Nobody really wins with this shut down – 2021
[et_pb_section fb_built="1" _builder_version="3.22"][et_pb_row _builder_version="3.25" background_size="initial" background_position="top_left" background_repeat="repeat"][et_pb_column type="4_4" _builder_version="3.25" custom_padding="|||" custom_padding__hover="|||"][et_pb_text _builder_version="4.4.4" hover_enabled="0" admin_label="Text"] Nobody really wins when the country is shut down. That said, there are some sectors that bubble up to the top and thrive, while restaurants and hair salons are having a horrible time as well as manufacturers (you cannot even buy a refrigerator in Vegas right now). Don’t even get me started on how our tourism is being decimated with shut-down orders. Folks that were going to retire in 1, 2, or 3 years or more from our Las Vegas Hotels and Casinos are turning furloughs into retirement. I’m getting calls like crazy to get folks on Medicare to move and protect their 401(k)s ASAP. We are still being very conservative with client funds at the writing of this article but will most likely be making a move back to Conservative Growth by the end of January. We will see what happens. The winners: Well, Tech for one. Companies like Zoom, Amazon, and Shopify are going nuts. Nobody ever heard of Zoom before the pandemic. That’s how families have decided to communicate. Facebook also has video meetings, as well as Amazon, Apple Facetime, Google Hangouts, and many more. We have been doing the majority of our meetings via virtual video in the Arizona offices and about 10% virtual in the Las Vegas office. We have our Medicare, Social Security, and Retirement planning workshops online as well. You do what you need to do to survive and help your clients. Clothing companies (online sales) are up. Home furnishing companies are doing well because folks are home, and you can only look at your walls for so long till you just must make some décor changes. I know we did. And the new business, Masks. Everyone is making masks. The good, the bad, and the ugly. I don’t even want to talk about the ugly. Just stay safe and healthy. Do what you need to in order to stay out of harm's way. Almost all of our clients are over 65 years old and that comes with extra risk. Be aware, we want to see you at our next meeting! In conclusion, be safe, be healthy, enjoy life as much as you can. This too shall pass. Cheers to a happy new year. [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]What will the new year bring? – 2020
[et_pb_section fb_built="1" _builder_version="3.22"][et_pb_row _builder_version="3.25" background_size="initial" background_position="top_left" background_repeat="repeat"][et_pb_column type="4_4" _builder_version="3.25" custom_padding="|||" custom_padding__hover="|||"][et_pb_text _builder_version="4.4.4" hover_enabled="0"]What will the new year bring? Will the stock market soar? Will it be flat? Will it decline?
As we continue to experience high levels of volatility in the markets due to several factors, I think it’s important that folks understand what it takes to recover from a downturn in the market. What is the Break-Even Point? It’s essentially the return that you’ll need to recover from a downturn in the market.
Example – If you experienced a 20% decline in your account, it does not require just a 20% upswing to recover. It requires a 25% return. A 35% decline requires a 53.8% just to get back to even. A 50% decline will require a 100% return just to get to even. One bad year can wreak havoc on an investment portfolio and the required return just to break even could be significant and take a long time to recoup. The time our clients do not have. That is why we always have about half of our client’s assets in 100% insured and guaranteed positions. The other half we position in a well-balanced actively managed portfolio of nimble, easily repositionable investments
It’s time to be Safeguarding & De-risking assets by providing that downside protection. As they like to say ZERO is your hero!
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]Reverse Mortgage? – 2020
[et_pb_section fb_built="1" _builder_version="3.22"][et_pb_row _builder_version="3.25" background_size="initial" background_position="top_left" background_repeat="repeat"][et_pb_column type="4_4" _builder_version="3.25" custom_padding="|||" custom_padding__hover="|||"][et_pb_text _builder_version="4.4.4" hover_enabled="0"]What is a reverse mortgage? There are many myths and misconceptions on just what a reverse mortgage is, so let’s first talk about what it is not.
The reverse mortgage of old, the one you hear about from your neighbors, your best friends, or a family member, is not what the reverse mortgage is today!
