Ep 7: Are You Flirting With Financial Disaster?

Let’s talk about some of the areas of your financial life where you might be flirting with disaster and don’t even know it. Disaster and retirement are not two words you want associated with each other.
Apple PodcastsSpotifyGoogle PodcastsTuneInStitcherRSS

Show Notes For This Episode

On this episode of Saving the American Dream, we’ll share some of the key areas of financial planning you might not think about and how you could be flirting with disaster.

Out-of-date legal documents

Out-of-date legal documents are better than no legal documents, but it’s important to stay on top of this every few years.

“I would say 80% to 90% of the time when I meet with new potential clients, there’s no legal documents in place at all,” said Michael.

Maybe you have a will, but lack something else that you need, like a durable power of attorney. Too many people are walking around with no documents, or documents that are in desperate need of an update. Don’t let this be you.

Incorrect beneficiary designations

It can be easy to forget to update your beneficiary designations. This could apply to IRAs, life insurance, or any other account or policy that has a designated beneficiary.

Divorces and second marriages might be a reason to change, or maybe the birth of a new child, or maybe a fractured relationship with adult children that makes you not want to have them as your beneficiary any longer.

“So much can change in a decade,” said Michael.

Beneficiary designations override your will, so be sure they’re up to date and accurate.

Tax time bomb

If the overwhelming majority of your investments are in tax-deferred accounts, you could be building up a time bomb for yourself. If you’re going to pay income taxes on every penny of your retirement cash flow, you leave yourself vulnerable to tax rate increases in the future.

“This is kind of a hot topic right now, because we are highly likely to be going into 2022 with a new tax code, and it’s very likely that taxes are going to go up over the next few years,” said Michael.

Listen to the full podcast or use the timestamps below to jump to a specific section.

Navigating the Show

[1:55] – Out-of-date legal documents

[4:06] – Incorrect beneficiary designations

[6:15] – Tax time bomb

[12:50] – 60/40 portfolio

 

“I would say 80% to 90% of the time when I meet with new potential clients, there’s not legal documents in place at all.

– Michael Schulte

Share The Show

Facebook
Twitter
LinkedIn
Email

Ask A Question

More Recent Episodes

Copyright 2020 Saving The American Dream Podcast. Michael Schulte is an investment advisor representative and certified exit planner with WestPac Wealth Partners, located at 330 South Center Street, Suite 344, Casper, Wyoming 82601. The podcast is for informational purposes only. Individual risks and investment objectives must be reviewed prior to making any recommendations. Podcasts are for informational purposes only. Any guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or WestPac Wealth Partners and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Michael is a Registered and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 5 Centerpointe Dr Suite 150, Lake Oswego, OR 97035, 503-207-4550. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. WestPac Wealth Partners is not an affiliate or subsidiary of PAS or Guardian. 2020-105459 Exp 07/22.