Cassa Wealth Management

Prince, Pauper or In-between: How Long Can You Live on Your Savings?
Prince, Pauper or In-between: How Long Can You Live on Your Savings? 150 150 smolinlupinco
 If you lost your job, could you cover your bills? When consumers were asked that question in a survey this year by RetailMeNot, the discount coupon site, nearly half (48%) confessed that their savings would last for just one month. At the other extreme, those with an emergency fund (52%) estimated it would tide them over for eight months without any additional income. The root of this great savings divide may be simple: Many people just don’t know how to save. And, almost half (49%) of the surveyed consumers lacked confidence in their understanding of their personal finances.

But learning how to save isn’t difficult. “I started very young with my kids—about 10 or 12—teaching them the value of saving money now to prepare for their
future goals,” says Michael, a physician at the University of South Florida. He’s used his financial knowledge to advise healthcare organizations, as well as his family, in the importance of saving. “You don’t have to be rich to save,” says Michael, noting that anyone with an income can stash away a substantial cushion—if they follow some common-sense advice.

Here are six tips to pursue a stress-free financial future:

1. Create a Budget

Track your expenses, figure out how much you need to cover essentials and identify where you can make cuts. For example, by not eating out as frequently, you might be able to save $30 or more a week.

2. Prioritize Your Savings

With your budget in place, calculate how much is left for savings, and set priorities.

  • Stockpile an emergency fund that covers bills for at least six months – or, better yet, have two to three years worth in cash or short-term investments.
  • Make regular retirement fund contributions. Be sure to take advantage of an employer’s matching contributions—otherwise, you’re throwing money away.
  • Save for your kids’ college tuition.
  • Sock away money for a vacation, entertainment and other splurges.

3. Make Savings a Habit

Pay yourself first with every paycheck by contributing to your savings account. The easiest way to do so is with automatic deductions.

4. Capitalize on Compound Interest

Albert Einstein called it the “eighth wonder of the world.” Put your money in accounts paying interest, leave it there and watch your money potentially grow. Michael convinced his children to start saving with an example like this one: If a 20-year-old saves $30 each week, that adds up to $1,560 a year. With a 6% annual return, just that one year in savings will grow to $21,472 by the time they’re 65. If you continue to make annual contributions of $1,560 for the next 45 years, you would have the potential for a grand total of $373,265.47 minus fees and other investment-related charges. Keep in mind that your results will vary. The hypothetical rate of return used here isn’t guaranteed, and the example isn’t representative of a specific situation. And remember, all investing involves risk, including the potential loss of principal.

5. Pay Off Credit Card Debt Every Month

Paying high-interest rates on your balance is money you could otherwise be investing.

6. Save Your Raise

Painful as it may seem, one way late starters can play catch-up is to put most of that extra money into savings.

For Michael, a lifetime of disciplined savings will come full circle when he retires this summer. As he travels the country in his energy-efficient camper van, the frugal doctor will be living out his motto: Worry now, relax later.

Start planning now. Work with your financial advisor to plan for your financial future.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This material has been prepared by LPL Financial, a registered investment advisor, member FINRA/SIPC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity.

Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

© 2014 LPL Financial LLC. All Rights Reserved. The information contained herein has been prepared by and is proprietary to LPL Financial. It may be shared via social media in the exact form provided, in its entirety, with this copyright notice.

MKT-0130-0814_A01 LPL Tracking #1-2768962

Getting “Over-the-Hill” to Help Prepare Yourself for Retirement
Getting “Over-the-Hill” to Help Prepare Yourself for Retirement 150 150 smolinlupinco

6 “Uphill” Facts

  • 61 is the average retirement age (it was 59 in 2003 and 57 in 1993), according to a 2013 Gallup survey
  • 18 years of retirement (on average) 13% of the average population is
  • 65 years or older
  • 80% of 30- to 54-year olds believe they will not have enough retirement money
  • 36% of Americans save nothing for retirement
  • 63% of American workers who start work at age 25 and retire at 65, will depend upon Social Security, friends, relatives or charity

6 “Downhill” Options

1. Create a financial plan.

Figure out how long you can live on your expected retirement income at your current lifestyle.

