6 Threats to Baby Boomers Retiring

baby boomers retiring

Summary: As a group, baby boomers were the wealthiest, most active, and most physically fit generation up to that time, and among the first to grow up genuinely expecting the world to improve with time. They were also the generation that received peak levels of income, therefore they could reap the benefits of abundant levels of food, and apparel.  However, with an increase in “consumerism”, comes an increase in the risk of not having enough for retirement. To help with your retirement planning, I have created a short list of areas you may want to take into account. 

6 Threats to Baby Boomers Retiring:

1. Baby Boomers Should Expect a Much Longer Retirement: The parents of baby boomers worked as long as they could and very few were fortunate enough to have a retirement that would be considered “golden” by today’s standards. How many spent the last third (or more) of their lives pursuing hobbies and leisure instead of working? Baby boomers retiring in their 60s can expect to live about 30 years in retirement, which is a lot longer than their parents did.

2. Higher Expectations: Not considering tours of duty in Europe or the Pacific, how much traveling did past generations of retirees do? Boomers’ parents were Depression-era babies who practiced frugality and continued to pinch pennies throughout retirement. In stark contrast, baby boomers want their retirement to include travel, vacation homes, new cars, dining out, etc. This is fine, but it is expensive. Therefore, baby boomers retiring need to plan for a much more expensive retirement than their parents ever would have expected.

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DFA Mutual Funds Review – Overview of Dimensional

financial planningSummary: The success of Dimensional Fund Advisors (DFA) as a mutual fund company is no secret. However, the reason for their success may be a mystery for many individuals. I have written this DFA Mutual Funds Review to shed light on the mystique of Dimensional Fund Advisors. I provide the history leading up to the founding of the company, why DFA was created, and how their research has evolved over the past three decades. (Full disclosure: I recommend DFA Mutual Funds to my clients).


If you are interested in receiving objective and transparent advice on your particular situation, you may contact me, Katherine Fonville, at info@fonvillewealth.com or call me at (804)306-4582. I work with clients across the country. You may also review my services here


I hate starting a new blog off on a negative, but you should know that DFA mutual funds are not for everybody. Investors who are self declared “market timers” or those who may pick stocks on a regular basis may not be a good fit for investing in DFA mutual funds. Additionally, DFA mutual funds tend to tilt toward value and small cap stocks. As such, there can be long periods of time when value or small companies under perform the broad market. This may be frustrating for some who may have the desire to “beat” the S & P 500 stock index every year, instead of outperforming patiently over time. Lastly, DFA mutual funds are primarily only accessible through approved  financial advisors who understand how to integrate them into a well diversified asset allocation model. If you don’t work with an financial advisor approved to work with DFA, you may be out of luck.

However, for those investors who prefer a disciplined strategy custom designed to increase the probability of accomplishing your long term goals without market timing or speculation, incorporating DFA mutual funds into your investment plan may be an option you should consider.

DFA Mutual Funds Review – In the Beginning

In 1952, Professor Harry S. Markowitz published a paper on what would become known as Modern Portfolio Theory. Before Modern Portfolio Theory, investors thought the best way to make money in the markets was to buy just a few high-performing stocks. Markowitz, who earned the Nobel Prize in Economics in 1990 for his research, showed that investors could maximize returns and minimize risk by investing in diverse portfolios containing many asset classes or slices of the stock market. To adjust the amount of risk, an investor need only change the proportion of asset classes in his portfolio.

Markowitz’s idea was ahead of his time. Computing was in its infancy and there were few practical ways to implement his idea.

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Retirement Anxiety – 5 Ways to Reduce It

Map with many words on it including retirement, anxiety, help, activitiesSummary: If you have retirement anxiety, you are not alone. According to a 2013 survey by Ameriprise Financial, only 46 percent of not-yet-retired boomers with investable assets of $100,000 or more feel confident they’ll be able to afford basic living expenses in retirement. Retirement anxiety effects millions of Americans every year. Concerns like: What will I do with my time? Who am I now that I am no longer a physician (or teacher or manager)? Do I have enough money?  Despite the powerless feeling you may have, you do have control. To help, I have compiled a short list of action items you can take right now.

