Once again we witness another horrible, horrible tragedy. This time it took place at the 2013 Boston Marathon where two brothers set off multiple bombs, killing three people and injuring 176 others, many of them severely. Some of those injured lost limbs and others are facing amputations and other injuries that are life-changing.

I (Mark) can’t imagine what the survivors and their families are going through right now. They have been hurt so deeply by this that their lives will never be the same. Those who were injured and those who lost family members will have this tragedy forever on their minds.

If you are a believer in God, I suggest  you be in constant prayer for those affected by this tragedy. There are also other ways to show support, such as various relief funds that have been established. Below is a list of ways to help some of the victims of the bombing. This list was taken from The Huffington Post website.

• Jeff Bauman, a spectator who lost both legs in the aftermath of the blasts, will likely face hefty medical bills as he begins to recover. To help offset the costs, friends and family have launched the Bucks For Bauman fundraiser. Bauman’s family is also asking people to send letters of support to Jeff. Mail can be sent to: Jeff Bauman, c/o Jen Joyce, 117 Tyngsboro Road, Westford, MA 01886 or Jeff Bauman, c/o Jen Joyce, P.O. Box 261, Chelmsford, MA 01824.
• In lieu of flowers, the family of Krystle Campbell, a 29-year-old woman from Medford, Mass., who was killed in the explosions, has asked supporters to make donations to the Krystle M. Campbell Memorial Fund. Contributions can be sent to 25 Park St., Medford, MA 02155
• While waiting for their dad to cross the finish line, Martin Richard, 8, was killed in the blast and his younger sister, whose name has not been released, had her leg amputated in the aftermath. Their mother, Denise, was also hospitalized with serious injuries. To help the family get through this devastating period, friends and family have established the Richard Family Fund.
• Brothers Paul and JP Norden each lost their right legs following the Boston attacks and Paul’s girlfriend, Jacqui Webb, has already undergone two surgeries for shrapnel damage to her legs. To help the three victims pay for their overwhelming medical bills, friends and family have established the Jacqui, Paul and JP Recovery Fund.
• Friends and family of Patrick and Jessica Downes, newlyweds who each had a leg amputated after the blasts, are raising money for the couple’s medical bills.

This tragedy will be forever remembered along with 9/11 and will remind us of the evil that is in the world. Why do bad things happen to good people? I think the answer lies in the fact that we all have the capacity for good and evil. There is a battle going on in all of us and we are pulled back and forth between the two. We are affected by our own bad decisions and the bad decisions of others. No one is immune to this. This is evident by the recent suicide of the son of Rick Warren, the pastor of Saddleback Church. Rick is probably the most well-know pastor in our country today and author of the bestselling books “The Purpose Driven Life” and “What On Earth Am I Here For?” Yet, he has not escaped being hurt deeply by life.

Bad things happen, but good things come out of it. I don’t necessarily think “things happen for a reason.” Things happen. After things happen comes our response. How do we respond? Ultimately the good comes out of us. Look at the outpouring of support from our entire country in the aftermath of Boston. Rick Warren is starting a ministry based on mental illness as a result of his son’s death. We will see much more good come out of the Boston tragedy in the months to come.

Boston proves it. We are a world in need of a God and savior. We don’t know what tomorrow will bring. Life will hurt us and we need the support of our friends and family. What does it all mean? Why are we here? We think about this much more when events like Boston occur. I would suggest that you pick up a copy of Rick Warren’s book, “What On Earth Am I Here For?” Or better yet, there are small groups studying this book at CedarCreek Church.  It is great stuff and not to be missed. In the meantime let’s all band together and keep praying.

For more information about The Retirement Guys, tune in every Saturday at 1 p.m. on 1370 WSPD or visit www.retirementguysnetwork.com.  Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC.  NEXT Financial Group, Inc. does not provide tax or legal advice.  The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537. Call them at (419) 842-0550.

Tags: boston marathon, CedarCreek Church, Jeff Bauman, Jessica Downes, JP Norden, Krystle Campbell, Mark Clair, Martin Richard, Nolan Baker, Patrick Downes, Paul Norden, Rick Warren, Saddleback Church, The Retirement Guys

This entry was posted on Monday, April 29th, 2013 at 8:20 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

Don’t you just love it when you slip on your jacket, check the pockets and find $20? Who doesn’t, right? One of the favorite parts of our job at The Retirement Guys is to help people find money when it comes to their investments. Finding money for clients is a two-part process that involves looking at the money going out and looking at the money coming in. Once we get started, money can usually be found in a lot of different ways.

