Retirement Guys Network Learning Library

Get Financially Fit In A Hurry

By: The Retirement Guys

Nolan Baker, Investment Professional & Mark Clair, Estate Planning Attorney

The start of the New Year is gone and many are back focused on daily routines as the holiday parties have come to an end.  Many made New Year’s resolutions on things to personally improve on.  For some, like Mark, sticking to resolutions like healthy eating habits is now becoming a way a life.  For others, like me, I still can’t give up chicken wings every Tuesday and starting my diet plan is “in the works.”  One resolution to remember is getting and staying financial fit should be a top priority for 2010.

The problem with getting financial fit is it can seem like a major mountain to climb.  At times it can be easier to blame things on the economy.  We have had a decade lost in the stock market and fixed rates are still extremely low.  Then life continues to throw in other “what ifs.”  Unexpected medical bills and family needs are common things that can get people off track.  Last, it is common to just focus on getting through today and put the future on hold.  Before you know it, another month has gone by and still no major changes have been made and the problems could be compounding.

The quicker a person realizes that the only person responsible for their financial situation is themselves, the faster he or she can then work towards taking action and putting solutions in place.  The first step, in getting financially fit, is to focus on what is important to you.  The one reason why Mark has been so successful at following his healthy eating habits is simply the fact it is important to him and he knows the results of his actions and is committed to action.  While for me, I would like to diet and know it’s a good idea, but it’s not the most important thing to me right now.  The way to greatly increase the chances of being financially fit is to write down three specific financial concerns that are the most important to you.

The second step is to write down the positives and negatives of changes based upon the three items that are most important to you.  Try and be as specific as possible.  Describe how much each of these problems is costing.  What will the cost be over the next five years?  Include who else is affected by these problems.  Focus on the positive impacts that can be achieved as well.  Since this plan of action is based upon what is important to you, dream big dreams.  To keep the momentum moving in the right direction, create rewards along the way.

Follow through can be the hardest part for many people.  It is easy to write down the three most important financial items to work on.  Most can even detail specifically what each item is costing them and what the impact positive changes can make.  Now it is time to take action.  There are two ways to do this, first on your own and second in a “coaching” program.  Both plans should include specific dates next to each item on when you want to have them accomplished.  There has to be a deadline to measure results.

We also recommend that two numbers are written down along with the date, one the ideal goal and two is an acceptable goal.  Let me explain, too often people look at results as simply pass or fail.  If the goal is to lose 20 pounds in 3 months, and the person only loses 15 pounds is that still a great and acceptable result?  By writing ideal and acceptable goals it can provide encouragement along the way, allow a person to review if goals are realistic, and help prevent a person from giving up.  Financial fitness is an ongoing process working towards moving in the right direction.

Finding the right coaching program can be the other option to staying on track.  In many cases this involves working with a team to create an individual written plan of action and becoming educated and involved in the ongoing process.  Financial Fitness works the same as so many other successful programs out there today, like joining a life group for spiritual growth or hiring a trainer for physical fitness.  To get started, or to help you stay on track, head on over to our website at www.RetirementGuysRadio.com and sign up for a complimentary six week email training program by clicking on The Complete Retirement Toolkit.

Got a question for The Retirement Guys?  Send your emails to letters@ToledoFreePress.com or you can reach them by calling 419-842-0550. Securities are offered through NEXT Financial Group Inc., Member FINRA / SIPC.  The Retirement Guys are not an affiliate of NEXT Financial Group. Their office is located at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.

Securities and Investment Advisory Services are offered through NEXT Financial Group, Inc., Member FINRA/SIPC. Retirement Guys Network is not an affiliate of NEXT Financial Group, Inc. To view NEXT Financial Group's privacy policy and other important information, visit the "Customers" section of nextfinancial.com.

The Buck Stops Here

By: The Retirement Guys

Nolan Baker, Investment Professional & Mark Clair, Estate Planning Attorney

Recently, the Retirement Guys had an opportunity to attend a business conference in the city of San Diego.  It was sure nice to get a break from the cold weather we have been experiencing here in Toledo.  The temperatures were in the 70’s each day and although we were inside attending meetings much of the time we had the chance to enjoy some rays of sunshine.

At the conference we attended various business strategy sessions and came away with some great ideas on how to better serve our clients.  We even had one of our meeting sessions aboard the U.S.S. Midway.  This meeting raised money for a great charity called Special Ops Warrior Foundation.  The organization pays for the college education for children of special operations military soldiers that have died serving our country.  We had the opportunity to meet a young lady whose father died serving our country.  And guess what?  Her name is Melinda Petrignani originally from Toledo, graduating from Clay High School in 2004 (see photo). What are the chances of running into her in San Diego?  Her father, Private First Class Michael D. Rudess from Oregon, Ohio was killed in a training accident in 1986.  Shrapnel from a demolition exercise struck him near the heart.  He served in Company A in the 1^st Battalion 75^th Ranger Regiment and received the Army Commendation Medal.   Melinda was 8 months old when her father passed away and was his only child. Melinda attended DePaul University in Chicago, IL, and graduated in 2008 with a Bachelors of Business Administration.  She is currently living in Scottsdale, AZ and studying to take the GMAT so that she can continue education with study for an MBA.

