INTRODUCTION
Welcome to Cortburg Speaks Retirement
An audio podcast about investing in the stock market, financial planning, money management and retirement planning. Each Wednesday, we help investors at all stages of life learn how to grow and preserve their money from first job through retirement.
Now here is your host, Miguel Gonzalez.
HOST
Hello and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast. On this episode, I am going to help you plan for your retirement, recap last week on wall street and know the signs of an IRS phone scam. We will end the episode with healthy lifestyle advice to keep you mentally and physically healthy and I will also provide one tip to live a greener life by learning the art of thrifting. Lets also not forget the quote of the week on the last segment of this podcast. This week’s quote is from a famous American philosopher and author from Massachusetts.
1st – weekly educational update
5 Things to do before you retire
What should you try to do within five years of deciding to retire? Here are five things to think about:
1) Estimate the monthly income you will need. It may be less than you need now, as your monthly expenses may decline. You may need to adjust or reallocate your portfolio and take another look at both income-producing and growth investments. You’ll also want to factor in the amount you will receive from Social Security as well as Required Minimum Distributions.
2) Determine whether you will stay in your existing home or move. Retiring to another state may mean tax savings. Many retirees decide to downsize to a smaller dwelling to lower their living expenses. Also consider whether you wish to move closer to your immediate family members and grandchildren. Traveling can get more difficult as we age, and there are many advantages to having your family in close proximity.
3) Think about debt and taxes. It’s possible that you will retire to a lower income tax bracket than what you are currently. If you can stand the one-time tax hit, converting a traditional IRA to a Roth IRA could someday give you a source of tax-free retirement income. However, before making this change, talk with a qualified tax professional to make sure this is the right decision for your unique scenario. Converted amounts are usually taxed as income, and age and income restrictions may apply.
4) Consider healthcare costs. Will you be eligible for Medicare? Will Medicare provide enough coverage? Remember that many retirees will eventually need long-term care at some point during retirement, which can quickly drain your savings.
5) Imagine what your ideal retirement looks like. How do you plan to fill your days during retirement? Do you plan on traveling the world, or staying home and building your dream garden? Is there a hobby that you want to explore, but simply never had the time to try it previously? Make sure that your finances can support your retirement goals, whatever those may be.
I’d like to help you plan a smooth retirement transition. Call or email me with your questions and we’ll come up with a strategy that works for you.
2nd – Week on Wall Street
Stocks retreated last week on rising COVID-19 infections and slow progress on an economic relief bill.
The Dow Jones Industrial Average dipped 0.57%, while the Standard & Poor’s 500 dropped 0.96%. The Nasdaq Composite index fell 0.69% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, declined 0.05%.[i],[ii],[iii]
Stimulus Stalls, Stocks Stumble
The market grappled all week with worries over rising COVID-19 cases and the economic restrictions that followed. Nevertheless, there were moments of optimism— such as the starting of vaccinations in the U.K.— that drove markets to record highs.[iv]
But gains could not be sustained as an agreement on a fiscal stimulus bill remained elusive and daily news regarding COVID-19 cases undermined investor sentiment.
Markets were also challenged by having to absorb a number of new and secondary stock offerings last week, including two high-profile technology IPOs. The Energy sector continued its strong run, while small and mid-cap stocks posted another week of positive performance.[v]
A “No-Deal” Brexit More Likely
The prospects of an agreement to manage Britain’s exit from the European Union by year end dimmed as the two parties failed to narrow their differences in a meeting held last week.[vi]
Though primarily a European issue, a no-deal Brexit may hold consequences for U.S. businesses and investors. The failure to reach an agreement has the potential to disrupt an already fragile supply chain and cause issues in the financial markets. A supply chain disruption may weaken European economies (e.g., Germany) that are important to American companies. Another consequence may be a stronger U.S. dollar, which would make American exports more expensive and less competitive.
Little time remains in striking an agreement since the prevailing framework ends December 31, 2020.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Industrial Production.
Wednesday: Retail Sales, Federal Open Market Committee (FOMC) Announcement.