Here are just a few ways that you, too, can find money.

Money going out

1. Buy the right investments in the right accounts. Consider holding tax-favored investments in taxable accounts. Many times, we find investors who own fully taxable accounts have investments that are 100 percent taxable each year. Instead, if the investments were shifted to a tax-free municipal bond, tax-advantaged real estate investment trusts or energy investments versus fully taxable strategies, less would go to taxes and more could be kept by the investor.

2.  Get life insurance policies that leverage money and provide long-term care benefits. Health care costs can wipe out the average family and even those with millions of dollars shouldn’t pay dollar for dollar for health care costs. Instead, leverage your money with insurance.

3. Cut investment fees and expenses. Sometimes it takes some work to add up all of the fees and expenses that are both disclosed and undisclosed in investments. Yet, once the effort is put in, wasted fees and expenses can be eliminated.

4. Eliminate debt. We talk with people all of the time who have a mortgage, credit card or car loans that cost anywhere from 4 percent to 15 percent; yet, they also have large balances in accounts that are earning less than 1 percent. By paying off the debt, they get to keep more of their hard-earned money.

5. Max out Roth IRA contributions. Roth IRAs offer the opportunity to get 100 percent tax-free growth and income for life. Roth IRAs aren’t just for young kids; they are a great option to consider for investors of all ages.

Money coming in

6. Old annuities. Minimum guaranteed rates in many older fixed annuities are much higher than what the average investor could get in other current safe accounts. Be sure to review how surrender changes could apply if any money is added into older annuities before you invest.

7. Life insurance policies that focus on maximum cash value can be a great approach. Insurance policies not only offer guarantees but indexed universal life insurance policies allow the account owner a higher potential return than most other fixed investments. Consider policies that don’t lock up your money.

8. Save in a company retirement plan. According to Aon Hewitt, 46 percent of American workers age 20-29 who have access to a pre-tax 401(k) retirement plan do not participate in the plan. Not only is it a mistake to not save for retirement, but the employee could also be missing out on free money if the company offers a matching contribution.

9. Pay attention to yield. Most investors focus mainly on the performance of their account. Although performance is important, the average investor has little control over the performance of the stock market in the future. Instead, focus on what can be controlled by concentrating on which yield can be increased by the proper investment selection. More yield from dividends and interest means more annual income.

These ways to find money do not consider your particular situation or risk tolerance. They should be used as a starting point in getting a comprehensive review done prior to making any changes. What we often find is that the average person is able to find money in several ways. So check out these nine ways with your money. Then visit us at ToledoFreePress.com and share with us some other ideas on how you have been able to find money.

Insurance guarantees are based upon the claims-paying ability of the insurance company. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distributions must take place after 59 ½ or due to death, disability or first-time home purchase ($10,000 lifetime maximum). Depending upon state law, Roth IRA distributions may be subject to state taxes.

For more information about The Retirement Guys, tune in every Saturday at 1 p.m. on 1370 WSPD or visit www.retirementguysnetwork.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC. NEXT Financial Group, Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537. (419) 842-0550

Tags: Mark Clair, Nolan Baker, The Retirement Guys

This entry was posted on Thursday, February 28th, 2013 at 6:43 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

Retirement can be an exciting point in life. A retiree can stay up late watching TV and turn the alarm clock off and sleep in. The retiree can look forward to fun vacations and travel when it gets cold here in Northwest Ohio. At the same time, retirement can be scary for some people because it is an area of the unknown. The biggest unknown for most retirees is wondering if they have enough money to last the rest of their lifetime. Trying to figure it out can be confusing — but it doesn’t have to be! We suggest breaking your retirement income planning into three comprehensive parts.

The first part is to review income and expenses by creating a budget.

Setting a budget may not be much fun, but figuring out how much income you will have in retirement and what the monthly expenses are is information every retiree must know. Take the total expenses and subtract your fixed retirement income. Fixed retirement income is typically made of up pensions and social security. If there is a gap between income and expenses it is often covered by investment income or expenses will have to be cut. For investment income, use a 4 percent or 5 percent rate of return for income planning purposes. If you need an outline to create a budget, just do an Internet search for “personal budget worksheet” and several results show up at no cost.

