• Home
  • About
    • Our Team
    • What is a certified financial planner?
    • About our flexible fee system
    • What We Do
  • Services
    • Wealth Management & Financial Planning
    • Investment Planning
    • Spirit Fiduciary Partners
    • Retirement & Estate Planning for Texas A&M University employees
  • Current Clients
  • Internship Opportunities
  • Blog
  • Newsletters
  • Contact
TRADITIONS WEALTH ADVISORS
  • Home
  • About
    • Our Team
    • What is a certified financial planner?
    • About our flexible fee system
    • What We Do
  • Services
    • Wealth Management & Financial Planning
    • Investment Planning
    • Spirit Fiduciary Partners
    • Retirement & Estate Planning for Texas A&M University employees
  • Current Clients
  • Internship Opportunities
  • Blog
  • Newsletters
  • Contact

7 Mistakes Investors Keep Making

9/18/2020

8 Comments

 
Richard W. Paul/Kiplinger Consumer News Service

The dot.com crash in 2000.  The 9/11 terrorist attacks in 2001.  The collapse of the housing market in 2008.  And now the coronavirus pandemic of 2020.  Over the past two decades these events—which had huge financial repercussions—have all been labeled as “black swans.”  Can you draw comfort from the thought that each of these crises was considered so random, so rare and so difficult to predict that no one saw them coming?  Investors, there is always something coming!
  1. Investors are lulled into complacency by long periods of low volatility.  It’s hard to blame investors for wanting to squeeze just a little more juice out of an 11-year bull market, but you have to know when to say when.  The S&P 500 experienced declines of at least 10% several times during the past decade. Not a big deal for younger investors with plenty of time to bounce back from a big loss, but for the pre-retirees and retirees who ignored those gentle reminders to rebalance their portfolios or transition to something safer, got a nasty wake-up call in February and March.
  2. Investors are trying to time the market. Trying to predict the market’s movements is best left to the professionals. An adviser who is looking out for your best interests will tell you that sticking to a plan based on your goals, your time horizon and your individual tolerance is a better way to go.
  3. Investors are taking on too much or too little risk.  If there is enough guaranteed income in your plan to cover your expenses  in retirement, why not reduce the amount of equity in the portfolio to a more appropriate amount—enough to keep up with inflation, but not so much that it makes you nervous every time the market drops a bit. On the flipside, some retirees feel safer keeping all or most of their nest egg in low risk, but low interest cash equivalents.  This can jeopardize your long-range retirement plans.  Inflation can  eat away at your savings so slowly you may not notice, but if you expect to have a 20-, 30- or  even 40-year retirement, it is crucial to protect your buying power.
  4. Investors are not truly diversified. Portfolio diversification—allocating money across many asset classes, geographical regions and sectors—can help with avoiding disaster in a downturn.  Many investors believe keeping their money in two or more mutual funds solves that problem, but they aren’t necessarily getting the diversification they need if those funds hold the same or similar stocks.  Your advisor can audit your investments to avoid overlap and to make sure you are not overly allocated to any one thing.
  5. Investors are ignoring the impact of future taxes.  There is no time like the present to sit down and do some tax planning—whether it is to help your future self, your spouse, or your children.  If we cycle back to a higher-tax scenario, you won’t regret moving some money to a tax-free Roth IRA.  Think of it as another step in your effort to reduce overall risk.
  6. Investors are more worried about their gains than managing risk.  Investors are trained to focus on accumulating as much money as they can for retirement.  But when you are near the finish, accumulation should cede the spotlight to preservation.  That would mean moving away from risky investments that are vulnerable to the market’s unpredictable movements and toward a distribution plan that is focused on establishing enough reliable income to cover your monthly bills.  If your Social Security ad pension payments won’t be enough, you’ll likely have to fill the gap with withdrawals from your savings.
  7. Investors are putting off getting professional advice. You can keep dumping money into a 401(k) or IRA and hope for the best or do some DIY trading and see how it goes. Or you can work with a financial advisor to build a person, long-term plan that will help you achieve your retirement goals
Retirement planning is not about predicting the unknown—it is about preparing for it.  And that means putting together a comfortable, comprehensive plan you can stick with regardless of what happens next in the stock market. For questions or concerns regarding your portfolio, contact Brien L. Smith, CFP® at Traditions Wealth Advisors Brien@TraditionsWealthAdvisors.com or 979-694-9100.  
8 Comments

