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Discussing the Number One Concern About Retirement 

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Baby Boomers are retiring at astonishing rates and are looking for ways to replace their steady paycheck. They are worried about the potential of Social Security diminishing and what might happen to their retirement if it does. At American Financial Security, we believe that the number one concern for most pre-retirees and retirees is outliving their money. It is important to safeguard your retirement so you do not have to worry about outliving your retirement income.  

At American Financial Security, we take a holistic approach to retirement planning and a major part of that is trying to plan for the future. Nobody can predict the future, but by preparing for the future financially, you may be saving yourself from potential financial hardship. Essentially, creating income that you won’t outlive will be the result of strategic, innovative and purposeful retirement planning. 

There are various ways we help our clients work towards safeguarding their retirement. First, we like to encourage clients to revisit their retirement plan. People who planned their retirement years ago think that what they decided on then is still applicable to their situation now. However, situations change, and we believe it is important to always check on your retirement plan to make sure it meets your current and/or new needs.  

The next step is to determine what your daily income entails by first knowing how much you need and when you need it. Knowing how much you need and when is different for everyone. A general rule of thumb is that a retiree will require 70 to 80 percent of their pre-retirement income to maintain their current lifestyle. Once you figure out what the amount is you need and when, the next step would be to find beneficial investment strategies, options and tools to help you achieve your income goals. 

There are a handful of ways to fill your need for income in retirement. Social Security is one of the better-known ways. Social Security is the foundation of income planning for anyone who is about to retire and can be a reliable source of income. Having a solid understanding of your Social Security benefit can help safeguard your retirement by allowing you to make informed decisions that will allow you to maximize your benefit. 

For many Americans, finding dependable income to bridge their income gap in retirement can be a daunting and overwhelming process, but it doesn’t have to be. We help our clients develop a comprehensive understanding of Social Security so they can rest assured they are triggering their benefits in the way that’s best for them. The importance of maximizing your Social Security benefit really cannot be overstated. For some people, the difference can literally be thousands of dollars, and when it comes to retirement planning, every penny counts. 

Another way we help clients is by sharing with them how they could benefit from a fixed index annuity. Fixed index annuities are specifically designed to create income – either today or at some point in the future. When you place a lump sum into a fixed index annuity, the plan can be custom designed to help provide you with the ongoing income you need, for as long as you need it.   

A fixed index annuity may be an invaluable component of your retirement plan, helping you to safeguard your assets and your future. In order to help ensure you purchase the fixed index annuity best suited to your needs, it’s important you understand its fundamental concepts. A fixed index annuity can help provide the necessary income you need to maintain your quality of living after you retire. 

Is it very important to have a retirement plan addressing ways to have income for life in order to safeguard your retirement? Finding the most efficient and beneficial way to address this may impact your lifestyle, your asset accumulation, and your legacy planning after you retire. QCBN 

 

*Annuities are designed to be long-term investments and frequently involve surrender charges. Early withdrawals may impact annuity cash values and death benefits. Taxes are payable upon withdrawal of funds.  An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. Annuities are not guaranteed by FDIC or any other governmental agency and are not deposits or other obligations of, or guaranteed or endorsed by any bank or savings association. With fixed annuities, both the money you invest and the interest paid out are guaranteed by the claims-paying ability of the insurer. Investors should consider the investment objectives and expenses of a fixed index annuity carefully before investing.  

By Ronald Stevenson and Barbara Clark Stevenson 

Ronald F. Stevenson & Barbara Clark Stevenson own American Financial Security, LLC and American Financial Investments, LLC, a Registered Investment Advisor in the State of AZ.  They specialize in Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Personal & Corporate Tax Preparation and Planning.  For more information, call 928-771-8368 or visit AFSprescott.com, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305 

 

  

Re-Balancing Your Portfolio Allocations

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In today’s uncertain financial landscape and based on the market run up we have seen in 2017, we believe it is more important than ever to establish a well-maintained portfolio that can help you reach your financial goals. Your portfolio needs to not only meet your need for capital, but also provide you with financial peace of mind.