5 Ways to Reduce Retirement Anxiety

  1. Identify Your Passions or Create a Bucket List - Do you remember the activities you did before you had children and before you became so busy with life in general? A lot of times, your passions go by the wayside and are replaced by helping others, working, and resorting to procrastination techniques like telling yourself: “There is always tomorrow!”. Well, tomorrow is here, so write down 3 activities or bucket list items you want to revisit to bring excitement and relaxation into your life.  This physical stimulation  is often a good remedy for stress. Put the activities on your calendar or they will never happen.
  2. Consider Volunteering – For those of you who like helping others, volunteering your time in retirement can benefit everyone. There is something about helping others that can reduce your own retirement anxiety. Do you have a particular cause that is important to you such as church, cancer research, or helping under privileged or sick children? Don’t have a cause? Don’t worry, you can always check out Charity Navigator to help you find one. The mental stimulation that comes with helping others can be quite gratifying and is a great way to keep you feeling young.
  3. Set Marital Expectations (Carefully) – Sometimes, retirement anxiety can be brought on by resentment if one spouse is retired and the other is not. Additionally, once everyone in the household stops working, too much time in front of each other can be a bit of a “shock” to the system for many married couples. Sit down with your spouse to talk about what you want to do in retirement and when. Even specifying days of the week for golf, tennis, or bridge can be helpful toward setting proper expectations. Don’t forget about those date nights though! This can help keep your relationship fresh and help you stay focused on why you married each other in the first place!free retirement report
  4. Create a Plan - As they say, failing to plan is planing to fail. Putting a retirement plan in place can help you gain clarity for your future and may reduce your retirement anxiety. Surveys show that individuals who put their goals on paper are far more confident about their future than those who don’t. A retirement plan can help identify strategies to create income and make your money last for the long term. More importantly, it can help you understand how you can afford all of your new activities!
  5. Work with a Retirement Planner – Retirement anxiety can often be caused by a lack of financial confidence and direction. With so much choice and so many retirement strategies available, it can be stressful sifting through all the jargon. A retirement planner can help you gain clarity on your future, provide insight on what strategies might work best for you, and be a lifetime partner to help you achieve new opportunities as they arise.

Remember, retirement anxiety is common. However, if you take the time to address each of the action items above, you may be able to reduce your retirement anxiety and boost your confidence. And that is nothing to stress over!


financial planningRetirement Anxiety – 5 Ways to Reduce It was written by Katherine Fonville, President of Fonville Wealth Management, LLC., a Fee-Only Financial Planner in Richmond, VA. Katherine is an independent financial advisor serving clients across central Virginia and Nationwide. She provide financial planning and wealth management services to successful individuals and families. 

This article is for informational purposes only and should not be construed as specific investment advice tailored to an investor’s unique needs, risk tolerance, and investment objectives. Investing entails risks, including possible loss of principal. There are special risk considerations associated with value strategy investing, international investing (including emerging markets), and small company investing. Consider the investment objectives, risks, and expenses of any mutual fund carefully before investing. For additional information about Dimensional Funds, please read their respective prospectuses carefully before investing. This information does not represent a recommendation of any particular security, strategy or investment product. Fonville Wealth Management is an investment advisor registered with the the Virginia State Corporation Commission. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not indicative of future results and no representation is made that stated results will be replicated. The use of the term Registered Investment Advisor does not imply experience, designation, or regulatory endorsement.  

Past performance is no guarantee of future returns.

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Roth IRA Contribution Limits 2013

Roth IRA contribution limits 2013 were announced in October of 2012 by the Internal Revenue Service (IRS). Below, you will find the Roth IRA limits for 2013. You have until April 15th of 2014 to make your 2013 Roth IRA contribution.

Roth IRA Contribution Limits for 2013

  • 2013 Roth IRA maximum contribution limits are $5,500. 
  • For employees aged 50 and over, 2013 Roth IRA catch-up contribution limits remains unchanged at $1,000. This means that individuals over 50 years of age can contribute a maximum Roth IRA contribution limit of $6,500 total.

Please note, there are income limitations for contributing to a Roth IRA. Please consult your financial advisor or tax expert.

Roth IRA Contribution Limits 2014401k contribution limits 2014 | 401k contribution limits 2013

Roth IRA Contribution Limits 2013 was written by Katherine Fonville, President of Fonville Wealth Management, LLC., a Fee-Only Financial Planner in Richmond, VA. Katherine is an independent financial advisor serving clients across central Virginia and Nationwide. She provide financial planning and wealth management services to successful individuals and families. 

This article is for informational purposes only and should not be construed as specific investment advice tailored to an investor’s unique needs, risk tolerance, and investment objectives. Investing entails risks, including possible loss of principal. There are special risk considerations associated with value strategy investing, international investing (including emerging markets), and small company investing. Consider the investment objectives, risks, and expenses of any mutual fund carefully before investing. For additional information about Dimensional Funds, please read their respective prospectuses carefully before investing. This information does not represent a recommendation of any particular security, strategy or investment product. Fonville Wealth Management is an investment advisor registered with the the Virginia State Corporation Commission. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not indicative of future results and no representation is made that stated results will be replicated. The use of the term Registered Investment Advisor does not imply experience, designation, or regulatory endorsement.  

