​Valentine’s Day is supposed to be a day for romance and reconnection. For many couples, however, this time of year could be marked by disagreements about money. Nearly half of all married couples argue about financial issues.1
 
With the new year just starting and tax season right around the corner, many people use this time to evaluate their spending, earnings and financial performance over the previous year. That analysis could reopen sore spots about money management.
 
The performance of the financial markets over the past few months could also be a source for disagreement among couples, especially those who have differing investment styles. After starting strong for the first three quarters of the year, the S&P 500 finished with an epic meltdown in the fourth quarter. The index ended the year down 7 percent, the first time in history it’s finished the year negative after being positive for the first three quarters.2
 
Do you and your spouse disagree about investing styles? Does one of you take a more aggressive stance while the other prefers to play it safe? Below are a few helpful tips on how you and your spouse can meet in the middle and get past your investment-related disagreements:

Draft an investment policy statement. 

Many couples disagree about their investment approach because they’ve never developed a formal investment strategy. They generally know they want to save for retirement, but they’ve never discussed their specific objectives or tactics. An investment policy statement does just that.
 
Your investment policy statement is a written document that states your goals, acceptable risks and the steps you will take to reach your objectives. It outlines which types of investments are appropriate for your strategy and which are not. You can use your investment policy statement as a guide for making future decisions.
 
The process of developing the investment policy statement could be beneficial for many couples. You’re forced to share your differing opinions and compromise to reach a strategy. Those conversations could help you work out differences and find areas where you agree, which could diffuse future arguments.

Develop a retirement income plan. 

Often, arguments are fueled by uncertainty about the future. You’re unsure of when you’ll be able to retire or how much more you need to save, so that heightens your anxiety and sharpens disagreements. You may be able to avoid arguments by eliminating the uncertainty.
 
Work with your financial professional to develop a retirement income plan. You can project your future retirement income from sources such as Social Security, an employer pension and even your own savings. You can also build a retirement budget to estimate your spending. These two projections should give you an idea of how close you are to reaching your goals, how much more you need to save and how much risk you should take to achieve growth.

Don’t avoid the conversation. 

Have you and your spouse agreed to disagree about your differing investment styles? Do you avoid the conversation? Or do you go it alone with your individual accounts so you don’t have to discuss issues that may lead to disagreement?
 
While you may not want to disagree or argue, it’s also not helpful to avoid the conversation. If you each have differing styles and don’t have a cohesive plan, you could be missing out on opportunity.
 
For example, assume your spouse is aggressive with his or her investment style and takes on a substantial amount of risk. Perhaps you’re conservative and choose assets that offer little return potential but also have little chance of loss. You may feel that the “go it alone” approach works because you each invest according to your comfort level and you avoid arguments.

By avoiding the conversation, however, you may be missing out on opportunities to meet in the middle and achieve better performance. For example, you could find an allocation that has growth potential and reduced risk. You could use tools such as annuities that offer growth without downside exposure. The only way to find these opportunities is to discuss your differing approaches and look for middle ground.

Work with a professional. 
​
Finally, you may find it helpful to bring in a third party, like a financial professional. They can give objective, impartial feedback and also provide information and analysis that may change your approach. They can also help you develop a retirement strategy and an investment policy statement to guide your decision-making.
 
Ready to overcome your investment disagreements with your spouse? 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://nypost.com/2017/08/03/the-reasons-most-couples-argue-about-money/
2https://www.cnbc.com/2018/12/31/the-sp-500-will-make-history-when-it-ends-the-year-with-a-loss.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. 
 
18408 - 2019/1/14

It’s that time again. A new year is here, which means a volatile 2018 is in the rearview mirror. The markets suffered a steep drop at the end of last year after climbing steadily through the first three quarters. A number of factors contributed to the markets’ fourth-quarter tumble, including tariffs, interest rate hikes and trouble in the tech sector.
 