When reviewing a budget, retirees should also look for ways to lower expenses. Look at the big expenses first. For example, if a retiree is paying $1,000 a month for a mortgage that has only $25,000 left on principal, it may make sense to just take part of the investment savings and pay off the mortgage to free up the monthly $1,000 payment. The same can be true if the person has several high-interest credit cards. Sometimes it’s best to just eliminate this debt to free up cash flow. A common theme we have seen with many retirees that are comfortable in retirement is the fact that they are debt-free. Once the big expenses are reviewed, try and reduce the little ones as well. That old gym membership that never gets used, the cell phone, TV and Internet plan, they all add up.

The next part is to build future pay raises into your retirement income plan.

The cost of living is going to go up and the increases in social security and pension benefits may not keep pace with inflation. One way to do this is to create a specific purpose for each of the investment accounts and set aside money in different buckets that mature at different time frames. Often this is referred to as laddering out the portfolio. Consider creating buckets of money that are to be used in three- to five-year time frames: One bucket of money for current income, one bucket of money that will be used in three to five years, another bucket of money that will be used in six to 10 years, etc. Using this approach can help the retiree with picking different investments for each bucket. It also allows the retiree to set aside more money for peak spending years when income needs could be higher than later in life when people tend to slow down.

The final part in retirement income planning is to look at how much income the surviving spouse will have if the other spouse passes away.

The planning starts by picking the correct pension option and having a plan in place to cover any shortfalls, such as a loss of one Social Security income. One solution to cover any additional income needs is to purchase the correct amount of life insurance. Life insurance can be a great option because the owner can change beneficiaries in the future, say to children, or cancel the insurance in the future if there is no longer a need. Another option to consider is annuity income guarantees. Options vary from company to company and from different products, such as fixed, indexed or variable.

Don’t let retirement income planning overwhelm you. Follow the above three steps and you’ll be on your way to building a solid retirement plan.

For more information about The Retirement Guys, tune in every Saturday at 1 p.m. on 1370 WSPD or visit www.retirementguysnetwork.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC. NEXT Financial Group, Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.

Tags: Mark Clair, Nolan Baker, Retirement, Retirement Guys

This entry was posted on Friday, November 2nd, 2012 at 5:06 pm and is filed under Opinion, Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

So, what does it look like? Walking on the beach at sunset with a cool breeze blowing through your hair? Is it drinking coffee, reading books and sitting in the easy chair? Not having a care in the world other than what’s for lunch? I am sure this sounds good to some, but possibly boring to others.

As The Retirement Guys always say, time is short. Time is flying by and we are speeding toward the latter part of our lives. As we realize this is happening, we get more and more concerned about what it will look like. The first thing that needs to happen in our minds is making sure we have a sense of security financially. We ask folks on a regular basis when they come into our office, “What is your biggest concern?” Nine times out of ten the answer is “having enough.” “Not outliving my money.”

This is where The Retirement Guys have found our niche: Helping people get things in order for retirement. Giving them ideas on how they can increase the likelihood that they will have a happy and relaxing retirement. We talk all the time about how many times it takes a “mind shift.” A change of thinking may be required if you are used to doing things a certain way. If you are used to investing your money a certain way, if you have certain spending habits, if you are used to a certain amount of income, etc. If you are approaching or are in retirement it may now be time to examine how to not only change your thinking, but to change how you go about things.

There are different analyses to be done and different steps to take to move toward having this financial security in retirement. If you take these steps it can lead to the peace of mind folks are looking for for that relaxing retirement. But, wait. Perhaps you do not want to “relax” in retirement. Perhaps there are many things you want to go do. It is a great big world out there, and we are of the opinion that you ought to go see and experience it.

It seems we all go through certain stages in life. As a child, we can’t wait to grow up. We have thoughts about how good it will be when we graduate from high school, get our first big career job, get married, have children, etc. We then go through the phase of establishing ourselves with our families and careers. Our main concerns are finding a career in which we can be happy, productive and make enough money to support our families and live a nice life. Then eventually comes the midlife crisis. Life is now passing us by and we want to experience things before it is too late. For me (Mark) it was learning how to ride a motorcycle, playing electric guitar and seeing more of the world. For some it can mean making drastic decisions with what they are doing with their lives. These decisions don’t always end up being good ones.

