MONEY MATTERS Archives - SB Magazine

MONEY MATTERS: YOUR WEALTH’S HEALTH

SB Magazine — Thu, 16 Jan 2025 18:04:01 +0000

As we kick off the new year, many of us are setting health goals—whether it’s getting in better shape or improving our overall wellness. Just like those personal health goals, it’s the perfect time to assess the health of your investments and reflect on your portfolio’s performance. With fresh goals in mind for the year ahead, it’s important to review your financial strategy to help ensure it’s aligned with your objectives, helping you stay on track toward long-term financial well-being, just as you would for your personal health.

How is your portfolio doing? Do you feel your asset allocations are well-positioned to meet your goals and objectives?

If you haven’t made a habit of scheduling a check-up to manage your wealth’s health, an annual review is a great place to start. However, if an annual review (or check-up) is already part of your plan, there are other ways to level up how you manage and preserve your wealth’s health. One area of growing importance we are frequently asked about is cybersecurity, a topic where certain preventative measures can make a big difference.

Get your cybersecurity check-ups.

Just as a physician would advise taking preventive steps to safeguard our health, the same principle applies to preserving our wealth. In today’s digital world, we face ever-increasing risks of online theft and scams, making protecting personal information more critical than ever. As wealth managers, our close relationships with clients are crucial in helping protect their assets. These trusted relationships develop over time, allowing us to deeply understand each client’s unique needs, goals, and risk tolerances. This insight enables us to anticipate potential threats and detect unusual activity or vulnerabilities early, communicating them quickly to our clients.

This approach helps us address issues proactively, preventing small concerns from becoming significant problems.

Here are some best practices to help protect your personal information:

Use strong, unique passwords
Enable two-factor authentication (2FA)
Keep software up to date
Use antivirus and anti-malware software
Be cautious with emails and links
Use secure connections
Monitor your accounts regularly
Be wary of public Wi-Fi
Limit personal information sharing
Back up important data
Educate yourself about current scams

Keeping these guidelines handy and reviewing them regularly can provide peace of mind about safeguarding your personal information and wealth.

How is your portfolio’s health?

One way to assess the health of your portfolio is to monitor market trends throughout the year and evaluate how your portfolio performs in relation to those trends. Ask yourself: Is your portfolio delivering an efficient return for the risk taken? We believe this strategy works best when wealth managers are accessible and in regular communication, actively helping to preserve and manage their clients’ portfolios to help ensure long-term financial health.

When was your last portfolio check-up?

While every client is unique in their communication preferences, we believe a wealth manager who regularly ‘takes the temperature’ of your portfolio helps provide a clearer picture of your wealth’s health in the short term, allowing for necessary adjustments as issues arise. This helps keep your finances strongly positioned to aid in meeting your goals and objectives in the long term.

For more tips, strategies, and market perspectives, check out our “Market Insights” archive.

Poljak Group Wealth Management is a team with Steward Partners in Shreveport, LA. The views expressed herein are those of the author and may not necessarily reflect the views of Steward Partners Investment Solutions, LLC member FINRA/SIPC, or its affiliates. Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness. Any strategies and/or investments referenced may not be suitable for all investors. Past Performance is no guarantee of future success. You should consult with your tax advisor for matters involving taxation and tax planning.

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MONEY MATTERS: Retirement vs. Summer Holidays Reality

SB Magazine — Tue, 22 Oct 2024 14:06:54 +0000

Many of us have recently returned from our summer holidays — they’re a time to relax, unwind, and escape the daily grind. For many of us, they’re the only time of the year we get to sit back, fall asleep in the sun and completely switch off. It’s no wonder, then, that many of us dream of the day when we can leave our jobs and finally embark on that endless summer holiday — otherwise known as retirement. However, while the notion of a perpetual break might sound appealing, retirement isn’t quite the same as an endless summer holiday. In reality, it requires careful planning, both financially and emotionally, to help ensure it’s a success.

The myth of retirement as an endless holiday

The idea of retirement as a neverending holiday is logical, but it’s also misleading. Holidays offer an opportunity to recharge before returning to our regular lives. Retirement, on the other hand, is a permanent transition into a new phase of life.

