When asked to rate their own investor experience level, far fewer women say they have a higher level of experience. This perceived lack of experience has consequences – more woman than men are fearful of a market downturn, women tend to expect lower returns on their investments, and women are more likely to say they are afraid to take investment risks in hopes of generating higher returns.4
Yet, according to data from the World Health Organization, women tend to live longer than men, meaning that their investment assets will have to last longer. Women generally have a longer investment time horizon than men of the same age, so women may benefit from becoming more comfortable with growth assets, such as stocks, in order to meet their financial goals.
The Salon Magura Wealth Management group can help you understand the basics of investing – things like setting aside enough cash for an emergency, defining your time horizon and risk tolerance, and developing an appropriate asset allocation.
We can help you set investment goals that fall into the categories of income, growth, or a mix of the two. Moreover, each of your investment goals will generally have an associated time period that helps determine what type of assets you should potentially use to assist you in your investment goals with the appropriate level of risk.
1Source: The American College, 2010
2Source: Center for American Progress analysis of data from the U.S. Census Bureau, 2015
3Source: BMO Wealth Institute, 2015
4Wells Fargo/Gallup Investor and Retirement Optimism Index, November 2018.
When asked to rate their own investor experience level, far fewer women say they have a higher level of experience. This perceived lack of experience has consequences – more woman than men are fearful of a market downturn, women tend to expect lower returns on their investments, and women are more likely to say they are afraid to take investment risks in hopes of generating higher returns.4
Yet, according to data from the World Health Organization, women tend to live longer than men, meaning that their investment assets will have to last longer. Women generally have a longer investment time horizon than men of the same age, so women may benefit from becoming more comfortable with growth assets, such as stocks, in order to meet their financial goals.
The Salon Magura Wealth Management group can help you understand the basics of investing – things like setting aside enough cash for an emergency, defining your time horizon and risk tolerance, and developing an appropriate asset allocation.
We can help you set investment goals that fall into the categories of income, growth, or a mix of the two. Moreover, each of your investment goals will generally have an associated time period that helps determine what type of assets you should potentially use to assist you in your investment goals with the appropriate level of risk.
1Source: The American College, 2010
2Source: Center for American Progress analysis of data from the U.S. Census Bureau, 2015
3Source: BMO Wealth Institute, 2015
4Wells Fargo/Gallup Investor and Retirement Optimism Index, November 2018.
Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you.
Our Envision planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:
Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.
While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course.
Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.
Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.
Wells Fargo Advisors does not provide tax or legal advice.
Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.
Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you.
Our Envision planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:
Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.
While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course.
Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.
Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.
Wells Fargo Advisors does not provide tax or legal advice.
Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.
By appointing experienced investment professionals to provide you with sound investment advice, manage your portfolio and rebalance your investment mix when necessary, you free yourself from the time-consuming task of choosing and actively monitoring your investments.
After allocating your investments, your Portfolio Manager continually manages your portfolio, monitors the markets and manages performance. As part of this process, your Portfolio Manager ensures that your portfolio remains invested in financial instruments most suited to your current needs and objectives.
Since no one manager/investment program is suitable for all types of investors, this information is provided for informational purposes only. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers/investment programs to you.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets.
By appointing experienced investment professionals to provide you with sound investment advice, manage your portfolio and rebalance your investment mix when necessary, you free yourself from the time-consuming task of choosing and actively monitoring your investments.
After allocating your investments, your Portfolio Manager continually manages your portfolio, monitors the markets and manages performance. As part of this process, your Portfolio Manager ensures that your portfolio remains invested in financial instruments most suited to your current needs and objectives.
Since no one manager/investment program is suitable for all types of investors, this information is provided for informational purposes only. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers/investment programs to you.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets.
Everyone needs an estate plan. When estate planning makes the news, it’s often because someone famous has passed away and stories then crop up about what a good, bad, or unusual job of estate planning he or she did.
Unfortunately, associating estate planning with famous people tends to feed the myth it’s just for the wealthy. In fact, estate planning is really for everyone.
Even if you don’t consider yourself well-to-do, consider all the assets you own: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, your house, cars, jewelry, family heirlooms, etc. Your estate includes all this and more. Your estate plan can determine what happens to all these assets when you die.
A good estate plan will also focus on taking care of you as you age or if you become ill or incapacitated. Whether you’re wealthy or not has little to do with it.
“Developing an estate plan is about taking control. You are controlling how assets are managed and distributed, along with who will handle these tasks when you are unable to do so,” says Deborah Lauer, Planning and Life Events Specialist for Wells Fargo Advisors.
Asset management is just part of the picture. For parents, having a will is the only way to name a guardian to raise your minor children if both parents die.
