Wealth Management Blog | WrapManager (35)

Cash Vs. Mortgage in Your Retirement Lifestyle Planning

Posted by Gabriel Burczyk | Founder & CEO

October 6, 2015

Many people approaching retirement consider where they will live during their retirement years. Relocating to a more affordable or comfortable area could be an important part of your retirement lifestyle planning. Even if you plan to remain in your current home, however, your family nest egg will be influenced by your home financing.

Cash vs. Mortgage

Different schools of thought exist about whether it’s best to pay off your home and live debt free or carry a mortgage during your retirement years. It seems like a simple decision, but several factors complicate this decision. Further, there isn’t a one-size-fits-all answer to this question. Depending on your personal retirement lifestyle planning goals and your current situation, one of these options will likely be more advantageous than another. Your financial advisor can help you sort out the ramifications of whether to pay off your mortgage, carry a loan, or consider a reverse mortgage.

Eagle Asset Management - Market Volatility Perspective

September 30, 2015

Eagle Asset Management's Richard Skeppstrom says we're in no danger of a recession and asks investors not to panic. Continuing market volatility and the possibility of a slight increase in interest rates do not necessarily spell disaster. "Don't Panic The market’s momentum was ebbing with the slowing of global growth. The return of volatility was inevitable and corrections are a fact. People panic for a reason; there’s generally no shortage of reasons and happily there are very few good ones. Unfortunately, in the last 15 years, we’ve had two wrenching stock collapses and they remain fresh in everyone’s minds. In the first, the U.S. Federal Reserve tightened to rein in the tech bubble (that it had ignored/blessed) and associated nonsense but there’d been too much excess and the economy fell into recession. In the second, the Fed tightened to rein in the housing bubble (that it created) and associated nonsense but there’d been too much excess and the banking system nearly collapsed, dragging the economy into the Great Recession. [+] Read More

Your Retirement Planning Strategy: The Key Players

September 29, 2015

When it comes to a retirement planning strategy, no person is an island. The decisions you make regarding your retirement will affect other people, and their plans will affect your strategy. Therefore, it’s critical to consult with members of your family, your spouse, professionals you work closely with, and your financial advisor as you develop your retirement planning strategy. Let’s take a closer look at the reasons behind this collaborative approach to your retirement plan. Work with Your Spouse If you're married, the most important person you should consult with on your retirement plan is your spouse. Together, you have tackled financial issues for years, and together you’ll plan for the future. Whether or not your spouse has worked in the past will greatly impact your retirement planning strategy. How much will your spouse collect in Social Security payments? Does your spouse have a pension, 401(k), or IRA that you’ll need to factor into your strategy? How is your spouse’s health? Will your spouse’s health care impact your future financial needs? [+] Read More

Managing Market Risk with Long-Term Investing

September 23, 2015

After recent financial ups and downs, managing market risk is on investors’ minds. Volatility in the markets can make people nervous, but it’s important to remember that risk is always present when it comes to investing. Even conservative investments like certificates of deposit (CDs) carry the risk of inflation. And yet, investing is a very important component for growing your wealth over time. How much should you worry about managing market risk? What can you do when the market becomes exceptionally volatile? [+] Read More

How Rising Interest Rates Affect Stocks and Bonds

September 16, 2015

Recent stock market volatility has given way to renewed curiosity over when the Federal Reserve (Fed) will start to raise interest rates in the U.S. A recently released poll by the National Association of Business Economics showed that just 37% of surveyed economists believed the Fed would hike rates in September, meaning that a majority of those surveyed think it will come even later in the year (if not next year).1 The question on many investors minds, however, isn’t so much when the Fed will start to raise interest rates, but how it will affect the economy and the stock market. Theoretically, as the Fed starts to raise interest rates, it becomes incrementally more costly for businesses and individuals to borrow money—meaning that economic activity could feel some headwinds over time. Investors often worry that rising interest rates could thus mean choking off the already fragile economic expansion, and that a slowing economy could mean falling stock prices. [+] Read More

