Broker Check


November/December 2018

As another year is nearing an end, you may be looking back on your portfolio feeling that you’ve been on a roller-coaster ride this year. Sensitive stomachs are feeling a little squeamish. Now that the midterm elections are over, we’re hoping for bipartisan cooperation in Washington. However, there are always lots of moving parts domestically and internationally that effect economies and markets. It’s important to be prepared for the resulting market swings. How much volatility can you handle?

As you move closer to retirement, is it important to feel that you’ll have a sense of financial freedom? Would you have that feeling by saving the maximum amount of money possible or putting enough money away so that you can splurge while retired? Or would you have that feeling by simply saving a modest nest egg, so you can continue to live the life you already live? No matter what your answer, it’s important to understand what you’d like to do in retirement beginning with the early (Go-Go) years through the later (No-Go) years.

When planning for retirement, in good economic times it’s easy to see the wisdom of investing in higher risk assets, yet our attitude toward risk often goes awry when markets decline and fear sets in. It’s important to develop a long-term investment strategy to avoid making bad investment decisions when emotions begin to overpower your rationale.

Begin by determining your sources of income and assets that can provide stable and predictable cash flow first, then consider higher risk investments that you can use later. Most folks are depending on Social Security Benefits as their major source of income followed by employer sponsored 401k plans and defined benefit pension plans. Others have rental property or will consider selling a vacation home as well as their residence then use the equity to supplement their income.

I recommend that everyone check their Social Security Statements to see what benefits they would be entitled to at age 62, Full Retirement Age and age 70. Then note the disclaimer that states “Your estimated benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The Law governing benefit amounts may change because, by 2034, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits.”*

Add 15 years to your current age. Now reduce your chosen benefit by 33%. Will you be satisfied with that benefit? Also, remember that the Medicare premium is deducted from your Social Security Benefit at age 65.

If you are expecting to receive union or benefits from a previous employer’s pension plan, it is important to understand the financial condition of the plan. Uncertain market conditions, rising Pension Benefit Guaranty Corp (PBGC) premiums and increased governmental regulations, made it more difficult to fund and administrate these plans properly. If the union or former employer isn’t able to continue funding the plan, it possibly could be “frozen”, or an independent government agency called the PBGC might take control of the plan. This could result in significantly reduced monthly benefits. Many companies are looking to divest themselves of large retirement liabilities.

Upon reaching the plans retirement age, you may request your benefit options. Many of these options do not have an annual cost of living adjustment, and over time that will eat into the value of the monthly pension payments. If given the opportunity to roll a Lump Sum Distribution into your personal IRA, you may like the increased flexibility, control and ability to grow your account.

Choose your IRA vehicle carefully. By utilizing one that provides downside protection during those market declines as well as unlimited

upside protection in good economic times, you could expect to benefit from annual increases in your income. Who wouldn’t want that, as living expenses will continue to increase during retirement?

Understanding retirement isn’t easy, so don’t do it alone. Allow me to help you get the most out of your benefits. Please contact me at 715-241-9295 to schedule some time to meet.

*Source: Social Security Administration

DISCLAIMER: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of Global View Capital Advisors. LTD (GVCA) or any of its affiliates.

Global View Capital Advisors, LTD is an affiliate of Global View Capital Management, LTD (GVCM). GVCM is an SEC Registered Investment Advisory Firm, headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188. PH:262-650-1030. Marcie Nemke is an Investment Adviser Representative (“Adviser”) with GVCM.

Global View Capital Insurance, LTD. (GVCI) insurance services offered through Ash Brokerage and PKS Financial, GVCI is headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126, PH: 262-650-1030. Marcie Nemke is an Insurance Agent of GVCI.