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Women Retirement Challenges

A new study has raised eyebrows about the retirement prospects of women.  Download the article attached.

Do Women Face Greater Retirement Challenges Than Men?

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Sudden Tragedy
Blogs / Articles

On Saturday June 11, 2016, there was a senseless, horrific attack on members of the GLBT community.

While the politicians rush to affirm “this was an attack on all Americans,” the GLBT population has been attacked and discriminated against for centuries in ways that only those who live the life can understand.

Because the discrimination too often emanates from the family of origin, on hearing the news, I asked myself: “What happens to the survivors of those killed?

“What happens if the decedents had not taken care of their estate and legacy planning to assure that their physical and financial assets were transferred to whomever the GLBT person wanted?”

What we know is that, if we do not take control of our planning and estate documents, then the state in which we reside has a distribution plan for us. This is called dying intestate (without a will in place).

Often times, dying intestate only intensifies the tragedy of sudden loss. For example, if someone who was murdered Saturday night was also partnered, but died intestate, here is the chart that shows how assets pass by intestate succession in Florida:

If you die with: here’s what happens:
·   children but no spouse ·   children inherit everything
·   spouse but no descendants ·   spouse inherits everything
·   spouse and descendants from you and that spouse, and the spouse has no other descendants ·   spouse inherits everything
·   spouse and descendants from you and that spouse, and the spouse has descendants from another relationship ·   spouse inherits 1/2 of your intestate property

· your descendants inherit 1/2 of your intestate property

·   spouse and descendants from you and someone other than that spouse ·   spouse inherits 1/2 of your intestate property

· your descendants inherit 1/2 of your intestate property

·   parents but no spouse or descendants ·   parents inherit everything
·   siblings but no spouse, descendants, or parents ·   siblings inherit everything

(Source: NOLO “Intestate Succession in Florida”)

It is easy to see how these unexpected deaths can results in someone not only losing the most important person in his or her life, they may also lose financial well-being.

The Resonate team partners with attorneys to assure that your financial and legal plans and documents are coordinated and will work together.

In the midst of our sorrow, may we also find the resolve to be certain that our plans are current and state exactly what we want to have happen… “just in case.”

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Time Value of Money
Blogs / Articles

Compound Interest: The 8th Wonder of the World!

One of the first things I learned in finance class was time value of money calculations. For those not familiar with what the calculation entails, it involves entering inputs into a financial calculator such as number of years, interest rate, and other assumptions to determine a future amount. I was always amazed how much money I would have in the future if I was disciplined enough to save, generate a decent rate of return, and not take or limit withdrawals.

Business Insider recently published a study conducted by JP Morgan asset management that illustrates the very topic of time value of money. In the study, JP Morgan looked at 4 individuals that invested $10,000/year at over various time periods and varying return assumptions. Let’s examine the strategies employed by each of the four individuals that were featured in the study. Chloe invested $10,000/year from ages 25-65. Lyla started 10 years after Chloe, investing $10,000/year from ages 35-65. Quincy saved $10,000 from age 25-35 and then stopped. Finally, Noah invested $10,000 from ages 25-65; however, Noah used a lower return assumption of 2.25%, lower than the 6.5% assumed for Chloe, Lyla, and Quincy. So which portfolio did the best?

Not surprisingly, Chloe’s portfolio outperformed. Over her 40 years, her contribution of $400,000 turned into $1,870,480. Quincy was able to turn a contribution of $100,000 into $950,588 despite only contributing for 10 years and not saving a dime for the next 30. While Lyla contributed 3x what Quincy put in ($300,000), she actually ended up with a lower account balance. At age 65, Lyla’s account totaled $919,892 compared to Quincy’s balanced of $950,588.

It’s no wonder that compound has been described as the8th wonder of the world!  To truly harness its power, a financial advisor can customize a savings plan that is unique to each person.

We offer a complimentary consultation to help design yours!  Please contact us to help secure your future…. Or that of a child or grandchild!


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