Student Debt Options for Graduates
Although a minority of our clients have student debt, those that do not almost always have children or grandchildren planning on attending college. Costs of college attendance have inflated so fast that we discuss it with parents of newborns. We’re seeing a steady increase of borrowers with six figure debt levels, making student debt repayment […]
The Flexibility of Being Debt-Free
In our previous Atheneum commentaries on debt we’ve covered a myriad of topics including, good vs. bad debt, prioritizing debt payoff, and different mortgage planning strategies. We hope these commentaries have helped shed light on what we consider one of the most important topics in financial planning – debt analysis. Today we discuss what for […]
Second Mortgage Planning Strategies
Home Equity Loan vs. Home Equity Line of Credit For many households in America, the equity built in their home is one of their largest assets on their balance sheets. Historically, this asset has provided growth in value, as well as an opportunity to obtain a secured loan from a bank for short-term or long-term […]
Early Mortgage Payoff
Although we spend a large majority of our time planning our clients’ investment portfolios, we believe advising on the entire client balance sheet is just as important. On the liability side of the balance sheet, a client’s primary mortgage is often a major talking point. The last decade has allowed homeowners ample opportunity to refinance […]
Prioritizing Debt Payoff
Key Takeaways: In our first Atheneum article on debt, Brian discussed the difference between good and bad debts. He defined good debts as those that will appreciate or help grow your net worth over time, such as mortgage, education, and business investment. This is great advice for anyone considering taking on new debt. Unfortunately, we don’t […]
When is Debt OK and When is it Not?
An amount of money borrowed by one party from another – the basic definition of debt sounds neither good nor bad and leaves many wondering – how do I determine if taking on debt is worth the risk? Although the answer is not always crystal clear, most debts can be defined as either positive or […]
Planning for “Fixed” Income During Retirement
Fixed Income in retirement can come from many different sources of assets. It may be a pension, real estate rental income, bond/CD ladder, annuity, Social Security, or even an income-yielding individual bond. In all scenarios, using “fixed” income as retirement income comes with many different benefits and risks. While it is very situationally dependent, in […]
Planning for RMDs
The vast majority of people save the bulk of their retirement funds in qualified retirement accounts (401ks, 403bs, etc.) and IRAs. Through regular saving and long-term growth of the investments inside these accounts, a typical account holder hopes to develop some type of an income stream during their retirement years. According to the US Census […]
Evaluating Pension Options
Each year we are seeing fewer workers covered by a company pension plan. Overwhelmingly companies are trending away from the traditional pension- a defined benefit, to a defined contribution plan like a 401k. By and large employers have decided that guaranteeing a retirement income is too expensive. If you are lucky enough to be in […]
Determining a Healthy Withdrawal Rate
One of the more arduous tasks facing retirees and soon-to-be retirees is trying to determine how much money can be withdrawn from retirement accounts each year without running out – yet not skimping yourself either. Solving this puzzle has become even more challenging given today’s low interest rate environment and tempered expectations for future investment […]
Benefits of Multiple Income Streams at Retirement
In our second Atheneum article for this quarter’s Retirement Income subject, we discuss the benefit of having multiple income streams during retirement. To understand the advantage of having multiple income streams, it is important to first understand one of the most important factors that affects portfolio longevity when taking income: sequence risk. According to Investopedia, […]
The Importance of Tax Diversification
When most people think of diversification, they primarily focus on a proper mix of portfolio assets. As we have noted in the past, we target an asset mix of non-correlating assets for our clients. This could include stock, exchange traded funds, mutual funds, REITs, etc. However, one area of diversification that is often ignored is […]