2. Cut your spending now.

Consider downsizing your home and paying off your debt. Add money to an age-appropriate investment vehicle.

3. Find a retirement-friendly employer.

Work for a company that offers a 401(k) match or a pension plan and contribute the maximum pre-tax dollars.

4. Open a Roth IRA account.*

Unlike standard IRAs, you contribute after-tax money, so it’s another way to save.

5. Move to a cheaper location.

Many retirees dream of living in warmer climates; however, consider states that are tax-friendly to retirees.

6. Maximize your Social Security checks.

Don’t take payments until you must. Taking checks at age 62 will trim your monthly payments.

 

Every day, we edge closer to our retirement, but many of us will be caught unprepared.Yet, here’s what we can do now to make heading into retirement a whole lot easier. Contact a financial advisor today.

 

*The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.This material has been prepared by LPL Financial. A registered investment advisor, member FINRA/SIPC. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity. Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit © 2014 LPL Financial LLC. All Rights Reserved. The information contained herein has been prepared by and is proprietary to LPL Financial. It may be shared via social media in the exact form provided, in its entirety, with this copyright notice. MKT-0130-0814_B2_i17 LPL Tracking # 1-278881

Don’t Just Say it, Do It. Start Saving.
Don’t Just Say it, Do It. Start Saving. 150 150 smolinlupinco

Different life milestones require updated investment strategies.

Screen Shot 2016-08-01 at 9Buying a Home

In 2014, the median price of a home is $198,500.

  • Set a goal and timeline for purchase
  • Decide what contributions, if any, should shift from a 401(k) or retirement plan into home savings
  • Consider a high-yield savings account or CD

Source: Economists’ Outlook

 

Screen Shot 2016-08-01 at 91Sending Kids to College

In-state public college averages $22,826 per year and costs are rising.

  • Start saving early; high school graduation may sneak up on you
  • Anticipate room and board on top of tuition
  • Consider setting up a 529 Education Savings Plan

Source: College Board

 

Screen Shot 2016-08-01 at 92Creating an Emergency Fund

As many as 48% of Americans don’t have an emergency fund.

  • Save at least months’ worth of expenses
  • Keep funds accessible; many choose traditional bank savings accounts or money market accounts
  • Treat savings like a bill; make a mandatory monthly contribution

Source: Bankrate

 

Screen Shot 2016-08-01 at 94Saving For Retirement

Retirees will need approximately 70-80% of their pre-retirement salaries to maintain their lifestyles

  • Consider your retirement age
  • Anticipate life expectancy and future healthcare needs
  • Evaluate 401(k)s and other retirement plans with your financial advisor

Source: E.F. Heagen Associates

 

Are you ready to take action? Start the conversation with your financial advisor today.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.This material has been prepared by LPL Financial. A registered investment advisor, member FINRA/SIPC. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity. Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit © 2014 LPL Financial LLC. All Rights Reserved. The information contained herein has been prepared by and is proprietary to LPL Financial. It may be shared via social media in the exact form provided, in its entirety, with this copyright notice. MKT-0130-0812_B2_I16 LPL Tracking # 1-278886

When Should I Start My Social Security Retirement Checks?
When Should I Start My Social Security Retirement Checks? 150 150 smolinlupinco

In 1993, the average retirement age was 57. Today, it’s 62.

Americans are living longer, working longer and retiring later. Unfortunately, some of us haven’t saved much. “The average working household has virtually no retirement savings,” says the National Institute on Retirement Security. You might need Social Security to stay afloat in old age. That means the decision about when to claim your benefits is a decisive one.

More is better.

The size of the Social Security check you’ll receive is the result of your earnings record and your age when you start taking benefits. Your “full retirement age,” when you’ve earned 100% of those benefits, is 66 to 67, depending on when you were born. Collect early, before full retirement age, and you’ll pay a penalty—you’ll receive a smaller check.

Rule of Thumb #1:

For every month you file before your full retirement age, your benefits are reduced by about a half percent–for life.

Wait if you can.