Unlike a holiday, where our time off is finite and focused on getting away from it all, retirement can be a complex mix of leisure and the need for continued purpose and engagement.

Often new retirees can feel unprepared for this. While initiallythey might enjoy escaping from the commute, from workplace politics, and meetings about meetings, many new retirees find themselves adrift once the novelty has worn off. Many miss the sense of identity and purpose that a job brings; others mourn the camaraderie of being part of a team or group.

These unexpected changes can have a detrimental effect on health and wellbeing. One often quoted statistic says that retired people, especially those in the first year of retirement, are approximately 40% more likely to experience a heart attack or stroke than those who keep working. What’s more, almost one in three retirees say they feel depressed – a rate higher than that of the adult population overall.

The phases of retirement So, what’s the solution? Thinking about retirement not as one single event, but as a journey through various phases, each with its own challenges and opportunities, can help you understand the emotions that might lay ahead:

1. The honeymoon phase:

This initial phase of retirement is often marked by excitement and a sense of freedom. This phase can last from a few months to a couple of years.

2.Disenchantment:

The next phase is often where the idealized vision of retirement collides with reality. Without structure or goals, many retirees find themselves feeling lost or even unhappy during this phase.

3.Reorientation:

This stage is crucial for establishing a new sense of purpose and direction. New hobbies, activities, volunteer opportunities, or part-time work can provide you with that sense of accomplishment and fulfilment you’ve been missing.

4.Stability:

Finally comes a stage of stability. This is when you’ve adapted to your new lifestyle, established a routine, and fully embraced a balanced mix of leisure and purposeful activities. How to transition to retirement The secret to successfully transitioning into retirement is preparation. Thinking about how you might move through each retirement ‘stage’ can help you anticipate challenges, set realistic expectations, and create a plan that ensures a fulfilling and meaningful retirement. This plan is designed to sit neatly next to your financial plan:

Define your purpose:

Consider retirement as the start of a new chapter that offers opportunities for personal development. Have a think about what gives your life meaning, outside of work – what have you always wanted to do, but haven’t had the time or opportunity? Think about how you can incorporate these elements into your retirement lifestyle. Whether it’s volunteering, pursuing hobbies, or spending time with family, having a sense of purpose is vital for emotional wellbeing.
Establish routines:

While the freedom to do as you please is appealing, having a routine can provide structure and prevent feelings of aimlessness. Think about designing a plan at the start of the week that balances practical chores and activities you love doing.
Stay connected:

Having strong social ties is essential to emotional wellbeing. Especially for men who, research shows, tend to have fewer social networks and social support compared to women in retirement. Joining clubs or groups and developing relationships with friends and family can help to combat feelings of loneliness and isolation. While the idea of retirement as an endless holiday is appealing, it’s essential to recognize that it’s very different from two weeks away in the sun. It’s a significant life transition that requires thoughtful planning. By understanding the different potential phases of retirement and preparing for your emotional needs, you can ensure satisfying retirement journey.

As Wealth Managers, we’re well equipped to help you with this process. We can offer guidance and support to help you navigate the complexities of retirement both financially and emotionally, to help you achieve the fulfilling lifestyle you deserve.

This article was prepared by AdvisorStream for Denis Poljak (Wealth Manager) and Davor Poljak (Wealth Manager) and is legally licensed for use by AdvisorStream.

Broadridge is not affiliated with Steward Partners Investment Solutions, LLC. We are not implying an affiliation, sponsorship, endorsement, approval, investigation, verification or monitoring by Steward Partners of any information contained in the presentation. The opinions expressed by the authors/ presenters are solely their own and do not necessarily reflect those of Steward Partners. The information and data in the presentation may be deemed reliable; however, their accuracy and completeness is not guaranteed by Steward Partners and providing you with this information is not to be considered a solicitation on our part with respect to the purchase or sale of any securities, investments, strategies or products that may be mentioned. In addition, the information and data used are subject to change without notice. Past performance is not a guarantee of future results. Individuals should consult with their tax/legal advisors before making any tax/legalrelated investment decisions as Steward Partners and its Wealth Managers do not provide tax/legal advice.

