Retirement Income, QCDs, Market Volatility & More
I’m Diving Into Retirement Income Planning
Never stop learning. It’s a mantra I’ve taken to heart throughout my life, and it’s more crucial than ever in my role as a financial advisor in an ever-evolving industry. That’s why I jumped at the opportunity to enroll in a one-year three-course program to become a Retirement Income Certified Professional. I’m grateful to be learning valuable insights about strategies and tools that will help you enjoy the most satisfying retirement possible.
The first course, which I’ll complete this month, covers topics such as:
- Key retirement decisions
- Evaluating retirement risks & solutions
- Identifying retirement income needs and goals and creating an effective income plan
- Choosing ways to address income gaps
- Strategies for turning assets into income
In future newsletters, I’ll share interesting tidbits I learn. Here’s one:
More than 40 percent of people retire earlier than planned. In addition, one study showed 79 percent of people expected they’d work in retirement, but only 29 percent of retirees actually work.
That means it’s important to begin planning for retirement readiness sooner than you might think. Let’s talk about how you envision your retirement and strategies for accomplishing your income needs.
Should You Turn Your RMD into a QCD?
If you donate to charity and need to take required minimum distributions (RMDs) from your IRA, now is a good time to plan how to reduce your income taxes while accomplishing both goals. You’re required to withdraw money from your retirement account—and pay income tax on it—even if you don’t need to spend the money. If you use your RMDs to give money directly from your IRA to the charity of your choice, neither you nor the charity will pay income tax. It’s called a qualified charitable distribution. You can donate up to $100,000 per year this way; you just need to report it on your tax return. If you’d like to take advantage of this opportunity to give generously while reducing your tax bill, our team at MtM would be happy to help set this up.
Staying Positive During the Downturn
There is plenty of negativity to bring us down these days: Russia is attacking Ukraine, inflation is rampant, supply chain problems continue and the COVID pandemic isn’t over. Fear is fueling market volatility that could make you feel uncomfortable as your portfolio value suffers. Yet, behind those dark clouds, there are plenty of positive indicators about the economy. What should you do with your investments? Have you considered this as an opportunity to invest at bargain prices?
I co-host the weekly “More than Money” radio show with Gene Dickison every Saturday morning, and we’ve had a few recent discussions on this topic. You can listen to the recordings of these episodes by clicking the links below. Past shows also are available in your favorite podcast app.
Feb. 26 show: Senior Financial Advisor Mark Belcak joins us to talk about investment strategies during extreme volatility.
Feb. 5 show: Mark calls in to share insights and recommendations.
Jan. 29 show: Gene and I discuss how long-term investors can best weather these ups and downs.
Also watch Gene’s video about how the Russian invasion on Ukraine is affecting the markets.
What’s Next for ‘Invest in You?’
I’ve had a wonderful time organizing and enjoying the company of our wonderful guests at our first two “Invest in You” events. This is a quarterly series I started along with Megan Smale, our director of client communications, to gather women in the Lehigh Valley and support causes in our community.
In December, we enjoyed a meal from Daily Grind and collected donations to pack 51 shoeboxes for Holiday Hope Chests.
In February, we participated in the Chamber of Commerce’s wine and chocolate pairing event while making 174 valentines for Gracedale residents.
I plan to do a Mother’s Day-themed event in May, possibly involving a local animal shelter. Stay tuned for details!
If you have ideas or requests for future events, I’d love to hear them. Please call or email me to share them. Megan and I hope you’ll join us next time.
Talk soon,
Alyssa
Connect With Me
“More than Money” radio: Have breakfast with Gene and Alyssa every Saturday morning from 8 – 10 on AM790 WAEB. Send us your questions ([email protected] or [email protected]).
“Invest in You” Connecting & Inspiring Lehigh Valley Women Join our newest organization focused on bringing women together to support one another and our community. We meet every quarter for a great cause with great people – keep an eye out for info on our next event or send an email to [email protected] to be added to the email group.
Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and investment risk, including the possibility of loss of principal. Annuity guarantees, including guarantees associated with benefit riders are subject to the claims-paying ability of the insurance company. Surrender charges may apply if money is withdrawn before the end of the contract.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should be relied upon when coordinated with individual professional advice. This information is not intended to be a substitute for personalized financial planning, tax planning, or legal advice.
Securities offered through The Strategic Financial Alliance Inc. (SFA), Member FINRA, SIPC. Advisory and tax services offered through MtM Financial Group, LLC which is otherwise unaffiliated with SFA. 4505 Hanoverville Road, Bethlehem, PA 18020. SFA does not provide tax or legal advice. Supervising office 888-447-2444.