No matter how thorough our planning is, life inevitably tosses curve balls at us. Often these challenging moments are linked to major life transitions that affect our families, our careers, and our money. Balancing these variables can make arriving at the best decision that much more complicated. Snap decisions are usually the least effective in … Continue reading
We live in interesting times. Interest rates are at historical lows while stocks are at historical highs. Most experts in the financial industry would agree that stock valuations are stretched and there is currently quite a bit of risk in the stock market. Most financial planners would tell you that you need safe assets in … Continue reading
One of the key things a financial planner does is make sure a client is using appropriate assumptions given the current environment. We use sophisticated planning software to predict the probability of a client achieving their goals. These applications go a long way in projecting all the possible outcomes, but the models are only as … Continue reading
The answer is when you are in retirement. I talk to lots of people who are entering retirement and the one thing I try to stress is that it is a different ballgame and requires different strategies for managing your wealth. The objective typically changes from one of growing your money to one of preserving … Continue reading
In recent weeks, I have had several conversations with clients that have received solicitations from unscrupulous financial firms. Due to SEC regulations, high pressure sales tactics may not be used as widely in finance as they once were, but that doesn’t mean that unscrupulous financial professionals don’t exist. It pains me to see how much … Continue reading
Lately, I have received a lot of questions from clients regarding the presidential election and how it will affect their portfolios. No one can accurately answer this question, but what I can say is that if good government was required for people to be financially successful, we would all be broke. I feel for clients … Continue reading
First let me say that I am not a fan of debt, especially in retirement. However, in certain circumstances it can be appropriate. What I find is that often people’s largest asset is their home. However, it typically does not help them much if they are not willing to sell the assets to access the … Continue reading
I have often noticed that people spend valuable time worrying about things they cannot control. In the financial arena this includes trying to predict what the stock market is going to do in the next day, week or year, how fast China will be growing, what interest rates will do, what the price of oil … Continue reading
Reduce taxes. Most retirees admit that they did a poor job proactively managing taxes both before and throughout retirement. In my experience, clients are not getting the advice they need in this important area of their financial lives. At Innovative Wealth Strategists, we concentrate on tax planning heavily because we know how important it is … Continue reading
If you own a business and have children, you may be overlooking a valuable opportunity to reduce income taxes. The basic idea is to shift income to your children and take advantage of their lower tax bracket. In order to implement this strategy, you must first have a business that lends itself to hiring your … Continue reading
Generally speaking no one wants to think of themselves as average, but when it comes to investing being average can be your friend. What do I mean by this? Everyone would like their investments to outperform the hottest sector. By striving for this, you will inherently take on more risk which can be quite damaging … Continue reading
Given my perception that the stock market is approaching overvaluation, I thought it would be a good time to review some of the weaknesses that we as humans struggle with when making financial decisions. Sociologists and psychologists have studied human behavior in financial markets and have come up with some interesting conclusions. When it comes … Continue reading
I have worked in the financial services industry for over 30 years. What I have learned is that it is very difficult for the typical consumer to distinguish between a good financial advisor and a bad one. A bad financial advisor could cost you hundreds of thousands of dollars over the course of your relationship. … Continue reading
In today’s busy world, people often are reacting to things that are urgent but not necessarily vital. One of those vital areas is retirement planning. We meet people every day that are within 5 years of retirement and still putting off planning. I believe they do this because they think there is very little to … Continue reading
Presented by Bruce Horowitz The strong equity market rally in early 2013 has fueled some concerns about inflation and rising interest rates, and investors now may be wondering how they can protect the fixed income portion of their portfolio against this inevitable rise in rates. It’s important to remember, however, that not all fixed income instruments … Continue reading
I wanted to officially congratulate everyone for making it through another tax season. We are now in financial freedom territory. This means you get to keep what you earn versus it going to the government. If you live in California, “Tax Freedom Day” was April 27th. That means up until April, 27th, all your earnings … Continue reading
I have noticed that most retirees have very little counsel as it relates to maximizing a very important retirement asset, their Social Security benefits. Many people believe that once they hit age 62, they should immediately begin receiving Social Security benefits. This can be a huge mistake and cost your family hundreds of thousands of … Continue reading
As people enter retirement, the above question weighs on them. Most, if answering honestly, would say, “I am not sure”. Some of the factors that influence the outcome are: How long you are going to live? What will inflation be? How are your assets allocated and how much of your earnings do you get to … Continue reading
With April 17th right around the corner, many people have taxes on their mind. What people don’t realize is that we are in one of the lowest tax rate environments that has ever existed. The top tax rate for an individual is currently at 35%. The capital gains rate is at 15%. To give you … Continue reading
On February 21, at Innovative Wealth Strategists, we held a focus group entitled “Paying for Care”. We had a good turnout and everyone enjoyed the food, wine, and the opportunity to ask questions about their personal situations. I started the evening talking about long term care costs which generally range from $3,000-$8,000 a month depending … Continue reading
