Medal Winning Savings!

You have probably heard the advice that you should maximize contributions to your employer’s retirement savings plan. Because it lowers your current income taxation by deferring pre-tax dollars to the plan and grows tax-deferred until distributed, you are encouraged to save to your employer plan (401k, 403b, etc.). Employers may also match a percentage of what you contribute. This can be a powerful way to save, but it should not be the ONLY way you save for retirement. The following medal-winning strategies might add flexibility, potential retirement tax savings and a more secure future to your retirement savings mix. Bronze Medal Winner The bronze medal winner for savings might seem too simple to have an impact but can add versatility and flexibility when trying to increase tax efficiency in retirement. Many people step into retirement with inadequate non-IRA savings.  This forces them to distribute fully taxable income from their employer plan/IRA each time they need cash and increases their tax liability. For those individuals with a mix of IRA and non-IRA savings, more control can be gained over taxation in Read on! →

One positive outcome from Covid & 2020

While there are many aspects of 2020 which we might prefer be forgotten, there were a few positive outcomes from the year which need to be highlighted.  As a majority of individuals in the U.S. were sheltering-in-place during Covid-19 an interesting thing happened. Because we were unable to travel, dine out and generally entertain ourselves by spending lots of money, the U.S. personal savings rate jumped to a record 15% of gross income. As can be seen from the chart below, not since the early 80’s has the U.S. seen a savings rate even in excess of 10% and it has been as low as 3%, which occurred just prior to the Great Recession. Even though the jump in personal savings was not spread evenly throughout the population, it does represent a very positive change, one that shouldn’t be abandoned when the world returns to it’s new “normal”. It is interesting to note that in order to successfully fund retirement, it is recommended that a consistent annual savings rate of 10-15% is required. With this chart going back to 1960, Read on! →

Choosing an Advisor in the Time of Covid-19

If the shelter-in-place restrictions were not enough to take you off balance, the March recession and changes to your ongoing employment likely tipped the scale for you. Given the many months this crisis has continued on and amid so many uncertainties, where should you turn and how do you go about choosing an advisor to partner with for the future? Can you even search for an advisor during Covid-19? Clearview Wealth Management is fully able to meet virtually with you to help determine if there is a mutual fit for your situation and if we have the expertise you need to help you meet your goals. Whatever is driving your search for an advisor, there are some important aspects which should be considered before making your decision. Because this is not a decision most people make more than a few times in their lives, consider the following to help you narrow down your search for the right person. Choosing the Right Advisor – A Clearview Case Study example of advisor characteristics you should consider NAPFA Advisor Comparison Tool  – A Read on! →