Financial Goal Setting with Agemy

Retirement planning during a bear market is challenging enough. But the 2023 retirement outlook includes a host of other major threats, such as high inflation and rising interest rates. Here are our top six suggestions when setting financial goals for the year ahead.

Looking back over the past few years, we have learned more than ever how important it is to be financially prepared. Financial preparedness is all about setting goals, but how often are these goals being reached?

When it comes to financial goal setting in 2023, it’s important to reflect your intentions and aspirations so you can achieve your intentions in confidence. Here’s what you need to know about goal setting if you are near retirement.

List and Prioritize Your Financial Goals

One of the best ways to set goals is to list them out and identify each one. Prioritize your goals from most important to least important. Write down specific details about each goal like the timeline and the amount of money you’ll need / how much you have already saved.

It’s easy to think of saving as a one-and-done activity. But you can actually save for more than one goal at a time, especially if those goals are short-term and long-term. For example, you could put money away for a vacation while continuing to contribute to retirement accounts.

Take Care of Financial Basics

Once you have identified your goals, ensure that your basics are covered. Depending on where you are at with your financial planning, you may have already accomplished these steps. Here are a couple financial basics that you can keep in place that will help you build a strong foundation in the long run.

  • Build an emergency fund
  • Have a healthcare gameplan
  • Pay off debt
  • Save for retirement
  • Create an Estate Plan

By making sure these are covered, it will help you pursue other goals with confidence.

Tackle Inflation Head-On

Nothing strikes as much fear into the hearts of retirees as inflation, and for good reason. The best-laid retirement plans can be wrecked by the rapid decline in value of the dollars you’ve socked away in your golden years. But inflation isn’t always the big bad wolf it is portrayed to be.

According to analysis performed by the U.S. Bank Asset Management Group, stocks have held up well against inflation over the last 30 years. And while you may think of inflation simply meaning higher prices on everyday goods, for investors, it means moving some of their money to assets that benefit from inflation or at least keep up with its pace.

The following investments tend to fare well during periods of inflation:

  • Commodities like gold, oil, and even soybeans should increase in price along with the finished products that are made with them.
  • Inflation-indexed bonds and Treasury Inflation-Protected Securities (TIPS), tend to increase their returns with inflationary pressures.
  • Consumer staples stocks mostly do well because price increases are passed on to consumers.
  • Mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) are risky choices but tend to perform well under inflationary pressure.
  • Investment real estate is traditionally a safe haven but should be approached cautiously in 2022 and 2023 given the unsettled state of the industry.

Retired Americans should worry more about local property tax rates or the rising cost of health care. It’s really important not to let the emotional part of the inflation situation dictate your retirement planning strategy.

Understand Sequence of Returns Risk

You face plenty of risks when investing for retirement. Markets crash, inflation can eat into your returns, you might even worry about outliving your savings. But there’s one big retirement risk that gets very little attention: Sequence of returns risk.

Sequence-of-returns risk, or sequence risk, is the risk that an investor will experience negative portfolio returns very late in their working lives and/or early in retirement. Sequence-of-returns risk is a significant threat because retirees have little time to make up for losses that are compounded by the simultaneous drawdown of income distributions.

Protecting against sequence risk means anticipating a worst-case scenario. Don’t assume that a bull market will reign throughout your golden years.

  • Consider working as late as you can in order to contribute more to your retirement account, particularly in your peak earning years.
  • Keep saving and investing even after you retire. If you’re past age 70½, you can’t use a traditional IRA but you can contribute to a Roth IRA or, for that matter, open a personal investment account.
  • Diversify your portfolio. Nobody ever went broke investing in high-quality corporate and government bonds.

Create a Financial Plan to Each Your Financial Goals

Now that you have your goals and motivations, it’s time to start mapping out how they all fit together in a financial plan. 

The good news is you don’t have to do this alone! You can either do the work yourself or get help from a financial professional. Either way, it’s important to understand how you’re positioned to achieve your goals.

To get started, take inventory of what you have and consider what you need. Document your income sources and expenses. Knowing how much money you can allocate to different goals each month gives you clear direction on how to move forward. Then, use your goals and their timelines as drivers for your financial plan.

Perhaps you count yourself among the self-sufficient crowd who never sought professional assistance during your working years. Maybe you’ve done just fine that way. But now that you have to deal with retirement math and estate planning, it’s maybe time to lean on the experience of others. That’s where the Fiduciary advisors at Agemy Financial Strategies can help.