Thursday: Housing Starts, Jobless Claims.
Friday: Index of Leading Economic Indicators.
Source: Econoday, December 11, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING EARNINGS
Thursday: General Mills (GIS)
Friday: Darden Restaurants (DRI)
Source: Zacks, December 11, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
3rd – weekly tax tip
Know the Signs of an IRS Phone Scam
Unfortunately, criminals often use the IRS as a gateway for common phone scams. These scams can differ, but they generally include someone posing as an IRS agent asking for payment. These calls can be scary, especially if you don’t know what to believe.
Here are some signs of a phone scam so you can recognize them and report them to the IRS immediately:
● Generally, the IRS will first try to reach you by mail if you owe money. If you haven’t received any previous notice, the call might be fraudulent.
● The IRS will never ask about personal information over the phone, such as your Social Security Number.
● The IRS will also never request immediate payment using specific payment methods such as prepaid debit cards, gift cards, or wire transfers.
● The IRS won’t demand that these taxes be paid without giving you the opportunity to ask questions about the amount owed.
● The IRS won’t threaten to immediately bring in law enforcement groups to have you arrested for not paying.
If you receive these scam calls, hang up immediately and report the call to the IRS using the IRS Impersonation Scam Reporting form or by calling 800-366-4484.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS[vii]
4th – healthy lifestyle advice
The Mental and Physical Benefits of Walking
We all know the many potential benefits of exercise, but did you know that sometimes the simplest exercises are some of the most beneficial? Walking might seem like such a simple thing to do, but there are many potential health benefits to this form of exercise.
First off, walking has a very low barrier of entry and may be a good choice for people of all fitness levels! You don’t need any fancy equipment or skill level. Just grab your favorite pair of shoes and hit the road!
Secondly, walking may benefit both your mental and physical health. You burn active calories while walking, which can help with weight management, cardio health, and energy levels. But walking may also be a meditative escape for many people. It offers the chance to disconnect and focus on the moment. Walking for the sake of walking is one of the only exercises that doesn’t have an end goal, meaning that you can focus on just putting one foot in front of the other. Some people might enjoy listening to music or podcasts while they walk, but also consider just listening to the sounds around you. With so much screen time in our daily lives, it’s nice to disconnect for even just a short walk.
Tip adapted from Healthline[viii]
5th – Green Living Idea
The Art of Thrifting
Thrift store shopping is not only fun (think: treasure hunting), but it’s a great way to recycle clothing, housewares, and other items. True, there can be a lot of clutter to sort through, but with a few pro-tips, you’ll be thrifting with the best of them.
Upcycle. You might just find that perfect denim jacket or pair of jeans to embroider, bedazzle, or alter, creating an entirely new look. Furniture can be transformed and upcycled to make into functional (and stylish) decor. Pinterest is a great resource for upcycling ideas.
Location, location, location. You may be tempted to go to more upscale neighborhoods, but you never know where you’ll score great stuff, so try varying where you scout.
When you thrift makes a difference. Skip Halloween and back-to-school time. The stores are usually picked over.
Know when to fold ‘em. Say no to sweat-stained and odor-laden clothing, and definitely, say no to moth holes. A bit of sewing, or even, springing for new soles on a pair of amazing shoes, is doable – and worth it.
Tip adapted from Elle Magazine[ix]
6th – quote of the week
“You have succeeded in life when all you really want is only what you really need.”
– Vernon Howard
Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances. As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.
This is Miguel Gonzalez, Retirement Specialist and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational update.
DISCLOSURES
Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
CRC conferred by The International Foundation for Retirement Education.
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.
Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.
Investing involves risk including possible loss of principal.
[i] The Wall Street Journal, December 11, 2020
[ii] The Wall Street Journal, December 11, 2020
[iii] The Wall Street Journal, December 11, 2020
[iv] USAToday.com, December 8, 2020
[v] CNBC.com, December 10, 2020
[vi] CNBC.com, December 9, 2020
[vii] IRS.gov, March 9, 2020
[viii] Healthline.com, October 30, 2020
[ix] Elle.com, October 30, 2020