After the midlife crisis is over, many of us then start to ask ourselves, “Why are we here?” “What is the meaning of life?” “What is really important?” If we have established some sense of financial security, and our children are on their way to establishing their lives, we start wondering what is the best way to spend what time we have left. I have wondered the same thing and feel that even though I am in the “second half” of life, I still have a lot to offer and a lot to do. I have a little while to retirement yet, but as time continues to fly by, I have begun to wonder how best to spend my time on things that are significant. Regardless of whether you are retired, many of us want to be engaged in something that we feel strongly about so that we remain productive citizens. Our sense of self can come from our productivity. We talk a lot in our public workshops about what inspires us to action. Faith, family and our work keep us motivated to get up each morning and get back at it. Recently, I read a book by Bob Buford called “Halftime.” The author had successfully established himself in his career and began a quest to go from success to significance. He wanted to spend way more time on what he considered significant, which in his case turned out to be his faith in God and the idea of helping and serving others. His book has been widely read and has given many people direction on how to figure it out.

How about you? Have you figured it out yet? If not, maybe you should start to think about it. Time short, so get moving. As always, The Retirement Guys wish you the best.

For more information about The Retirement Guys, tune in at 1 p.m. Saturdays on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINR/SIPC. NEXT Financial Group Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Dr., Suite 100, Maumee OH, 43537. (419) 842-0550.

Tags: Mark Clair, Nolan Baker, retirement questions, The Retirement Guys, Toledo Business Link

This entry was posted on Sunday, August 26th, 2012 at 12:00 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

It was late 1979 and I (Mark) was 18 years old and heading off to Michigan State University for the beginning of my college adventure. I was excited about leaving home and venturing out on my own and was looking forward to what college life might bring, but my situation was somewhat complicated by the lack of mobility. I did not own an automobile and I was on crutches as the result of having knee surgery because being injured playing high school basketball. Not only would I have to navigate the MSU transportation system to get from one side of the campus to the other for classes, I would also have to “crutch it” on some of the long distances from the bus stop to the classroom. I can recall being so tired at the end of the day that when I arrived back at my dormitory room I would just collapse on my bed in exhaustion. My knee injury was so severe that my doctor referred to me as “the guy with a knee of a 50-year-old.”

I eventually shed the crutches, but this did not solve my other transportation problem. I had no wheels. Fortunately, once you were on campus there was not a great need to have a car, but I am sure you all remember at that age that having your own transportation was important. My dad, who in some ways was quiet like me, never really communicated certain types of things, so when he showed up one day at college with a car, I was completely floored. Not only was it a car, it was what would be considered today a “classic” car. It was so cool it seemed “classic” then, but I don’t really know how a 1969 Camaro could be considered “classic” 10 years later. Maybe I felt that way because at age 18, 10 years was a long time.

The Camaro was blue with a white vinyl top, white mag wheels and a white racing stripe on each side. It had a 450 4-barrel engine that gave it a lot of power when you hit the accelerator. Being from Detroit, I had grown up listening to the rock and roll radio station WRIF and the famous DJ Arthur Penhallow (better know as “Arthur P”). He had this thing of saying “baaaaaaaaaabbbyyyyyyyy!!!!!” WRIF came out with bumper stickers that said “Baby!,” so I had one affixed to my back bumper. I was cool, or at least thought I was.

I had a lot of fun at Michigan State, but after a year there realized I was having a little too much fun. I wasn’t getting done what I went there to do (like classwork, studying, etc.), so I reluctantly made the decision to transfer to a small Christian college in Springfield, Mo. I thought this would get me into a better environment so I could concentrate more on my studies. It was the best move I ever made, because there I met my then-future wife Lisa. On our first date we were driving down the main drag in Springfield on our way to a movie, when we stopped at a traffic light. My Camaro would sound like a boat when it came to a stop, “blubblubblubblubblubblub.” Lisa turns to me and says “boy, that car next to us sure sounds bad.” I about died laughing. It was my Camaro that was making that sound and here we are on our first date and this is what she says! A precious moment that will never be forgotten.

The Retirement Guys have been talking about how “things ain’t like they used to be” and how “the old plus the new” can equal a better retirement. It may not be the same as the past when you could rely on working for one company your entire career and retiring with a nice pension and Social Security. Therefore it is critical that we be as self-reliant as possible. We can do this by drawing on lessons we have learned from the past like working hard, being persistent, making sacrifices, persevering and combine those qualities we learned from our parents and grandparents with the new technology that is available today. Cars aren’t as cool as they were in the 1940s, ’50s, ’60s and ’70s, but because of advances they sure are a lot safer and more fuel-efficient. If you think back, seat belts were not even standard equipment on a new car. The same goes for the world of investing and financial and estate planning. There is new technology and new tools available that you may not be aware of. Make it a point to find out what they are.