Social Security Myths Debunked

9/15/2020

0 Comments

 
Picture
Myth #1: You must claim social security at age 62.
The earliest you can claim SS is at the age of 62 but waiting until at least 70 can have more benefits. To get started, you need to figure out your full retirement age or 'FRA' by visiting
SSA.gov. If you claim SS prior to your FRA, you will permanently reduce your monthly income. If you delay claiming SS after the age 62, there is roughly an 8% additional monthly income per year for each year you delay (up to age 70).

Myth #2: You will never get back the money you put in.
Everyone's situation is different, but if you live a long time, you may actually get more money from the program than you contributed. One great feature of Social Security is that it provides an inflation-protected guaranteed income stream in retirement. Therefore, even if you live to 100 years old, you will continue to receive your monthly income. If you predecease your spouse, your spouse also receives survivor benefits until his/her death.

Myth #3: My Ex's actions could negatively impact my benefits.
If you were married for 10 consecutive years, have not remarried, reached your FRA, than you are entitled to your own benefit or to 50% of your ex's SS benefit, whichever is higher. There is no need to discuss with your ex-spouse and your claim does not reduce your ex's benefits.

Myth #4: Your benefits are based on income prior to age 65.
Your benefits are calculated based on 35 years of earnings (not consecutive or before the age of 35). If you don't have 35 years of income (even part-time income counts), than zeroes will be calculated. 

Myth #5: You can claim benefits early and get added income once you reach FRA.
This is a misconception. There is no ‘bumping’ up of income once you have claimed your social security benefit.


Claiming your social security is an important part of your retirement plan, but start planning early. Questions about your Social Security benefits? Don’t hesitate to reach out to Brien@traditionswealthadvisors.com or 979-694-9100. We are here to serve you!

Source: Fidelity Viewpoints. 24 August 2020. https://www.fidelity.com/viewpoints/retirement/social-security-myths


0 Comments

Don't get hooked phishing!

9/8/2020

0 Comments

 
Picture
7 Tips on how to detect phishing e-mail scams:​
​

1. Read the e-mail address carefully and don't trust the 'display' name. It is easy to make a false e-mail address with the same display name as someone you know and trust.

2. Trust your instinct! If something in the e-mail looks off even when the e-mail address is correct, don't reply.

3. Don't click links in e-mails you are concerned about.

4. Check for grammar and spelling errors as a sign of a false e-mail.

5. Don't download attachments as those could lead to a virus on your computer.

6. An immediate 'call to action' such as 'update password immediately' is a red flag for a phishing e-mail.

7. Don't send your personal information through e-mail. Instead, login to the website and update through a secure site.


Source: https://www.riainabox.com/blog/how-ria-firms-can-train-staff-to-detect-a-phishing-email?

0 Comments

    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    October 2018
    August 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    August 2017
    January 2016
    December 2015
    September 2014
    June 2014

    Categories

    All
    Fee Only
    Financial Advisors
    Personal Information Security

Let our team work for you. Call 979-694-9100 or
email michael@traditionswealthadvisors.com.


Picture
TRADITIONS WEALTH ADVISORS
2700 Earl Rudder Frwy South, Ste. 2600
College Station, TX 77845
OUR SERVICES
- Wealth Management & Financial Planning
- Investment Planning
- Spirit Fiduciary Partners
- Retirement & Estate Planning for Texas A&M University employees

VISIT OUR BLOG:  Stay current with industry news and tips.
Picture
Picture


ADV  |  Privacy Policy
© COPYRIGHT 2015. ALL RIGHTS RESERVED.
  • Home
  • About
    • Our Team
    • What is a certified financial planner?
    • About our flexible fee system
    • What We Do
  • Services
    • Wealth Management & Financial Planning
    • Investment Planning
    • Spirit Fiduciary Partners
    • Retirement & Estate Planning for Texas A&M University employees
  • Current Clients
  • Internship Opportunities
  • Blog
  • Newsletters
  • Contact