While there’s no simple formula to help you figure out how your portfolio should be constructed, determining the right asset allocation should be the first step in the process. In order to properly ascertain your financial situation, there are a few important things to consider: age, time horizon, amount of capital to invest and future capital needs.

Another important thing to be aware of is your risk tolerance. Would you be willing to risk funds for the possibility of greater gains? While everyone wants to reap the rewards of high returns, not everyone can handle the high stress levels they can cause.

On the other side, avoiding investment risk isn’t always a wise decision. It is possible for portfolios to be too conservatively constructed, which makes them unable to provide the necessary long-term growth that is needed to outpace inflation and build wealth. Many investors seek absolute safety and keep their money in bank accounts, Certificates of Deposit (CDs) and other financial products without realizing that these “safe” choices may incur their own set of risks.

These risks include investment opportunity loss and the destruction of purchasing power resulting from inflation. When investors fail to take advantage of returns that a portfolio of growth investments can produce over time, this is called investment opportunity loss. Inflation can also hurt your investments as it is often regarded as the silent destroyer of low-risk portfolios as purchasing power declines over time.

You need to find the right balance for you – one that satisfies your risk tolerance while also achieving an appropriate amount of growth and income.

At American Financial Investments LLC, we can help you create a financial strategy that fits your individualized investment objectives and goals. Allow our team to utilize our knowledge and experience to help manage your portfolio during various economic conditions and investment market cycles. Allow us to help you determine your risk tolerance using proprietary surveys, analyzing your finances and discussing your retirement and financial goals in depth.

We believe that your best bet for steady, long-term growth of your investments is having a well-diversified portfolio. This can help protect your assets from the risks of large drops and structural changes in the economy over time. When you work with the right financial professional, they can help you diversify, make adjustments when necessary and help increase your odds for long-term financial success. QCBN

 

By Ronald Stevenson and Barbara Clark Stevenson

Using Life Insurance for Financial and Tax Planning

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Do you have a financial plan set up to protect your loved ones after you pass away? With a well-thought-out life insurance plan, you can do just that. The purpose of life insurance is to help provide a measure of financial well-being for your family and loved ones when you are no longer there. With the purchase of a carefully planned life insurance policy, you can help ensure that your family and loved ones will be taken care of.

Life insurance offers two essential benefits. First, it offers protection for your family from the financial hardships if you were to pass away. Secondly, certain types of life insurance policies offer wealth accumulation features. Not only can life insurance benefit your family in the event of your passing, but it can also benefit you as a key component in your financial portfolio.

In addition, there are two terms commonly used when discussing life insurance: term and permanent. Term insurance is the most commonly one used. This insurance policy is when you purchase a certain death benefit that will go to your heirs upon your death, which typically lasts for 10 to 20 years. Once you reach the end of that term, you no longer have insurance unless you purchase another policy. The other term used is permanent insurance. This type of insurance is permanent as long as the premiums continue to be paid. Permanent insurance generally has higher premiums than term insurance for the same amount of death benefit coverage.

Life insurance enjoys a unique status among financial products. It may provide you with an array of benefits such as providing for funeral costs and final medical bills, along with helping with life expenses for your dependents and/or survivors. But, what really sets it apart from other financial options is that it receives advantageous tax treatment unlike any other financial tool.

This little known or discussed tax asset holds some of the greatest value for your financial lives both during life and upon death. After purchasing a life insurance policy, your loved ones will be provided with a financial windfall from the life insurance company when you pass to help them with your final expenses and carry on with their lives comfortably. One of the best parts about the life insurance windfall is that nobody will have to pay tax on the money they receive. This is one of the greatest tax-advantage devices available. However, it does have one downside: you do not get to use it, only your heirs will.

Additional tax benefits on a life insurance policy is that there are no current income tax on interest or earnings, no income tax on the borrowed cash value, and no income tax on proceeds. However, in certain situations, life insurance death benefits may be partially or wholly taxable.

