I hope you are staying safe and healthy.
On Thursday, I hosted the latest session in my “Ask Me Anything” webinar series: “Where Will Your Retirement Income Come From?” Please click this link Passcode: @Yk563au if you would like to view the recording.
Planning can help you maintain your quality of life in retirement. Waiting until you are ready to retire to think about retirement can mean you will not achieve your retirement goals. This week’s first article shares 11 retirement mistakes and how we can avoid them.
After rising 10.75% in November – the S&P 500’s best November since 1928 – the S&P is up 2.8% so far in December. Positive developments on the COVID-19 vaccine front continue to help drive the gains. Investors continue to overlook near-term economic concerns as well as the elevated number of COVID-10 cases. The significant first-day gains delivered by several recent initial public offerings (IPOs) are a further sign of investor optimism. It also seems more likely that another round of government stimulus payments is imminent. Moving past the contentious election season also benefited returns. The S&P is up 10.7% so far in the fourth quarter and 15.2% year-to-date. Given the precipitous pandemic-related drop in March, this year has gone surprisingly well for investors.
Here are the links to this week’s articles as well as a brief description of each:
1. The 11 Worst Retirement Mistakes – And How to Sidestep Them. If you want to avoid retirement mistakes, you should set realistic goals and think ahead. But you can still make mistakes with your finances. One of the keys to having a successful retirement is thinking about retirement while you are still working. One of the biggest mistakes you can make is waiting too long to get started. Compounding allows your money to grow. Another is not having a plan. If you would like some help with your financial plan, you can schedule a free Strategy Session.
2. I’ve Won More Than $4 Million Playing Poker – Here’s My No. 1 Secret to Successful Decision-Making. You may find Annie Duke’s secret surprising. We often think perseverance matters. Once you make a decision, you may learn something new that could change your mind. When forced to choose between two options, which one should you choose? Read on to find out. One hint: the answer starts with the letter “q.”
3. Planning to Sell Your Home in Retirement? Downsize Costs Along With Space. Unsure where to live when you retire? In this video, (see here for a transcript) I discussed some key factors to consider when making a decision. If you want to relocate, don’t forget to consider costs such as those related to selling your home. (For example, updating, repairing, and staging, plus any commissions.) This article shares some tips to help leave you with more money after the sale is completed.
4. Martha Graham on the Hidden Danger of Comparing Yourself to Others. We often judge our own work. We produce content we are proud of only to find others don’t appear to enjoy it. Other times, we think we’ve created something that is only average. But others love it. Perhaps we shouldn’t judge our own work. Nor should we compare it to others. Our focus should be to create and share what we have to offer. The goal should be to do the work. Try enjoying the process rather than grading the outcome.
5. How Much Is $20 a Month Worth? When it comes to saving money, the hardest part for most people is saving money consistently. The earlier you start saving, the better off you will be. Increasing your savings each year can help even more. Consider these choices.
A. Save $500 every month for thirty years. If you earn an average return of 7% on your investments, you will have about $606,000 after 30 years.
B. Increase your savings by $20 per month each year. In year one, save $500 per month. In year two, save $520 per month. In year three, save $540 per month.
You may think the extra savings won’t make much difference. They will. After 30 years, you would have about $867,000. Over 30 years, the annual increases to the amount saved will total about $104,000. That same 7% return during that period will increase your account value by more than $260,000! The key point here: savings takes patience. Start slowly. Add to your account as you go. In the end, you should be rewarded.
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We hope you find the above posts valuable. If you would like to talk to us about financial topics including your investments, creating a financial plan, saving for college, or saving for retirement, please complete our contact form. We will be in touch. You can also schedule a call or virtual meeting via Zoom.
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Phil Weiss founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 25+ years, he has worked extensively in the areas of financial planning and investment management. Phil is both a CFA charterholder and a CPA.
Located just north of Baltimore, Apprise works with clients face-to-face locally and can also work virtually regardless of location.