The choice of your start date locks in the size of your checks. Some Americans grab Social Security as soon as they can. For widows and widowers, that’s at age 60. For everyone else, it’s 62, which has been and still is the most popular  age to start benefits, according to U.S. News & World Report.

That’s changing, however. In 2013, The Urban Institute found 12% fewer Americans starting Social Security at 62 than a decade before.

If you hold off filing until after full retirement, your checks earn a bonus of 8% a year. The longer you wait, the bigger your benefit becomes until age 70. After 70, there’s no benefit to waiting longer.

Waiting makes sense, if you’re healthy and your family tends to live long. A $2,000 benefit, for example, becomes $2,640 if your full retirement age is 66 and you wait four more years.

A quarter of today’s 65-year-olds will live past 90, the Social Security Administration says. You may need those checks for a long time.

Rule of Thumb #2:

For every year you wait to take Social Security between your full retirement age and age 70, you’ll get an increased benefits bonus—for life.

Tradeoffs

Here is a hypothetical example of the pros and cons for someone eligible for $750 a month at 62 who waits and claims benefits at 70:

Pros:

  • At 70, your monthly checks
    are $1,320–$570 more a month for life.
  • After breaking even between age 80 and 81, your total earnings are greater each year compared with taking benefits at 62.
  • At 83, your total Social Security earnings are $16,920 more than if you’d begun at 62; at 85, you’ll have $30,600 more; and by 90, you’ll have $64,800 more.

Cons:

  • You wait longer to get checks.
  • You get fewer checks, overall.
  • You lose money if you die before breaking even, in roughly 10 1/2 years or age 80 1/2.

Calculate your Social Security benefits and talk to your financial advisor today. For more information, visit the Social Security Administration website—www.ssa.gov.

4 Lesser-Known Money Management Apps That Are Hidden Gems
4 Lesser-Known Money Management Apps That Are Hidden Gems 150 150 smolinlupinco

From your bank, to trendy restaurants, and even Major League Baseball parks, everybody has a handy smartphone loaded with apps that provide useful information and services.

The latest statistics show that 51 percent of people in the United States are banking online, so it’s no surprise that the world of personal finance has spawned its own selection of great smartphone apps. Below are four lesser-known money management apps in the Apple and Android app stores that can help keep your day-to-day finances in check.

money management appsSAVEDPLUS (Free, iOS & Android)

Saving can be hard, so SavedPlus aims to make it a little easier. This app takes a look at everything you spend and automatically deposits a percentage of that amount into a savings account. For example, if you set the app to save 10 percent of what you spend and then you buy $100 worth of groceries, the app will automatically transfer $10 from your checking account to your savings account.

 

 

money management appsCREDIT KARMA (Free, iOS & Android)

If you’re keeping an eye on that credit score—perhaps because there’s a big home purchase on the horizon—take a look at Credit Karma. This app lets you check your credit score without asking you for any credit card information, and there’s no membership required. You can also set up mobile alerts to track any activity that may be affecting your score.

 

 

money management appsVENMO (Free, iOS & Android)

Venmo may be best known for taking the awkwardness out of paying the bill during a group dinner at a restaurant. That’s right—no more writing on the back of the check to figure out who owes what. With Venmo, you and your friends can be connected virtually and send each other money instantly. This way, with a group of six, for example, five friends can instantly put money into the 6th person’s account and that individual can pay the check. With a simple interface, Venmo is one of the easier-to-use payment apps, and also features alerts to let you know when new phone contacts join the service.

 

money management appsPAYPAL (Free, iOS & Android)

More and more, digital payments are becoming the norm. It’s not uncommon to see “Pay with PayPal” when booking a hotel room or even buying clothes. There are several ways to set up a PayPal account, but the most popular is to connect a checking account or credit card directly to the service to send and receive money. This app version allows you to look at your account balances and make transactions, including sending money to family and friends. PayPal recently added a feature that lets you take a picture of a check and deposit the funds into your PayPal account.

 

Need additional guidance on your personal finances? Contact your financial advisor today.

Tips To Help You Retire Early
Tips To Help You Retire Early 150 150 smolinlupinco

Think you’re ready to hop off the hamster wheel? It’s getting harder to do. In 2014, just 4 percent of Americans expect to retire before age 55, compared with 15 percent in 1995, a Gallup poll says.

