The year is flying by. It may be hard to believe, but we’re already halfway through 2019. Did you set financial goals at the beginning of the year? If so, how are those goals looking at the halfway point?
 
The good news is you have six more months to hit your objectives. Whether your goal was to save more money, pay down debt, or simply organize your financial strategy, you still have time to make it happen before the end of the year.
 
This also may be a good time to review your retirement plan. Generally, the financial markets have had a good year. The S&P 500 is up more than 13 percent year-to-date. However, that hasn’t come without turbulence. The index lost nearly 5 percent in May.1
 
If you’re approaching retirement, it’s important to periodically review your retirement strategy to make sure it aligns with your risk tolerance and time horizon. If you suffer a loss, you may not have time before retirement to recover. Below are a few tips to help you reduce the risk exposure in your strategy.
 
Rebalance your allocation. 

It’s possible that your target allocation is perfect for your risk tolerance and time horizon. However, it’s also possible that your actual allocation doesn’t match your target.
 
Investment portfolios naturally become unbalanced over time. Some asset classes perform better than others. Some increase in value while others decline. This happens all the time with investments and financial markets.

However, as asset classes increase and decrease in value, they also become unaligned with your target allocations. For instance, an asset that was supposed to account for only 5 percent of your allocation, may account for much more if it increases in value. Similarly, an asset that declines in value may account for much less than its target percentage. The result is that you get a portfolio that doesn’t match your desired allocation and may even have more risk than you want.
 
Fortunately, you can correct this issue by rebalancing your allocation back to the desired target. In fact, it’s good to do this regularly, even on a quarterly basis. Many financial professionals can set up your account to automatically rebalance so you know you’re always aligned with the right strategy.

Shift to more conservative assets. 

When was the last time you reviewed your allocation? If it’s been a while, you may need to do more than rebalance. It could be time to change your allocation altogether.
 
As people get older and approach retirement, they tend to become more conservative. This is because your time horizon has shortened. You have fewer years until you retire and actually need to use your money. A more conservative allocation reduces the odds of a sizable loss. It helps you protect what you have while still potentially growing your assets.

Review your strategy and discuss it with your financial professional. Is it time to move to a more conservative allocation? If so, consult with your financial professional to determine what types of strategies are right for you.

Consider an annuity. 

Finally, you may want to consider additional risk protection tools. One possible tool is an annuity. Some annuities, like fixed indexed annuities, offer some upside potential without the downside market risk that exists in the financial markets.
 
With a fixed indexed annuity (FIA), you could receive interest that is tied to the performance of an external index, like the S&P 500. If the index performs well, you receive a portion of the upside performance as interest. If the index performs poorly and loses value, you don’t receive interest, but you also don’t lose any money.
 
An FIA can be an effective tool to minimize risk in your portfolio. There are a number of different FIAs available, so it’s important to explore your options. Your financial professional can help you determine if an FIA is right for your strategy.
 
Ready to reset your strategy for the second half of 2019? Let’s talk about it. Contact us today at Retirement Wealth Solutions of Nebraska. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting 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. 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, there is 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 and is not sponsored or endorsed by the Social Security Administration or any government agency. 
 
Investment advisory services offered through ChangePath LLC, a Registered Investment Adviser.  Insurance services are offered through Retirement & Wealth Solutions of Nebraska.  Retirement & Wealth Solutions of Nebraska and ChangePath, LLC are unaffiliated. 
 
1https://money.cnn.com/data/markets/sandp/
 
18924 - 2019/5/29

Last month we shared the triple tax benefits of Health Savings Accounts (HSA) to help save for future healthcare costs. But how do you access the funds for out-of-pocket medical expenses once you’ve started saving? Like all qualified savings plans, you need to play by the IRS rules to enjoy the tax benefits and avoid expensive penalties. The penalty for failing to follow HSA distribution rules can result in you not only having to pay income tax on the entire distribution, but also a 20% penalty on top of that.