As for my precious Camaro, it eventually rusted out and I had to sell it for $900. It grieves me to this day that I did not even think to take a picture of it. All I have left are the memories.

For more information about The Retirement Guys, tune in at 1 p.m. Saturdays on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINR/SIPC. NEXT Financial Group Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Dr., Suite 100, Maumee OH, 43537. (419) 842-0550.

Tags: 1969 Camaro, Mark Clair, Nolan Baker, technology and tools, The Retirement Guys

This entry was posted on Friday, August 3rd, 2012 at 8:00 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

The Retirement Guys have been talking on the radio for years (13 years now — wow, how time flies) about taking a comprehensive approach with your retirement planning. As we say on the introduction of our show, which airs every Saturday at 1:00 on AM1370, “helping you manage your money, preserve your hard-earned assets and efficiently planning your estate.” If you are like me (Mark), you like a system you can follow. A checklist of recommended things to do that will lead you to have a better chance of reaching your goals. Kind of like 1+1=2. Do this, then do this, then do this, and if you do, it will lead to success.

Speaking of 1+1=2, we have been talking a lot about a “formula” for success. In my mind, this formula comes in two parts. Thought (or theory), and action steps. First, let’s examine the theory. It seems that accomplishments originate with thought. If we want to have a happy and successful retirement, we will be thinking about what steps we should take. I read an old book written decades ago called “The Success System That Never Fails” by W. Clement Stone. I enjoy old books because I feel that in many cases the message, although expressed a long time in the past, can be just as valid today. The book was Stone’s rags-to-riches life story in which he shares the principles of what made him very successful. He broke it down into three elements: Inspiration, Knowledge and Action. If you are not inspired, you will probably not acquire knowledge to be successful nor take any action. Think about what inspires you. My guess it is the same things that inspire The Retirement Guys — faith, family, life’s work, etc. Once you know what inspires you, it helps you to gain knowledge through experience. Nolan and I have gained a lot of knowledge throughout our careers that our clients can tap into. All the inspiration and knowledge in the world becomes meaningless without action. The key is doing something. Even if it is in little steps. Begin to move forward in the process.

Now that we have talked about the theory, let’s break it down a little further. Remember the 1+1=2? The “do this, then do this, then do this”? In order to make it easy to understand and better help our clients see the big picture, we have broken the retirement planning process down to three steps. Again, as we say on the radio, “manage your money, preserve your hard-earned assets and efficiently plan your estate.”  We have created a Retirement Guys’ “Road Map for Success” that illustrates the three main areas of planning and what issues should be considered. The three main areas of action are

1. Investment planning
2. Asset preservation
3. Estate legacy planning.

These three areas typically overlap and can have an effect on each other depending on what steps are taken. In the area of investment planning we consider things like how should your money be invested, what are your risk tolerances, when will you need income, diversification of strategies, tax planning ideas such as Roth IRA conversion analysis, your current age, liquidity, and many more. Asset preservation considers the idea of even if we do a great job with investment planning, how might a health care crisis severely damage your assets? These first two areas are more of the “what’s in it for you,” which translates into benefits for your loved ones if you do not end up needing to use all of your assets. This leads us to consider area number three. Where do you want all of your assets to go when you are gone? Estate legacy planning will consider issues like probate avoidance, plan of distribution, income tax liability for heirs, health care directives, etc.

So, there you have the 1+1=2 ( I guess it is really 1+1+1=3 since there are three parts, but you get my drift). As we say on the radio, “helping you manage your money, preserve your hard-earned assets and efficiently planning your estate.” If you would like a free copy of The Retirement Guys “Road Map for Success,” go to www.retirementguysnetwork.com and request a copy. It is pretty simple, but it will get you thinking. 1+1+1=3.

For more information about The Retirement Guys, tune in at 1 p.m. Saturdays on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINR/SIPC. NEXT Financial Group Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Dr., Suite 100, Maumee OH, 43537. (419) 842-0550

Tags: asset preservation, estate legacy planning, investment planning, Mark Clair, Nolan Baker, The Retirement Guys

This entry was posted on Friday, July 13th, 2012 at 12:00 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

Mark and I have talked over the years about the importance of making a pension choice right the first time. In almost every pension, a retiree only gets to make the choice once. Once the choice is made it is final, no changes can be made. Yet, right now for nearly 42,000 GM retirees they are getting a chance to make a second choice, a pension “do over” if you will. GM retirees in the GM Salaried Retirement Program only have till July 20 to take advantage of this offer. So here is what those retirees and in fact anyone who may be eligible for a pension should know.

