What do you do with big money?

Getting rich quick can be liberating, but it can also be frustrating. Sudden wealth can help you address retirement saving or college funding anxieties, and it may also allow you to live and work on your terms. On the other hand, you’ll pay more taxes, attract more attention, and maybe even contend with jealousy or envy. You may also deal with grief or stress, as a lump sum may be linked to a death, a divorce, or a pension payout decision.

Why are they made again and again?

Much is out there about the classic financial mistakes that plague start-ups, family businesses, corporations, and charities. Aside from these blunders, some classic financial missteps plague retirees.   

Calling them “mistakes” may be a bit harsh, as not all of them represent errors in judgment. Yet whether they result from ignorance or fate, we need to be aware of them as we plan for and enter retirement.        

Leaving work too early. As Social Security benefits rise about 8% for every year you delay receiving them, waiting a few years to apply for benefits can position you for higher retirement income. Filing for your monthly benefits before you reach Social Security’s Full Retirement Age (FRA) can mean comparatively smaller monthly payments. Meanwhile, if you can delay claiming Social Security, that positions you for more significant monthly benefits.¹       

Here is what you need to know.

Financially, many of us associate April with taxes – but we should also associate April with important IRA deadlines.

Some things to consider.

During your accumulation years, you may have categorized your risk as “conservative,” “moderate,” or “aggressive,” and that guided how your portfolio was built. Maybe you concerned yourself with finding the “best-performing funds,” even though you knew past performance does not guarantee future results.

What occurs with many retirees is a change in mindset – it’s less about finding the “best-performing fund” and more about consistent performance. It may be less about a risk continuum – that stretches from conservative to aggressive – and more about balancing the objectives of maximizing your income and sustaining it for a lifetime.

How healthy a retirement do you think you will have? If you can stay activeas a seniorand curb or avoid certain habits, you could potentially reduceonetype of retirement expense.

Each year, Fidelity Investments presents an analysisof retiree health care costs. In 2019, Fidelity projected that the average 65-year-old couple would spend around $285,000 on health care during retirement, including about $11,000 in the first year. Both projections took Medicare benefits into account.^1,2

Things you can do for your future as the year unfolds.

What financial, business, or life priorities do you need to address for the coming year? Now is a good time to think about the investing, saving, or budgeting methods you could employ toward specific objectives, from building your retirement fund to managing your taxes. You have plenty of choices. Here are a few ideas to consider:

Welcome to our last piece in our annuity series! Today we’re going to get into some very applicable information: how Creekmur Wealth does annuities and why we use them. We recommend that you have the 201, 202, and 203 handouts handy while you read this in case you need a refresher on how each type of annuity works.

Welcome back to our series on annuities! You’ve now made it into the challenge section of our annuity series. In these final pieces, we will take a more subjective approach to annuities. Today, we are going to break down how annuities are typically advertised and what we believe is wrong about some of those marketing methods. We’ll take a look at general annuity marketing and then go through each type of annuity individually.

Today we will cover the last type of annuity: fixed index annuities. This type of annuity guarantees no loss of principal due to the market fluctuations and interest earned is linked to the performance of an external market index. Fixed index annuities first appeared in the 1990’s as an alternative to traditional fixed annuities.

Today we’ll be looking into variable annuities. Variable annuities first appeared in the 1950’s as a way to help combat spending power loss in fixed annuities. Today, they are still used—for the same reason! Let’s dive in!