The most commonly asked question, although sometimes stated as “I will work for the rest of my life” or “I will never retire”.
Before speaking with a financial planner most clients were not aware of the many strategies we could use to visualize a more successful outlook such as; social security strategy, pension lump sum or partial distribution for reinvestment, portfolio rebalance, reverse mortgage strategies, guaranteed income streams and many others to consider.
You do not need a million or more to retire, the amount you need is based solely on your expenses in retirement. The more your monthly expenses are, the more you need to have in guaranteed streams of income or reserved in investment and savings account.
Because this is a very specific answer, contact us to calculate your retirement needs.
The 4% withdrawal rule states your moderately invested portfolio should sustain you if you only withdraw 4% of it per year. That means if you have a $1,000,000 portfolio, $40,000 plus any additional stream of income and social security should be sufficient.
Is this true for everyone? Absolutely not, everyone’s financial plan is very unique and could differ based on social security and pension amounts, portfolio balances and risk tolerance and total expenses. Consider revisiting your plan at least annually to ensure you successfully reach retirement and flourish within it.
There are many things to consider when deciding to save for your child’s education or save for retirement.
- Depending on the child’s age, there are far fewer years in which a portfolio built for college expenses can grow as compared to the time horizon of a retirement account.
- How much are you contributing to your child’s education? As of 2019 you can contribute $15,000 per spouse per year into your child’s college savings plan. You can opt for a 5 year election (which would amount to a total $75,000 contribution), meaning you will contribution this year and the next four years worth of contributions but cannot contribute again until the sixth year.
- In 2019, the average annual tuition for an in-state resident attending an in-state public school is $9,716.
- There are loans for college, but not for retirement.
- It’s possible you could become a financial dependent to your children in the future when you have under-saved for retirement.
Saving for college and saving for retirement have a lot of variables, speak with a licensed financial planner to see what options are best for you.
Short answer: Take it when you are financially in need of it.
Long Answer: Most financial planners will recommend, if you can afford to wait until age 70 you would receive a 32% higher monthly benefit than if you took your benefit at full retirement age of 66. Should you choose to take before your social security benefits before full retirement age, you benefits could be permanently reduced by 25%. Variables to consider: What other streams of income will you have? How is your health? What was your family’s longevity like? Are you still working? Do you need the money?
In depth blog covering more items in detail coming soon. Click here to speak with a financial planner today to find out when would be best for you start receiving your social security benefit.
Speaking with a professional financial advisor isn’t about someone ‘telling you what to do with your money’. A good financial advisor is your partner. They can teach you the skills to save, spend and invest your money better. Not just right now, but for the long haul. They can be a trusted, independent voice to consult when financial decisions get complicated (and they often do!). Financial planners are service providers. And the service they provide is helping you and your family achieve your financial goals
A financial planner can help with financial education and building your confidence to manage your own finances better. But they can also help you with really specific, important life goals. These can include:
· Hitting your savings goals for a new house purchase.
· Paying off your debt so you are free of repayments.
· Putting aside money in a smart, effective way to help pay for your children’s college.
· Helping put in place the strategies to ensure you have the kind of retirement you want and deserve.
· Planning to ensure your family is provided if anything were to happen to you or your partner.
· How to budget and save effectively when you have a mortgage, kids and getting busier in your career.
Our first meeting is about getting to know each other, and having a conversation about what you’d like to achieve with a financial plan and planner. There is absolutely no obligation or ‘hard sell’ with us. You’ll never be under pressure to ‘sign up’ or asked to commit right there and then. Big decisions take time and people like to mull it over to get it right. We get that, and we fully support it.
The first meeting is all about you getting comfortable with your financial planner. For some people, that will mean arriving with a pre-prepared list of questions. For others, that will mean sitting back and listening while we outline what Fulgent does, and how that might help you and your family with your finances. Our first meeting is mostly about getting to know each other, and having a conversation about what you’d like to achieve with a financial plan and planner.
We deeply believe that absolutely everyone deserves high quality financial advice. It doesn’t matter whether you are a small business owner, working 40 hours a week for an employer, thinking about starting a family, approaching retirement or just starting your career; financial advice is for you.
As a general rule, the sooner, the better. That’s because a lot of financial advice is about teaching people lifelong financial habits that will improve their financial health. That can have great positive impacts on things like your credit, your retirement savings, your ‘rainy day’ fund and your debt.
The other great time to speak with a financial planner is when you have a ‘life change’ or big life event approaching. This might be starting a family. Or it might be as you get closer to retirement. Or maybe you’re thinking about going back to school or changing careers.
All of those things are much easier if your finances are in order. So, if any life changes are coming up for you, it might be a good time to speak with us.
We deeply believe that absolutely everyone deserves high quality financial advice, so we do things a little differently to most. Unlike others, we don’t like hidden fees. So, we DON’T have hourly fees, or financial planning fees. In ‘traditional’ financial planning fees are hiding everywhere. Not with us. Our fees are clear and up front. We charge 1.1% of the assets you choose to have us invest. That's it.
It can be lower depending on the asset amount. The best way to get an accurate quote is to have an initial meeting that is completely obligation free, understand what we offer and let us know what you’d like us to help you with.
You don't have to have a lot of money to start. You can begin with as little as $100 per month investment into your account. High quality advice should be available to everyone, not just the very wealthy.
The financial plan and advice itself is free. We make a financial plan accessible to everyone who needs one.
No. Your investment account will be a reflection of your investment comfort level. We will guide you to your decision and explain everything along the way.
One of the big reasons for Fulgent Wealth Management existing is that Brandon, our founder, didn’t want clients being sold financial products that they did not need.
Brandon wanted to establish a completely independent financial planning firm. That meant being able to avoid having sales quotas and commission goals (which can work against clients and their finances). If you choose to work with Fulgent, you can be totally assured that you won’t be sold high risk products you don’t need just so we can hit sales quotas. That’s the opposite of what Fulgent stands for.
Our job as a financial planner firm is to work with clients from every different background. A big part of that is making sure we tailor how we communicate our message to make sure that you understand it. A lot of that comes down to creating an environment where you’re comfortable to stop, ask questions and clarify any time you want.
And don’t worry if it doesn’t make sense the first time around. Finances and financial planning can be complicated. It’s our job to make it less complicated for you, and to give you the confidence to go through life better armed with the knowledge you need to make better financial decisions.