Regulatory Information & Disclosures | Important Disclosures | Index Definitions Securities are offered through Steward Partners Investment Solutions, LLC (“SPIS”), registered broker/dealer, member FINRA/SIPC. Investment advisory services are offered through Steward Partners Investment Advisory, LLC (“SPIA”), an SEC-registered investment adviser. SPIS, SPIA, and Steward Partners Global Advisory, LLC are affiliates and collectively referred to as Steward Partners. AdTrax #6598700.4 Exp. 09/25

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MONEY MATTERS: Long-Term Healthcare Planning

SB Magazine — Mon, 12 Feb 2024 21:14:03 +0000

Now more than ever, it’s imperative to consider every aspect of financial planning to secure a comfortable retirement as our loved ones enter their golden years — and that includes planning for their long-term healthcare needs.

In fact, this could be the one thing your family hasn’t included in their long-term planning that could have a devastating impact on your family’s financial security despite any carefully employed saving and investment strategies that are already in place. If you keep up with the national news, you are probably aware that the United States population is aging, creating new economic and workforce challenges—and catching many families by surprise if they haven’t adequately prepared for the possibility of future healthcare issues.

It is imperative that people prepare for long-term care and what may become an extreme financial burden, as the cost of assisted living for the elderly can be very expensive—and, in some instances, financially crippling. It is an often overlooked or misunderstood part of the financial planning picture.

Several considerations can help ensure a stable financial future, particularly for those who may need long-term care (LTC). Long-term care insurance helps cover costs for nursing homes, hospice care, adult daycare, and assistance for those in their advanced years who live at home with activities of daily living (ADLs), such as bathing, dressing, and eating.

People often mistake health insurance or disability insurance for long-term care insurance; however, these types of insurance generally do not include long-term care coverage. With that said, some health insurance plans may offer an additional LTC benefit rider, which can be added to a standard policy for additional premium payments.

Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and supports,

including personal and custodial care, in a variety of settings such as your home, an assisted living facility, or a nursing home. These costs can be more than you might think and will most likely continue to increase over time.

Housing arrangements require thoughtful deliberation. Whether aging in place with necessary home modifications, moving to senior living facilities, or considering living with family members, the costs of each option must be scrutinized to make the best choice for your or your loved one’s future needs. For instance, in my experience, round-the-clock care in a nursing home can cost up to and even over $100,000 per year, which is often not covered by health insurance policies or Medicare. Granted, a full-time assisted living facility or nursing home will be the more expensive of the long-term care options, but at-home care and other forms of care can still be expensive.

Here is the most recent information available about long-term care-related costs in Louisiana from the Genworth Cost of Care Survey from 2021. Note that the costs are expected to increase by at least 3% with each year that passes:

Medicaid will cover LTC but is only available to people with very limited finances, which means most people will not qualify for Medicaid coverage, and without proper coverage, the out-of-pocket costs of long-term care can deplete savings and retirement assets rapidly. This could potentially completely deplete your savings, leaving nothing left for your beneficiaries when you are gone. Some people are fortunate enough to have assets available to withstand such high costs for several years, but most Americans simply are not, and will need to rely on long-term care insurance to cover these costs.

To give you an idea for the increased need for LTC, someone turning 65 today has almost a 70% chance of needing some type of long-term care service and support. One-third of today’s 65-year-olds may never need long-term care, but 20% will need it for 5 years or more, and on average women need care longer (~3.7 years) than men (~2.2 years).

Properly preparing as to avoid falling into this stressful situation involves an open dialogue with your family and a qualified financial advisor about overall financial status, which includes savings,

income sources, investments, debts, and other financial obligations. Understanding the full financial picture, including the potential need for elderly care is crucial when assessing one’s long-term financial goals.

There is a wide range of LTC policy options and different price ranges. Much of the pricing depends on your age and health conditions and the amount of coverage desired. I advise consulting a financial professional, and getting multiple quotes from various insurance companies to see what plan will fit your needs and budget best.