There is no one right choice for all retirees when it comes to picking a pension option. Everyone wants to give a retiree advice and I’m sure in most cases everyone is trying to help. Yet, it doesn’t matter what your poker buddies think, what you heard on TV that ALL retirees should do, what your brother in law who used to be an accountant said, or what the old boss thinks is best. You need to run your own numbers before a decision is made. So our first piece of advice is to slow down and get educated on what makes the most sense for you and your family after the numbers are run by an unbiased professional who specializes in retirement distribution planning.

Here are the basics on what needs to be considered on choosing a pension option:

1. What is the age of the retiree? Assuming the retiree elects a lump sum rollover, different IRA rules apply to those younger than 59½ and those older than 70½.
2. Are there other sources of income the family has and what are the monthly income needs, now and in the future? The lump sum pension gives the account owner a lot of flexibility to payments. But watch out: Spend too fast and the lump sum could run out.
3. Are there other investment assets? In some cases it may be better to pull money from other accounts first and let the tax-deferred account continue to grow.
4. How much income should be protected for a surviving spouse? Don’t forget about other potential losses of income like one of the Social Security incomes.
5. What is the health of the retiree and his/her spouse? It is also important to take steps to protect the lump sum pension for a health care crisis.
6. What are the family’s wishes to leave assets to children or others beyond the spouse? Most traditional pensions focus primarily on the retiree, with survivorship options, but can leave other wishes out.
7. Does the retiree want more control over their retirement funds? If a monthly payout is selected, usually access to the lump sum is gone forever.
8. What is the risk tolerance? The stock market can be risky and most fixed investment rates are at decade-level lows, so finding the right mix can be tricky if investing isn’t an area you are familiar with.
9. What is the expected return on money? We recommend that conservative numbers be run, 3 percent to 6 percent.
10. Who should manage the lump sum pension? To avoid a potential 20 percent tax trap you will need to rollover the money and open an IRA with a custodian. Then you will decide what to buy or hire an investment professional to help out.

Once a retiree takes a look at these top 10 pension questions, then the math can be run and a plan can be created to figure out if a lump sum pension or a monthly payout is the best choice. Making a pension decision is an extremely important choice in securing a long and happy retirement and often the choice isn’t as easy as it may seem. Take some time to get educated about how the various choices apply to your own family’s situation. It never hurts to get a second opinion. Don’t assume what everyone else is doing is right for you.

For more information about The Retirement Guys, tune in at 1 p.m. Saturdays on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINR/SIPC. NEXT Financial Group Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Dr., Suite 100, Maumee OH, 43537. (419) 842-0550

Tags: GM Salaried Retirement Program, Mark Clair, Nolan Baker, pension choices, Retirement Guys, retirement planning

This entry was posted on Saturday, June 30th, 2012 at 8:00 am and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

Spring is here and before we know it we will be in the middle of summer. I (Mark) have been enjoying our weather here lately since the perfect day for me is sunny and in the mid-70s. It has been beautiful and I have been taking advantage of it by riding my motorcycle to work to enjoy the nice breeze.

Hopefully, as you read this column things are going well for you and you are enjoying life. Spring typically brings a feeling of fresh new hope. The grass turns green, the flowers bloom, the sun comes out and it is time to enjoy a new day, a new season. Myself being a baseball fan and a dyed-in-the-wool Detroit Tigers fan, I enjoy taking a few days off here and there and going to a ballgame to enjoy the sights, sounds and smells at the ballpark. Unfortunately, my Tigers have so far been disappointing. The acquisition of slugger Prince Fielder got everyone all excited about the possibility of winning it all this year. So far Prince and almost everyone else are not hitting the ball too well. The good thing is that it is a long season and things can change quickly. Many times as the weather heats up, so do the batters. Only time will tell.

As summer approaches I hope that you have some fun things planned to do this summer. Go to some ballgames, go sit on the boat at the lake, go on a cruise or some other vacation to an exciting place you have never been. Lisa and I recently had the opportunity to go on a cruise to the Bahamas to celebrate her birthday. While on the cruise she was reading a book that when she was done she had enjoyed it so much that she bugged me to death about reading it. I finally gave in and picked it up and could not put it down. To that end, if you go on vacation, it is always nice to have a good book to read. Here is a brief list of a few books that Nolan and I would highly recommend that you check out:

“Same Kind of Different as Me” (the book Lisa was reading) by Ron Hall and Denver Moore. This is a true story about a man who grew up in virtual slavery picking cotton in the South, an international art dealer, and the inspirational woman who bound the two together. Great, captivating story that is a very easy read. I would highly recommend this book while you are on vacation and so would Lisa.

