When it comes to planning your financial future, life expectancy is a major consideration. When we meet with clients, we discuss what their family health history has been, in addition to their own health history. While it would be wonderful for both spouses to live past age 95, we know that is not likely to happen. According to Society of Actuaries’ projections, there’s a 25% chance that a 65-year-old man will live to 93; a 25% chance that a 65-year-old woman will live to 96; and for a couple 65 years old, there’s a 25% chance that the surviving spouse lives to 98. Longevity planning is creati ..read more

Tax planning for businesses frequently occurs at or near year end. However, that timing may be too late to implement certain actions for the current year that could save tax dollars. A more prudent approach would dictate tax planning be a year-round endeavor to potentially maximize the tax benefits a business can realize. There are a variety of planning opportunities that a business can evaluate. Some depend on the type of entity the business is, such as a C Corporation, S Corporation, Partnership or Sole Proprietorship. Others depend on the size of the business, including the number of employ ..read more

Alaina B. Davalos also contributed to this blog. First, individuals can only have one domicile, generally defined as the place where an individual has his or her true, fixed, and permanent home. This is often characterized as “the place you intend to return after any temporary absence.” The establishment of residency and domicile is simple if you spend all, or nearly all, of your time in one state. However, for those splitting time between two states, changing official residency to another state is often a thorny question of law. When the cold and snow settle in around the northern states, man ..read more

Wouldn’t it be nice to have sunshine and warm temperatures all year? Like many people, you may be weighing the idea of trading your snow boots for flip-flops – either part of the year or full-time. Snowbirding is a popular way to enjoy warm climates during winter months while maintaining ties to a primary residence in another climate. Permanent relocation is also an attractive option, but doing so may be daunting, especially for people who are deeply rooted in their community. Before committing to the snowbird lifestyle or permanent relocation, consider evaluating personal preferences and fina ..read more

Not really, but it’s a catchy headline, isn’t it? I ran across an article about rebalancing portfolios published by Vanguard, and it piqued my interest. Anytime I read things of a technical nature, I try to figure out an easy way to explain them. I can talk about standard deviation, correlation, and the various constraints of portfolio rebalancing, but I suspect no one really wants to hear about that. When I read this article, I imagined a fairly simple way to think about portfolio rebalancing – a compass. If you asked my wife, she’d tell you I thought of a compass because my college buddies a ..read more

When couples divorce, they usually divide their assets; however, this does not automatically extend to retirement plans like 401(k)s or 403(b)s. To split these assets, you need a Qualified Domestic Relations Order (QDRO). A QDRO is a decree, or court order, instructing the plan administrator how to pay a portion of a retirement plan account to another person, such as a spouse or dependent. Creating the QDRO is critical because the retirement plan administrator cannot split your or your spouse’s funds without one. Further, it’s important to establish a QDRO, signed by both parties, before your ..read more

Preparing for retirement during your career as a university professional can be both exciting and daunting. While there is much to look forward to as you approach this major milestone, it’s easy to make some critical planning mistakes. This educational webinar identifies practical tips to help university professionals assess their financial situation ahead of retirement. The post Mistakes to Avoid When Retiring from a University [On-Demand Webinar] first appeared on Savant Wealth Management ..read more

Elections have the ability to stir up emotions like nothing else, and even at this early stage in the election cycle, this presidential race has already moved into that territory. I am beginning to hear grumblings and questions about my thoughts on the race and the impact could have on investment holdings. While political debate is healthy from a democratic process perspective, it can be dangerous if you allow politics to influence your investment decisions. I can’t possibly stress how important this is. I’ve witnessed countless examples of pent-up emotions clouding investment judgment over th ..read more

The recent death of Nobel laureate Daniel Kahneman, author of Thinking, Fast and Slow, marks a great loss for psychology and economics. His groundbreaking work on cognitive biases and decision-making offered invaluable wisdom for retirees navigating the investment landscape while preserving wealth and generating income. Kahneman exposed biases like overconfidence, loss aversion, and availability effect that can cloud judgment and lead to poor investment decisions. By learning to recognize these biases, retirees can make more informed, rational choices to help their savings last through retirem ..read more

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