A new year doesn’t mean those challenges are gone, but it does represent a fresh start. And if history is any guide, January can be a strong month for investors. According to a study from LPL Research, in the 68 years from 1950 through 2017, January has been a positive month for the S&P 500 41 times. It’s been negative 27 times.1
 
As any investor knows, history doesn’t guarantee future performance. However, there does seem to be a correlation between market performance in January and the rest of the year.
​
How do January returns impact the rest of the year?
 
According to LPL Research, there’s a relationship between January returns and market returns over the remainder of the year. Its research showed that during years in which there was a positive January return, the market had an average return of 12.2 percent over the next 11 months. When the January return was negative, the S&P 500 returned only 1.2 percent the rest of the year.1
 
If January returns are more than 5 percent, the correlation is even more pronounced. In those years, the market had an average return of 15.8 percent over the next 11 months. In fact, when January has a return of more than 5 percent, the rest of the year is positive 91.7 percent of the time.1

What is the January effect?
 
Why has January been positive more often than not? And why does January’s return seem to impact the rest of the year? There are no definitive answers to these questions, but there are theories.

There’s an idea called the “January effect,” which suggests that January returns may be the product of tax strategy. Investors sell stocks in December to harvest tax losses before the end of the year. That depresses prices and creates a buying opportunity in January. Because investors sold at the end of the year, there’s cash on the table to buy in the beginning of the next year.
 
Of course, this is just a theory. There’s no way to conclusively prove whether the January effect is a real phenomenon. Even if it could be proved, it’s never wise to change your long-term investment strategy based on short-term opportunities.
 
If you’re concerned about the volatility in 2018 or the coming year, now is a great time to meet with a financial professional. They can help you review your strategy and possibly make changes that reduce your risk exposure and allow you to take advantage of opportunities.
 
Ready to evaluate your investment strategy? Let’s talk about it. Contact us today at Retirement and Wealth Solutions of Nebraska. We can help you analyze your needs and goals and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.thestreet.com/story/14469889/1/stock-market-s-strong-january-performance-bodes-well-for-the-rest-of-the-year.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, presenting 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 and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
18345 - 2018/12/31

​Sometimes choices involving finances and retirement can be difficult. Those choices may become even more difficult during uncertain economic times when the market experiences volatility.

It seems as though everywhere you look, there's a new reason to be concerned about your hard-earned retirement savings. Turn on the television or radio, read a newspaper or simply have lunch with friends - and the conversation can turn to uncertainty in the stock market. Many Americans may be feeling confused and uncertain about the economy, thinking there's nothing they can do. They're also concerned they may end up working longer - and their retirement goals may be delayed. The good news is there are ways to protect retirement savings from market volatility through risk-tolerant insurance options just to name one. If you are over the age of 59 1/2 , and you are concerned about your employer retirement plans options, you may be able to take advantage of these options. 

Strategies to Help Protect Your Retirement Income

The following are a couple ways to help protect your retirement income from market volatility: 

• Understand the Difference Between Volatility and Risk
• Focus on Long-Term Financial Goals
  ​

To find out the other recommended three strategies, download our complimentary "5 Ways to Help PROTECT Retirement Income during Market Volatility" guide.

This booklet addresses ways to help protect retirement savings during market uncertainty. We've created this guide with information and answers to commonly asked questions. Although maintaining financial confidence may not be easy - it is possible.

Download your complimentary guide here. 

​
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, presenting 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 and is not sponsored or endorsed by the Social Security Administration or any government agency.

A new year is here, and with it comes a flood of year-end tax documents like W-2s, 1099s and others. Before you know it, the April 15 tax filing deadline will be upon us, and it will be time to submit your return.

It’s always wise to meet with your financial professional at the beginning of the year. It gives you an opportunity to discuss the past year, your goals for the coming year and your tax strategy. However, a consultation could be especially helpful this year.
 