The conference had several excellent speakers, among them David Walker who was the former Comptroller and Head of the Government Accountability Office, Scott McKain, an expert in customer service, and Andy Andrews, bestselling author of the book “The Traveling Gift.”

While we enjoyed all of the speakers at the conference, I (Mark) was especially struck by Mr. Andrews.  He had a way of talking that captivated the audience.  He spoke with a southern accent and was extremely funny in delivering his speech.  His book is a fiction book that illustrates the seven principles that are keys to success in life.  I have obtained a copy and am currently part way through it.  As the Retirement Guys we are constantly looking for ways to advise our clients on how best to achieve the relaxing and successful retirement that they deserve.  Of the seven principles, I am through the first four and feel that they can be used to help our clients and how our clients plan.  We always say on our radio show that we are all about information and the key is obtaining good information and applying it.

The first principle in The Traveling Gift is, “the buck stops here.”  In other words nobody is responsible for your life and your circumstances but you.  The sooner you accept this the sooner you can begin to plan to make your life better.  You won’t gain anything by sitting around complaining about bad things that have happened.  The second principle is “seek wise counsel.”  In other words, find a good source and get the information you can use to better your situation.  Our website is full of free information and a schedule of upcoming educational meetings.  Please feel free to take advantage of it.  The third principle in the book is, “be a person of action.”  This goes back to what was mentioned earlier about not only getting the information, but applying it.  The fourth principle is “make a decision.”  So many people get the information and do not make a decision on how to apply it.  This is like getting the football down to the one yard line and then quitting the game and failing to score a touchdown.

I don’t know what the fifth, sixth and seventh principles are yet, but if they are good ones, I will let you know.  Our friend Melinda has taken responsibility for her life even though she has experienced the tragedy of losing her father.  She is acquiring education to give her the necessary skills to help her make decisions that will lead to a good life.  No matter what stage you are in life, what are you doing to improve your life?  My 94 year old grandfather recently told me he is still learning and improving.  I was amazed and thought what he told me was wise counsel.  Seek wise counsel, make a decision and take action.  The buck stops with you.

Got a question for The Retirement Guys?  Send your emails to letters@ToledoFreePress.com or you can reach them by calling 419-842-0550. Securities are offered through NEXT Financial Group Inc., Member FINRA / SIPC.  The Retirement Guys are not an affiliate of NEXT Financial Group. Their office is located at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.

Securities and Investment Advisory Services are offered through NEXT Financial Group, Inc., Member FINRA/SIPC. Retirement Guys Network is not an affiliate of NEXT Financial Group, Inc. To view NEXT Financial Group's privacy policy and other important information, visit the "Customers" section of nextfinancial.com.

To Roth or Not To Roth,
That Is The Question

By: The Retirement Guys

Nolan Baker, Investment Professional & Mark Clair, Estate Planning Attorney

One very important tax law change to pay attention to this year is the rule changes that apply to Roth IRA’s.  This year the income limitation goes away so almost everyone can take advantage of the Roth IRA and for this year only if a conversion is done from a traditional IRA to a Roth IRA, an investor can pay the taxes over two years, instead of just one.  This tax planning opportunity could mean lower taxes in the future.

Let’s review the differences between a Roth IRA and a Traditional IRA.  Normally, when contributions are put into a retirement account like a traditional IRA or 401(k), the money is pre-tax and the money grows tax-deferred.  This in turn saves the person money in taxes today and in turn they will pay taxes in the future when a withdrawal is made, usually in retirement.  The Roth IRA contributions on the other hand are after-tax money and grow tax-free.  The Roth IRA account grows tax-free and all withdrawals including profits are not taxable under that current tax rules as long as the account has been opened at least 5 years and the investor is over the age 59 ½.

Will taxes be higher or lower in the future?  That is the first question to ask.  We think taxes will be higher.  For one, the government has spent so much money that taxes are likely to go up.  Currently, our tax rates are still one of the lowest in history.  Second, the old concept of retirement accounts was save money on taxes now while you are working.  Then in retirement you will have less income and be in a lower tax bracket.  For most of the people we meet with, retiring with a lower standard of living doesn’t really sound too good.  Instead, most investors want to be successful in investing and savings and have a retirement that allows them to enjoy the fruits of their labor.  The old concept just doesn’t make a lot of sense for many families and the Roth is a great concept to consider.  The Roth IRA usually benefits long-term successful investors who feel taxes will be higher in the future.

