Author: Dr. Daniel Levine

The 6 Key Aspects of Your Personal Finances

There could be some measure of relief, or perhaps consternation, in knowing the exact dollar value of your net worth. For good or ill, it’s important to know the precise value of all your holdings so you can more accurately plan your financial future. When you don’t know what you have, it’s hard to know how much you need to step into the dream life you envision. When you work with a professional financial advisor, you will be asked questions about your salary, your spouse’s salary, savings accounts, portfolio investments, real estate and the other material assets you own so an accounting can be made that determines your current financial worth. Similarly, there will be a discussion about your liabilities, such as your mortgage, credit card balances, loans, and any other forms of indebtedness. The difference, of course, between your assets and liabilities is your net worth. Once your net worth is known, your assets can be reviewed in relation to the capacity of time to enhance your wealth, and plans can be developed to help you meet your goals. Here is an overview of the six key areas to study when conducting an analysis of your personal financial circumstances: 1. Retirement Planning: Retirement planning is a complex and serious activity because so much is at stake and there are limited second chances. Planning for a future based on...

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Looking into the Crystal Ball of your Financial Future!

Wouldn’t it be great if a crystal ball could tell you today what you need for a financially secure tomorrow? Maybe you remember that Twilight Zone episode when a man goes back in time and knows exactly what to buy to build his fortune. And then there was the TV show called Early Edition when a man receives a newspaper with tomorrow’s news. We all wish we had an inside edge that could make investing easier, but nothing about the future is guaranteed. Food and fuel prices can be volatile and unrestrained. A bag of regular groceries in the good old days would cost about $10 but now that same bag will cost about $30+. A gallon of gasoline was $1.43 in 2004, rose to about $3.50 in 2013, and is still about $3.00 in 2018, double its price 14 years later. It’s evident that your retirement funds need to exceed the pace of inflation. Remember, too, that people are generally living longer than ever before and therefore will need their retirement funds to last longer. Clearly, you need to know what you’re doing when investing for the future, and because there is so much to know, your best decision may be to hire the services of a fee-based financial advisor. A financial advisor is a licensed professional trained to take advantage of and protect against the complexities of...

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Deciding What You Want in Retirement

The day will come when you’re going to walk through an invisible golden portal with a golden portfolio to match, and you’ll begin to live the life of your dreams. Imagine having your condo on the beach in Waikiki and every day is a combination of tropical fruits, coconut sunblock lotion, paradisal music, and sunset barbecues. No? Oh, okay, so maybe instead of a tropical paradise you prefer a snow lodge on a small ranch in Colorado where you can ski for miles and entertain your grandchildren with toboggans and horse-drawn sleighs, a warm fire in your livingroom’s wood-stove and summers filled with blue skies and big-horned elk. No? So what exactly do you want? If you don’t know, the chances of your having it diminish. Yes, of course you can always build a gigantic retirement fund and hope you have enough for what you’ll eventually decide you want to have. However, think about how much more empowering it is to set your goals on precisely what you do want to have, and then work toward achieving a dream life come true. The key reason it’s important to identify your retirement goals is not only because it’s so empowering to achieve them, but also because you can stop driving yourself into deep neurosis wondering if you have enough cash for whatever ambiguous cloud of retirement images are rooted in...

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5 More Rules for Your Retirement

Last month’s focus was on the first five of 10 rules for achieving a comfortable retirement lifestyle. The recommendations included shifting into your projected retirement lifestyle a few years before retirement to get used to living on a different budget and down-sizing your behavior to make the eventual shift more familiar; developing new sources of income to compensate for Social Security’s inability to provide all your financial needs; developing an estate plan to care for your loved ones in case of your demise or disability; considering relocation to warmer climes or to be more proximate with your family; and being mindful of communications from the entities managing your wealth. Here are the second five suggestions for achieving an anxiety-free retirement lifestyle which we hope will stir your interest and inspire you to take the necessary steps for the best wealth management for your circumstances. Rule #6: Make funding your retirement goals your first priority. Your retirement years could be as many as 25…30…even 35 years. With medical improvements occurring yearly, it’s possible that many Americans will live into the first decade of their 100s. This should be a blessing, not a curse! If you and your spouse or partner will be living longer, you’ll need more financial resources to live independently and not under the authority of the government or through the generosity of your family. Currently life expectations...

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5 Rules for Your Retirement

This week’s focus is on the first 5 of 10 rules for a comfortable retirement lifestyle. Most people want to enjoy a good life through the length of their adult years while building a retirement nest egg to sustain them into their 90s, and also leave a legacy for their families. Achieving this goal isn’t horribly difficult if you follow some basic rules and “keep your wits about you” as Filch advises Harry Potter. Here are the first five suggestions for achieving an anxiety-free retirement lifestyle. Rule #1: Many people like to live the life they can afford before they retire, and then also expect to enjoy a similar lifestyle afterward, though in many cases retirees must live more conservatively. Therefore, there is wisdom in moving your pre-retirement lifestyle to a level that’s similar to the lifestyle you’ll live in retirement, making the segue easy by preparing yourself emotionally and financially for your new post-work life. Rule #2: Your Social Security benefits are intended to provide approximately 40% of the income you’ll need during retirement, so it’s up to you to secure the remaining income you’ll need. Remember also that this 40% number is based on a lower income model for average Americans, meaning that if you’re living at a higher level now, Social Security benefits will provide even less of your expectations. Aside from all the rhetoric that...

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