The State of Retirement

By | 2020, Money Moxie | No Comments

When asked, “When are they going to retire?” Most people reply with a specific age or date, something they have pinpointed and are looking forward to with anticipation. Unfortunately, only 53 percent of retirees leave the workforce based on their planned time-frame. Forty-seven percent are unexpectedly forced into retirement at an early age. This staggering number supports the importance of having a retirement plan that prepares you for all outcomes, those you anticipate, and those you don’t.

In a Federal Reserve study of non-retirees, 40 percent responded they feel their retirement savings are on track.

Sadly, 25 percent responded that they have not prepared for retirement and have no retirement savings. This can be due to many factors. They may work for a company that does not provide employees with retirement savings options such as a 401(k). Often they feel like they should do something but are overwhelmed and do not know how to start or where to turn for advice. If you are in this situation, please reach out to us for assistance.

The number of DIY investors with self-directed accounts changes as they reach their retirement years. This could be for a number of reasons. One is the complexity of turning a lifelong savings plan into an income-producing plan. Like climbing a mountain, the greatest risk comes on the way down. The same is true with retirement savings. Many fear taking on the wrong type of risk and jeopardizing their future income.

Source for all data: Federal Reserve Bank of St. Louis

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Your Future Is Here. Now What?

By | 2017, Money Moxie, Newsletter | No Comments

You’ve worked hard for your future and now it is here. Thirty-six holes, a fishing trip, and a dip in the hot springs–and it’s only Thursday. Now what?

Maybe you have always dreamed of working with 4H or the Boys and Girls Club of America. Perhaps you’ve realized that you need a little bit more income in retirement for the lifestyle you want; or you retired early and want health insurance until Medicare kicks in.

If any of these situations sounds familiar, it might be worth considering an encore career. Some encore careers are part-time roles in similar industries, while others involve finding a new role.

Luckily, there are several resources available for those considering an encore career. The AARP website (www.aarp.org) has a section on encore careers while organizations like encore.org (www.encore.org) aim to create a movement to give back to communities.

There is also another resource that you may be overlooking: SFS. Hopefully, a successful career and your relationship with us has put you on the path to financial freedom.

We can help you develop an income distribution plan using your current assets to subsidize your new, probably reduced income, and to ensure your monthly income is sustainable.

In addition to helping with the transition, we can help you throughout your encore career. We will continue to monitor your financial health and manage income distribution while also providing advice on things like health insurance, Medicare, and Social Security strategies.

Discuss the options for an encore career with us. It can be a great way to continue being involved in your community and it can help with your financial freedom.

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Financial Four-Letter Words

By | 2015, Newsletter | No Comments

There are some four-letter words that cause parents and financial advisors to cringe. Unfortunately, you may have been exposed to these words and had to cover your ears so you did not have to hear the profane language.

At the risk of damaging your sensitive ears or eyes, I will share with you some sentences and/or scenarios where those words might be used and how you can combat them with positive four-letter words.

Picture this: A young couple just moved into a brand new home in your neighborhood that seems to put all of the other homes to shame. Not only that, but there is a new boat parked behind a new truck on the RV pad. You wonder how in the world these young people can afford to live like this. This four-letter word is called “debt” and often goes along with “shop.” The truth is that many of these people can’t afford to live like that for long.


Many in the young generation believe they can have everything now and they don’t have to work for years to accumulate wealth like their parents did. Unfortunately, there are many established adults that have fallen into the same debt trap. As they near retirement, they still have a large mortgage, car payments, and worst of all, credit card debt.

To combat this, we need to introduce two positive four-letter words, “work” and “save.” Many young people believe that “work” is a bad four-letter word, but they are wrong. As Colin Powell said, “A dream doesn’t become reality through magic; it takes sweat, determination, and hard work.”1 Both young and established can learn to “save” rather than spend. It isn’t always easy to set money aside, especially when others around you may seem to have so much. Just remember that you should “live like no one else, so later you can live like no one else.”2

A four-letter word often muttered in frustration by parents is “kids!” This word often makes financial planners frustrated as well, especially when parents put their own retirement at risk in order to help “kids” out.

In the early years, parents may fail to put contributions into their retirement plans because they are taking care of their “kids.” In later years, parents may take out too much money from their savings to help their “kids” out.

To save parents from their kids, the parents must create a “plan” and learn to stick to it. In the early years, stay dedicated to saving your money in your “401k” or “Roth” IRA. Use the opportunity to teach your kids about saving and planning.

In the later years, learn to “give” responsibly. Allowing your kids to struggle can be highly beneficial. You don’t need to help them out of every tight jam or it might teach them learned helplessness.3

One big four-letter word that people seem to ignore during good times is “risk.” Most people want to get a good return, but “only when the tide goes out do you discover who’s been swimming naked.”4 We have seen too many people get caught by a “scam” and “lose” their shirt because they ignored the warning signs.

Be sure to take a balanced approach with your investments based on a solid “plan.” Some of your investments can be on the riskier side, but you should always have some money with less “risk.”
Now, wash your mouth out with soap and stop saying the bad four-letter words. To feel financially prepared, focus on the good four-letter words: work, save, 401k, Roth, give, and plan.

  1. http://inspirationfeed.com/inspiration/quotes-inspiration/100-inspirational-quotes-about-hard-work
  2. http://www.debtfreeadventure.com/live-like-no-one-else
  3. http://www.empoweringparents.com/Learned-Helplessness-Are-You-Doing-Too-Much-for-Your-Child.php
  4. http://www.brainyquote.com/quotes/quotes/w/warrenbuff383933.html
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5 Costly Scams Targeting Retirees

By | 2015, Newsletter | No Comments

Con artists are using many schemes to prey on retirees. Don’t let your family members become victims of these prevalent scams.

  1. Since October 2013, the Internal Revenue Service (IRS) has reported over 290,000 scam calls. In these calls, the scammers claim to be from the IRS, declaring that the taxpayer owes money. The scammers threaten legal action and even arrest.
  2. Scammers will also call seniors pretending to be their grandchildren in need of money. They start the conversation like this: “Hi, Grandma. Do you know who this is?” Once they guess the name, the caller takes on that identity and asks for money.
  3. Beware of unknown, online pharmacies. With the cost of prescription drugs on the rise, some seniors go online looking to save money on prescription drugs and homeopathic remedies. Some fraudulent online pharmacies will take the money without ever mailing the drugs.
  4. Another scam has con artists reading obituaries in the local paper and calling the family of the deceased claiming that there are unpaid debts owed.
  5. A few unscrupulous funeral homes have also targeted retirees by encouraging them to purchase ridiculously expensive caskets. These same places also add unnecessary charges that are unfamiliar to the senior and more often unnecessary. The best defense is to go with a family member or friend to help look over everything at that vulnerable time of life.

These are just a few of the scams and they can affect everyone, not just retirees.

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