The Tax Cuts and Jobs Act was signed into law in late 2017 by President Trump. While some of its changes went into effect last year, 2018 was the first full calendar year under the new law. The return you file in April will likely be the first that reflects much of the law’s changes. Below are a few of the biggest changes and how they could affect your return:

Increased Standard Deduction
 
The new tax law impacted a wide range of credits and deductions, from the deduction of medical expenses to credits for child care. Those who itemize deductions may have felt the brunt of these changes.
 
However, the tax law significantly increased the standard deduction. In 2017 the standard deduction was $6,350 for single filers and $12,700 for married couples. The new law increased those numbers to $12,000 and $24,000, respectively.1
 
Given the changes to itemized deductions and the increased standard deduction, you may want to consult with a financial or tax professional before you file your return. If you’ve traditionally itemized deductions in the past, that may no longer make sense.

New Tax Brackets
 
The new tax law also made significant changes to the tax brackets. There are still seven different brackets, just as there were before the passage of the law. And the lowest rate is still 10 percent. The top income tax rate is down to 37 percent, however, from 39.6 percent.2 There are similar cuts throughout the rest of the brackets as well.
 
The law also made changes to the income levels for each bracket. Generally, the bracket levels were increased throughout the tax code, which means you have to earn more before moving into a higher bracket. Under the old tax code, for example, a married couple earning $250,000 would be in the 33 percent bracket. Under the new law, that same couple would be in the 24 percent bracket. A single individual earning $80,000 would be in the 28 percent bracket under the old law but is now in the 22 percent bracket.2
​
Itemized Deduction Changes
 
As mentioned, the new tax law increased the standard deduction amounts. However, those increases came at the expense of many itemized deductions. The new law eliminated or reduced many common deductions, including those for state and local taxes, real estate taxes, mortgage and home equity loan interest, and even fees to accountants and other advisers.
 
However, there could be other opportunities to boost your itemized deductions above the standard deduction level. Charitable donations are still deductible, as are medical expenses assuming they exceed the 7.5 percent threshold. If you’re a business owner, you can deduct many of your expenses, including up to 20 percent of your income assuming you meet earnings thresholds.3
 
Ready to develop your tax strategy? Let’s connect soon and talk about taxes and your entire financial picture. Contact us today at Retirement and Wealth Solutions of Nebraska. We can help you analyze your needs and goals and implement a plan.
 
1https://www.nerdwallet.com/blog/taxes/standard-deduction/
2https://www.hrblock.com/tax-center/irs/tax-reform/new-tax-brackets/
3https://money.usnews.com/investing/investing-101/articles/know-these-6-federal-tax-changes-to-avoid-a-surprise-in-2019
 
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, presenting 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 and is not sponsored or endorsed by the Social Security Administration or any government agency.
​
 
18326 - 2018/12/26

​Do you have a relationship with a financial professional? Are you thinking about making a change? There are so many financial professionals, offering a range of different styles and services, that it can be hard to know which one is right for you.
 
It’s important that you work with the right professional for your needs and goals. However, you also want to do your due diligence before you make a change. It’s possible that your current professional could be the right one for your goals.
 
Below are a few questions to ask about the relationship with your financial professional. If you don’t know the answers to these questions, you may want to have a conversation with your financial professional to get clarification. If the answers aren’t to your liking, it may be time to make a change.

How are they compensated? 

Clearly, your financial professional is compensated for their services. However, there are a variety of ways in which that compensation may occur. Some earn commissions for selling products and investments. Others charge a flat fee, either based on specific services or as a percentage of assets. Some earn a blend of different methods.

There’s no right or wrong way to compensate a professional, but it’s important that you know how the compensation takes place. If you haven’t had that discussion, now may be the time to do so. If your professional can’t clearly explain and demonstrate how you are compensating them, it may be time to explore other options.

How often do you hear from them? 

Is your financial professional proactive or reactive? That is, do they contact you with new ideas or to touch base? Or do they only contact you in response to your concerns or questions?
 