To ensure you take your withdrawals properly, click here to download “Planning for HSA Distributions in 5 Easy Steps.”

If you recently withdrew money from your retirement account with plans to execute a 60-Day rollover but
missed your deadline, you may be worried about the consequences. We get it, life happens, and fortunately,
the IRS understands this too!

If you missed the 60-day deadline for completing an IRA rollover due to an error or an unexpected life
circumstance, the IRS has an option for individuals to self-certify for a waiver of the deadline so that they can
complete a late rollover.

To find out how to go about the self-certification process, click here to download “Fixing Missed 60-Day
Rollover Mistakes with Self-Certification in 5 Easy Steps.”

As the beneficiary of an inherited IRA, you might be aware of some rules that come with these retirement accounts. However, are you also aware that the rules vary depending on whether you are a spouse, a non-spouse or a trust beneficiary?

From required distributions to even the titling of the account, understanding the differences based on the type of beneficiary is crucial to avoid paying unnecessary taxes and penalties on your inheritance. Mistakes are often irreversible, so making informed choices is essential when handling inherited IRAs.

Before you so much as retitle or move your inherited IRA, click here to read these quick tips to “Avoid Non-Spouse Beneficiary Mistakes in 5 Easy Steps.”

The increasing costs of healthcare is one of the top concerns among Americans today. One option to consider
to help pay for these costs is to take advantage of tax-advantaged savings specifically for health expenses
through a Health Savings Account (HSA). HSAs offer three different tax advantages:

1) Contributions are deductible
2) Earnings are tax-deferred while in the HSA, and
3) Distributions are tax-free when they are used for qualified medical expenses

If you’re enrolled in a high-deductible health insurance plan, you may want to consider contributing to an HSA.
Keep in mind that, like other retirement savings vehicles, HSAs come with their own set of rules you must
follow to enjoy all of their tax benefits.

For more information, click here to download “Contributing to a Health Savings Account in 5 Easy Steps.”

Looking for a way to secure a financially stable future for your child? An IRA may be the solution! There is no minimum age for having an IRA and, as long as your child has earned income, you can open an account in their name.

Your child can contribute to their IRA with their own money from working or a gift from you, and with the power of compound interest, they can get a significant head start on a secure financial future.

To learn more, click here to download “Using IRAs to Help Children in Five Easy Steps.”

Everyone is familiar with the popular saying “April showers bring May flowers.” The arrival of spring also means the arrival of rainy weather. While rainy days are never fun, they signal the end of winter and the coming arrival of blossoming flowers and warmer weather. In retirement you might be able to avoid rainy weather by moving to a tropical climate.
 
Of course, you may not be able to avoid rainy days with regard to your financial strategy. Emergencies happen at all stages of life, including after you retire. Taxes could be a challenge and may stretch your budget. Medical expenses and long-term care costs could pose a financial threat. Market risk is always a concern.
 
One way to protect yourself from emergencies and unexpected costs is to boost your income in retirement. The more predictable, guaranteed sources of income you have, the less vulnerable you’ll be to unplanned costs.
 
Not sure whether you have enough income in retirement? Below is a three-step process you can use to evaluate your income and take action. If you haven’t projected your retirement income, now may be the time to do so.

Step 1: Establish your income floor. 

Your income floor is the minimum amount of income you need to cover your most important expenses. The best way to determine your income floor is to develop a retirement budget. Granted, you can’t predict every cost you’ll face in retirement. However, you can probably make a reasonable projection based on your current expenses and your desired standard of living.
 
Highlight the expenses that are most important. These will include all your fixed expenses, which are the bills that have to be paid every month no matter what. You also may include a few discretionary costs, which are expenses that could fluctuate from month to month. For example, your most important expenses may include:

• Housing
• Utilities
• Insurance premiums
• Debt and credit card payments
• Car payments
• Medical costs
• Food
• Clothing
• Cellphone bill
• And more

 
Total up your most important expenses and see how much they will cost on a monthly basis. Also, don’t forget inflation. It’s likely that prices will rise slightly between now and your retirement date. The sum of your most important expenses is your income floor. That’s the minimum amount of income you need each month to live in retirement.