Advisor Fees and Mutual Fund Expenses - Doug's Quiz Corner

September 16, 2015

Quizmaster Doug Hutchinson has come up with another great quiz that explores advisor fees and mutual fund expenses to consider when choosing an advisor. Let’s see what the math has to say. Good luck! Consider the following scenario: Sam, Frank, and Kathy use different financial advisors. Each financial advisor has a different fee structure. Sam pays a flat fee of 1% to his advisor. There are no other fees associated with his account. Frank pays his advisor a fee of 0.9%. The advisor invests Frank's assets in a mutual fund with an expense ratio of 1.6%. Kathy pays her advisor a flat fee of 0.75%. Her advisor invests Kathy's assets in a mutual fund with an expense ratio of 1.25%. [+] Read More

We Go the Extra (3,000) Mile!

September 9, 2015

One of the many aspects of WrapManager that I love so much is the diversity of our clients from a geographic standpoint. We have clients all over the country. Given that WrapManager is headquartered in San Francisco, however, we do not have the opportunity to see a lot of our clients in person as much as we would like. Because of this WrapManager has always strived to be at the forefront from a technology standpoint, especially when it comes to services like Go to Meeting or Join Me, to allow us to bring our clients onto our computers for quarterly reviews. I commonly say that using a service like Join Me allows a client to feel like they are looking over my shoulder at my computer screen together with me. We have local clients that even prefer to utilize this technology during our quarterly reviews because it allows them to see our screen comfortable in their own home. [+] Read More

How the Affordable Care Act May Affect Doctors' Retirement Plans

September 8, 2015

No matter what your political views on the Affordable Care Act, it is at least agreeable that the new law is changing the nature and structure of healthcare in this country – who is eligible (everyone), how it gets paid for, how insurance companies and hospitals negotiate rates, and so on. If you’re a doctor reading this article, then you know first-hand how the new law has changed the way you do business, and you might even be anticipating more changes in the future. Do one or all three of the situations below apply to you? Quality metrics put in place under the Affordable Care Act are taking up an increasing share of your time, detracting from the amount of time you can spend seeing patients (making more revenue) and attending to your personal matters (like your finances)1 [+] Read More

ClearBridge Investments Commentary - Large Cap Growth Portfolios

September 2, 2015

ClearBridge Investment's Peter Bourbeau and Margaret Vitrano provide their perspective on the second quarter discussing their large cap growth portfolios. "As with stocks, the U.S. economy continued its slow march forward through the second quarter. Employment continued to lead the way, with payrolls increasing by an average of 221,000 per month, and the unemployment rate declining to 5.3%, its lowest level since April 2008. Consumer spending and new and existing home sales showed healthy improvement in May, while consumer confidence bounced back late in the quarter. The CEO of a major retailer we spoke with during the quarter indicated that consumers are now feeling good enough about their finances to expand purchases from basic staples to higher-priced apparel and home furnishings. Offsetting those gains were disappointing reports on GDP growth, with the final revision to first-quarter data showing that the economy contracted by 0.2% in the three months of the year, as well as industrial production. [+] Read More

Thinking of Changing Your Portfolio Strategy? Read this First

September 1, 2015

The last few years have been fairly “steady as she goes” for the U.S. stock market—the bull market had gone over 1,400 calendar days without a 10% correction, which marked the third longest such streak in half a century.1 But that changed very quickly from August 18 – 25, when the market fell over 11% in just six trading days.2 The steepness of the drop and its rapid onset left many investors concerned, perhaps even wondering if this was the beginning of another prolonged downturn like 2008. If you’re considering making changes to your portfolio out of concern over the volatility, or for one of the four reasons below, we’d encourage you to take a moment to gain some perspective before making a big change. If your long-term goals have not changed, but you are considering making significant changes to your asset allocation, there is a chance emotion may be getting in the way. [+] Read More