4 Social Security Facts You Must Know

When it comes to Social Security, far too many retirees and future retirees are in the dark. Not only are most Americans not fully informed about the program, they don’t know how to maximize their benefits. Of course, knowing what Social Security offers and how to get the highest-possible benefits are two different things. There’s a lot you have to know.

For example, Social Security is more than a retirement program. It offers survivor benefits, disability and even a small death benefit. And, unlike the derisive “entitlement program” title given to it, the program is really social insurance. It’s meant to supplement other savings.

According to a recent AARP/Financial Planning Association study, while 60% of those surveyed knew they could begin taking benefits at age 62, less than half knew how retirement benefits would be determined. So overall, the public’s knowledge about Social Security, at least according to this survey, is dangerously lacking. So here’s a few important points.

1) Waiting Can Really Boost Your Total Benefits.

The survey reported that while 88% of those polled knew that waiting until “full” retirement age (66 for most people) will result in a higher benefit than age 62, only one-third knew that waiting until 70% will result in the highest-possible benefit.

If you can wait until 70, each year you hold off from full retirement age boosts your benefit 8% per year. When was the last time you got a guaranteed 8% return on anything?

For more on what the program calls a “delayed retirement credit,” go here.

2) Spousal Benefits Add Up.

Surprisingly, only half of those surveyed knew that spousal benefits were based on the other spouse’s work history. Social Security bases payments on how much you earned over a lifetime.

As with other benefits, how much you receive depends upon your age and that of your spouse. For an estimate of those benefits, go here.

3) You Can Still Collect Benefits If You’re Divorced.

Only a quarter of those surveyed knew this. But there’s a catch: You have to have been married at least 10 years and be at least 62 and unmarried now.

Your benefits would be based on your spouse’s earnings. The rules get tricky if your situation changes: You can’t collect benefits if you remarry.

There are other rules on divorcee benefits. For more information, check here.

4) There are many sources of information on Social Security, but most don’t know where to go.

Less than half of those surveyed went right to the Social Security web site for information. While I would never say it’s user friendly, it can explain the benefits and give you nuts-and-bolts advice.

You can also apply for retirement payments online, estimate other benefits, get a replacement Medicare card and even change your mailing address through the site.

While the benefits formula is complicated, it boils down to this: The more you or your spouse made, the higher the benefit — up to certain limits, of course.

Do your research before you take benefits. The time you invest now can add tens of thousands of dollars to your retirement income over time.

The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Millennials, What To Know Before You Invest

Most financial experts agree that the best time to start investing in stocks is when you’re young, have time to wait out the downturns and can take full advantage of compounding. Well that’s not new news! But where do you begin?!

A mere 26 percent of Americans under age 30 are now investing in the stock market, according to a recent survey by Bankrate.com. Compare that with 58 percent of people between ages 50 and 64 who invest.  Investing IQ

Sure, the fact that boomers are older may explain some of the difference. But age isn’t the only factor. In a recent study, millennials said that a lack of financial knowledge makes them less confident about investing. And a lack of information was the number two reason respondents of every age in the Bankrate survey gave for avoiding the market (the other was a lack of money #shocker).

So here’s some tips to consider to make the most of your money:

• Before you even open an investment account, make sure you’ve handled your debt properly.
  • Pay off your credit card debt
  • Set aside 3-6 months of expenses in an emergency fund, in case you incur unexpected expenses or a job loss
• Take full advantage of your employer sponsored retirement plans.
  • If there is a company matching contribution, we recommend contributing so as to maximize that matching contribution limit. Never leave free money on the table!
• Don’t have access to a 401(k)? There are other options. You can contribute up to $5,500 this year into an IRA.
  • In a regular IRA the contributions are tax deductible in the year of your contribution. But, you’ll be taxed on the growth and compounding at ordinary income tax rates when you start taking money out. 100% taxable.
  • A Roth IRA is funded with after tax money but all the compounding and growth on your money is 100% tax-free.

