Portfolio Advisors Blog

Typical conversations with financial advisors have  historically revolved around client cash flow needs, returns, savings rates, taxes and the economic environment. Although these discussions warrant review, as practitioners within the industry of providing comprehensive financial advice we continue to evolve in our approach by implementing new tools and insights. The concept of Return on Life focuses on a more encompassing value proposition as opposed to measuring success based solely by return on investment. The Return on Life belief system views money as a tool, which aids in providing the best quality of life possible given the resources available. Through experience, understanding of our clients’ backgrounds, belief systems and values, we ultimately enable deeper measurements of well-being and financial progress.

Key to our focus on Return on Life planning is a deeper understanding of how clients view and use their money.  In doing so, we gain insight into determining if their use of money  aligns with their goals and what they  ultimately want out of life. Expertise in understanding our clients’  story is central, with the numbers viewed peripherally. Dimensions beyond the financial data is as important as the data itself.   By engaging in Return on Life discussions, more substantive and fruitful discussions ultimately provide superior and more gratifying planning experiences.   

Legislation passed by the House of Representatives on May 23^rd would dramatically change current IRA tax law.  The bill, entitled the “SECURE Act", would change the age at which one must begin taking IRA distributions. It would also change distribution requirements for IRAs inherited by children or other non-spousal heirs. The bill passed with wide bipartisan support in a vote of 472-3. 

Under current IRA law, one must begin taking their required minimum distributions at age 70 ½. The "SECURE Act" would allow IRA owners to delay taking their required minimum distributions until age 72.  This change would allow IRA owners to benefit from the advantage of tax deferral over a longer period of time.  Most will view this as a positive change.

1. You’re financially ready.

The most common question we field from our clients is, “How much do I need to retire?” While there’s no magic number to hit, a few key checkpoints are:

Portfolio Advisors, Inc. will be closed for the following 2019 holidays on the dates listed below:

• Monday, January 21st in observance of Martin Luther King Jr. Day
• Monday, February 18th in observance of Presidents' Day
• Friday, April 19th in observance of Good Friday
• Monday, May 27th in observance of Memorial Day
• Wednesday, July 3rd in observance of Independence Day
• Thursday, July 4th in observance of Independence Day
• Monday, September 2nd in observance of Labor Day
• Thursday, November 28th in observance of Thanksgiving
• Friday, November 29th in observance of Thanksgiving
• Tuesday, December 24th in observance of Christmas
• Wednesday, December 25th in observance of Christmas

With each office closure we will be back the following business day during normal business hours.

Many of our clients anticipate the likelihood that some level of long-term care may be needed at a future date. As we work together toward constructing comprehensive financial plans, addressing and preparing for uncertainties is a critical consideration. Costs for various levels of care such as in-home, assisted living and skilled nursing may be significant. A common approach to addressing the impacts of long-term care costs is analyzing trade-offs between self-insuring (relying on income sources such as Social Security, pensions, retirement accounts, etc.)  or purchasing / maintaining a long-term care insurance policy. As financial planners, our focus is creating viable game plans to combat these uncertainties with the appropriate reflection and preparation. 

According to Morningstar statistics, roughly 52% of Baby Boomers turning age 65 will experience a long-term care need, averaging a 2-year facility stay during their lifetimes. Given these staggering statistics, periodic financial assessment is imperative. Utilizing sophisticated financial planning tools, our team works with clients in determining the potential effects of future care costs. Once general information is collected, our typical approach is then to demonstrate specific events that may adversely affect an individual’s standard of living. Our team has the capability to model alternative financial decisions, ideally arriving at an agreeable solution to diminish future financial stresses. As an example, we may determine (though some assumptions) purchasing or maintaining a long-term care insurance policy may be most beneficial and demonstrate the policy benefits for when certain levels of care are needed. More specifically, further analysis may include illustrations to trade-offs between payments for long-term care insurance premiums versus alternative uses for these dollars. Through our periodic meeting reviews, the foundations to a comprehensive financial plan is paved. 

Markets have been up and down this year, which can alarm many investors.  During periods like these, hearing stories about how other people deal with uncertainty can be helpful. 

Our story is from Dave Goetsch, an executive producer of the popular television show, The Big Bang Theory.  Even though he and other writers on the show make common sense out of complicated science for a living, Dave used to respond to market fluctuations with panic rather than logic.  His point of view has changed fundamentally when he learned that there was a different way to think about investing and discovered a new path for his financial life. 

You will recognize many of the headlines and voices in "Tuning Out the Noise" as viewers are taken on a two minute journey through the "lost decade." The video features the media's amplified coverage of headlines and points to the positive outcome that a disciplined investor could have experienced in the recovery.

Click here to view Tuning Out the Noise

At Portfolio Advisors, we strive to achieve a positive financial experience for our clients and believe that an important part of that experience is through the use of low cost, highly diversified mutual funds.  Dimensional Fund Advisors' mutual fund offerings help us to ensure that these, and other important objectives, are met for our clients.  We thought it noteworthy that 1,544 other advisors share this opinion as voiced through a recently conducted survey by Advisor Perspectives, an interactive publisher for Registered Investment Advisors (RIA's), Wealth Managers and Financial Planners.  The survey asked advisors which asset manager they would recommend to their peers, and Dimensional ranked number one in the majority of the categories, including the fund family which advisors are most likely to recommend.     

Click here to view the results from the Advisor Choice Awards^TM

Whether you're retired or preparing for retirement, our 2018 Retirement Calendar and Checklist can be a valuable planning tool. This retirement checklist serves as a great reference for important dates, details, and deadlines throughout the year. We at Portfolio Advisors are here to answer any questions that you may have and to assist you with your planning needs.

Click below to access our 2018 Retirement Calendar Checklist

For many investors, 2017 was a paradox. The harder they tried to enhance their results by basing investment decisions on current events, the more likely they failed to capture the rate of return the capital markets delivered.

Dimensional Fund Advisors Vice President Weston Wellington's article entitled "Nine Experts, Four Surprises, and One Million Dollar Bet," is a great read providing a healthy dose of reality and perspective. Wellington's piece not only tells you where the experts got it wrong, but also addresses "The Million Dollar Bet" made between Warren Buffet, chairman of Berkshire Hathaway, Inc., and Ted Seideds, a New York hedge fund consultant. If you aren't familiar with this public challenge, made by Buffet, you may want to read this.