Episode #16: Are You Flirting With Disaster?

Today’s Prep:

You might be flirting with financial disaster and not even realize it. If you find yourself in any of the following scenarios, you’ll want to visit with your financial advisor as soon as possible. David Dickens shares this in under 15 minutes!

(Click the featured times below to jump forward in the episode)

Equipping Points:

[00:20] – Are You Flirting With Disaster?

  • Many years ago there was a rock song by Molly Hatchet called “Flirtin’ With Disaster.” It lead us to think of the folks who might be flirting with disaster in their financial lives.

[00:49] – Watch Out For Out-Of-Date Legal Documents.  

  • It’s very common for retirees to come in who have been meaning to update their wills and trusts, but they’ve simply forgotten to do so. If you don’t update your will, your beneficiary designations, and your powers of attorney, you could leave your family in a disaster should something happen to you.

[2:18] – Accurately Set Your Beneficiary Designations. 

  • Lets say you were married to one person for a long time, but you got a divorce. Let’s also say you remarried and forgot to update your beneficiary designations. Your spouse is going to be in for a shock if you die and your Ex gets what should belong to your current spouse, simply because of an administrative blip.

[4:27] – Tax Time Bombs Are Dangerous.  

  • You have a partner in your 401(k), and that partner is the IRS. When you withdraw money from that account in retirement, the IRS will tax it as ordinary income. What the IRS hasn’t told us is what the tax rate will be in the future. If you don’t design a tax strategy now, you could be met with a tax time bomb in retirement.

[6:57] – What Happens When You Don’t Have A Long-Term Care Plan.  

  • Nobody likes to discuss long-term care, but you really need to be talking about it now while you’re still healthy. David outlines the many approaches you can take to long-term care.

[9:17] – A Tricky Situation.  

  • Let’s say you have a 60/40 portfolio. This means 60 percent of your retirement assets are invested in stocks, and the other 40 percent are invested in bonds. This was a popular strategy about a decade ago, but it could present problems now. Low interest rates have put a damper on the bond market. However, there are ways to reallocate your investments, and you should also have a plan for changing market conditions.

Today’s Takeaway:


More From David:

The host: David Dickens

Call Now Button