We can help you understand your current financial reality, and where you would ideally want to be, based on your current age and financial goals. Not sure what your goals are? We can help you with those as well. Furthermore, we can provide great insights on how to structure your finances so that you’re better able to meet your goals.

Final Thoughts

Once you learn how to identify financial goals and have a plan in place, it will slowly evolve over time. Life is a constant ebb and flow and many factors can affect your financial goals. As long as you review your goals and achievements once a year with your trusted advisor, you can review and make changes where necessary.

At Agemy Financial Strategies, we sit down with you and take the time to reflect on the purpose behind your financial goals. We will help craft a financial plan that works for you.

Looking to get your financial plan for 2023 started? Contact us to set up your complimentary consultation today.

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Year in Review with Agemy Financial Strategies

Our firm exists for the purpose of helping people achieve their personal and financial goals. Our philosophy is to deliver quality financial programs and teach principles for successful living. Here’s a look back at 2022 and what to expect for 2023 and beyond. 

Can you believe we’re wrapping up the year? And what a year it has been; Inflation, war, a Bear market… just to name a few! Amid these challenges, it is more important than ever that individuals and families have their financial lives in order.

Despite the hurdles, Agemy Financial Strategies has been hard at work this year helping all our clients achieve their retirement goals and navigate the financial storm of 2022. As we ring in the new year, here’s how our experienced, tireless and talented team of Fiduciaries can help you, too.

  1. Financial Podcasts

You can never be too money smart, and one easy way to boost your financial IQ is to tune into some really great, and often even entertaining, podcasts. Our Financial Strategies Podcast, Andrew Agemy and son Daniel Agemy combine their expertise, knowledge (and often humor) to educate retirees and assist them in reaching their retirement goals. Covering important topics that affect your golden years, Andrew brings his 30+ years of experience helping retirees with their finances and Daniel brings his ever-expanding knowledge and technical skills.

Together they prepare retirees with the FINANCIAL STRATEGIES they need to stay happily retired. You can now listen to the show on the radio or as a podcast on Spotify and Apple Podcasts! 

  1. Large Variety of Financial Blogs

More into reading than podcasts? While necessary, retirement planning isn’t easy and can get very confusing. Trying to learn best practices and derive meaning from financial and healthcare jargon can be burdensome. With our complimentary online financial blogs, you’ll find a wealth of information on financial planning, tax planning, healthcare planning, estate planning and more to help you learn everything you need in an easily digestible format. Our financial planning blogs give you a rare insight into the financial world, while explaining strategies in a clear manner that make sense.

Whether it’s trying to plan for retirement or learning how to create a sustainable estate plan, we had you covered. Providing the correct information to our clients is something we strive for. Our financial blogs are written by our financial experts in the field and they provide the best information available on the market. We hope you continue to enjoy them in 2023.

  1. Youtube Shows 

It’s been a wild year for Agemy Financial Strategies. We’ve been helping our clients plan for retirement and build their wealth, but we’ve also been thinking about legacy planning, wealth management and how to help people get the most out of the money they make.

We know that the world is changing fast, and that means that you need to make sure your money is working for you in the best way possible. Having our Youtube shows incorporated into your learning materials is one of the best ways to educate clients. Financial literacy is a big part of a fruitful retirement, and sharing the information via Youtube shows is just another way to learn from Andrew and Daniel Agemy’s experience in this field.

At the end of the day, helping our clients get smarter about their finances will help them make better decisions in order to reach their financial goals sooner. Subscribe to our Youtube channel here. 

  1. Financial Resources

Finally, we’re grateful for all the love we get from clients who have utilized our new large array of online financial resources. At Agemy Financial Strategies, our areas of expertise are Estates, Insurance, Investments, lifestyle Balance, Money, Retirement, and Taxes. All of these areas are crucial to building a secure financial road to success.

Forms and information are updated as policies change, so it’s a great way to get ahead of the retirement game with some complimentary learning tools. What have you got to lose? Check them out here.

Ready for 2023?

If you live in Connecticut or Colorado, hiring a retirement income advisor is only half the job done. The other half is to make sure the advisor is able to deliver on your expectations. At Agemy Financial Strategies, we are an indispensable part of your financial planning process and can add immense value to your life with our Fiduciary expertise and acumen. This is why we encourage all clients to set up an annual review. Why? Regularly meeting with us can help you maximize your money and keep on top of your long-term financial goals. Our goal is to help you save more, reduce your debt and invest more wisely for retirement. 

