PLANNING FOR RETIREMENT
The Bureau of Labor Statistics shows in their last report in 2020 that retirees are going out and getting part-time jobs. Furthermore, this number is expected to more than double from 33 million in 2000 to 72 million by the time we get to 2030!
That is an astonishing number! What is going on? According to the Employee Benefit Research Institute and Retirement Confidence Survey done 12/2021, the answer is multi-layered. First, 52% of retirees said they got a job in retirement because they wanted to stay active and involved, and 38% enjoy working and being engaged. 17% said it was because they needed to in order to make ends meet.
Lastly, in this job market–something we have NEVER seen before–there are 2 jobs for every applicant!! There are SO many job/working opportunities that we haven’t had access to, which makes the prospect of having a job or work in retirement rewarding and fun.
Retirement is an ever-evolving time of life. As we are living longer and healthier, working in retirement is something that many of us will be doing and thinking about. Lot’s of exciting and fun options!
TAX DOCUMENTS
AssetMark tax documents are now online at their website www.ewealthmanager.com. You can access them by logging into your account and selecting Document Vault, which is the 2nd tab on the blue bar at the top.
Kestra/NFS tax documents are also available at www.wealthscapeinvestor.com/kestra.
For all other accounts, you can go to the company’s website, create a login if you don’t already have one, and go to the documents section.
Feel free to reach out to us if you have questions.
INVESTING SHOULD BE BASED ON FACTS…NOT EMOTION
Looking back at investor behavior since 1971…
If you invested during the time, consumers felt uncomfortable and sentiment was down because the stock market was down–the next 12 month’s return on an all stock portfolios was 24.9%.
On the other hand, if you invested during a time when consumer sentiment was up, and investors felt great because the stock market was up–the next 12 month’s return was 4.1%.
This bank of historical data that JP Morgan has gathered illustrates this HARD reality: when you are MOST stressed and uncomfortable in your portfolio, is the exact time you should be getting growth in your investment strategy and adding to your portfolio.
Remember it’s easier to make money when you buy (invest) on sale (the market is down). We know this is hard, but time and time again this has been a successful strategy for the diversified long-term investors.
70% of the time the market is up, 30% of the time it’s down. Another way to think about this is…we are in an opportunity time. Downturns are the exception, not the rule. Take advantage if you can.
Source: JP Morgan December 2022 Guide to the Markets
SOME GOOD NEWS AND SOME BAD NEWS ON THE TSP’S NEW RECORD KEEPER AND ONLINE WEBPAGES:
- The Thrift Savings Plan’s new record-keeping system has had some snafu’s and requires a slight learning curve to navigate through presently. It is, however, more functional and helpful in some areas important to pre- and post-retirees from federal service. Most of the notable enhancements are in the improvement of withdrawal options and the ability to adjust them. Let’s look at that GOOD NEWS list first:
You can now make a Systematic/Designated payment from your Roth or Traditional TSP assets or a
combination of both - You can start and suspend a payment
- You can Rollover a Roth Balance specifically beginning when you’re age 59 ½ and employed
- You can Rollover a Traditional Balance specifically beginning while you’re age 59 ½ and employed.
We know that many of you have struggled with the navigation of the new recordkeeper’s website. If you would like some help with the navigation please schedule some time with your advisor by calling the office.
The BAD NEWS part: if you missed the update late last year, we discovered that some of the TSP participants have had their beneficiaries mistakenly removed or they were simply not transferred over in the May conversion of data between old and new plan custodians. The result is that we are encouraging all TSP participants to go online and ensure that their beneficiaries are accurate and current. Please act on this request. Failure to do so could damage your intended estate plan. You can complete a beneficiary form on the TSP website. This is for both active and retired participants in both the civilian and military plans.
REVERSE MORTGAGE
USING HOME EQUITY AS A RETIREMENT ASSET
In general, there are some basic things to know:
- You and your spouse must be age 62 or older to apply for a reverse mortgage.
- Must continue to live in your home.
- The proceeds don’t affect Social Security or Medicare premiums.
- Dollars are typically tax-free.
- Payouts can be set up monthly or a lump sum.
- These loans are controlled by the government and HUD is responsible for
making the rules. - Reverse mortgages can eliminate a current loan -OR- be used to purchase a
new home (it must be your primary residence). - Ownership of the home remains with the individual or couple NOT the bank.
If this is something you might be interested in learning more about please call us so
we can discuss your unique circumstances.
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Securities are offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Personal Benefit Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC/ This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward-looking and should be viewed as an indication of future results.
Investor Disclosures https://bit.ly/KF-Disclosures