In many professions, work-from-home has become the norm; not the exception. Some people have seen their work paused during this time. Others are on a mini sabbatical until their work gets back to normal. And for those who have lost their job, this may be a frightening time as they try to navigate an uncertain job market.
 
In many ways, this time could be seen as a small trial run for retirement. Your schedule isn’t clearly defined. You may be spending much of your time at home. Your work responsibilities may be limited or cut significantly. There are lessons you can take from this time and apply to your retirement. Below are a few of the biggest takeaways:

​During normal times, our schedule is often dominated by work obligations. You have to be at the office or your workplace at specific times. You have meetings and conference calls. You may have projects due by a specific time. Everything else in life often seems to get scheduled around work.
 
But during this pandemic, much like retirement, traditional work schedules have become blurred or even nonexistent. Work-from-home allows you to complete things during non-traditional working hours. You may find that personal tasks bleed into the work day.
 
If your work responsibilities have been cut or if you have lost your job, you may have found that time has lost its normal structure. How many of us have asked during this time, “What day is it again?”
 
You may find it helpful to maintain a schedule, even when you aren’t required to. Set the alarm and get up by a certain time. Keep a morning routine. Block off time for activities like fitness or work or even a new hobby. A schedule will help you maintain some normalcy and reach your goals.

​Much like our schedules, very often our purpose in life is dominated by work. For many people, the pandemic has made them reevaluate the role work plays in their lives. It’s similar to the process many retirees go through right after they end their careers. Without the purpose that comes from work, they may feel lost and even depressed.
 
This could be a good time to evaluate what is most meaningful to you. Sure, work is important, but after retirement you may need to find a new purpose. It could be family or friends. It may be a new hobby or a dedication to volunteer services. The choices are limitless. You just have to find the passion that is right for you.

​Our social lives also often revolve around work. If you go into an office or workplace everyday, you may spend more time with your coworkers than anyone else in your life. Working from home can be a difficult transition, especially if you thrive on social interaction.
 
Retirement can make for a similarly difficult transition. If you’re nearing retirement, consider who your social circle may be after retirement, and how you’ll connect with them. Video conferencing solutions, like Zoom, have become popular during the pandemic, but they’re not just for work. You can use those platforms to connect with friends, family, coworkers, and more, even if you can’t connect in person.
 
Ready to plan your transition into retirement? Let’s talk about it. Contact us today at Trusted Advisors Group. We can help you analyze your goals and implement a strategy. Let’s connect soon and start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20275 - 2020/7/20

The United States set a somber record on Thursday, July 16, 2020, with more than 75,000 new COVID-19 cases. In fact, the U.S. set new single-day COVID-19 records 11 times between June 17 and July 16. Dr. Anthony Fauci predicts the country will soon top over 100,000 new cases each day.1
 
COVID-related deaths are also increasing in some states. Florida set its single day record for COVID deaths on July 16, with 156. Nine other states also set single-day death records the same week.1
 
The resurgence in coronavirus cases has led some states to enact new measures. More than half of all states now have some kind of mask mandate. California has even rolled back its reopening, closing bars, indoor dining, gyms, and more.2
 
What does this mean for the economic recovery? And what does it mean for your financial future? It’s impossible to predict what will happen in the short-term, but knowing where things stand today may help you make important decisions with your strategy.

The stock market continues to rally in spite of the increasing COVID numbers and the return of restrictions. As of July 16, the S&P 500 is nearly back to even for the year. In fact, it’s up 43.71% since hitting a low 2237 on March 23.3 NASDAQ set a record-high on July 9 when it reached 10,617.4
 
The continued gains are good news for investors, especially after the sharp decline in March. However, that decline also shows us just how quickly the market can turn, especially if state governments introduce new orders that close businesses.
 
If you’re concerned about another potential downturn or future risk, this could be the right time to explore risk-protection strategies. For example, products like annuities allow you to participate in a portion of the market upside but also protect you against losses. A financial professional can help you determine which risk-management strategy is right for you.

While the number of new unemployment claims has declined for 15 consecutive weeks, unemployment numbers are still much higher than they were pre-COVID. In February, there were approximately 200,000 new unemployment claims each week. That number exploded to 6.867 million new claims in one week in late March. While new claims have declined since that point, they’re still more than double their level during the height of the Great Recession in 2009.5

In March, the government passed the CARES Act, which, among other things, provided direct stimulus payments to many Americans. A recent study found that 74% of recipients had used all of their stimulus payments within four weeks.6
 
As the coronavirus pandemic continues to impact Americans, Congress is considering a second round of stimulus payments. In May, the House of Representatives passed the $3 trillion HEROES Act to provide a second round of direct stimulus payments.6
 
In an interview in mid-July, Treasury Secretary Steve Mnuchin indicated that a second round of stimulus payments was a possibility, even if it doesn’t align exactly with the HEROES Act. Senate Leader Mitch McConnell and President Trump have also recently expressed their willingness to negotiate a second stimulus package.
 
While stimulus payments may provide a nice boost, they’re not a replacement for long-term strategy. At Trusted Advisors Group, we can help you analyze your needs and goals and implement strategies to limit your risk exposure. Let’s connect soon and start the conversation.
 
1https://www.nytimes.com/2020/07/17/world/coronavirus-updates.html
2https://www.theguardian.com/us-news/2020/jul/15/california-coronavirus-shutdown-businesses-restaurants
3https://www.google.com/search?q=INDEXSP:.INX&tbm=fin&stick=H4sIAAAAAAAAAONgecRowi3w8sc9YSntSWtOXmNU5eIKzsgvd80rySypFBLnYoOyeKW4uTj1c_UNDM0qi4t5FrHyePq5uEYEB1jpefpFAAAU6wGESAAAAA#scso=_Ap0RX4PNDdvRtAbPobiYBQ1:0
4https://www.cnn.com/2020/07/09/investing/stock-market-supreme-court-trump/index.html
5https://finance.yahoo.com/news/coronavirus-jobless-claims-unemployment-week-ended-july-11-175149759.html
6https://amp.usatoday.com/amp/112232064
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20279 - 2020/7/21