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Time to Add Some Protection to My Retirement Portfolio by Scott Stolz, CFP, RICP (week 14)

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It’s not hard to find negative headlines these days. The casualties in Ukraine and the Gaza strip continue to mount. Here at home, mass shootings at schools and churches are becoming regular events. A trip to the grocery store that results in a cost of less than $100 is now a rare occasion. In the financial world, tariffs continue to create uncertainty, and the economy is clearly slowing. And now we are on the verge of a government shutdown. Despite all of this, the stock market continues to hit one high after another. In the 1950’s, financial journalist Sylivia Porter, famously said that the “stock market climbs a wall of worry.” That is certainly true today. While I’ve seen this phrase become reality many times in my lifetime, as a retiree, today’s environment gives me pause. It’s one thing if the market f...
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Retirement "Income" or Retirement "Paychecks"? - (week 13)

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Last week I read Dan Brown’s new book “The Secret of Secrets.” This is the latest book in the Robert Langdon series that started with “Angels and Demons” and became really popular when he released “The Da Vinci Code.” It had been 8 years since he released the last book in this series, so I was excited to see if this book measured up. It did not disappoint. I don’t want to spoil the book for you, so I won’t give many details. I will only say that the story is based on a scientific principal that could explain everything from why each of us have unique special talents, to why we are currently living in such uncertain times, to what happens when we die, and even what God is. Let’s just say that Dan Brown not only has created another great story but will also give you plenty to think about. Why am I giving a book review in a column on retirement? Two reasons. First, the idea that I could read an entire 670-page book in a week while I was still working, is absurd. One of the...
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Here's How You Can Organize Your Digital Life - Perhaps the Single Best Advice I Can Give (Week 12)

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  If you’re over the age of 50, I’m guessing you now realize how much stuff you have accumulated that your kids will never want.   If you are under the age of 50, you’ve probably looked at some of your parents’ stuff and silently hoped that they would get rid of it at some point so you won’t have to do it later.   In our household it’s the sports memorabilia that I’ve collected over the years and the silver that has been passed down in my wife’s family and now all is proudly displayed (but rarely used) in our living room.   Let’s have some fun with this topic.   Add into the comments below one item you have that you know your kids don’t want.   The HOF plaque the Cardinals gave to Lou Brock Just some of my wife's family silver Getting rid of tangible things when a loved one dies might be a hassle, but it’s relatively easy.   In actuality, my kids will gladly take my sports memorabilia and my wife’s silver, but they will keep it only as long as...
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Traditional 401k/IRA or Roth 401k/IRA? - Perhaps Neither (Week 11)

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  First of all, let me say that the single best thing that you can do to prepare for retirement is put as much money as you can in retirement plan.   It’s amazing how much a $5,000 or more annual deposit can grow to over 30+ years when it is not taxed each year.   And if your company matches a portion of your contribution, you essentially get free money each year as well. The primary difference between a traditional plan and a Roth plan is that you get a tax deduction for each deposit you make in a traditional plan, thereby reducing your taxes each year you make a contribution.   However, all funds are fully taxed when withdrawn. Roth plans work the opposite way.   While you don’t get a tax deduction for each contribution, any withdrawals you make after 59 ½ are completely tax-free (assuming your plan has been open for at least 5 years).   Therefore, you can think of it as a pretty simple question – do you want to pay more taxes now while you are workin...
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