It used to be that the bank would not only charge interest on the loan amount but also took a large percentage (often up to 50%) of the remaining equity in your home after the loan was paid off. That meant your heirs would receive a lot less than expected after the loan was paid off.
This was not fair, and so the Federal Government stepped in, and in 1989 changed the guidelines so the banks could not take more than the accumulated interest on the loan, and all the appreciation of the property would belong to the heirs.
So, what really is the reverse mortgage of today? A reverse mortgage is a loan for borrowers 62 years of age and older that converts some of their home’s equity into cash. The cash can be used for anything you like. Pay down debt, take a trip, or even invest the proceeds to create a higher income. The unique benefit is the borrowers do not have to make monthly mortgage payments.
The new reverse mortgage program is called HECM; it stands for Home Equity Conversion Mortgage. Today, the seniors are completely protected from such practices by the Federal Government, and so are their heirs. When the last borrower moves out of the house, passes away, or sells the house, the loan is due, just like any other mortgage. What is due the bank is just the original loan balance plus the interest accrued over the time that the seniors have had the use of the reverse mortgage. All remaining equity belongs to the seniors’ estate and their heirs. The bank does not retain any equity in the home.
In fact, since the seniors own the home, they can sell it anytime they wish, and move to another home; if they financially qualify, they can purchase another home using the Reverse for Purchase Program.
One of the greatest benefits of the program, as I see it, is the security it offers married seniors because the loan is on both lives (unlike any other mortgage), and as long as one senior/owner occupies the property, the loan is in full effect. This means that should something happen to one spouse, nothing happens to the loan, and therefore, nothing happens to the remaining spouse!
I see this as a great feature because if a senior passes away or goes into an assisted living or nursing home, in many instances the other spouse loses an income but still must continue to pay the current mortgage, but now with only having the one income. In many cases, the remaining spouse cannot make the payment; eventually, they lose the home to foreclosure or are forced to sell it.
This cannot happen with a Reverse Mortgage since the loan is on both spouses’ lives. The only responsibility one has is to continue to pay the Real Estate taxes, homeowner insurance, any HOA fees, and maintain the property. That’s it. Stay in your home and live your life without the worry of having to make a monthly mortgage payment, and with the security of having a roof over your head.
Ask your American Retirement Advisor if this may be right for you. We may be able to refer you to a reputable Reverse Mortgage Specialist. There are a lot of mortgage brokers out there that do not specialize and know just enough to be dangerous.
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]Success Story of the Month
[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Success Story of the Month" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="March 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid" saved_tabs="all"] More for Less? [spacer height="02px"] By David Edge [spacer height="03px"] While recently meeting with a client who was a young grandmother with three beautiful grandchildren, she was lamenting the fact that she wished she had more to leave the grandkids when she passed. I pressed her for more information on exactly what was she concerned with? She replied that while she was OK with her retirement income she only had a small amount of money in a bank savings account and that each child would only get about $10,000 when she passed. [spacer height="02px"] I was glad she brought it up so that we could have the opportunity to help her with this dilemma. [spacer height="02px"] “How would you like to leave them $20,000 or maybe even $30,000 each?” I asked. [spacer height="02px"] “Impossible!” was her immediate reply. “Au contraire”, I said. “There are ways to make the money worth two or even three times the face amount”. I could tell I had her undivided attention. [spacer height="02px"] There are insurance products on the market that you can purchase with the cash in your savings account that are guaranteed to pay out upon your passing to any beneficiaries you direct. The cash in your saving account is paying you pennies on the dollar in a low -yield bank account while it just sits in your bank. Let’s look at some ways to make that cash more valuable. [spacer height="02px"] We then had a discussion on a Single-Premium life insurance policy. This is a product that will take your one-time payment, and guarantee you a payout larger than your one-time payment. There are factors that affect exactly how much of a multiple the payout will be upon your passing. These factors generally have to do with qualifying for the policy and usually only have a simple blood test by a nurse who usually comes to your office or home. [spacer height="02px"] But for a simple example, you take the $30,000 that’s in your savings account; purchase a single-premium life policy that would have a guaranteed death benefit of $60,000. This is what legacy planning is all about. You are making