There are a lot of items that need to be reviewed before the conversion takes place.  Consider using unique planning strategies.  These options can offset a portion if not all of the taxes that would normally be due on the conversion.  Some investment companies offer bonuses for long-term investors.  If the account is going to stay open for ten years or longer, consider using a bonus annuity to pay the taxes or to jump start the tax-free account.  Before you invest with any company, do your homework because annuity guarantees are only as good as the issuing company.  Where the money is held at, known as the custodian is an important factor beyond product choices.  The other important factor involves how your account will transfer to your beneficiaries at death.  Make sure the custodian offers beneficiaries stretch out options.  This allows your family to take distributions over their lifetime instead of being forced to take a lump sum payment at death.  If the primary goal is to protect the spouse or to leave as much money to children or charities, a life insurance plan can be a better option.  I know, life insurance, yuck!  But, insurance can be a way to leverage dollars to get more benefits and still be a great part of a comprehensive investment plan.  If the primary attraction of a Roth IRA is the ability to have tax-free profits, then an investor should use products that limit losses.  There are several options here that are safe, but still offer the potential for good returns.  Our conclusion is before you sign the paperwork to convert your current account; you need to get educated and have a detailed analysis done first.

Got a question for The Retirement Guys?  Send your emails to letters@ToledoFreePress.com or you can reach them by calling 419-842-0550. Securities are offered through NEXT Financial Group Inc., Member FINRA / SIPC.  The Retirement Guys are not an affiliate of NEXT Financial Group. Their office is located at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.  NEXT Financial Group, Inc. nor its representatives provide tax advice.

Securities and Investment Advisory Services are offered through NEXT Financial Group, Inc., Member FINRA/SIPC. Retirement Guys Network is not an affiliate of NEXT Financial Group, Inc. To view NEXT Financial Group's privacy policy and other important information, visit the "Customers" section of nextfinancial.com.

Most Inspiring Tough Times
Stories of 2009

Despite struggling, these people found ways to strive.
By Alina Larson

Most of us have been touched by the recession in some way.

In the past year, we’ve seen job loss, savings shrivel, foreclosures, and severe cuts in social services. But we’ve also witnessed the ingenuity and generosity of the human spirit, exemplified in these stories.

Plowing for the Pantry

Fife Lake, Michigan gets piles of snow in the winter, but because of Dave Browning, its church pantries also got piles of food.

His idea? Fellow snow-plowers lower their prices in exchange for food donations. Soon all the local plowers were competing, and the pantries won.

Planting Seeds of Hope

Kay Whatley created a blog about her idea to grow and give away plants, then asked those who adopted the plants to share their harvest.

Thanks to donations of seeds and supplies from near and far, she had more than 2,000 plants to distribute, and almost 100 pledges. Now that’s a bumper crop!

The Carpool Lane

Annie, a young mom of two, and a retiree, both needed wheels, but neither could afford one.

When Annie’s Dad offered his old brown Pontiac for them to share, they weren’t sure it would work. But on top of transportation, they found friendship.

The Very Good Doctor

When Anthony Shibley noticed that because of the recession his patients couldn’t afford doctor visits, he and his staff agreed that they would see all patients regardless of their ability to pay.

Househusband

Patrick Borders never expected to become a stay-at-home dad, but his wife found work, while he could not, following a layoff.

Though he struggled with his new role, he realized that time with his kids was a real—and rare—gift.

Unemployment Benefits

The silver lining to layoffs? People are connecting, whether it’s more time with family, bonding with friends, networking for jobs, or finding an empathetic ear.

The Coupon Mom

Stephanie Nelson, also known as the Coupon Mom, began cutting coupons to help her family survive difficult times.

Today her website teaches consumers how being strategic shoppers can save them thousands each year.

View Source

Securities and Investment Advisory Services are offered through NEXT Financial Group, Inc., Member FINRA/SIPC. Retirement Guys Network is not an affiliate of NEXT Financial Group, Inc. To view NEXT Financial Group's privacy policy and other important information, visit the "Customers" section of nextfinancial.com.

Olympic Inspiration

Enjoy these inspirational shots of Olympic athletes and events, direct from the Winter Games, courtesy of photographer Andrew Burton.

Andrew has captured the beauty, grace and athletic prowess of the athletes and the uplifting message of individuals who are putting their heart and soul into doing their best.

View Source

Securities and Investment Advisory Services are offered through NEXT Financial Group, Inc., Member FINRA/SIPC. Retirement Guys Network is not an affiliate of NEXT Financial Group, Inc. To view NEXT Financial Group's privacy policy and other important information, visit the "Customers" section of nextfinancial.com.