Check your preparedness by seeing if you have the following:

A monthly income stream to cover living expenses and taxes

If your money’s tied up in long-term investments, or in real-estate property in a down market, or in the home you’re living in, you might have a nice net worth but a skimpy monthly income stream.

What counts? Reusable income. A few examples: pension or annuity payments, interest income, rent from income property, payments from a housemate
or boarder, a weekend job or earnings from a thriving hobby business. Remember: You may need this income for decades.

Medical insurance you can afford

You have a retiree medical plan or insurance through your spouse? Hallelujah! Otherwise, look at the many options in the Affordable Care Act Health Insurance Marketplace, those that combine a high-deductible plan with a tax-free Health Savings Account can save on costs, but your individual needs may require a different approach.

Six months worth of emergency funds

You should consider having enough cash to cover expenses for six months. Financial advisors also recommend keeping two to three years’ expenses in cash or short-term investments.

A plan for managing at least 3% inflation a year

Retirement calculators online help estimate how big your nest egg should be. Some let you set the level of inflation. Others are fixed, so check their inflation assumptions.

Better yet, consider hiring a fee-only, certified financial planner to model several scenarios for you with varying assumptions for savings, inflation, expenses and spending.

Confidence that, if you’re taking social security early, the smaller benefit won’t hurt you later

The median life expectancy for a 65-year-old American woman is 86, according to the Social Security Administration. For men, it’s 84. Half will die sooner, half will live longer.

Taking Social Security early means more checks sooner, but smaller checks for life. If you’re in reasonably good health you could live a very long time. One in four of today’s 65-year-olds will live past 90, and one in 10 will survive past 95, the Social Security Administration says. Will your nest egg last 35 years?

A plan for $100,000 or more in out-of-pocket medical expenses in retirement

Even with Medicare and supplemental plans, retirees’ out-of-pocket medical costs, including for serious illness and long-term care, can cost hundreds of thousands of dollars over a retirement.

No debt—or minimal debt

Consider paying off your house if possible. At least look into eliminating all consumer debt—credit cards, auto loans and everything else that funds consumption.

A backup plan, in case you retired too soon

The Internet is full of stories about early retirees who, ambushed by unexpected expenses or surprise cuts in income, had to return to work. Maybe you won’t mind working for a customer service call center or in the retail aisles of a big box store, but if you do, have a Plan B— before, not after, retiring.

Ready to take the plunge? Contact your financial advisor today.

Will My Money Last Through Retirement?
Will My Money Last Through Retirement? 150 150 smolinlupinco

Most investors spend the majority of their lives attempting to accumulate investable assets based upon the priorities and goals they’ve set for their family. Among the many priorities are establishing an Emergency Fund for liquidity, Saving for College (529 Plans), Retirement Planning, Health Care Planning and possibly even purchasing a Vacation Home. They realize they are in the accumulation phase of their lives and they have time on their side to ride out the volatility that is often present in the Stock Market.

As investors age into their 40’s & 50’s, they may begin to achieve some of their goals (such as paying for College Tuition, etc.) & they now realize their time horizon has now shortened in terms of reaching some of their other goals. While they have accumulated and earmarked some funds towards Retirement, Health Care Expenses or a Vacation Home, they begin to wonder if they will have enough money to last throughout their entire retirement period. And if that wasn’t enough to think about, many retirees don’t realize that up to 85% of their social security benefits (including the amount withheld for Medicare premiums) are subject to income tax. There are usually no taxes withheld from their social security check which amounts to an added expense in retirement that many simply don’t plan for. These concerns are indeed valid ones, concerns that need to be acted upon. Unless you are a financial or tax professional, you may not have the tools or the expertise to assess whether or not your money will last as long as you do.

