Are you worried about how the current economic climate will affect your retirement planning? We’re hearing more and more that GenX and younger need to save more to retire comfortably. And while the market is unpredictable, focusing on long-term planning is more important than short-term market movements.

Taxes have become the #1 issue clients want managed. One big, missed opportunity I see is not deducting medical expenses when they can. In recent years, fewer Americans have claimed medical deductions compared to mortgage interest and charitable donations. In 2020, only about 4 million out of nearly 150 million filers claimed medical expenses. This blog shares some key medical deductions you should consider.

At a recent XYPN conference, these topics were top-of-mind: Wall Street is anti-fiduciary, tax policy trainwreck, long-term care insurance isn't insurance, budgeting is the dieting of financial planning, new FAFSA and education costs and investing in a prolonged inverted yield curve.

Two months ago, the most influential financial economist in history died at the age of 95. Harry Markowitz brought us Modern Portfolio Theory (MPT) in the 1950s and this model became the standard used by Wall Street and DC regulators. Even today, nearly three quarters of a century later, you see MPT everywhere. What’s the problem? It’s beautifully precise but still not accurate.

As the second post of a two-part series on life insurance, we discuss term life insurance—the amount of coverage you should consider and other pitfalls to avoid. See previous post for more information.

Life insurance is an important part of any financial plan, but buyers should beware. This is part one of a two-part series on the topic where we discuss the different types of life insurance – ones you should supplement (like that from your employer) and ones to avoid altogether. Part two will cover specifics about the amount, the process, and some resources.

When I started the firm, the “Lifetime” in Lifetime Financial was a reminder that we have only one lifetime and we don’t know how long it will be. At my young wife’s cancer diagnosis in 2004, I became painfully aware that life can be much shorter than expected. It was then for the first time that I truly understood that money isn’t our scarcest resource, time is.

Bank failures that raise systemic risks to the financial system are a cause for serious concern. Silicon Valley Bank was poorly diversified and made major strategic mistakes. Regulators and the Federal Government had many opportunities to prevent this.

Jack Bogle, the founder of Vanguard Group, gave retail investors a big advantage by offering inexpensive index funds from a company that uses its profits to reduce investor fees. Vanguard helped lower fees for everyone, not just Vanguard investors, by creating quality, low-cost mutual fund products with which other firms had to compete. Vanguards impact continues to be enormous, and it has a very devoted community of followers called “Bogleheads”. 

Lifetime Financial is a Registered Investment Advisor (RIA) and we see a lot of consumer confusion regarding what a “fiduciary” is. Learn about its origins and the regulatory missteps that has made the public more vulnerable to bad actors.

The 2019 SECURE act and its follow-up, SECURE 2.0, are the largest changes to the U.S. retirement system since the late 1990s. I reviewed both bills and compiled 57 notable retirement changes in the bills, all ranging from small to moderate in scope. Nothing addresses the inherent flaws in the system that go back to the 1970s when our modern retirement system transitioned dramatically. Social Security and troubled employer managed pensions needed bailouts and reform and seemed unprepared to support America’s retirement.

At Lifetime Financial, we spend a lot of time Life Planning. Life Planning is a series of exercises that encourage clients to spend their time and money on the things that bring them the most fulfillment and flourishing. Travel is high (often number 1) on our fulfillment lists, including mine. For most of my life I have thought of it as a core value that has moral goodness. When we travel, we get historical perspective, global understanding, and human compassion. Our local belief bubble is challenged and there is some economic benefit to the host country. Was I right about that?

The Biden administration announced $36 billion in COVID-19 money would go to Teamster union pensions in the Midwest and Texas. Pension funds are troubled and need fixing. Wall Street, bad regulations, short-term thinking, and mismanagement play a big role. But let’s not assume it’s easy to run a pension. Pensions have the same huge issue you do with your own retirement plan. It’s the number one worry of my clients and the primary reason people seek a financial planner. 

It is common for financial planners to emphasize that “more is more” when it comes to saving for retirement. But this is not necessarily the best path forward for everyone. There should be a delicate but critical practice of balancing the need for a safe, comfortable retirement with the need to lead fulfilling lives NOW.

You know risk and reward are linked. You know you can expect additional return from risky stocks. How much extra return do you usually get from stocks and is it worth taking the risk? This is a subject academics have been looking at for decades and have many models.