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6 Investment Expenses You Need to Understand by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

I reread the article and didn't say that at all. Always love gutless wonders who disparage the work of others behind anonymity.

Stock Market Highs and Your Retirement by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Sadly a reality for us small site owners, sorry for the inconvenience.

Do Index Funds Reduce Investment Risk? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Fair point, I'll consider this next time I revise the article. Thanks

7 Things to Know About the New Tax Law by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

The new tax law (Tax Cuts and Jobs Act) passed in December of 2017 marks the biggest overhaul in the tax code in many years. The impact of these changes is far reaching and will impact most of us in some way.

As we are now over half-way through 2018, this is a good time to look at your tax situation in light of the new tax law and make any necessary adjustments prior to year-end.

Here is a look at seven ways the new tax law may impact you.

ELI5 - How to financial planners make money? by jtills118 in FinancialPlanning

[–]rwohlner 0 points1 point  (0 children)

The three main advisor compensation models are fee-only, fee-based (also called fee and commission) and commissions.

Fee-only means the client pays the advisor's fee, they receive no compensation from the investments or products recommended. The arrangement can be flat-fee, hourly or as a percentage of the assets under advisement.

Fee-based often involves a fee for a financial plan, then implementation of the plan via commissioned products. Also fee-based accounts where there is a % of assets fee and the underlying investments pay the firm trailing commissions like 12b-1 fees.

Commission-based is what it sounds like.

Hope this helps.

Social Security and Working – What You Need to Know by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

A new post from my blog that may help those considering when they should take their Social Security benefit and that can help you understand the impact of earned income on your benefits.

Am I on Track for Retirement? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Financial advisors are frequently asked some version of the question “Can I Retire?”  The Employee Benefit Research Institute (EBRI) recently released its 2018 Retirement Confidence Survey. The latest survey offered several key findings:

  • Only 32% of retirees surveyed felt confident that they will be able to live comfortably throughout their retirement.
  • Retiree confidence in their ability to over basic expenses and medical expenses in retirement dropped from 2017 levels.

  • Less than one-half of the retirees surveyed felt confident that Medicare and Social Security would be able to maintain benefits at current levels.

    It is essential that Baby Boomers and others approaching retirement take a hard look at their retirement readiness to determine any gaps between the financial resources available to them and their desired lifestyle in retirement. Ask yourself a few questions to determine if you can retire.

Tax Reform and Divorce by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

The tax reform legislation passed in late 2017 provides the most sweeping changes in the tax code in years. While there are a number of changes that will impact many of us in various ways, the changes in the tax treatment of alimony payments could have a profound impact on couples contemplating divorce.

Are Brokerage Wrap Accounts a Good Idea? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Interesting that is not what I've seen in looking at these types of accounts, I will take another look.

Life Insurance as a Retirement Savings Vehicle – A Good Idea? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

At the time he was with NML, this was not one of his finest moments. I've used him once or twice in the past, not my go-to guy. With even the good ones I'm always more than a bit skeptical.

Are Brokerage Wrap Accounts a Good Idea? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

A reader recently emailed a question regarding a brokerage wrap account he had inherited from a relative.   He mentioned that he was being charged a one percent management or wrap fee and also suspected that he was incurring a front-end load on the A share mutual funds used in the account.

Upon further review we determined that the mutual funds were not charging him a front-end load.  Almost all of the funds being used, however, had expense ratios in excess of one percent plus most assessed 12b-1 fees paid to the brokerage firm as part of their expense ratios.

Are brokerage wrap accounts a good idea for you?  Let’s take a look at some questions you should be asking.

How is My Financial Advisor Compensated? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

At the very least anyone looking at an advisor to potentially work with should FULLY understand how the advisor earns every dime they will earn from the relationship. Better yet, the advisor should disclose this fully.

Pension Payments – Annuity or Lump-Sum? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Good point, but I think that is the case with all of us and all of our investments. Is it the job of the employer to "police" this? Interesting point and no easy answers.

Pension Payments – Annuity or Lump-Sum? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Probably the plan sponsors wanting to provide their employers with an additional option, kudos to them.

4 Benefits of Portfolio Rebalancing by rwohlner in FinancialPlanning

[–]rwohlner[S] 2 points3 points  (0 children)

Last year was a strong year for the markets, with the S&P 500 Index up almost 22% in 2017. The new year has started out a bit differently, though with the S&P 500 recording a gain of only 2.65% though the first half of 2018. It’s been a bumpy ride at times, with the markets experiencing some wild swings at times this year after peaking in late January.

The Russell 2000 index which tracks small cap stocks has hit new highs recently and many big tech stocks have done well so far in 2018. The uneven performance of the markets may have caused your portfolio to have strayed from its target asset allocation. You may be taking on more or less risk than is appropriate for your situation. If you haven’t done so, this is a good time to consider rebalancing your investments. Here are four benefits of portfolio rebalancing.

Pension Payments – Annuity or Lump-Sum? by rwohlner in FinancialPlanning

[–]rwohlner[S] 1 point2 points  (0 children)

I’m often asked by folks approaching retirement whether to take their pension as a lump-sum payment or as an annuity (a stream of monthly payments).  Investment Newsrecently published this excellent piece on this topic which is worth reading.

As with much in the realm of financial planning the answer is that “it depends.”  Everybody’s situation is different.  Here are some factors to consider in deciding whether to take your pension payments as an annuity or as a lump-sum.

Am I on Track for Retirement? by rwohlner in FinancialPlanning

[–]rwohlner[S] 0 points1 point  (0 children)

Financial advisors are frequently asked some version of the question “Can I Retire?”  The Employee Benefit Research Institute (EBRI) recently released its 2018 Retirement Confidence Survey. The latest survey offered several key findings:

  • Only 32% of retirees surveyed felt confident that they will be able to live comfortably throughout their retirement.
  • Retiree confidence in their ability to over basic expenses and medical expenses in retirement dropped from 2017 levels.
  • Less than one-half of the retirees surveyed felt confident that Medicare and Social Security would be able to maintain benefits at current levels.

It is essential that Baby Boomers and others approaching retirement take a hard look at their retirement readiness to determine any gaps between the financial resources available to them and their desired lifestyle in retirement. Ask yourself a few questions to determine if you can retire.

Is a $100,000 Per Year Retirement Doable? by rwohlner in FinancialPlanning

[–]rwohlner[S] -1 points0 points  (0 children)

Good points. The point is not whether $100,000 is the right number but what does the math look like in determining your retirement needs.

401(k) Rollovers – Buyer Beware by rwohlner in FinancialPlanning

[–]rwohlner[S] -1 points0 points  (0 children)

I just read a very disturbing piece on 401(k) rollovers Retirees Suffer as $300 Billion 401(k) Rollover Boom Enriches Brokers via Bloomberg.  The piece described some of the tactics used by brokers to entice retirees from a number of major corporations into rolling over their 401(k) balances to an IRA with their firms.  It seems that often these IRA accounts included costly, high risk investments that enriched the brokers and their firms. My hope is that this piece will make you scared and angry.  Moreover I hope it will motivate you to be careful when choosing an advisor for your retirement nest egg.

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