“The Success System That Never Fails” by W. Clement Stone. If you like motivational reading, this is the rags-to-riches life story of a man who started out peddling newspapers on the street corner to becoming a very successful businessman and author. The Retirement Guys have taken concepts from this book and applied it to our own business. The book shares the formula for success.

“The Lucky One” by Nicholas Sparks. OK, I have to say I (Mark) typically do not read romance novels (kind of like a guy watching a “chick-flick,” which you probably only do because your wife or girlfriend makes you), but Dana Nehren here in our office highly recommends it, says it is an easy read and it is in theaters as a movie (Dana says the book is much better). Check it out.

“Heaven Is for Real” by Todd Burpo. A little boy’s astounding trip to heaven and back. Ron Hall, who co-wrote “Same Kind of Different as Me” recommends it.

“The Grapes of Wrath” by John Steinbeck. The story of the Joads, who were forced off their land in the Great Depression and their journey to California in the hope of finding a new life. Deals with the issues of equality and injustice in American society. Was first published in 1939 and is considered an American classic. I love anything by John Steinbeck and I would also highly recommend the old black-and-white movie starring Henry Fonda.

Be sure to enjoy the rest of the spring and summer and we hope to see you soon at one of our educational workshops. As always, when you think retirement, think The Retirement Guys.

For more information about The Retirement Guys, tune in at 1 p.m. Saturdays on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINR/SIPC. NEXT Financial Group Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Dr., Suite 100, Maumee OH, 43537. (419) 842-0550.

Tags: Mark Clair, Nolan Baker, summer reading, The Retirement Guys

This entry was posted on Saturday, May 26th, 2012 at 4:08 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

If you’re approaching retirement, or already in the retirement phase of life, time is flying by. Time is going by quick so let’s get to the getting. What are you waiting for? Tomorrow? None of us are guaranteed tomorrow and we all know in the back of our minds that anything could happen. The problem is many of us do not face reality. We all think things will continue on as they are and nothing will change, nothing bad will happen when we all really know that is not true. Should you live in fear? No! But while things are going okay, take advantage of it.

What have you been dreaming about doing all of your life? Seeing the world? Go see it! We are not saying to be foolish and blow all of your money. At the same time, you can’t take it with you. If you have worked hard for many years, raised a family, sacrificed, scrimped, saved, put your kids through college, etc., it is now your time. Time to enjoy the fruits of your labor. Time to see the world if you want to.

As The Retirement Guys, we talk with folks all the time who have similar concerns. The concern of having enough money to live out the rest of their lives and do it in an enjoyable way. Here are two important things to do to accomplish this. 1. Meet with a financial professional and get a handle on your financial situation. Understand it to the point that you know what your income needs are to not only live and pay the bills, but to also do some of the things you have always wanted to do. Analyze what your sources of income are and what you can reasonably expect as an income stream if you are taking money from your retirement savings. 2. Get out there and live life. Do not wait. If you wait it may never happen.

I (Mark) wrote recently about living five years of my childhood in the country of Korea. What an experience! Here are a few of the things I remember. Great food! I have never been a picky eater and loved the Korean food. I did however draw the line at squid and other unidentifiable things I used to see when we visited the Korean market. Things like Kim chi, bulgogi and kimbab were like delicacies. If you like spicy food and are adventurous you don’t have to go to Korea to experience it. Go visit Mr. Kim at Koreana right here in Toledo on Reynolds Road. He will take good care of you. Tell him The Retirement Guys sent you. If you like sushi be sure to order the kimbab. Excellent stuff, but I digress.

I also remember many differences in the culture. Some of the things I remember are pretty trivial, but somehow have stuck in my mind. Things like motioning to someone to come here is like we wave our hands goodbye. I can remember my mom, waving goodbye to a lady and every time she did the lady came back. We could not figure it out. Things like, if something was “number 1,” it was good. If something was “number 10,” it was bad. The custom of removing your shoes at the door, and back to the food for a moment, it was not rude to belch after a meal. This was a compliment to the person who prepared the meal.