decisions now that will affect your family later. Your three grandchildren will get $20,000 each instead of $10,000. It would take your bank savings account around 30-35 years at 2% interest to grow to that amount of money. Instead, you’ve doubled the money by just purchasing a policy, instantly. [spacer height="02px"] What’s great about this policy is that the money is fully funded, it’s safe and secure, as an efficient way to transfer wealth. It’s flexible, as many of these policies have value added living benefits and liquidity features with access to the death benefit or cash values should the policy holders’ financial needs change. [spacer height="02px"] She was stunned that these products existed and her family financial planner had never discussed this with her before. I merely reminded her that at American Retirement Advisors we look as all aspects of your retirement and not just sell you products. Grace was more than just a little happy as we reviewed her new options. [spacer height="02px"] Concerned that the small amount of money in a savings account isn’t going to be very much to pass along to your family in the event something happens to you? Call us we can help! [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/03/Sucess-story-of-the-month-2.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="250px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]Financial Tip
[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Financial Tip " background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="March 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid"] By David Edge [spacer height="03px"] Check or Credit/Debit Card? [spacer height="02px"] While just about any financial transaction we do can expose us to the criminal element, there are checks and balances that can keep us a bit safer. [spacer height="02px"] You’re standing in line to check out, and the person in front of you pulls out their check book. “How archaic,” you think to yourself. Check writing has decreased by 50% since 2000, but the real exposure to check writers is with fraud. While there appears to be just as much opportunity for fraud with credit and debit cards, the exposure with writing a check may have greater consequences. [spacer height="02px"] If any theft of a credit/debit card happens, alerts happen very quickly with electronic monitoring by the financial institution. A halt is placed on the card in question and a new card is rushed to the client. Misappropriated funds are replaced, and the retail store shares in the loss for taking the fraudulent transaction. Hence, the recent surge in requiring ID for purchases, as well as more stringent usage policies. [spacer height="02px"] On the other hand, writing a check still has all the old proven ways to steal your money. You write a check, it has your name, address, phone number, bank name, routing number, account number and signature all on the check. The numerous ways for theft start as soon as you hand the check to the cashier. A dishonest clerk could copy your check. If sent by mail, the check could be stolen and washed. This is a process where the criminal chemically removes the payee and dollar amount of the check keeping your perfectly legal signature, writes a new amount and payee, and then cashes the check! [spacer height="02px"] The main issue with writing a check is that once the bad guy has your check, they can drain your account and we only have to hope you don’t have your checking account tied to your savings account as both accounts can be drained. Question is, “how much money do you keep in your account to be possibly stolen”? Most folks have taken the precaution of keeping a low balance in their checking account just to cover the balance of checks they have issued. Good thinking! [spacer height="02px"] Retailers are combating the risk, by taking your check at the register and immediate-ly processing the payment and giving the check back to you. Now the check never leaves your sight, and this curtails any opportunity for your personal information to be stolen on the way to your bank. [spacer height="02px"] Recording all check transactions and regularly checking your bank account online are also smart ways to track your transactions against fraud and keeping your information from being stolen. Why not just avoid the risk? [spacer height="02px"] We suggest that you minimize or avoid check writing altogether. Use the safe and secure debit or credit card to protect yourself from fraud. [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/03/Financial-tip-2.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="200px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]Toss it against the wall