In your review, we’ll cover topics such as:

  • How your cash flow is going.
  • Life changes that affect finances, such as marriage, divorce or a death in the family. 
  • Updating beneficiaries to your estate plan.
  • Tax plans and changes for the year ahead.
  • Review your investment strategy and make changes where needed.
  • Checking short and long-term goals are on track and your wealth is growing as expected.

At the end, we should leave the meeting with a clear action plan for the next 12 months ahead! Set up your review here today.

Final Thoughts

As 2022 winds down, it’s time to look forward to 2023—and put yourself on the best financial footing possible for the new year.

When you work with us, you get a lifelong partner – a dedicated financial planner who creates strategies designed to evolve with you.It’s been a great year at Agemy Financial Strategies. Our mission is simple: we want our clients to feel confident knowing they have someone looking out for them and their financial needs. As Fiduciaries, it is our obligation to always put you and your needs first. 

It is a pleasure helping each of our valued clients, thank you for all your trust in our work, once again wishing you a Happy and Prosperous New year!

To schedule a consultation and discuss your financial strategies and goals for 2023,contact Agemy Financial Strategies here today.

 

 

 

 

 

 

 

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Who Needs Estate Planning in 2023?

Having a comprehensive retirement plan is one of the most important ways to help ensure financial freedom. But don’t forget to include an Estate Plan.

Retirement planning paves the way for achieving life goals, managing medical emergencies, and becoming financially independent. Imagining life at 70 or older is one of the most challenging aspects of retiring. What many Americans don’t realize is that, in addition to investing, estate planning is a crucial component of your retirement planning. Many people ignore succession planning or put it off until the last minute. Both are developing an estate plan, and a retirement plan is crucial. Your retirement plan will enable you to establish a sizable corpus for your stress-free retirement life.

What is Estate Planning?

Effective estate management enables you to manage your affairs during your lifetime and control the distribution of your wealth after death. An effective estate strategy can spell out your healthcare wishes and ensure that they’re carried out – even if you are unable to communicate. It can even designate someone to manage your financial affairs should you be unable to do so.

Being intentional with your estate planning is a gift to your loved ones. Doing so not only benefits them, but it can also provide a great deal of peace for you, too. Consider these five tips below to determine whether you feel your estate planning is up to speed and to help ensure a seamless transition of assets once you’re gone.

Who Needs Estate Planning?

Everyone with assets should have an estate plan. Whether that be millions of dollars tied up in real estate or your family car, an asset needs to be passed down.

Having an estate plan ensures your wishes, goals, hopes and dreams are possible for your family well after you are gone. An estate plan is the foundation to leave a legacy for your community and the world around you.  As you think about using your assets to benefit your loved ones after you’re gone, consider having these items in place.

A Will

A Will is essential to ensuring that your decisions are honored after you are gone. You’ll need to select decision-makers, people who will act as executor and/or trustee of any trusts created in your Will. Without a will, most of the assets you own will go through your state’s probate process, which could be a confusing, drawn-out experience for your loved ones. And it’s unlikely that the results will reflect your wishes for your assets.

Retirement Plan Beneficiaries

If you own an IRA or employer plan account, like a 401(k), you probably designated a beneficiary when you opened it, which could have been decades ago. Take a look at the beneficiaries your financial companies have on file and make sure they reflect your current wishes.

Power of Attorney

The most basic tool to ensure that if you become disabled mentally or physically, your assets can be accessed and managed with the least expense and without court intervention is a power of attorney. The powers that you grant in a power of attorney are broad and are intended to permit the attorney-in-fact to step into your shoes.

Healthcare Directives

Healthcare decision making is also an important part of estate planning. Like the power of attorney, having documents in place in advance ensures that you’re able to retain control and have a voice in your own health care decision-making for as long as possible.

Other Considerations – Note Your State’s Estate Tax Laws

Estate planning is often a way to minimize estate and inheritance taxes. But most people won’t pay those taxes.

  • At the federal level, only very large estates are subject to estate taxes. For 2021, up to $11.07 million of an estate is exempt from federal taxation. In 2022, up to $12.06 million is exempt. What if you have a larger estate that surpasses the federal tax exemption limits? You may want to consider a grantor retained annuity trust, or GRAT, a type of irrevocable trust that can help reduce the amount of taxes your heirs pay.