As an independent insurance firm, we are able to shop dozens of insurance carriers to find the best rates and product solutions to fit your specific needs and goals. In addition, we offer complimentary reviews on your existing life insurance contracts. QCBN

By Ronald Stevenson and Barbara Clark Stevenson

Ronald F. Stevenson, Investment Advisor Representative & Barbara Clark Stevenson own American Financial Investments, LLC, A Registered Investment Advisory Firm. They specialize in Professional Investment and Portfolio Management, Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Annuities, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305

or visit our website: AmericanFinancialSecurity.net

 

Investment advisory services offered through American Financial Investments, LLC a Registered Investment Advisor in the State of Arizona. Insurance products and Tax services are offered through American Financial Security, LLC.  American Financial Investments, LLC and American Financial Security, LLC are affiliated companies.

 

 

 

 

Creating Income for Life

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 The number one concern for most retirees is the possibility of outliving their income in retirement. For example, Baby Boomers are retiring at astonishing rates and are looking for ways to replace their steady paycheck. They are worried about the potential of Social Security diminishing and what might happen to their retirement if it does. Baby Boomers are also concerned about the volatility in the market and the possibility of losing money in what may seem like the only place to earn money with interest rates being so low.

Having a retirement plan plays an integral role when addressing ways to ensure income for life. Finding the most efficient and beneficial way to address this may impact your lifestyle, asset accumulation and legacy planning after you retire. Satisfying that need for monthly income entails knowing how much you need and when you need it.

Even though everyone’s income needs are different, the general rule of thumb is that a retiree will require 70 to 80 percent of their pre-retirement income to maintain their current lifestyle. Once you figure out your needed amount, the next step would be to explore beneficial financial strategies, options and tools to help you achieve your income goals.

There are a handful of ways to fill your need for income in retirement. Social Security is one of the most well-known methods. It plays an important role in many Americans’ retirement plans, and it is beneficial for them to know how to properly manage it in order to maximize their benefit. Social Security is the foundation of income planning for anyone who is about to retire and can be a reliable source of income.

In addition to having a Social Security benefit, fixed index annuities have gained popularity, especially with the addition of income riders that allow people to defer income until some point in the future. They can turn on an income stream that is guaranteed for life, regardless of what happens to their account balance.

Fixed index annuities are products created by insurance companies to address needs for growth and a structured lifetime income, which can make fixed index annuities uniquely suited to be a significant asset in one’s retirement plan.

Fixed index annuities are like other annuities. But, instead of growing by an interest rate that is declared by an insurance company, they are linked to the performance of a market index. In addition, they are sometimes accompanied by fees that would be deducted from your account.

Fixed index annuities provide you with confidence about your retirement savings strategy and principal protection. They also have no exposure to loss when the market drops and help provide a hedge against inflation. Overall, they are a good alternative for someone looking for a secure vehicle, but also liking to follow the market.

When considering a fixed index annuity, it is important that you understand that your money is locked in the annuity for a predetermined number of years. Also, if interest rates go up, that money is typically not available to move during that time or surrender charges can apply. There is either a return cap or a maximum participation rate linked to market earnings.

With fixed annuities, both the money you invest and the interest paid out are guaranteed by the claims-paying ability of the insurer. Investors should consider the investment objectives, risks, charges and expenses of a fixed annuity carefully before investing.

Fixed index annuities are specifically designed to create income – either today or at some point in the future. A fixed index annuity may be an invaluable component of your retirement plan, helping you to safeguard your assets and your future.

When finding ways to create income for life, it is important to understand that each individual’s situation is different, and that you should work with a qualified financial services professional to help you decide what is right for you. It is important to understand that there are many insurance companies that offer annuities and not one annuity is suitable for every person. At American Financial Security, we work with many companies to accommodate our clients’ needs in retirement. QCBN

 

By Ronald Stevenson and Barbara Clark

 

Ronald F. Stevenson, Investment Advisor Representative, & Barbara Clark Stevenson own American Financial Investments, LLC, a registered Investment Advisory Firm. They specialize in Professional Investment and Portfolio Management, Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Annuities, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305 or visit their website: American.Financial.

