Index To Income Planning Content

Income planning is by far the most requested, the most misunderstood and the most intimidating area of financial planning for the vast majority of Americans. Please dive into the content here covering a myriad of income planning topics. Let these be the first steps to creating peace of mind over your income plan for the long-term.

The Real Cost of Safe Money

Altoona, PA – A fellow Investor Coach shared a story about a Senior Citizen on a radio talk show the other day, lamenting about the ultra-low CD rates the banks are now paying. He had recently spent an entire afternoon visiting one bank after another, trying to eke out a few extra pennies to help […]

Municipal Bond? Safe or Sham?

State College, PA – It has happened again!  Investors depending on municipal bonds for a secure retirement should be concerned.  For the second time in three years, the Security and Exchange Commission has slapped another state with securities fraud.  Recently, the SEC charged Illinois with misleading its municipal bond investors. In a press release, the […]

From My Daily Journal

A trend we have noticed among baby boomers that we have recently coached up about global market returns is a lot of people exhibit concern and worried body language. When we discuss retirement planning and income needs, not only is there a high percentage of fear, but some of the people that I’m talking to […]

Income – Reverse Engineerin​g

A recent article talked about how a multiplier of eight times your income is the approximate size of the nest egg one would need in order to retire comfortably. In our planning process we prefer not to pull numbers out of the air. Is eight the right number? It may be or may not be. […]

Money Market or Market Returns…Sh​ould You Know??

For those in your fifties or sixties, think back to your first job when you entered the work force.  I still remember how ecstatic I was when I landed that summer job at an amusement park that paid me $1.50 per hour.  Back in 1980, the minimum wage was pegged at $3.10 per hour.  So, […]

Don’t You Bet Your Life On It!

This is a famous line, used many times, by the western actor John Wayne. When you think about it, every day we bet our life on decisions we make, from running the yellow light in our automobile, to not reading directions on the medication we might be taking. We of course make many of these […]

Hey Brother, Can You Spare a Dime?

Does it make sense to rely on CD’s for your retirement? Looking at inflation and monetary policy of the past, it’s not a good idea! But yet I see this 1980’s era retirement plan all the time. Back in 1981, a one-year Certificate of Deposit might have paid 15%. Not any longer, that’s for sure. […]

What Would Grandpa Say?

Many of you may already know we are not fans of municipal bonds. In fact, we do not hold any municipal bonds in any of our investment portfolios because we think they are too risky. I bet that surprises a lot of people, especially retirees. My astute, well read, late grandfather would be shocked to hear this, having retired from Ma Bell after 42 years, an old school, buy American, blue chip investor. That’s because many advisors routinely recommend that retirees buy and live off of the income generated by supposedly safe individual municipal bonds.

Should I stay or should I go???

General Motors retirees, they will have until July 20, 2012, to make the big decision!

That’s the deadline, just a little over five weeks away, when more than 40,000 General Motors supervisory and white-collar retirees will be forced to make what could be the most important financial decision of their lives. Should they accept GM’s offer of a lump-sum “buy-out” of their monthly pension checks and thus possibly receive the biggest check they’ll ever get? Or should they continue to receive a monthly pension check when GM transfers their retirement plan to a private group annuity from Prudential?

Bonds: Strategies or Schemes

According to Fortune Magazine, Warren Buffett, the Oracle from Omaha, will soon release his annual shareholder letter pointing out that “money-market funds, bonds, mortgages, bank deposits…are thought of as ‘safe.’ In truth they are among the most dangerous of assets…their risk is huge.”

Further in the letter, Mr. Buffet writes that “Right now bonds should come with a warning label.” Why is Mr. Buffett so concerned about these types of investments, many of which are embraced by retirees in their search for a safe haven for their IRAs and 401(k)s?

Income For Life Retirement Planning

Income planning is the area that is most requested by individuals that are seeking financial planning help today. As a financial professional I’ve observed this area has the least amount of understanding. The distribution of the estates it’s not something the financial services industry finds paramount, rather the accumulation and collection of assets in the focus. The […]

30 Day Challenge for Wealth Management

In my life I’ve been very fortunate to have had several mentors! The one that had the most impact was tough but gentle, an extremely successful businessman. On one occasion he made a comment that I took offense “you’re a spendthrift “. I remember my reply ” are you crazy, based on my meager income […]

Pension Maximization Strategy

PMS, a strategy that can be employed by a pre retiree when activating a employer defined benefit plan, more commonly known as a pension. The concept: there are multiple pay out choices available to the retiree. One choice maybe for a straight life payout compared to a spousal benefit residual pay out. A straight life […]

Smorgasbord Investing (Town & Gown)

This weeks Weekly Clarity Coaching is also this months “Town & Gown coaching article that we create here at Financial Abundance. For those not local, T&G is a prestigious local magazine, a State College and Penn State tradition since 1966. This month article featured Deb Seward here in the office and she explains why most american’s end up with a lot of stuff in their portfolio. A short and informative read…

Retirement & Municipal Bonds

As you know, we are not big fans of Municipal Bonds. You will not find a single Municipal Bond among the 10,000 – 14,000 holdings in any of the Academically Managed accounts that many of you own through me. But often, retirees and those preparing for retirement are heavily invested in municipal bonds and bond funds. Unfortunately, in many cases, their advisors may not have disclosed to them the significant risks that such a strategy bears.