If you’re fortunate enough to have exercised those options and still have some cash left over, you can open a regular investment account. Here are a few additional thoughts to keep in mind:

The Power to Grow

• Costs reduce return. You can start with do it yourself discount brokers like Schwab or Vanguard or try an automated investment service like Betterment or Wealthfront. Should you choose to use an advisor, look for someone that will educate and empower you in the process! The value add is key.

• Low-fee passive funds can help you keep costs low and diversify. A passive mutual fund or an exchange-traded fund (ETF) gives you access to a broad range of stocks (or bonds or other assets). They mirror indexes like the Standard & Poor’s 500 and have low expense ratios. You can look up a fund’s expense ratio and historical returns through Morningstar.com or your brokerage firm.

• Don’t forget to diversify—both with your funds and within your overall portfolio. The markets go up and down, but over time the stock market has provided an average annual return of 8-10 percent.

• Invest $50 or $100 a month, you have decades to take advantage of compounding and grow your money.

As a millennial, if you focus on setting aside money to invest, diversify your investments and seek sound counsel, you can set yourself up now to retire well later! #FinancialIndependence

The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Challenges and Solutions of Retirement Planning for Women

Saving for retirement isn’t easy in ordinary circumstances. But with wage growth near non-existent and underemployment ridiculously high it becomes challenging for most and even harder for most women.

According to a recent study, only 62 percent of women said they were saving for retirement, just 15 percent said they were saving enough and 22 percent were barely saving at all!

There are numerous reasons why many women fall behind in saving for their post-career lives, ranging from lower pay and taking care of others to taking time off from the workforce.

“Women will save for their kids before they’ll save for themselves,” said Cindy Hounsell, president of the Women’s Institute for a Secure Retirement (WISER).

Have you planned well enough for retirement?

Cost of Being a Caregiver

Is this just a product of different saving and spending habits? Hardly. Women face special hurdles when it comes to saving for the so-called golden years.

For one thing, women are more likely than men to step out of the workforce, or work part-time to care for children or elderly parents.

When they do work, women are often confronted with the gender pay gap. That gap has narrowed since it was first identified, but on average, women still are paid just 78 percent of what men with equal qualifications receive, according to The American Association of University Women.

Divorce Recovery

Statistically, divorce tends to have more negative financial consequences for women than for men. A study conducted by a professor at the University of Connecticut found that after divorce, women who ramped up their careers fared worse in retirement than those who remarried or even those that never divorced initially.

Further, U.S. Census Bureau data shows that women who were divorced reported lower household income than men in the 12 months following the divorce and were more likely to receive public assistance.

Invest for Longevity

When women do save for retirement, another challenge they face is that they may invest too cautiously. Some research has found that some women view themselves as less financially knowledgeable than men do, thereby expressing less confidence in their financial decision-making.

A recent study of women’s financial behavior conducted by Prudential, found that the “Women we surveyed feel no more prepared to make wise financial decisions today than they did two years ago or even a decade ago.”

To top it off, since women have a longer life expectancy, whatever they do save has to last longer—only that’s not happening. The poverty rate among women older than 65 reached 11.6 percent in 2013, and elderly women accounted for two-thirds of the elderly poor.

Get Ahead of the Savings Curve

Fortunately, there are steps women can take steps to boost their nest eggs.

First, in terms of tax-deferred savings, it’s a great idea to take advantage any opportunity available:

• Contribute at least enough to your 401(k) or 403(b) to receive the maximum employer match.
• Contribute to a Roth IRA. The advantage of tax-free growth leaves more money to live on in retirement.
• Take advantage of the “Saver’s Credit”, which enables those below certain income thresholds ($61,000 for married couples filing jointly, $30,500 for single filers in 2015) to offset some of their retirement plan contributions.

Educate, Educate, Educate

Next, women can boost their financial knowledge and build their confidence in making financial decisions.

• Look for nonprofit organizations such as American Association of Retired Persons (AARP) or WISER that provide workshops or seminars on financial planning strategies.
• Consider taking classes on money & finance at your local community colleges and universities. There is comfort and empowerment for women learning about retirement planning together. The views, perspectives and ideas shared vary greatly from many of their male counterparts.
• Get a good read that covers knowledge of investing basics, not the do-it-yourself versions. Knowledge is power!