Past performance is no guarantee of future returns.

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Social Security Calculator

Our social security calculator can help you estimate your potential social security retirement income benefit. There are limitations to the social security calculator below, so make sure you check with the social security administration for an accurate number.

 

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Roth IRA Contribution Limits 2014

roth ira contribution limits 2014Roth IRA contribution limits 2014 were announced in October of 2013 by the Internal Revenue Service (IRS). Below, you will find the Roth IRA limits for 2014. You have until April 15th of 2015 to make your 2014 Roth IRA contribution.

Roth IRA Contribution Limits for 2014

  • 2014 Roth IRA maximum contribution limits remains unchanged at $5,500. 
  • For employees aged 50 and over, 2014 Roth IRA catch-up contribution limits remains unchanged at $1,000. This means that individuals over 50 years of age can contribute a maximum Roth IRA contribution limit of $6,500 total.

Please note, there are income limitations for contributing to a Roth IRA. Please consult your financial advisor or tax expert.

401k contribution limits 2014 | 401k contribution limits 2013

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401k Contribution Limits 2014

401 contribution limits 2014401k contribution limits for 2014 were announced in October of 2013 by the Internal Revenue Service (IRS). Below, you will find the 401k limits for 2014. You have until April 15th of 2015 to make your 2014 401k contribution.

401k Contribution Limits for 2014

  • 2014 401k maximum contribution limits remains unchanged at $17,500. 
  • For employees aged 50 and over 2014 401k catch-up contribution limits remains unchanged at $5,500
  • Combined 401k contribution limits for employees aged 50 and over is $23,000.

401k contribution limits 2013 | Roth IRA contribution limits 2014

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401k Contribution Limits 2013

401k contribution limits 2013401k contribution limits for 2013 were announced in October of 2012 by the Internal Revenue Service (IRS). Below, you will find the 401k limits for 2013. You have until April 15th of 2014 to make your 2013 401k contribution.

401k Contribution Limits for 2013

  • 401k maximum contribution limits for 2013 increased to $17,500. 
  • For employees aged 50 and over 401k catch-up contribution limits for 2013 is $5,500
  • Combined 401k maximum contribution limits for employees aged 50 and over is $23,000.

401k Contribution Limits for 2014 | Roth IRA Contribution Limits for 2014

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The Cost of Procrastination

Procrastination can be costly. When you get a late start, it may be difficult to make up for lost time.

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Get Your Free Retirement Report

free retirement reportFree Retirement Report

For those of you who want to get started on the right foot with your finances in 2014, Fonville Wealth Management will be offering a Free Retirement Report through our partner, Free Retirement Report.com.

Our free retirement report will help you answer the following questions:

 

  • When can I retire?
  • Should I save more money?
  • Can I maintain my lifestyle in retirement?

Our free retirement report will help you gain clarity on all of these questions and hopefully reduce your retirement anxiety. That’s it! It’s free and there is no obligation. You benefit by getting a snapshot of your future. We benefit by getting to know somebody new who may want to hire us for our advice long term.

How it Works:

free retirement reportStep 1: Contact Us. Click the “Plan for your Future” banner above and fill out the short form. . 

 

 

free retirement report

Step 2: Talk With Us. We will call you shortly to setup either a time to meet in person, via Skype, or just chat over the phone to help clarify your situation and to get started on your free retirement report.

 

free retirement report

Step 3: Achieve Your Goals. After we create the report for you, we will provide a clear understanding of how to achieve your retirement goals, and how to modify your current saving and investing strategy.

That is it! Best of luck in 2014!


free retirement report from katherine fonville“Get Your Free Retirement Report In the New Year” was written by Katherine Fonville, President of Fonville Wealth Management, LLC., a Fee-Only Financial Planner in Richmond, VA. Katherine is an independent financial advisor serving clients across central Virginia and Nationwide. She provide financial planning and wealth management services to successful individuals and families. 

This article is for informational purposes only and should not be construed as specific investment advice tailored to an investor’s unique needs, risk tolerance, and investment objectives. Investing entails risks, including possible loss of principal. There are special risk considerations associated with value strategy investing, international investing (including emerging markets), and small company investing. Consider the investment objectives, risks, and expenses of any mutual fund carefully before investing. For additional information about Dimensional Funds, please read their respective prospectuses carefully before investing. This information does not represent a recommendation of any particular security, strategy or investment product. Fonville Wealth Management is an investment advisor registered with the the Virginia State Corporation Commission. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not indicative of future results and no representation is made that stated results will be replicated. The use of the term Registered Investment Advisor does not imply experience, designation, or regulatory endorsement.  

Past performance is no guarantee of future returns.

 

 

 

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