 

Investment advisory services offered through American Financial Investments, LLC a Registered Investment Advisor in the State of Arizona. Insurance products and Tax services are offered through American Financial Security, LLC.  American Financial Investments, LLC and American Financial Security, LLC are affiliated companies.

 

Retirement Planning: The Big Picture

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Future retirees and retirees should take into consideration the big picture of their retirement planning, which includes conducting financial planning and tax reviews. Once you have the full picture, it helps you make more detailed and necessary decisions to achieve the retirement for which you have worked so hard.

Planning for retirement is a multi-step process that can bring along many questions. For example, one must consider inflation, health care costs and debt. At American Financial Security, we take a holistic approach to retirement planning, and a major part of that is trying to plan for the future.

It is helpful and important to know what steps to take when preparing for your retirement. It is also good to know that if you are already retired it is not too late to incorporate some of these steps to help strengthen and improve your current retirement situation.

There are many things to take into consideration when preparing for retirement. But, making sure your documents are accounted for and managed, is a great step on the path to a comfortable and well-planned retirement. This step is important because there can be a lot of documents to manage from tax, estate, property, personal, etc. Unfortunately, the unquestionable number of important documents that some people have can lead to the disorganization of document management and, more often than not, become overwhelming.

Often, it’s only when tax season rolls around, or when a move happens, or a death in the family occurs, when people start really paying attention to the essential documents they may have. That is why reviewing your financial retirement plan on your own time can help you organize your documents and determine what you may still need for retirement.

Another part of planning for your retirement is having a well-planned tax strategy. Since we are a tax planning and preparation firm, we look over our clients’ taxes and help them form a tax strategy. The strategy is meant to help them have an understanding about what the normal tax ramifications might be of some of the investment and financial decisions that they make. A strategy might include (but is not limited to) maximizing a tax-free income, taking advantage of standard or itemized deductions, or deferring your retirement plan distributions until needed. It is important to meet with a financial professional to help you determine which strategy is right for you.

One more step in making the financial transition into retirement would be understanding your Social Security benefit and how to maximize it. Many people don’t know what their retirement income gap may look like. And, because of this, they do not know how they will fill their potential income gap in retirement. By reviewing your financial plan for retirement, you can potentially determine how to handle any financial gap you may face in retirement.

In most cases, when it comes to filling your income gap, there is no better tool to use than your Social Security benefit because it provides you with a lifetime’s worth of guaranteed income. We help our clients develop a comprehensive understanding of Social Security so they can rest assured they are triggering their benefits in the way that’s best for them. The importance of maximizing your Social Security benefit really cannot be overstated. For some people, the difference can literally be thousands of dollars, and when it comes to retirement planning, every penny counts.

Nobody can predict the future, but by preparing for the future financially, you may be saving yourself from future financial hardship.

Every person is different. By assessing each person on an individual basis, we are able to properly evaluate their specific situation and make a proper financial recommendation that will best serve that individual or couple. QCBN

By Ronald Stevenson and Barbara Clark Stevenson

Navigating Through Annuities

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When it comes to retirement, many people rely on 401(k)s and Social Security to provide them the necessary income they need. Sometimes, those sources of funds are not enough and retirees are faced with an income gap that they need to figure out how to fill.

This is where annuities can come in handy for some people. For those that aren’t sure what annuities are, they can be defined as a financial product that is designed to take in and potentially grow an individual’s funds, and then pay out a stream of payments upon annuitization.

While the media is full of positive and negative information regarding annuities, they can be a great resource for some people but are not meant to solve all problems. There are several different types of annuities, each serving a specific purpose:

 

Single Premium Immediate Annuity (SPIA)

A contract with an insurance company where you pay them a sum of money upfront (premium) and the insurance company promises to pay you a specific amount of money periodically for a certain amount of time whether that’s five years or the rest of your life.

Multi-Year Guaranteed Annuity (MYGA)

A contract with an insurance company which promises a fixed guaranteed rate of return for the entire duration of the contract’s term, which typically ranges from five to 10 years. These annuities were designed to allow the owner to earn a guaranteed interest rate for a specific period of time.