Consult a Qualified Professional

Equally as important as all the other techniques, seek out a financial professional, planner or registered investment advisor that:

• You feel comfortable with and understands your circumstances
• Is willing to coach/educate you during the planning/investing process
• Has logged years of experience in working with people like yourself
• Whose fees are transparent and recommendations are objective
• Adds value by listening and introducing fresh new ideas

You can take back control of your financial health! Every journey begins with the first step!

The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

 

“Investing for Dummies” During Difficult Markets

Everyone’s financial situation is different. What may be good advice for a 21-year-old likely is not be the best advice for a 65-year-old. Some investors may be willing to accept portfolio risk while others look for safety. While some may be able to muddle through, others may need a professional financial advisor to be their guide.

But there are some basic things every investor should keep in mind:

Diversification – You’ve heard the expression “Don’t put all your eggs in one basket.” The same holds true for investment portfolios. If all your investments are in the same area or category, and that category takes a hit, you’ll likely absorb all of the damage. On the other hand, if your investments are spread out over different categories, then a big hit in one category could have a very little effect on you. For that reason, it makes sense to divide holdings among stocks, bonds, real estate and cash.

Asset allocation – Simply put, this is the strategic approach to diversifying.  Generally, the older you are, the less risk you want to have in your portfolio, since a loss will be harder to make up over time. So those that are older may want more bond holdings in their portfolio, because bonds are considered less risky than stocks, in most markets. On the other hand, younger investors may be willing to assume more risk and allocate a greater percentage to stocks in the holdings in hopes of greater gains over time.

The slightly more savvy go even further, dividing stock holdings between large, mid or small-sized companies or  spreading the risk out to less correlated sectors like healthcare, transportation, technology and energy.

Dollar Cost Averaging – Purchasing investments at regular intervals with a fixed dollar amounts has advantages. This tends to reduce the impact of market volatility in their portfolios.

Let’s assume you have $150/mo to invest.

Month 1 – You buy 6 shares of the stock at $25/share.

Month 2 – You buy 10 shares of the stock at $15/share.

Month 3 – You buy 5 shares of the stock at $30/share.

Over three months, you have 21 shares with a total cost of $450, averaging just over $21/share.

More shares are purchased when the price is low, and fewer are bought when it is high, so the average price per share goes down over time. Although risk does not completely disappear, this strategy reduces volatility risk.

Kicking it Up a Notch – Now for savvy investors, market downturns mean opportunity, a chance to buy stocks with good potential for growth at bargain prices. This is where research and strategy come into play. It also requires learning about more strategies like:

• Understanding the difference between a market order and a stop order.
• Knowing the difference between growth stocks and value.
• Learning what option contracts are – The right to buy or sell a stock at a predetermined price.
• Understanding market metrics like Price to Earnings ration (P/E).

There are many more strategies and theories, from technical chart patterns to option straddles.

If becoming a full time student of the market is not something you can afford the time to do, consider hiring a Registered Investment Advisor (RIA). That is, a professional that manages your investment portfolio for a fee as opposed to a commission. This way there is no underlying agenda to “sell” you something that may not fit your needs. In the end, engaging a professional to handle the investment management of your portfolio can help your assets to grow and give you the piece of mind to sleep soundly at night.

The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.  

The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Spire Wealth Management LLC, Spire Securities LLC or its affiliates.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

 

Won the Lottery? What to Do Before You Claim the Prize!

Lottery Winner!

What should you do if you win the lottery? As someone who has had experience with lottery winners, you should know that there are countless financial, tax, and legal strategies you can take to make the most of your sudden wealth monies. But not so fast! Winning the lottery is a unique sudden wealth event that requires several immediate decisions. Here are a few things you should do before you claim your lottery prize:

1. Sign the ticket. You want to make sure you immediately sign the winning lottery ticket. Lottery tickets are “bearer” instruments. This means that whoever holds the ticket is the winner. I would also suggest you take a photo and video of yourself with the ticket. If something unforeseen happens, these steps can go a long way to prove you are the winner.