Navigating financial planning for your elderly loved ones is a multifaceted and ongoing process. It requires a proactive and open approach,

frequent reassessment, and, often, professional advice. By strategically addressing each aspect of your family’s financial needs, you can significantly contribute to their peace of mind, and yours that this crucial element has been included in your overall financial plan to maximize your family’s quality of life in future retirement.

Denis Poljak is a Managing Director and a Wealth Manager with the Poljak Group Wealth Management at Steward Partners in Shreveport, Louisiana. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Steward Partners or its affiliates. Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness. Steward Partners Investment Solutions, LLC Member SIPC

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MONEY MATTERS: End-of-Year Financial Planning Review

SB Magazine — Wed, 27 Dec 2023 14:11:03 +0000

The end of the year is upon us once again, and during this time of year, it can be very beneficial to review your financial situation. With the approaching new year and tax season, it is a particularly good time to assess your financial goals, if you are still on the right track, and how you might be able to position yourself for next year better. Here are a few of the more common end-of-year financial considerations.

1.Review or create your financial plan

If you work with a financial planner or advisor, schedule an end-of-year meeting to discuss your progress and adjust strategies if necessary. Look back on the past year’s expenses. Did you stay within budget? Identify areas where you overspent or saved. Also, consider any major life events that may have happened this year, such as births, deaths, marriage, divorce, career change, or retirement.

2.Evaluate Investment Portfolio

Rebalance your portfolio if necessary. Review risk tolerances and asset allocations and make any changes that might be needed. Ensure your asset allocation still aligns with both your short- and long-term goals.

3.Year-end tax review

Review tax loss harvesting opportunities. If any investments you own have lost money on the year, tax loss harvesting can help reduce your overall tax liability. You may also consider charitable giving; the end of the year is a great time to make charitable donations, which may also provide tax benefits. There are several strategies that can be used to assist with minimizing your tax liability, which you should consider reviewing with a financial professional if you have questions.

4.Retirement account planning

If you haven’t already, consider contributing the maximum amount allowed to your retirement accounts, such as a 401(k) or IRA. The 2023 maximum contribution for a 401(k) is $22,500 (plus an additional $7,500 for those 50 or older), and the 2023 maximum contribution for an IRA is $6,500 (plus an additional $1,000 for those 50 or older). If you are unable to max out your contributions, at least try to contribute what you can and continue to increase the amount you contribute each year incrementally. Making small increases each year to your contribution amount will help to grow your retirement account in a manageable way without overdoing it. Don’t forget also to review your asset allocations in your retirement accounts; you’ll want to make sure you have the proper equity to fixed income ratio suitable for your goals; consult your financial advisor if needed. Additionally, make sure all your retirement accounts have up-to-date beneficiaries.

5.Review your insurance policies

Review any existing policies you already have (including health, life, auto, and homeowners’ or renters’ insurance), and make sure the coverage is adequate for your current needs. This may include older policies that are no longer relevant or policies that are not sufficient in providing the needed coverage for your lifestyle; either way, you’ll want to be aware of what you are paying for and what it covers. Also, you will want to make sure your beneficiaries are updated on your policies.

6.Set Financial Goals for the Upcoming Year

What do you hope to achieve financially in the next year? Set clear, measurable goals.

7.Review or create a Will

It is something few like to think about or deal with setting up, but it is a very important measure that should be taken. By creating a Will, you can ensure your assets will be distributed according to your wishes.

By taking a proactive approach to planning for your financial future, you can save yourself a lot of unneeded stress later. Remember, while this checklist serves as a guide, everyone’s financial situation is unique. This is a summary of some of the more common end-of-year financial considerations; however, it is not all-encompassing, and it is best to consult a financial professional directly for any additional information. It is crucial to tailor your end-of-year financial activities to suit your personal and financial circumstances best.

Denis Poljak is a Managing Director and a Wealth Manager with the Poljak Group Wealth Management at Steward Partners in Shreveport, Louisiana. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Investing involves risks, and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Steward Partners or its affiliates. Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness.

Steward Partners Investment Solutions, LLC, Member SIPC

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