Baby Boomers is the nickname for the generation of people born between 1943 (or 1946) and 1960 (or 1964).[1] That means this year, in 2019, the very youngest of the Baby Boomers will turn 55 years old. Back when they entered the workforce, they probably imagined they’d be retiring with a company pension about now. In 1980,Read More
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Plan Retirement Right: Which is better, Traditional or Roth?
If you’re saving for your retirement in a 401(k), 403(b) or an IRA, you’ve probably seen that you can choose Traditional or Roth for your account. What does that mean, and which is better for you? Very simply, a retirement account described as “Roth” is one where you pay taxes on the invested money beforeRead More
Plan Retirement Right: What is Dollar Cost Averaging?
People take a variety of different approaches to investing for their retirement. Some may invest in fits and starts. Whenever they “come into some extra money,” they invest some in something that seems good to them at the time. That’s a pretty random way of saving for retirement, and not really reliable. Then there’s theRead More
Plan Retirement Right: Stock Market Volatility
Over the past few months, we’ve seen a large increase in the volatility of the stock markets. In a basic sense, volatility for an investment refers to the expected range of values it might be worth over a given period of time.[1] A large range of possible values represents high volatility, and a small set of valuesRead More
Who needs to know more about retirement finances?
How’s your “financial literacy?” Do you need to know more about finances, especially concerning your retirement years? Most people do, but there is a striking gender gap which shows a greater need for women, especially, to have a better understanding of retirement finances. In 2017, a survey[1] was conducted to measure the “financial literacy” of AmericansRead More
Plan Retirement Right: What’s a bond ladder, and how can it help when you retire?
One of the common concerns people have regarding their retirement is a fear of running out of money. We all want our retirement income to last as long as we do, and many of us also want to be able to leave something beyond that to our heirs. Those are legitimate concerns. We may haveRead More
Should you visit with a Financial Advisor or Planner?
Smart people know that sometimes they need to seek out expert opinions – because none of us is an expert in everything. As the person in charge of your finances, you should be willing to consult a financial advisor when necessary. We serve a diverse group of clients at Texas Financial and Retirement and haveRead More
How long will you live in your retirement years?
According to The Center for Retirement Research at Boston College, a person who retired at age 65 in 1970 could expect to live another 13 years during their retirement. They likely had a pension to add to their Social Security to cover expenses during those retirement years. Someone who retires in 2020, at the sameRead More
When should I start receiving my Social Security benefits?
The amount you can expect to receive from Social Security varies quite a bit. As we at Texas Financial & Retirement like to point out, Social Security should only account for about ⅓ of your income during retirement (the other ⅔ coming from retirement plans and personal savings). For many people, it will actually beRead More
What Happens To My 401(k) Or 403(b) When My Employer Changes?
When you leave an employer, or your employer is bought or merges with another company – or goes out of business, you typically need to decide what to do with your old 401(k) or 403(b) retirement account. That’s not terribly uncommon. Recently, right here in East Texas, we have seen major changes within the medicalRead More
How To Choose A Financial Advisor
Effective financial planning is a lifetime effort. Financial advisors work with families to get a grasp on their finances and manage them across all phases of earning and into retirement. When you look to recruit a financial advisor, it’s important to select a professional capable of guiding you across the many milestones in life andRead More
Are you overdue for a Financial Stress Test?
Speaking of a physical stress test, the Mayo Clinic says “A stress test, also called an exercise stress test, shows how your heart works during physical activity. Because exercise makes your heart pump harder and faster, an exercise stress test can reveal problems with blood flow within your heart.” We may not always be pleasedRead More
How soon do I need to start saving for retirement?
Retirement today is very different than it was half a century ago. In the past, many received pensions from their lifelong employers after they retired. Combining that pension with Social Security and the confidence that their largest purchase (a house) would certainly be worth more every year helped create a stable retirement. Now, pensions areRead More