2. Take care of yourself. This step has nothing to do with your lottery prize and everything to do with you and your health. While everybody handles these things differently, it’s not uncommon to experience anxiety, paranoia, or even a strange out-of-body feeling. For some, these feelings are fleeting, but for others, they can persist and make it hard to sleep, function, and make logical decisions. So, first and foremost is making sure you take care of yourself. Seek professional help if necessary.

3. Decide if you want a lump-sum or an annuity. With a big lottery win, you will often have the option of taking a lump sum payout or to receive the payout over time. This will be one of the most important decisions you will make. Although a great majority of lottery winners opt to receive a lump sum payment, there are definitely some advantages (and disadvantages) in taking the payout over time. You’ll want your accountant and financial advisor to review both options and discuss the pros and cons of each. The big advantage for taking the money over time is that it provides you with a “do over” card. We’ve all heard the stories of lottery winners who have lost it all in a few short years. By getting the money over time, even if things go badly the first year, you will have 29 more chances to get it right. It’s definitely something to think about sooner rather than later, because in some states while you may have 365 days from the drawing to claim the prize, you may only have 60 days if you want a lump-sum check. Also, the day you claim the prize, you will need to make your decision, so you’ll want to get your team assembled so they can crunch the numbers for you.

4. Assemble your team. When you win a large lottery, you’ll want to make sure you have a stellar team who can help you make the best decisions. You’ll want an attorney – actually, you’ll undoubtedly use a few attorneys (e.g., business, tax, trusts and estate), but don’t worry about finding everyone on day one. Find a good attorney to guide you through the initial steps and who can introduce you to others as needed. And at a minimum, you will also want a CPA and a Certified Financial Planner who have experience guiding clients who have received sudden money.

5. Make a publicity plan. In many states, you don’t have the option of remaining anonymous if you win the lottery. As soon as you claim the prize, the whole world will know your name. Journalists and TV reporters will come from far and wide and will all want to talk to you. The best approach is to develop a public relations strategy before you claim the prize. Decide what you want to share, when you want to share it, and if you will be your own spokesperson or if you want to have someone else speak on your behalf.

6. Don’t lose yourself. Lottery winners often complain that after winning their lives are turned upside down and that they are thrust into a new life. It’s hard to keep things exactly the same when you get a check for millions of dollars, but at the same time, you don’t want to lose the aspects of your life you now cherish. Step outside the craziness of the situation for a moment and make a list of Who and What you love about your life that you don’t want to change. Money is best when you use it to improve your life, not necessarily change it.

So what should you do if you win the lottery? Even before you claim the prize these six steps will help you get control of your sudden money and will put you on the right financial path so you can make the most of winning the lottery and enjoying your new life.

 The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Very Costly Mistake: Out-of-Date Beneficiary Designations

If you have a will, have you looked at in the past couple of years and updated if necessary?

That’s important, but don’t assume that it’s enough to ensure that all your wishes are carried out in the event of your demise. It isn’t.

What about the beneficiary designations on your qualified retirement accounts, individual retirement accounts, annuities and life insurance policies? Are those up to date and exactly as you want them to be?

Naming the wrong people or failing to update those financial documents can create a mess for your heirs.  A fact that many seem to miss is that beneficiary designations override wills. Unfortunately, too many families learn that too late, after a loved one died believing that his or her will took precedence over everything.

If it’s been years since you opened your accounts, you might not recall whom you designated as beneficiary on some of them. What if that person has died or others have been born since? What if your relationship has changed and you no longer want that person to get your money when you die? (Think marriage and divorce, the death of parents, birth of children or the breakup of an old friendship.)

Regardless of what your will states, whoever is named as beneficiary on the various financial accounts mentioned above is who will receive those specific assets. Period. End of story.