[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Toss it against the wall" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="March 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid" saved_tabs="all"] By David Schaeffer [spacer height="05px"] We have all heard the phrase “throw every-thing against the wall and see what sticks.” Well, our new President made a bunch of promises in the campaign and got himself elected. Many promises sounded good to some; to others, not so much. Our clients’ emotions on the new President range from exuberant to completely freaked out and scared. [spacer height="03px"] We can all agree, there has been a frenzy of activity in the first weeks of the new administration. Every news cycle has Trump this and Trump that. So much attention, that it was almost like the Super Bowl (what a game!), the Phoenix Open, and our car shows didn’t even happen. [spacer height="03px"] The market is in a flurry. Up, Up, Up! By almost all accounts the optimism concerning the markets and consumer spending is very positive. Stories of large employers adding jobs in the good ole USA abound. [spacer height="03px"] Our President lets us know his feelings, unfiltered, immediately, via his twitter feed. If you don’t follow twitter, don’t worry… the television news folks will do it for you. [spacer height="03px"] More importantly, what is not being talked about is the Department of Labor’s fiduciary rule for financial services. It is scheduled to go into effect April 10, 2017. This law will impact every person in the United States with qualified accounts including, IRAs,401k, 403b, 457/TSA, and Roth IRAs. This rule was created in the spirit of improving the financial care of our citizen’s lifelong savings. [spacer height="03px"] Unfortunately, this law will force firms to charge more for their services and provide less choice of investment options. Completely the opposite of the intent of the legislation. Small investors with accounts less than $1,000,000 will find themselves moving to automated investment services because the cost of compliance is too great. We all have or had mutual funds, the autopilot investments of the past. What happens to your accounts when the market drops? What happens to your income if those accounts lose your money? [spacer height="03px"] The estimated cost to comply with the new law may be as much as 2% on a small account. Most folks don’t pay even 1% to manage their entire portfolios. Something will have to give; you will either have to pay more or use a robot. manage their entire portfolios. Something will have to give; you will either have to pay more or use a robot. [spacer height="03px"] We have never charged our clients for planning services, account reviews, phone calls, changes, account updates, balance inquiries, disbursement requests, mailing statements, going to social security office with you, or exceeding every fiduciary standard of care. [spacer height="03px"] If the law is not repealed, folks will experience far fewer savings and investment choices for their IRAs and incur new fees that may exceed earnings! [spacer height="03px"] I really don’t think that was what the past administration had in mind. The story goes, Mr. Obama’s neighbor had all of his lifelong savings in a variable annuity, the type that did not insure his principle and had fees in excess of 3.5% per year. When the market dropped in 2008, his neighbor lost nearly 50% of the value of his annuity. His broker was no longer in the business. He assumed the big-name brokerage firm had an eye on his account. The reality was no one was looking after his money. Mr. Obama looked into it and found that the broker was really a licensed salesman and did not violate any rules. He just did what the firm requested of him. In reality, he was not acting in his neighbor’s best interest, he acted in the best interest of the firm. Mr. Obama asked around and found that there was a type of financial advisor that was licensed to act in the client’s best interest. He then asked the SEC to do something. They did nothing. He asked his friends at the Department of Labor and they acted, creating a rule to protect the average investor. Unfortunately, they failed to ask about the cost of such financial care. Kind of like the “not so” Affordable Care Act. (Sorry. I could not help myself.) To affordably take on the legal responsibility of fiduciary care, most portfolios must exceed 5,000,000 dollars to avoid additional costs above the standard 1%. [spacer height="03px"] So here we sit, a rule created to care for LARGE portfolios, forced upon most Americans with a portfolio of less than $100,000, but being required to bear the cost of a portfolio 50 times larger. [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/02/FeatureStory_Mar2017.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="250px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]Financial Tip February 2017
[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Financial Tip" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="February 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid" saved_tabs="all"] By David S Edge [spacer height="03px"] How to invest or save has more to do with where you are in life than you may think. [spacer height="02px"] Let’s begin with definitions. [spacer height="02px"] Invest. (verb) According to Investopia: to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value. [spacer height="02px"] Save. (verb) According to Google: 1. Keep safe or rescue (something or someone) from harm or danger. 2. Keep and store up (something, especially money) for future use. [spacer height="02px"] By definition, investors accept risk in exchange for a potential return. Savers conversely protect their long-term savings from harm. [spacer height="02px"] In our working years, we are supposed to accumulate money for our future needs in retirement. Typically, it is acceptable to take on risk while working which is supposed to be mitigated or reduced by time. This process has served us well up until 2000. 