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How to make it, spend it, and invest it

17 Jul 2019

NOW READING: The Latest Steps to help millennial clients lay a financial foundation By Graison Dangor

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Post by MoneyRadio Staff

Published
July 16 2019, 3:25pm EDT

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

Half of millennials invest, and the other half can join them

Advisors are choosing the independent RIA model now more than ever. Discover the 5 paths you can take to independence.
More than half of millennials have started to cut back on their spending to save for retirement, according to Bankrate report.

Just 50% of millennials surveyed by TD Ameritrade in 2018 “said they invest — including in their retirement accounts,” according to a NerdWallet article.Bloomberg News

Investing is easier than millennial clients may think, according to this NerdWallet article. To join the half of millennials who do invest, these clients can lay a financial foundation in a few steps, an expert says. Before investing, clients can begin paying down high-interest debts and building up an emergency fund, the CFP says. Their first investments should be for their retirement in 401(k) and IRA plans. After that, it’s acceptable for them to invest in individual stocks or use a robo advisor that builds their portfolio, according to the CFP.

A quick summer checkup for 401(k) plans
Summer is a great time for clients to review their 401(k) plans, according to this article in Money. Clients are advised to check whether their portfolio is overweight in stocks, and to rebalance, if necessary. It is also worth revisiting their tax brackets in light of the 2017 tax law. If clients lower their taxable income through higher 401(k) contributions, they may be able to drop a bracket, the article says.
5 ways clients can lower household spending in retirement
Moving to a fixed income can be frustrating for clients used to fewer constraints on their budget. But with some lifestyle adjustments, they can stretch their money while still doing what they love, according to this Motley Fool article. Moving to a smaller home saves on energy costs, property taxes and mortgage payments. Driving just one vehicle can cut thousands of dollars from their budget, the article says. Cooking more meals at home and exercising outdoors, instead of paying a gym membership, are two ways clients can live healthier and save. Entertainment and culture can also be affordable. Many parks, museums and events are free, the article says.

Survivor benefits can bridge clients until retirement — at a cost
By taking a survivor’s benefit at age 62, a client will be paid at that benefit level even if they retire at age 65, according to Forbes columnist Laurence Kotlikoff. Clients who wait until age 65 to claim their benefit will receive a higher amount, and those who do not retire until they are 70 years old will get an even higher payout, according to the article.

Graison Dangor

Graison Dangor is an associate editor of Financial Planning. Follow him on Twitter at @graisondangor.

This article is suggested reading by Secured Financial Services, LLC and President and Chief Executive Officer of Secured Financial Solutions, LLC, Anil Vazirani. Please visit https://secured-financial-solutions.com/

Retire and Stay Retired Safe! Smart! Secure!

Based in Scottsdale, Arizona, Secured Financial Solutions is one of the leading financial service firms in Arizona, catering to the financial planning needs of retirees and pre-retirees.

One of the benefits you can count on when working with one of our financial advisors is an outstanding personal relationship with an advisor. As a client, you will deal directly with a financial advisor who will take the time to understand your situation, objectives, estate planning, and retirement planning needs as well as your risk tolerance. We work directly with other advisors as well as CPAs, attorneys and trustees, to ensure that the investments we make will align with your estate plans, and that you are not faced with heavy tax burdens.

You can expect Secured Financial Solutions to develop comprehensive solutions to your complex wealth management and estate planning needs. Our one-on-one approach helps you achieve your financial planning goals, including maximizing your estate, retirement planning, minimizing your tax obligation, and continuing your family legacy. Our investment advisors will work with your CPA, attorneys, and other trusted professionals to help you make intelligent choices that align with your financial and personal goals.

This article is suggested reading by Secured Financial Services, LLC and President and Chief Executive Officer of Secured Financial Solutions, LLC, Anil Vazirani. Please visit https://secured-financial-solutions.com/

Retire and Stay Retired Safe! Smart! Secure!

Based in Scottsdale, Arizona, Secured Financial Solutions is one of the leading financial service firms in Arizona, catering to the financial planning needs of retirees and pre-retirees.

One of the benefits you can count on when working with one of our financial advisors is an outstanding personal relationship with an advisor. As a client, you will deal directly with a financial advisor who will take the time to understand your situation, objectives, estate planning, and retirement planning needs as well as your risk tolerance. We work directly with other advisors as well as CPAs, attorneys and trustees, to ensure that the investments we make will align with your estate plans and that you are not faced with heavy tax burdens.

You can expect Secured Financial Solutions to develop comprehensive solutions to your complex wealth management and estate planning needs. Our one-on-one approach helps you achieve your financial planning goals, including maximizing your estate, retirement planning, minimizing your tax obligation, and continuing your family legacy. Our investment advisors will work with your CPA, attorneys, and other trusted professionals to help you make intelligent choices that align with your financial and personal goals.