Traditional Annuity

Sometimes referred to as floating rate annuities, these types of annuities will usually offer a base rate of interest that is guaranteed for one year with the guarantee based on the claims paying ability of the issuing insurance company. They typically offer a higher first year guaranteed rate of interest than MYGAs and give the flexibility of not being locked into an interest rate for the term of the contract. However, the interest can change on an annual basis.

Fixed Index Annuity (FIA)

Offer similar features and guarantee of principal as other fixed annuities, but they credit interest to your account based on a formula and independent stock market index, like the S&P 500.

 

Variable Annuity (VA)

While it has similar features as the fixed annuity, a variable annuity differs by offering the upside potential of the investment and there is a risk that your retirement assets can go down with the market.

 

Generally, annuities are meant to be long-term financial products and aren’t meant for short-term goals.

At American Financial Security, LLC, we are dedicated to providing you with personalized financial solutions and making sure that any annuity you have fits your unique situation.

Sifting through the different types of annuities and ways to bridge your income gap in retirement can be stressful; but it doesn’t have to be. When you work with the right financial professional, they can offer different strategies that will help you reach your dream retirement that you’ve worked so hard for. QCBN

 

By Ronald Stevenson and Barbara Clark Stevenson

 

Ronald F. Stevenson & Barbara Clark Stevenson own American Financial Security, LLC. They specialize in Retirement Income Planning, Fixed Annuity Strategies, Social Security Maximization, Tax Free Income Design, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368 or visit www.AmericanFinancialSecurity.net, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305

 

 

Ronald F. Stevenson offers Advisory services through American Financial Investments LLC a Registered Investment Advisor in Arizona. Insurance products and services are offered through American Financial Security, LLC. American Financial Investments LLC and American Financial Security, LLC are affiliated companies.

 

Disclaimer: Annuities are insurance products and are regulated by state insurance laws and regulations. Variable annuities are securities and are regulated by the Securities and Exchange Commission (SEC). Annuities are designed to be long-term financial products and can involve such fees as administrative fees, rider fees, mortality and expense charges, and surrender charges. Early withdrawals may be subject to surrender charges. Withdrawals before the age of 59 ½ may be subject to an additional 10% IRS penalty. Annuities are not guaranteed by the FDIC or any government agency.
This document is for informational purposes only and does not constitute legal, tax, accounting, or financial advice. Please consult us for additional information regarding your specific financial situation.

 

 

 

 

 

 

Developing a Successful Portfolio: Are your assets properly allocated?

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Everyone has an idea of what they want their retirement to look like, whether that means spending more time with family, traveling, or enjoying a favorite pastime. Many people even base their financial plans off of their vision for the future. The reality is that you can never truly prepare for everything that life has in store for you – your plans need to be adaptable.

Generally speaking, most portfolios include many types of investments with varying degrees of risk and include elements of long-term growth, income generation and built-in principal preservation.

One of the most important aspects of portfolio allocation is paying attention to risk, which starts by examining your unique financial position. It helps to consider when you want to retire, what your financial goals are in retirement and your ability to handle a financial loss. Knowing your goals and how you feel about risk will help you determine the ideal path and process in reaching your retirement goals.

Oftentimes, people strive to avoid taking on any investment risk. The problem with this mentality is that all investments carry some risk and also that a certain amount of risk can be necessary for a healthy portfolio. Conservatively constructed portfolios aren’t able to provide the long-term growth potential that is needed to outpace inflation and build wealth. Investors that seek “absolute safety” often run into risks of a different variety, like investment opportunity loss and the destruction of purchasing power resulting from inflation.

At American Financial Investments, LLC, we work with you to help ensure any financial decisions are being made in your best interest and will help assess any potential risk in your retirement plans. We are dedicated to creating a financial strategy that aligns with your personal investment objectives and goals, and we will utilize our knowledge and experience to help manage your portfolio throughout various economic conditions and investment cycles.

