By Susan E. Campbell
Whether the forecast for the economy and the investment markets is good, bad, or middle-of-the-road, retirement professionals agree that staying the course is the best course.
“The number one thing for 2020 is, in a word, uncertainty,” said Don Tenne, a financial planner with Ameriprise Financial Services and based in Glens Falls.
“Tariffs, elections, China and other international uncertainties are things that tend to slow down the market even though the economy is doing very well,” said Tenne.
Markets are driven not only by fundamentals but also by investor psychology, which can be impacted by alarmist media, he said.
“The media says a recession is coming, but we don’t know when,” he said. “Many experts say recession may be one to six years ahead. So we see the stories, and then they go away.”
Business Report: Beware Of Retirement Sprawl
By David L. Cumming
As we move through our career, we often accumulate a number of different retirement accounts: A traditional IRA here, a rollover IRA there, and two or three scattered 401(k) accounts left in the plans of former employers.
As the accounts add up, it can become difficult to get a clear picture of your overall retirement preparedness.
Consolidating your retirement accounts into one central account can help you make sure your retirement assets are invested appropriately for your overall goals, better track the performance of your holdings and, in some cases, discover more investment choices and potentially incur lower fees.
AARP: Cost Of Drugs Is Rising Dramatically
Retail prices for 267 brand-name drugs commonly used by older adults surged by an average of 5.8 percent in 2018, more than twice the general inflation rate of 2.4 percent, according to new AARP Public Policy Institute (PPI) data released in November.
The annual average cost of therapy for one brand-name drug ballooned to more than $7,200 in 2018, up from nearly $1,900 in 2006, the study said.
“There seems to be no end to these relentless brand-name drug price increases,” said Debra Whitman, executive vice president and chief public policy officer at AARP. “To put this into perspective: If gasoline prices had grown at the same rate as these widely-used brand-name drugs over the past 12 years, gas would cost $8.34 per gallon at the pump today. Imagine how outraged Americans would be if they were forced to pay those kinds of prices.”
Business Report: Rolling A Retirement Plan Into An IRA
By Stephan Scribner
If you’re asking this question, you probably have a 401(k) or other retirement plan through a former employer. The short answer is yes—most retirement plans allow you to roll your plan funds over into an IRA after you’ve left your employer’s service. However, there is more than one way to do a rollover, and how you do it can be critical.
In most cases, your best strategy is to do a direct rollover. This is a direct transfer of funds from your employer-sponsored plan to your IRA. The administrator of your employer-sponsored plan may send the check right to the trustee of the IRA you have selected. That way, the money never passes through your hands.
Alternatively, the plan administrator may give the check to you to deliver to the IRA trustee. This also qualifies as a direct rollover as long as the check isn’t made payable to you. Instead, it should be made payable to the IRA trustee for your benefit. A direct rollover will avoid tax consequences and penalties.
You can also do an indirect rollover, but it’s rarely a good idea. Here, the check is made payable to you. When you receive the check, you cash it and deposit the funds in the new IRA within 60 days.
Financial Advisers Help Clients With Valuable Year-End Advice About Retirement Planning
Courtesy Capobianco Financial Advisors
By Susan E. Campbell
December is good time for business people to meet with investment, accounting and tax professionals to look at the year behind and the one ahead.
At Paul Dowen’s office, Whittemore Dowen and Riccaiardelli, LLP in Queensbury, the team is working to manage retirement accounts in a way that maximizes deductions and minimizes tax liabilities under the new rules.
Even though all individual tax brackets, except the 10 percent bracket, are lower because of the Tax Cuts and Jobs Act, the experts can offer some tried-and-true tips for managing the tax burden.
“The biggest jump in the new tax tables is from the 12 percent bracket to 22 percent, so the challenge is how we keep more income at the 12 percent rate,” said Dowen. “The first step is to make sure the maximum amount allowed has been contributed to the company’s 401(k) plan.”
These plans must be funded by salary deductions before year-end, so time is running out to play catch-up.
“An employee who maxes out his 401(k) right now might have a zero paycheck, but will have taken advantage of a provision for reducing taxable income,” said Anthony Capobianco of Capobianco Financial Advisors in Clifton Park.
Business Report: Goals-Based Plan For Wealth Management
By David L. Cumming
The new year is a time of reflection and resolutions. For many of us, it’s an opportunity to make a fresh start. Whatever your approach, it’s the perfect time to think about what you can do to make the best use of the wealth you’ve worked so diligently to earn.
You have unique goals, and your wealth management strategy should be designed to reflect the specific aspirations you have for yourself and your family. It should also go beyond just creating a portfolio to help you plan for retirement and other life priorities, such as saving for your child’s education or leaving a meaningful legacy.
The evolution of wealth management.
Over the past 30 years, the wealth management industry has evolved. The role of the Financial Advisor has transformed from stock broker to caretaker of their clients’ financial lives.
Today, wealth management is a high-level professional service that goes beyond just investment advice to encompass every part of your financial life. Rather than trying to piece together advice from a series of professional advisors, you benefit from a holistic approach where a single financial advisor or team of financial advisors coordinates all the services needed to manage your wealth and plan for your current and future financial needs.
Retirement Planning Professionals Say Start A Plan Early In Life And Stick To It
Glen Larkin, investment officer and financial planner, Adirondack Trust Co BY SUSAN E. CAMPBELL A retirement plan is one of the few tax-advantaged savings options available to just about anybody. Still, too few take advantage of a plan's unique...
My Turn: How Do You Picture Retirement?
Stephan Scribner, financial consultant, BSNB Financial Services By Stephan Scribner How do you picture your retirement? Traveling the country in a motorhome or staying at resorts several times a year? Perhaps it is finally being able to travel to...
Retirement Straight Talk
Stephen J. Augstell, senior vice president for Key Private Bank By Stephen J. Augstell , MS, CFP Americans are not saving enough for retirement. This is hardly breaking news. When measured against accepted benchmarks-- 85 percent replacement of preretirement...
Web Calculator Helps Retirement Planning
AARP in late November launched a free online Health Care Costs Calculator, a major addition to its Ready for Retirement suite of planning tools. In a survey accompanying the release of the calculator, AARP found that just 36 percent of...