… a prenuptial agreement. Traditions are fun and meaningful, but a prenuptial could prove a great catalyst for a good marriage. Prenuptial agreements have often been labeled as an implication of distrust or premeditation of divorce. But consider this: Do you have homeowners’ insurance because you are planning to set fire to your home? I certainly hope not. Do you have auto insurance because you are planning on wrecking your car? Of course not.
You might have noticed that the Trump name is getting plastered on quite a few things lately. If you have young children, one that might be of interest is the Trump Account. Trump Accounts were established under the One Big Beautiful Bill Act (OBBBA) and are essentially starter retirement accounts for kids. While more details regarding logistics and funding of the Trump Accounts are anticipated, here’s what we know.
Too many people are fearful of retiring. Yes, there are many who are counting down the days and are excited about their list of things they want to do and see. Yet there are still others who aren’t sure about how they will spend their time, what their purpose is now that they are no longer working, and whether their money will last.
Many investors and pundits love dividends, but does this popular opinion hold up? First, let us review the pros and cons of dividends.
Pros:
- Provide a regular and growing (hopefully more than inflation) source of cash.
- Hold management to more disciplined capital allocation decisions.
- Provide psychological comfort helping investors stay invested during downturns.
- Research suggests dividend stocks exhibit lower shareholder turnover1 & volatility.
Cons:
For many, achieving millionaire status has been a widely accepted goal that once achieved, you can breathe a little more comfortably. Unfortunately, the reality is that having $1 million saved does not guarantee a feeling of security. My theories for this are trifold based on discussions with clients, family, and friends. First, as humans, we are programmed to detect a threat. That natural state is tested daily (think driving on the beltway) and exploited daily (think pharmaceutical commercials for instance – do I have dry skin or psoriasis???).
For many clients, especially those in their 50s that have college-aged children, the focus of their savings plan becomes a little less complicated once college costs are paid. For those that had been socking away funds each month for tuition, they may wonder how to redeploy those future savings dollars. You could ramp up retirements savings. However, you may already be maxing out 401(k) contributions at work, including the “catch-up” amount. As I’ve written about previously, one strategy to consider is combining different types of savings vehicles to meet those needs.
As the global economy implements artificial intelligence (AI) in the workplace, concerns arise regarding the potential for widespread job losses as a result. However, if true, will these human job losses be transitory or permanent? Or will the AI revolution give way to long-term human job growth given anticipated efficiency gains?
Every year marks a fresh start—a valuable opportunity to pause, reflect on past experiences, and set your sights on the future. As the times are always “a changing,” your approach to retirement planning should continue to evolve as well. Planning ahead and coordinating a tax-efficient account withdrawal strategy in retirement is important. The new catch-up rule under the Secure 2.0 Act could help with this now.
Managing your debt may seem like a daunting task but the benefits of careful planning are invaluable. Debt is a major concern for many Americans and for good reason. If left unmanaged, many growing liabilities can eat up your current income, reduce your current and future savings, and even prevent you from buying a car or house. If you could create a plan to pay down your debt and untangle yourself from the institutions to which you are beholden, wouldn’t you? It is not always easy to “find” more cash to throw at liabilities.
Nowadays, the 529 plan is ubiquitous among those families with children planning on or going to college. The advantages are obvious – tax-deferred growth of savings, potential tax-free distributions, and often a state tax deduction for the investor. That much is simple and straightforward; but as they say, “the devil is in the details,” especially when the details continue to evolve. Some questions we often get are: How much can I contribute? How should I invest my contributions? What if my child does not attend college? What if we move from one state to another?
In today's dynamic financial landscape, individuals seek innovative and effective ways to protect their assets while maximizing financial benefits for themselves and their family. One such strategy that has gained popularity in recent years is the Spousal Lifetime Access Trust (SLAT). SLATs provide a unique opportunity for married couples to protect their wealth, reduce estate taxes, and maintain control over their assets, all while ensuring financial security for their spouses.
Artificial Intelligence," or simply "AI" is a catchphrase these days. The concept of having a computer perform tasks using human-like intelligence and discernment makes it feel like the next chapter in a sci-fi novel is here.