Your relationship with your financial professional should be a collaborative partnership. Their success is tied to yours, so it’s important that they proactively look for ways to improve or strengthen your strategy. If they don’t reach out to you with new ideas or recommendations, or if you have to contact them first to have a conversation, it may be time to consider alternatives.

Do they provide comprehensive advice? 

Many people associate financial professionals with investment advice. The truth, though, is that your financial picture includes much more than just your investments. You have to make big decisions on a wide range of issues. How much should you contribute toward retirement? Can you afford that major purchase? Are you on track to pay for your child’s college? What happens if you die or become disabled?
 
Your financial professional should be able to provide recommendations and advice in all of these areas, even if it doesn’t lead to the sale of a specific product or investment. Again, if you’re not getting advice or input in all areas of your financial life, you may want to reassess your relationship with your financial professional.
 
Want to learn how a financial professional can help you reach your biggest goals? Let’s talk about it. Contact us today at Retirement and Wealth Solutions of Nebraska. We can help you analyze your needs and goals and develop 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.
 
18280 - 2018/11/28

Holiday season is here again. The new year is almost upon us, and 2018 will soon be in the rearview mirror. You’re probably busy right now looking for the perfect gifts for your friends and loved ones. However, you also may want to take some time at the end of the year to give a gift to yourself.
 
What’s the perfect gift for yourself this holiday season? Perhaps the latest gadget or new clothes? Maybe even a vacation? While those ideas are all valid, consider something that will have a lasting impact on your future: increased retirement savings.
 
If you’re concerned about your retirement savings, you’re not alone. According to a Gallup survey, 54 percent of Americans are worried about not being able to afford retirement.1 The holidays may not traditionally be the season of financial planning, but the year-end represents an ideal time to make changes and take action.

Give yourself the gift of a solid retirement strategy this holiday season. A financial professional can help you conduct a full review and recommend possible changes. Below are a few steps to consider:
​
Max your IRA contributions. 

An IRA is a popular and effective retirement savings tool because it offers a wide range of tax benefits. You may be able to deduct your contributions to a traditional IRA. Your earnings in the account also grow tax-deferred until you take a distribution. In a Roth IRA, you don’t get deductions for your contributions, but you do get tax-deferred growth and tax-free withdrawals after age 59½.
 
In 2018 you can contribute up to $5,500 to either a traditional or a Roth IRA. That number increases to $6,500 if you’re age 50 or older. In 2019 those limits increase to $6,000 and $7,000, respectively. If you haven’t hit your limit for 2018, you have until April 15, 2019, to do so. Look at your budget and consider giving yourself an IRA contribution this holiday season.2

Increase contributions to your 401(k). 

Do you participate in an employer 401(k) plan? In 2019 the maximum contribution increases, so you can put away even more money. The new 401(k) maximum contribution will be $19,000 next year. If you’re age 50 or older, you can contribute an additional $6,000 in catch-up contributions.3
 
Of course, not everyone can afford to put $19,000 per year into a retirement plan. However, even a small increase in your contribution can have a big impact. Look for ways to gradually raise your contribution rate over time. You can get a head start by increasing your contribution this holiday season.

Get a retirement income estimate. 
​
How much income will your savings produce in retirement? How much income can you expect from Social Security or a pension? If you don’t know the answers to these questions, you may want to meet with a financial professional to develop a retirement income estimate.

A financial professional can project your potential income from Social Security, a pension, savings or other sources. That can help you determine whether you’re on the right path or if you need to make adjustments. You could also examine tools to protect your income.

Ready to take control of your retirement strategy this holiday season? Let’s talk about it. Contact us today at Retirement and Wealth Solutions of Nebraska We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://news.gallup.com/poll/210890/americans-financial-anxieties-ease-2017.aspx
2https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
3https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000
 
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, presenting 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 and is not sponsored or endorsed by the Social Security Administration or any government agency.
​
18279 - 2018/11/28