This past year I got to do a lot of traveling and experienced a lot of fun, cool things. So many, that I had to sit down and make a list. I am extremely grateful for the year I had and realize that it will not be like that every year. Even so, in my appreciation for what I was able to experience, I have realized that time is short and it is time to just go do it. I hope to return to Korea some day to see how things have changed over the 35 plus years it has been since I was there. Think about what you want to do, where you want to go. If you can, go see the world.

For more information about The Retirement Guys, tune in at 1 p.m. Saturdays on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINR/SIPC. NEXT Financial Group Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Dr., Suite 100, Maumee OH, 43537. (419) 842-0550.

Tags: financial planning, Mark Clair, Nolan Baker, Retirement Guys, Travel

This entry was posted on Friday, April 13th, 2012 at 8:45 am and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.

Every year I, Nolan, take everything out of my garage and do a good spring cleaning. It is amazing how much junk builds up in the garage every winter. I donate unwanted items and generally anything I haven’t used in the last two years. I move the winter items back to the storage room in the basement and bring up the spring and summer items. I put together a list of items I’m running low or out of and run over to the local hardware store so I’m prepared for the year ahead. Getting started always seems like a daunting task, but when the job is done, what a rewarding feeling it is to look at my improvements. Financial spring cleaning should also be done once a year. Use these four tips to get started this year.

Rebalance investments annually.

Some investors constantly make changes to their accounts, while other investors seem to never make a move. Changing too often can lead an investor into chasing results and paying more in added fees and expenses. At the same time, taking a “set it and forget it” approach, can cause an investor to end up with an account that gets unbalanced that could increase risks and decrease long-term performance. A good rule of thumb is to, once a year, review all of the investments and look at the asset allocation and rebalance the accounts. This can help reinforce the long-term strategy of buying low and selling high and help maintain diversification. Ask a financial professional for a review or use online tools from sites like www.morningstar.com for an investment analysis.

Check into new or expiring law changes.

As it stands now, the Bush Era tax cuts are set to expire at the end of this year. It is our opinion that tax rates will go up in the future. Thus, for many of the people we talk with right now, we are discussing Roth IRA strategies. One strategy involves making contributions into Roth IRAs. Income limitation could come back into effect next year, making this a great year for high-income earners to look at this option. Other times, a Roth conversion strategy can make sense for current retirement accounts. The main advantage for an investor is they can pay taxes now versus later, which could be at a higher rate on what could be a higher balance. This strategy gets even more attractive for investors who can pay the taxes from a source other than the retirement account. For the investor who feels their family’s tax rates will be higher in the future than they are going to be this year, these ideas should be discussed with a financial professional and an accountant.

Dust off old policies.

Old life insurance policies can be another great area to review. More competition and longer life expectancies have driven down the cost of insurance at most insurance companies. Doing an insurance policy review can be an eye opening experience on how offers vary from one company to the other. Last week, for example, when we compared the offer for a client from two different insurance companies for the same cost, one company offered 50 percent more death benefit. Sometimes, older policies can be exchanged for a new “paid up” policy, eliminating future premium payments for a policy owner. Other times, newer policies can offer additional benefits. One common theme we have been seeing lately is insurance companies offering “chronic illness” as a new rider. This can be a way for someone to get a form of long-term care insurance without paying for traditional long-term care insurance. Usually an insurance comparison can be done for little to no cost to a policy owner.

Update documents.

New grandchildren, a loss of a loved one, a marriage, you name it, life changes occur all of the time. As life changes occur, not only is it important to make sure your legal documents, like wills and trusts, are up to date, it is important as well to make sure beneficiary designations get updated. Many families assume that their will or trust will cover all their assets; this is not always the case. Accounts such as retirement plans, life insurance policies and annuities should contain named beneficiaries. If these accounts do not get updated as life changes occur, an account owner’s assets may not be paid out the way the owner thought. Ask the company who holds your accounts to send you a copy in writing of who the current named beneficiary is. Update any changes that need to be made and make sure the changes have been acknowledged in writing.

For more information about The Retirement Guys, tune in at 1 p.m. Saturday on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., member FINRA/SIPC. NEXT Financial Group, Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537. (419) 842-0550

Diversification does not eliminate the risk of market losses.

Tags: financial spring cleaning, Mark Clair, Nolan Baker, portfolio assessment, The Retirement Guys

This entry was posted on Friday, April 6th, 2012 at 3:00 pm and is filed under Retirement Guys, Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.