When you work with our team, which includes full spectrum investment and tax services, we will help you determine your current comfort level with risk by getting to know you on a personal level and using surveys. We then analyze your financial picture for a reality check against your income needs and the cost of your hopes and dreams.

We believe that following sound investment principles such as asset allocation, regular portfolio reviews and managing risk can lead you to long-term success – and that’s what we strive for. Developing a successful portfolio can be an overwhelming task, but you don’t have to do it alone. After all, you wouldn’t perform surgery on yourself, so why try to manage a portfolio if it’s not your area of expertise?

Let our professional investment managers who understand the fundamentals of the stock and bond markets and have the industry knowledge on their side help you make decisions that are in your best interest – giving you the time and peace of mind to enjoy the things you love. QCBN

 

Ronald F. Stevenson & Barbara Clark Stevenson own American Financial Security, LLC. They specialize in Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368 or visit AmericanFinancialSecurity.net, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305.

 

 

By Ronald Stevenson and Barbara Clark Stevenson 

 

All written content is for information purposes only.  It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.  Opinions expressed herein are solely those of American Financial Investments LLC and our editorial staff.  Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions.

American Financial Investments LLC and American Financial Security, LLC are not affiliated with or endorsed by the Social Security Administration or any government agency.

Ronald F. Stevenson is and Investment Advisor Representative and offers Advisory services through American Financial Investments LLC a Registered Investment Advisor in Arizona. Insurance products and services are offered through American Financial Security, LLC, an affiliated company.

 

 

Social Security and Retirement: Do You Know the Right Time to File?

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Since 1935, Social Security has been one of the pillars of retirement income, serving as the primary source of income for half of Americans over the age of 65. In many ways, it can be regarded as a government-run retirement account for those who have put a portion of their paycheck toward the program throughout their working life.

When you retire, your income may cease but your need for income doesn’t. Finding other sources of revenue that can replace your old salary is often the biggest challenge of retirement planning, which makes getting the most out of your Social Security benefit even more important.

The significance of maximizing your Social Security benefit can’t be overstated – the difference can literally be thousands of dollars for some people. It’s also worth noting that a married couple has more than 8,000 different filing possibilities, and there are more than 2,700 rules that govern the program’s payouts.

There is no one-size-fits-all rule when it comes to Social Security, and determining when to file is not a decision that should be taken lightly.

At American Financial Investments LLC, we are dedicated to providing you with personalized financial solutions and making sure that your plans can provide for you down the road. We are committed to analyzing your unique situation against every possible combination of filing strategies and coming up with a plan tailored to you.

Although deciding when to file can be stressful, it doesn’t have to be. When you work with the right financial professional, he or she can offer different strategies that will help you maximize your benefits based on your marital status, age, earnings, financial needs and other considerations.

Ultimately, when it comes to retirement income, every penny counts. Every dollar you increase your Social Security benefit by is one less dollar that has to be pulled from your personal savings down the road. Taking time to work with a qualified financial professional and understand Social Security and the

strategies surrounding it can help you make the most of your benefit and maximize your retirement income plan. QCBN

By Ronald Stevenson and Barbara Clark Stevenson

 

American Financial Investments LLC and American Financial Security, LLC are not affiliated with or endorsed by the Social Security Administration or any government agency.

All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Opinions expressed herein are solely those of American Financial Investments LLC and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions.

 

About the Authors: Ronald F. Stevenson & Barbara Clark Stevenson own American Financial Security, LLC. They specialize in Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368 or visit AmericanFinancialSecurity.net, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305

 

###

 

 

Ronald F. Stevenson offers Advisory services through American Financial Investments LLC a Registered Investment Advisor in Arizona.

Insurance products and services are offered through American Financial Security, LLC.

American Financial Investments LLC and American Financial Security, LLC are affiliated companies.

 

 

Creating a Balanced Portfolio: Are Your Assets Properly Allocated?  

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In today’s uncertain financial landscape, we believe it is more important than ever to establish a well-maintained portfolio that can help you reach your financial goals. Your portfolio needs to not only meet your need for capital, but also provide you with financial peace of mind.