But that’s not the only costly mistake that is common in naming beneficiaries. Here are six others you’ll want to avoid:

1. Not naming a beneficiary. If you don’t name anyone, your estate becomes the beneficiary. That means the asset could be subject to a lengthy, expensive and cumbersome probate process—and people you might not prefer could wind up with the asset.
2. Failure to list contingent beneficiaries. If your beneficiary dies first and you haven’t named a contingent (or secondary) beneficiary, it’s the same as having no beneficiary. If you and your spouse die at the same time (say, in an auto accident) and you’ve not named the kids as contingent heirs, your estates go into probate. Naming a contingent has another advantage, too: If the primary beneficiary doesn’t want the asset for some reason (perhaps because of tax implications), he or she can waive rights to it, allowing the money to pass to the contingent beneficiary. Many surviving spouses do this for their children, and it can be a smart way to avoid or reduce taxes. But if you fail to name a contingent beneficiary, this opportunity is lost.
3. Lack of specifics. Simply listing “my children” as your beneficiaries can be a problem, especially in a blended family. Many states don’t recognize stepchildren when the word “children” is used. Or some family member you’ve lost contact with and with whom you don’t intend to share your assets could suddenly turn up and try to claim all or part of the estate. Finally, what happens if one child predeceases you? Unless you get specific, that child’s share will go to your other children instead of to that child’s children. Unless it’s your intent to disinherit some of your children or grandchildren, you need to be more specific.
4. Using shortcuts. If you have three children and you want all three to receive an asset, you need to name all three as beneficiaries. Too often, we find that a client has listed only one child, believing that this person will then give the others their shares. That is a very big mistake. Even assuming the child is so inclined (legally, they don’t have to), the IRS might interfere by levying taxes on the amounts redistributed. Shortcuts are never a good idea with legal documents.
5. Missing beneficiary designation forms. Let’s say your forms are on file with a custodial company but that firm is acquired by another in a merger. Records are sometimes lost or destroyed in that situation. Without a verifiable form to prove beneficiary status, the default provision of the plan applies, which often is: “spouse first, if living; then the estate.” Keep copies of your beneficiary forms in a safe deposit box, and make sure your financial advisor, estate attorney and executor have copies.
6. Not considering the financial or emotional readiness of beneficiaries. Your heirs will get the money in your IRAs, retirement accounts, life insurance and annuities almost immediately upon your death, with no restrictions. If this worries you, consider naming a trust as beneficiary; then you can place limits on when and how the money is to be used.

You devoted a lifetime to accumulating assets, so make sure the disposition is managed the way you want them to be or your efforts could be for naught. That’s why it’s essential for you to take the time and the proper steps to work closely with an estate attorney and with your independent, objective financial advisor.

 The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

6 Steps to Securing Your Retirement Portfolio

Few people reach retirement with perfectly allocated and optimized 401(k)s or IRAs. Only about 45 percent of all workers even have access to a workplace retirement plan at all, according to the Washington, D.C.-based Employee Benefit Research Institute. But if you do have one, chances are good you have more than one.

The nature of the employment system is that people accumulate accounts as they change jobs, and they often end up with a hodgepodge of investments that leaves them vulnerable to risk of all kinds, including a portfolio that’s so volatile it could take a dip just when you need the money, a portfolio that is so conservative you lose to inflation, or a portfolio that is not optimized for taxes.

A snapshot of the U.S. retirement market tells the story. Of the $23 trillion in retirement assets, more than half is in 401(k)s and IRAs, and the rest is in defined benefit plans, annuities, state and local pension plans and an array of other financial vehicles, according to the Investment Company Institute’s most recent 2014.

Just beginning to think about what you need to do may be the hardest step. But ignoring your portfolio could come at a high cost if history catches you at the wrong moment. At the end of 2007, investors were woefully weighted with stocks, according to the Employee Benefit Research Institute. Nearly 1 in 4 Americans ages 56 to 65 had more than 90 percent of their account balances in equities at year-end 2007, and over 2 in 5 had more than 70 percent. Equities declined nearly 40 percent the following year, wiping out billions in retirement savings for many retirees. It forced many near-retirees to delay stepping out of the workforce.