Step 2: Project your income. 

The next step is to project your income in retirement and determine how much of that projected in come is from guaranteed or predictable sources. Income from guaranteed* sources is cash flow that will last no matter how long you live and that isn’t affected by market performance or other economic factors.
 
Social Security and pension benefits are good examples of guaranteed  income sources. The amounts don’t fluctuate from month to month, and the income can last for life. Distributions from 401(k) plans, some other IRAs or investment vehicles may not provide income that will last for your entire lifetime and the amounts are subject to market volatility so you don’t want to include them in this calculation.
 
Add up your projected income from guaranteed and non-guaranteed sources. Does it exceed your income floor? If so, you have enough income from guaranteed sources to meet your bare minimum expenses. If it doesn’t, you may want to look for strategies to increase your guaranteed sources of  retirement income.

Steps 3: Fill in the gaps. 

Ideally, you don’t just want your income to match your income floor. You want it to exceed your income floor by a substantial amount. That way you have the ability to increase your liquid assets for life’s unexpected costs. Extra income could help you pay for medical bills, home repairs or other emergency costs.
 
One of the most effective ways to boost your guaranteed* income is to include an annuity in your retirement strategy. Many annuities offer optional riders known as guaranteed minimum withdrawal benefits. These benefits allow you to withdraw up to a certain amount each year. As long as your withdrawal stays within the limits, the distribution is guaranteed for life. It doesn’t matter how long you live or how the market performs. Your income remains consistent and predictable.
 
Talk to a financial professional about how to use an annuity to boost your guaranteed* retirement income. They can help you determine your income floor, project your retirement income and take action to protect yourself from financial rainy days.
 
Ready to boost your retirement strategy? Let’s talk about it. Contact us today at Retirement Wealth Solutions of Nebraska. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
*Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.  Annuities are long-term products of the insurance industry designed for retirement income.  They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values.
 
This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting 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. 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, there is 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 and is not sponsored or endorsed by the Social Security Administration or any government agency. Investment advisory services offered through ChangePath LLC, a Registered Investment Adviser. Insurance services are offered through Retirement & Wealth Solutions of Nebraska.  Retirement & Wealth Solutions of Nebraska and ChangePath, LLC are unaffiliated. 
 
18686 - 2019/3/25

Turning 70 is a big milestone that’s hard to miss, but once you turn 70 ½, there is an annual to-do that can easily be forgotten. Once you reach age 70½, it’s time to start taking your required minimum distributions (RMD) from your retirement account each year, and if you forget to take it, it can result in a 50% penalty.

Did you miss your RMD this year? Fortunately, there are steps you can take to fix the problem and possibly even get the penalty waived.

For guidance on how to fix a missed RMD, click here to download more information.

When the time comes for your beneficiaries to receive your IRA assets, are you confident they will use their inheritance in a way that you’d want them to?
​
There are options available for you to have varying levels of control over how your beneficiaries use your assets after you’ve passed. You may want to consider either a trusteed IRA or a trust, but how do you know which option is best for you?

To learn more, click here to download “Is a Trusteed IRA a Good Strategy for You?”

If you’ve recently received a tax refund, you may be considering how to spend or invest the cash. What if you could utilize an option that is both convenient and helps fund your future? April 15 is not just the tax-filing deadline, but it’s also the IRA-funding deadline, and if you haven’t yet maxed out your IRA for 2018 and 2019, now may be the time.