Our combined expertise as Wealth Management Advisors and Tax Professionals means that we’re faced with these questions on a daily basis. It is of paramount importance that investors in this situation develop a written Financial and Tax Plan so that you can establish concrete strategies that can be followed to attempt to keep you on track to realizing your family’s financial goals. This is an essential first step. Prior to deciding to actually retire, you will need to reassess your financial position and develop a customized Income Plan that will take the Investable Assets you’ve accumulated throughout your lifetime and convert them into income. This is critical as your goal should be to preserve your capital while maximizing your income and minimizing your income taxes. These are essential components of the Income Plan you should be developing. Finally, when looking to develop lifetime income, it may be wise to consult with both a Financial and a Tax Professional, as they have access to certain select products that individual investors do not have access to. And with interest rates at or near all-time lows, it has become extremely challenging to develop enough income to last throughout your entire retirement period. As this decision will affect the rest of your life, it is essential that you attempt to become more knowledgeable about the strategies and products that may provide you with the best chance for success.

 

Jim Cassa, CPA, PPC                           Ted Byer, CPA, PFS, CFP®                 Leon Grassi

President                                                       Partner                                                           Director of Marketing

Cassa Wealth Management, P.C.             Smolin Wealth Advisors, LLC                    Smolin Lupin & Co., PA

 

Important Disclosures

Smolin Wealth Advisors, LLC is a Registered Investment Advisor (RIA) with the state of New Jersey. They are an affiliate of Smolin, Lupin & Co., PA, who provides Accounting, Tax and Advisory Services.

Cassa Wealth Management is an Independent Wealth Management firm that provides Financial Planning & Wealth Management Services for both Individual & Corporate clients through LPL Financial.

Smolin Wealth Advisors, LLC, Smolin Lupin & Co., PA, Cassa Wealth Management, P.C., and LPL Financial are all separate entities.

James T. Cassa, CPA, PPC is President of Cassa Wealth Management, P.C. Jim is affiliated with LPL Financial, the nation’s #1 Independent Broker/Dealer*.

* As reported by Financial Planning magazine, June 1996-2015, based on total revenue.

Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.

Smolin & Cassa Wealth Management Join Forces
Smolin & Cassa Wealth Management Join Forces 150 150 smolinlupinco

The last several years have been very difficult in both the US and Global economies. As a result we have been inundated with questions and concerns from our clients regarding their personal financial affairs.

After careful consideration Smolin Wealth Advisors have decided that the time is right to get more involved in our clients’ financial affairs to help navigate these challenging times. To assist in this process we often engage with outside resources and financial advisors with whom we have long-standing relationships and a trusted partnership. We believe that by integrating financial planning and tax advice we are able to more effectively enable our clients to reach their long-term goals.

This is not a process that we take lightly, and as a result of our research and vetting process we have identified strategic alliances such as the one we have with Cassa Wealth Management, located in Paramus NJ. Our plan is to engage clients together with the goal of producing an assessment of your current financial situation while also addressing tax planning to insure that nothing falls through the cracks. There is no cost or obligation for this meeting, and thus far we have been surprised at the poor financial planning advice that many of our clients have been receiving.

Our client’s financial well-being is in our best interest. The better we can understand your financial goals the easier it will be for us to keep you on track to achieve them. It never hurts to have a second opinion, especially for the personal finances that you rely upon so much.

If you would like to schedule an appointment with us for a free financial review, please call me at 862-881-4747 or email me at lgrassi@smolin.com.
We look forward to enhancing the value that we provide to our clients through our expanded services offerings.

Important Disclosures

Smolin Wealth Advisors, LLC is a Registered Investment Advisor (RIA) with the state of New Jersey. They are an affiliate of Smolin, Lupin & Co., LLC, who provides Accounting, Tax and Advisory Services.

Cassa Wealth Management is an Independent Wealth Management firm that provides Financial Planning & Wealth Management Services for both Individual & Corporate clients through LPL Financial.

Smolin Wealth Advisors, LLC, Smolin, Lupin & Co., LLC, Cassa Wealth Management, P.C., and LPL Financial are all separate entities.

James T. Cassa, CPA, PPC is President of Cassa Wealth Management, P.C. Jim is affiliated with LPL Financial, the nation’s #1 Independent Broker/Dealer*.

* As reported by Financial Planning magazine, June 1996-2015, based on total revenue.

Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.

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