How can you prepare your finances with the arrival of the new year? In today’s episode, the man with the plan Bob Payne and I are going to help you on your path towards financial planning for 2020. We’ll break down everything you need to know about the new SECURE Act, as well as the noises in the financial media you need to filter out. If you’re ready to conquer this year, make sure that you’re in for this insightful ride!

Is there a better way to start a new year and a new decade other than making a game plan to get you motivated and right on track with your financial preparations?

We’re going to tell you precisely what you should be looking for and what you should ignore when it comes to your financial life.

As always, we’ll have our Spotlight Segment with our trusted financial advisor, Emily de Valente. She’ll review a real retirement plan that will surely help you make all the right moves. You’ll gain the most valuable financial insights that you can use for 2020 and beyond, so make sure that you tune in to No Payne, No Gain!

 

The New SECURE Act

You cannot take your money with you to the grave—we’ve seen that with the Egyptians and their pyramids. However, it’s vital to have a retirement fund ready to up your retirement plan. The SECURE Act, which stands for “Setting Every Community Up for Retirement Enhancement,” is a new legislation signed by President Trump. How will it impact your retirement plan?

[2:33] – From 70 and a half, mandatory retirement accounts distributions is pushed to age 72. 

[3:27] – It’s an advantage for retirees, but the next generation will pay the higher tax liability because it forces you to take it out over a shorter period.

[4:05] – If you have an inherited IRA, make sure that you account for that additional income to avoid being put in a higher marginal bracket.

[6:24] – You can download updates regarding the SECURE Act here.

2020 Financial Media

We spend a lot of time worrying about newspaper and TV headlines. And so, it is essential to talk about what the media covers concerning our financial plan. What are the noises we can ignore, and what really factors into our retirement plan?

[10:38] – Bob suggests factoring into your planning how you’re going to watch TV. 

[10:51] – It’s also a good time to turn Facebook off to avoid distracting ads and opinions.

[11:34] – Never let your political stand interfere with your investment strategy.

[12:55] – If you have an income-based plan, you shouldn’t have to worry about what the market’s doing on an annual basis.

[13:18] – Two things that you can’t control: time and the markets.

[13:40] – Ask yourself: Is my portfolio based on what the market’s going to do this year? Is it based on my goals? Can I calculate the income coming in this year to live off of?

[13:55] – Concerns about the Middle East don’t affect us much. Therefore, it shouldn’t affect how you’re building your portfolio this year.

Social Security Benefits in Your Financial Planning

In No Payne, No Gain’s last episode for 2019, we uncovered the biggest myths about social security. One thing we hear all the time is that “social security is going bankrupt.” Is there a truth to that? How does social security benefits factor in your financial plans?

[15:10] – Social security is the third rail in politics.

[15:28] – Your social security benefits should be customized to your unique situations in the context of your whole plan.

Financial Propaganda of the Week

For our Financial Propaganda of the Week, we’ll tackle articles on media titled, “The Market Has No Memory,” as well as articles on politics and news that factors into our financial portfolio planning. How does it all hold? Find out yourself on the show! 

[20:24] – The Wall Street Journal reported that 2018 was a horrible year in the market, and so we were all negative going into 2019. However, 2019 became an awesome year for the market with the S&P 500 up to over 30%.

[20:59] – The media plays on your emotions.

[21:57] – When you step out of a market because you’re afraid it’ll go down, you never, ever get back in.

[23:23] – Investment portfolios have less to do with who’s in the office than it does with the economic strength.

[24:18] – Warren Buffet’s advice says it all: “I never delay a business decision because of what’s going on in Capitol Hill.”

[25:18] Global poverty has plummeted from 35% in 1992 to less than 10% and people’s purchasing power is going up, but we never hear about this in the news.

[25:04] – The news propagates a lot of negative reviews.

The Mailbag

It’s not easy to have questions about finances with no one to answer your concerns. That’s why here on No Payne, No Gain, you get the opportunity for your questions to be answered. And to help us with those questions, we have our man in the studio, Dan Irving.

[31:31] – Question # 1: What is a reasonable rate of return to expect from a conservative investment account? It seems that everybody defines ‘conservative’ differently.

[34:39] – Question # 2: I’m in my mid-50s and haven’t ever paid much attention to my retirement accounts. I’ve just been saving and investing over the years but without any real direction, and I’m way behind the curb if I’m just now starting to pay more attention.

Spotlight Segment

In this week’s spotlight segment, we’re back with our star financial advisor, Emily de Valente. This week’s Payne Point that we will uncover is about a couple who has both retired and is now seeing a decrease in their income. How did Emily help this couple fix this problem?

[41:11] – Spotlight Segment with Emily de Valente

[41:58] – Emily gives an overview of the couple’s case.

[43:12] – Emily talks about the solution that closed the gap between their income before and after retirement.

[45:39] – By taking less risk and getting diversified, better reducing costs, you let the portfolio run for you.

“We have a famous saying here in Payne that ‘Capital Cash Is Trash,’ because you’re not just earning anything.”

– Ryan Payne

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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Payne Capital Management, LLC), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Payne Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Payne Capital Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Payne Capital Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request.