Keep in mind, these limits apply per individual, so both you and your spouse can each set aside this amount in addition to any employer plans you may participate in as long as you have at least as much in earned wages for the year as your contributions:

2018 $5,500 (+$1,000 catch up contribution age 50+)
2019 $6,000(+$1,000 catch up contribution age 50+)

Once the proper forms are completed, an income tax refund can be directly deposited to an IRA up to the annual contribution limit, providing a great opportunity to make the most of your refund.

Click here to download “Using a Tax Refund to Fund an IRA in 5 Easy Steps.”

​Remember hunting for Easter eggs as a child? There were few thrills more exciting than racing around the yard or a park to find as many eggs as possible. Your eggs may have contained candy, money or other prizes.
 
As an adult, you may be too old to participate in a traditional Easter egg hunt. However, there may be another egg hunt that could be far more lucrative. It’s a hunt for hidden retirement assets. Many people fail to inventory their available retirement assets. In doing so, they fail to identify assets that could play an important role in their retirement strategy.
 
Below are four often-overlooked retirement assets. Some of these eggs may be hiding in plain sight. If you haven’t created an inventory of your retirement assets, now may be the time to do so. You could have some valuable eggs waiting to be found.

Old 401(k) Plans 

There was a time when workers stayed with one company for most of their career. Those days are long gone. According to data from the Bureau of Labor Statistics, wage and salaried workers have been with their current employer for a median of only 4.6 years. In fact, the average worker changes jobs 11 times from age 18 to 48.1
 
When you leave a job, you also may leave behind a 401(k) balance. It’s possible that you still have balances held in former employers’ plans. Make a list of old employers and identify the ones where you may have participated in a 401(k) plan, profit-sharing plan or other qualified retirement plan. If you have an old balance, you could roll it over into an IRA and invest it according to your strategy.

Life Insurance Cash Value 

Do you own permanent life insurance policies? If so, those policies may have a cash value that you can use in retirement. Permanent life insurance policies have a death benefit, but they also have what’s called a cash value account. When you make a premium payment, a portion of that payment is allocated toward the cash value.
 
Your cash value account grows on a tax-deferred basis. The method of potential growth depends on the type of policy. Whole life insurance pays dividends, while universal life policies pay interest. Variable universal life policies allow you to invest in the financial markets. Depending on your type of policy and how long you’ve owned the insurance, you could have a significant amount of cash value.
 
You can use that cash value to provide supplemental income in retirement. For instance, you can withdraw your premiums tax-free. You can also take tax-free loans from the policy, though the loans do have to be repaid. Review your life insurance policies and see whether you’ve accumulated cash value that you can use in retirement.

Home Equity 

Thinking of downsizing in retirement? That could be a smart move. When you downsize to a smaller home, you may be able to reduce your costs for housing, taxes, maintenance, insurance and more.
 
Delaying Social Security 
Technically, this strategy doesn’t represent an asset, but it is a simple way to increase your retirement income. You can file for full Social Security benefits once you reach full retirement age (FRA). Most people’s FRA lands between their 66th and 67th birthdays.2
 
However, you don’t have to file at your FRA. If you choose to delay your filing, Social Security will increase your benefit by 8 percent for each year that you wait up to age 70. That 8 percent increase is a permanent credit, so it could represent a significant pay raise, especially if you delay your benefit filing for several years.3
 
Ready to find the hidden eggs in your retirement strategy? Let’s talk about it. Contact us today at Retirement Wealth Solutions of Nebraska. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.nerdwallet.com/blog/investing/leaving-401k-behind-job-change-costly/
2https://www.ssa.gov/planners/retire/retirechart.html
3https://www.ssa.gov/planners/retire/delayret.html
 
This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting 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. 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, there is 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 and is not sponsored or endorsed by the Social Security Administration or any government agency.  Investment advisory services offered through ChangePath LLC, a Registered Investment Adviser.  Insurance services are offered through Retirement & Wealth Solutions of Nebraska.  Retirement & Wealth Solutions of Nebraska and ChangePath, LLC are unaffiliated. 
 
18692 - 2019/3/26