While there’s no simple formula to help you figure out how your portfolio should be constructed, determining the right asset allocation should be the first step in the process. In order to properly ascertain your financial situation, there are a few important things to consider: age, time horizon, amount of capital to invest and future capital needs.

Another important thing to be aware of is your risk tolerance. Would you be willing to risk funds for the possibility of greater gains? While everyone wants to reap the rewards of high returns, not everyone can handle the high stress levels they can cause.

On the other side, avoiding investment risk isn’t always a wise decision. It is possible for portfolios to be too conservatively constructed, which makes them unable to provide the necessary long-term growth that is needed to outpace inflation and build wealth. Many investors seek absolute safety and keep their money in bank accounts, Certificates of Deposit (CDs) and other financial products without realizing that these “safe” choices may incur their own set of risks.

These risks include investment opportunity loss and the destruction of purchasing power resulting from inflation. When investors fail to take advantage of returns that a portfolio of growth investments can produce over time, this is called investment opportunity loss. Inflation can also hurt your investments as it is often regarded as the silent destroyer of low-risk portfolios as purchasing power declines over time.

You need to find the right balance for you, one that satisfies your risk tolerance while also achieving an appropriate amount of growth and income.

At American Financial Investments LLC, we can help you create a financial strategy that fits your individualized investment objectives and goals. Allow our team to utilize our knowledge and experience to help manage your portfolio during various economic conditions and investment market cycles. Allow us to help you determine your risk tolerance by using proprietary surveys, analyzing your finances and discussing your retirement and financial goals in depth.

We believe that your best bet for steady, long-term growth of your investments is having a well-diversified portfolio. This can help protect your assets from the risks of large drops and structural changes in the economy over time. When you work with the right financial professional, he or she can help you diversify, make adjustments when necessary and help increase your odds for long-term financial success. QCBN

 

By Ronald Stevenson and Barbara Clark Stevenson

 

  Guarding Your Retirement From Taxes

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In order to have the comfortable retirement you’ve hoped for, you need to start planning responsibly –and early – in your career. Over time, you can get closer to your retirement goals with money that is placed in accounts like an IRA or 401(k). Once you reach retirement, however, all the money you’ve worked hard for and saved over the course of decades may experience a fundamental shift.

While many retirement accounts like 401(k)s allow money to be invested before taxes, all of this money becomes or may be subject to income tax after retirement. Often, retirees are unaware of the impact that taxes will have on their retirement savings and fail to include taxes into their spending plans.

On the bright side, retirees may have a level of control and predictability when it comes to their taxes in retirement – especially if they choose to consult professional help.

At American Financial Security, LLC, we are an integrated retirement and tax planning company, so we provide the proper planning for income and the impact of taxation in that plan. That’s why we have a team of dedicated tax professionals that will review your taxes, prepare a report and help you form a tax strategy that’s right for you and your retirement.

Sometimes, it is essential to control the amount and timing of your income streams to bring yourself into a lower tax bracket, or make sure you take every deduction available to you to help ensure you don’t pay more in taxes than necessary. There are strategies that will help you keep more of your dollars rather than giving them to Uncle Sam.

One option that works for many is a Roth IRA. With this type of account, you pay the income taxes upfront on the amount that you are converting, or initial investment/principal and then enjoy years of potential tax-free growth, followed by tax-free withdrawals on qualified distributions. Ideally, the tax-free withdrawals that you make in the future will outweigh the upfront tax hit.

Another tax-saving approach is having life insurance. While it is often overlooked as a strategy, life insurance can be one of the best in terms of tax-free disbursements. Life insurance may also be an option for those hoping to provide financial security for their loved ones.

In the current economic landscape, it is more important than ever that you work with a financial professional who can help provide you with the tools you need to help protect and preserve your nest egg – especially when it comes to taxes.

Taxes can be a burden in retirement – but they don’t have to be. Once we’ve ensured that you’ve taken all of the deductions and credits that you are entitled, we can begin exploring the options and routes that will help you save money on taxes in retirement. QCBN

 

 By Ronald Stevenson and Barbara Clark Stevenson