15-year average returns on the markets averaged less than a compounded 3% for that period. You may have fared better in long-term CDs. [spacer height="02px"] The next phase of our investment life is a transitional period we call preservation. This phase should begin 5 years prior to retirement and continue about a year after. This period allows plenty of time to tax efficiently, migrate your long-term holdings, into vehicles designed for income in the next phase. [spacer height="02px"] The final phase we call distribution. This is where the new purpose of your life-long savings is now income. Depending on your needs, wants, and desires, your money now needs to replace income from work, adjust for inflation, and take care of surprises. [spacer height="02px"] Most folks have their investments do things they were not designed to do. For example, how are you supposed to plan for a steady stream of income from a mutual fund that changes in value every minute, and its returns fluctuate with the wind? Even worse, when the market adjusts, what do you tell the mortgage company or the utility company when the value is 20%, 30% or 40% less than it was last week? How is that conversation supposed to sound? “Hi, sorry my investments adjusted a little bit so I’m going to pay you a little bit less this month.” Good luck! [spacer height="02px"] May I suggest a different approach? One that doesn’t lose money, one that may add certainties and guarantees that you can count on? Call the office to learn how a comprehensive retirement income plan may solve the concerns you have about running out of money! [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/01/FinancialTip_Feb2017.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="250px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]Its February Already 2017
[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Its February already " background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="February 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid"] By David Schaeffer [spacer height="02px"] This year will be exciting; new year, new government, new initiatives! As always, I look at what we can do to make a positive impact on our community. At our firm, we are looking to continue to grow. We have two new initiatives that may employ upwards of an additional 10 people in 2017. [spacer height="02px"] One program will focus on the needs of wealth transfer and family income continuation. The great news is it will bring a new dynamic to our practice. It will serve folks in their 50s. Life is very different when you still have kids in the house, and you are taking care of your parents too. I am eager to serve the last of the baby boomers as we learn their needs, wants, and desires. [spacer height="02px"] As for the new government, I hope they focus on the spirit of the campaign promises. The Affordable Care Act is a major piece of legislation. Repeal makes nice rhetoric. REPAIR makes good sense for our country. We need access to health care without regard for pre-existing conditions. It already works for folks on Medicare. The solution may not be pretty, but we, as a country, must strike a balance between what we need and who is going to pay for it. It is not legal to force an insurance company to lose money. (BCBS of Arizona alone lost $221 million in 2015 and 2016, which was not reimbursed as promised under the not very Affordable Care Act.) On the other hand, it is not moral to allow someone to die because they do not have access to adequate health care. These are big issues. I look forward to real, workable solutions from this administration. [spacer height="02px"] The previous administration has also passed a law which goes into effect April 10, if not repealed or pushed to a later date, that will require a financial advisor to act in the best interest of a client. Our company has always exceeded all fiduciary standards, so I agree with the spirit and intent of the law. The challenge with complying with the law is there are no rules available to comply with anywhere to be found. Additionally, everyone will now need to pay fees, which we rarely charged in the past, on their entire IRA portfolio. Legislation has been introduced to delay implementation until rules can be agreed upon, which is good thing! [spacer height="02px"] Where do we go from here? [spacer height="02px"] In change, there is opportunity; all we need to do is find it and help people on their way through it, and we will! [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2016/06/30144940_m.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="200px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]Financial Tip of the Month – Dec 2016
[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Financial Tip - December 2016" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid"] At the end of each year there are deadlines for giving, so that you can reduce your taxable income when you file your taxes. Here’s a short list of gift-giving to consider![spacer height="5px"] * Charity begins at home. Got that favorite group that you’ve got a soft spot for? As long as the group is a 501c 3, you can give up to $800 maximum for couples and $400 for single filers for a State of Arizona tax deduction using State Form # 321. Visit www.AZDOR.gov where you’ll find a list of forms for all sorts of donations! There are many options when you donate to organizations that offer assistance to working poor.