  • Some states have estate taxes. They may levy estate tax on estates valued below the federal government’s exemption amount. If you live in Connecticut, the exclusion amount in 2022 is $9.1 million. Even though there is no Colorado estate tax, Colorado death tax, or Colorado inheritance tax, there are still tax-related concerns for many people when it comes to estate planning.Some states have inheritance taxes. This means that the people who inherit your money may need to pay taxes on it.

Final Thoughts

Estate planning is not simply who gets your stuff when you die. Sure, that’s a part of it and an important part. But estate planning also includes planning for yourself in the event of your incapacity.

Working with a financial planner is a great way to ensure that your finances are in good standing now and in the future. It’s important to have a trusted advisor at your side when it comes to your family’s finances—someone who can help you make informed decisions about estate planning, retirement planning, and everything else in between. At Agemy Financial Strategies, we’re here for you! We’ve been helping our clients live better lives for over 30 years and we’re ready to help you, too.

Our mission is simple: we want our clients to feel confident knowing they have someone looking out for them and their estate planning needs. To schedule a consultation and discuss your options for estate planning, contact Agemy Financial Strategies here today.

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Preparing for a Potential Recession in 2023

“Before anything else, preparation is the key to success” – Alexander Graham Bell. Recession is very likely in America’s future, but it will take its time arriving. Here’s how to plan accordingly.

There are some key economic indicators pointing to a recession in 2023. The most prominent being the Fed’s decision to continue to raise interest rates in the face of rising inflation. The October job report continued to show historic lows in unemployment, with over a quarter of a million jobs being added. Facts like these show that a recession could be considered likely. That makes preparation more important than ever. Ensuring that your family is in the best financial position possible will benefit you even if we do experience a recession.

Read on to learn a few ways to stay one step ahead of a potential recession in 2023.

Know the Warning Signs

Stay informed. There are a handful of indicators that can point to a recession. While none of these signs indicate a recession with 100% certainty, they are worth paying attention to.

Consumer spending is one such sign. While most won’t have access to all of the data, a simple search can point to the fact that October’s online spending was roughly on par with last October. If we see a considerable dip in money spent, this can indicate the public has concerns about spending money vs saving it.

Unemployment reports are also a major indication. Currently unemployment is around 3.7%  which is near historic lows. To put this in perspective, at the height of the great recession, unemployment was as high as 10%.

Finally, watch housing prices. If they begin to plummet, this can show a similar thought process to consumer spending. The general public – as a whole – may feel buying a home is a risky proposition and holding off may be a better option in the face of economic uncertainty.

Prepare an Emergency Fund

A six-month emergency fund is always worth having, but with inflation, have you adjusted your fund?

If your six-month fund was prepared in May of 2020, when inflation was essentially zero, then that money is simply worth less today than it was then. Ensure that your emergency fund is keeping up with inflation, so that in a worst case scenario you and your loved ones are covered while you regroup.

Review Your Budget

As interest rates creep up, major purchases like cars and homes may be something to put on hold. Instead, focus on other debt such as an existing car payment or other personal loans.

Beyond this, it’s worth evaluating your “kitchen table” budget – things like food, entertainment, allowances, etc. Small changes to unnecessary expenses can add up over time and put you ahead.

Evaluate Bonds

Investors who have already endured one of the most challenging years ever must now confront the question of how to invest when the U.S. and other major economies may be headed toward a recession. While financial market volatility is likely to persist, we believe the case for bonds is stronger than it has been in years, bolstered by significantly higher starting yields and bonds’ strong track record during economic downturns.

Currently a two-year United States Treasury note has a 4.4% yield, while a 10-year note has a 3.9% yield. While bonds are not going to offer the immediate satisfaction of a skyrocketing stock, they can offer a steady return in the face of a recession. Considering that most stocks are down across the board, bonds can help counteract this dip and be a low-risk position for a portion of your assets.

Final Thoughts

As Alexander Graham Bell said, preparation is the key to success. Whether a recession occurs or not is unknown, but being prepared for one is absolutely in your control.

By knowing the warning signs, and taking proper financial steps, you can put yourself and your loved ones in the best possible position if the economy takes a turn for the worse.

Schedule a call with the Agemy Team today. We will secure your financial assets to ensure the health & longevity of your portfolio.

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