A well-designed plan will also include documents designating who can communicate with health care professionals and make decisions about what type of care you should receive if something happens and you can’t make those decisions yourself.
Ultimately, if you don’t make your own plan, your family may be left scrambling at an already difficult time. Someone will have to ask a court to decide who will act as guardian for your minor children (or maybe even for you), and state law will determine what becomes of your assets.
Bottom line: If you don’t decide, someone will decide for you.
Remember, establishing a plan is only the beginning. Significant life events are likely to call for changes to your plan. Lauer explains, “It’s important to regularly review your plan to ensure it continues to meet your needs. You need to consider whether your plan documents, asset titling, and beneficiary designations allow your assets to be distributed according to your wishes.”
Your situation’s complexity will determine which documents your plan requires; however, these five are often essential:
A will provides instructions for distributing your assets to your beneficiaries when you die. In it, you name a personal representative (executor) to pay final expenses and taxes and distribute your remaining assets.
A durable power of attorney lets you give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.
A health care power of attorney lets you choose someone to make medical decisions for you if you are unable to communicate your wishes, or don’t have legal capacity to make treatment decisions for yourself.
A living will expresses your intentions regarding the use of life-sustaining measures if you are terminally ill. It doesn’t give anyone the authority to speak for you.
By transferring assets to a revocable living trust, you can provide for continued management of your financial affairs during your lifetime and after your death — possibly for generations to come.
The notion of making the decisions involved with estate planning may seem intimidating at first, but it doesn’t have to be.
The key is to rely on a team of trusted professionals, including a financial advisor, estate planning attorney, and accountant. They know the questions to ask and can help you avoid potential pitfalls.
If you don't currently have relationships with these individuals, a financial advisor is a good place to start. He or she can discuss his or her role in the planning process and can refer you to an estate planning attorney who can work with you to draw up the necessary documents.
Everyone needs an estate plan. When estate planning makes the news, it’s often because someone famous has passed away and stories then crop up about what a good, bad, or unusual job of estate planning he or she did.
Unfortunately, associating estate planning with famous people tends to feed the myth it’s just for the wealthy. In fact, estate planning is really for everyone.
Even if you don’t consider yourself well-to-do, consider all the assets you own: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, your house, cars, jewelry, family heirlooms, etc. Your estate includes all this and more. Your estate plan can determine what happens to all these assets when you die.
A good estate plan will also focus on taking care of you as you age or if you become ill or incapacitated. Whether you’re wealthy or not has little to do with it.
“Developing an estate plan is about taking control. You are controlling how assets are managed and distributed, along with who will handle these tasks when you are unable to do so,” says Deborah Lauer, Planning and Life Events Specialist for Wells Fargo Advisors.
Asset management is just part of the picture. For parents, having a will is the only way to name a guardian to raise your minor children if both parents die.
A well-designed plan will also include documents designating who can communicate with health care professionals and make decisions about what type of care you should receive if something happens and you can’t make those decisions yourself.
Ultimately, if you don’t make your own plan, your family may be left scrambling at an already difficult time. Someone will have to ask a court to decide who will act as guardian for your minor children (or maybe even for you), and state law will determine what becomes of your assets.
Bottom line: If you don’t decide, someone will decide for you.
Remember, establishing a plan is only the beginning. Significant life events are likely to call for changes to your plan. Lauer explains, “It’s important to regularly review your plan to ensure it continues to meet your needs. You need to consider whether your plan documents, asset titling, and beneficiary designations allow your assets to be distributed according to your wishes.”
Your situation’s complexity will determine which documents your plan requires; however, these five are often essential:
A will provides instructions for distributing your assets to your beneficiaries when you die. In it, you name a personal representative (executor) to pay final expenses and taxes and distribute your remaining assets.
A durable power of attorney lets you give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.
A health care power of attorney lets you choose someone to make medical decisions for you if you are unable to communicate your wishes, or don’t have legal capacity to make treatment decisions for yourself.
A living will expresses your intentions regarding the use of life-sustaining measures if you are terminally ill. It doesn’t give anyone the authority to speak for you.
By transferring assets to a revocable living trust, you can provide for continued management of your financial affairs during your lifetime and after your death — possibly for generations to come.
The notion of making the decisions involved with estate planning may seem intimidating at first, but it doesn’t have to be.
The key is to rely on a team of trusted professionals, including a financial advisor, estate planning attorney, and accountant. They know the questions to ask and can help you avoid potential pitfalls.
If you don't currently have relationships with these individuals, a financial advisor is a good place to start. He or she can discuss his or her role in the planning process and can refer you to an estate planning attorney who can work with you to draw up the necessary documents.
Skimping on insurance or putting off coverage decisions until later is common – and reasons for it aren’t hard to come by.