[spacer height="5px"] * Donate to your favorite school![spacer height="5px"] * Are you employing National Guard members? There is a tax credit for you![spacer height="5px"] * When you make a donation do you all of a sudden get flooded with request from other organizations? These organizations often swap names and contact info, and sometimes they even charge each other as a way to increase income. If you are tired of getting these notices, make sure that you check the box on the donation form that you do not want your information shared. Otherwise, you will need to contact each charity and request they stop contacting you. Want additional help? There is an organization that can help to make your mail requests disappear or be greatly reduced. Contact www.DMAchoice.org.[spacer height="5px"] * Remember to itemize, you can’t just state that you made a donation to a particular organization. If you give cash, get a receipt![spacer height="5px"] * You can donate property! It’s a double win, in that you don’t have to pay capital gains and you get to discount the fair market value of the item. Remember, you have to own the property for at least one year.[spacer height="5px"] * These charitable donations must be made before the end of the year. If you donate by check, as long as it’s given before the end of the year, it can be cashed after the first of the year by the organization.[spacer height="5px"] * Many employers offer charitable giving via your paycheck at work. Keep an end-of-year paystub for proof of your deduction for your tax return.[spacer height="5px"] Keep in mind that you can’t donate your time for a deduction, nor can you exceed 20% of your Adjusted Gross income. There’s a lot of rules on this, so get advice from your tax preparer. [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2016/12/present.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="150px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]Success Story of the Month
Learn that “No” can be an Answer
[spacer height="2px"]By David S. Edge
[spacer height="20px"] Bert and Dawn have been wonderful parents who wanted everything for their kids. Both parents ran successful and profitable businesses and they, of course, sent the kids to the best schools, bought clothes and sporting equipment, musical instruments, cars, and paid for college degrees at top of the line universities. [spacer height="20px"] As their children grew up and moved out, Bert and Dawn starting thinking about retirement. They came to our office for a Discovery Meeting and met with our team of advisors after attending one of our many free Financial Retirement Workshops. [spacer height="20px"] As we started reviewing their options, one thing was clear. They didn’t have enough retirement savings to maintain their current lifestyle. So we took them through an exercise to see where their money was going. Lo and behold, all the extra funds they were earning were still going to their kids!! [spacer height="20px"] Turns out that Mom and Dad had helped finance both grown childrens’ home purchases, which were well beyond both kids’ income. They not only helped with the down payments but were also continuing to give financial assistance for the monthly mortgages as well as all the other birthday, Christmas, gifts, repairs, etc. [spacer height="20px"] It came down to one simple thing. Bert and Dawn had never learned to say “No.” [spacer height="20px"] Another issue that came to light during discussions with our team was that they still had their five-bedroom house even though it was just the two of them. A good portion of income was going for upkeep on the “big house.” Bert also stated that they both knew they needed to downsize, but Dawn did not want to, as the house had too many wonderful family memories. [spacer height="20px"] All parents want to help their children get a “leg up,” so to say, in this modern expensive world, but at some point the kids have to become self-sufficient. [spacer height="20px"] We realize that some of the most important decisions are also the most difficult to make. Bert and Dawn had to make the decision to put each other first and start earmarking their hard-earned money for their retirement. [spacer height="20px"] As the team continued to review the four areas of retirement planning, a blueprint started to evolve to cover not only Bert and Dawn’s financial concerns but also, health, long-term care, and their estate. [spacer height="20px"] By turning off the spigot of their cash flow to the kids, our team was able to show them how the plan we recommended would allow them to grow their retirement income to cover not only their health care, but show them how the plan would continue their income as well as cover long-term care! It also allowed them to create a Trust that planned who, what, and when, their kids and grandkids would receive what Bert and Dawn wanted to leave them as a legacy. [spacer height="20px"] More importantly, we were able to create enough funding in the customized financial plan that allowed Bert and Dawn to keep their much beloved big house! [spacer height="20px"] Dawn was ecstatic!!! [spacer height="20px"] In the end, when their plan was finished, they both felt that the roadmap our planners created was clear and they knew exactly what to do, what to expect, and when. It was specific and left no doubt about results for the next twenty years of their lives. [spacer height="20px"] Call us with the question of:“this is what we want our retirement to look like and this is what we have to work with.”[spacer height="20px"] Let our professional team help before you make these important retirement decisions.
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