Although insurance is, by nature, an uncomfortable thought – one steeped in life’s unknowns – it plays an integral role in a well-rounded financial strategy.
Think of insurance this way:
You’re heading toward retirement on a road – your personal savings. The well-financed route may be your path to the future – your retirement plan. It twists and turns along the way as you pursue goals and dreams, handle living expenses, and deal with life’s detours.
But what happens if your path is cut short by an untimely accident or illness? Or wiped out by the death of you or your spouse and the accompanying loss of an income stream? Or if life events or health issues force you to change course or redirect savings toward unexpectedly lengthy detours from your planned path forward?
That’s where insurance can come in. When planned wisely, insurance may help cover the expected and unexpected events on life’s journey – and help you stay on course financially.
Putting off life insurance decisions is more than just a coverage risk. It could also cost you considerably more in the long run. Almost without exception, insurance may be more affordable when you’re younger and healthier. Typically, the older you are or the more health issues you face, the steeper your premiums may be, if you are able to obtain coverage at all.
Life insurance comes in two forms: term and permanent. The first, as its name implies, provides financial protection for a limited period of time, usually 10, 20, 30 years. Permanent life insurance, on the other hand, provides protection throughout your lifetime as long as premiums are paid. With permanent policies, you may be able to build equity, or “cash value,” over time.
Depending on the type of policy, the cash value can potentially grow, tax-deferred, and may be accessed through tax-free withdrawals and/or loans.
It offers other potential financial options and benefits:
A disability claim during your working years can seriously impede your income stream – even dry it up. According to the Council for Disability Awareness, more than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age1. The average individual disability claim lasts 34.6 months.2
An insurable disability can include any condition that makes it impossible for you to perform your work duties – everything from a back injury to depression to cancer.
If you’re covered under a group disability policy, you’re typically eligible for up to 60% of your salary, but payouts may not start immediately. To make up for losses during a group policy waiting period as well as the remainder of your income once payouts begin, you’d need coverage under a supplemental disability insurance policy.
Keep in mind, group policies are often hampered by qualifiers. For example, “own occupation” policies pay if you’re unable to perform your current job duties. “Any occupation” policies, on the other hand, only pay out if you can’t work in any job deemed reasonably suitable for you.
If you don’t have the financial means to live comfortably without income until you retire should you ever become disabled, you may want to consider disability policies that last until at least age 62.
As life expectancies continue to climb, the probability you or your spouse will require home health care or nursing-home care may be greater than you think.
While most people are aware of rising health care costs, many have not prepared adequately for the risk of substantial long-term care costs arising in the future – costs Medicare doesn’t cover.
The average cost of a nursing home stay is $82,128 annually for a semi-private room.3
For many – if not most – people, long-term care coverage is the best way to help protect against potentially devastating costs of extended care later in life. Like some other types of insurance, purchasing early may lead to savings down the road.
Next time you review your retirement plan, don’t forget to consider your insurance needs. Life, disability, and long-term care insurance can all help protect your financial goals to and through retirement and beyond.
If you’re changing jobs or retiring, you’ll need to decide what to do with assets in your 401(k) or other qualified employer-sponsored retirement plan (QRP). These savings can represent a significant portion of your retirement income, so it’s important you carefully evaluate all of the options.
Generally, you have four options:
Rolling your retirement savings to an IRA provides the following features:
Before rolling your assets to an IRA consider the following:
You may be able to leave your retirement plan savings in your former employer’s plan, assuming the plan allows and you are satisfied with the investment options. You will continue to be subject to the plan’s rules regarding investment choices, distribution options, and loan availability.
Keeping assets in the plan features:
If you’re joining a new company, moving your retirement savings to your new employer’s plan may make sense. This may be appropriate if:
This alternative shares many of the same advantages and considerations of leaving your money with your former employer. In addition, there may be a waiting period for enrolling in your new employer’s plan. Investment options are chosen by the QRP sponsor and you must choose from those options.
Carefully consider all of the financial consequences before cashing out. The impact will vary depending on your age and tax situation. Distributions prior to age 59 1/2 may be subject to both ordinary income taxes and a 10% IRS tax penalty. If you must access the money, consider withdrawing only what you need until you can find other sources of cash.
Features
Keep in mind
Net unrealized appreciation (NUA) is defined as the difference between the value at distribution of the employer security in your plan and the stock’s cost basis. The cost basis is the original purchase price paid within the plan. Assuming the security has increased in value, the difference is NUA. NUA of employer securities received as part of an eligible lump-sum distribution from an employer retirement plan qualifies for special tax treatment. In most cases, NUA will be available only for lump-sum distributions — partial distributions do not qualify.
We can help educate you so you can decide which option makes the most sense for your specific situation.