So now, as the economy hums along and the market reaches new highs, it is a good time to re-calibrate that retirement portfolio against volatility that may strike at any time.

1. Figure out what you need. Most financial advisors will tell you that as you enter your 50s, you should have a firm idea of the budget you’ll need in retirement. So before you begin, you’ll also have to have a clear sense of your required monthly income.

**According to The Federal Reserve’s Survey of Consumer Finances, a typical American household in the 55-to-64 age range has accumulated about $120,000 in retirement assets, only enough to produce $400 to $500 of monthly income before Social Security. The typical Social Security benefit is about $1,887. If that’s not enough, you’ll need to make some changes.

2. Save more, and extend your working life. The most effective lever you have for a successful retirement portfolio is to save more. That means increasing your contributions during your working lifetime or work longer.

**Suppose you need $80,000 a year in retirement. If you can continue to earn $100,000 a year for five years past your expected retirement date and put aside $20,000 or $30,000 of that a year, you will have added a total of six to seven years of income to your portfolio. You can also increase your Social Security benefit 76 percent a month by delaying your claim from 62—the earliest year you’re allowed to claim—to 70.

3. Diversify. If you want to lower the unexpected reality of volatility within your portfolio, diversify among various asset classes. That means owning mutual funds instead of individual stocks and having multiple asset classes represented instead of just one; emerging markets stock and bond funds in addition to domestic stock and bond funds. Equally important, keep your fees low.

** Vanguard expects returns for a balanced portfolio of 60 percent stocks and 40 percent bonds over the next 10 years to range from –3 percent to 12 percent, with the most likely scenario between 1.5 percent and 7.5 percent a year on an annualized basis. Equities alone are forecast to have a return centered on the 6 percent to 9 percent range, but with a possible swing from year to year of 18 percent. Bonds expected returns are in the 1.5 percent to 3 percent range. The translation: You’ll probably earn nearly as high returns with a balanced portfolio, but you’ll face much less volatility.

4. Design your asset allocation with an view of taxes. If you have significant holdings outside your retirement accounts, think through which asset classes belong in your retirement account. You’ll save significantly on taxes if you keep the equities—which you may buy and sell more frequently as you re-balance—in your retirement portfolio. But don’t make your portfolio decisions only around your tax savings; optimizing your investment returns and keeping your principal safe is a higher priority.

5. Equities should not to be avoided. Don’t make the mistake of significantly selling all of your equities and shifting into money market funds because you think they are safer. That would likely be too conservative for the long term. If you look at the returns of equities and cash every year since 1926, equities lost value in 1/3 the time on a real basis but cash also lost money 1/3 the time too, because of inflation. Most experts recommend that in retirement you have at least a 20 percent allocation to equities.

6. Periodically re-balance. You’ll be retired for a long time, so in order for your money to keep working in the best way possible you need to continue selling high and buying low as a process, which is what re-balancing does for your portfolio.

You devoted a lifetime to accumulating assets, put these steps into action and protect your hard earned dollars. More importantly, work closely with a competent, qualified, independent and objective financial advisor.

 The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a financial professional or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Suddenly Single? Start Fresh: Protect Finances

Losing a spouse through death or divorce can be emotionally devastating and is often a difficult time to make important life decisions. Yet it’s this very time that attention needs to be paid to important financial matters such as retirement assets, budgeting on a single income, appropriate insurance, or reviewing Social Security benefits.  Should you become suddenly single, avoid the risk of making emotionally driven and potentially harmful financial decisions. Here are six important and actionable steps to help to protect your personal finances.

1. Update your financial accounts.

When you lose a spouse, you’ll likely need to change the registrations on any financial accounts that are owned jointly. Such ownership changes typically require certain documentation.

If you’re widowed, you need to provide your financial institutions with copies of your spouse’s death certificate in order to shift accounts from joint ownership into your own name. In a divorce, changing ownership requires first determining how you’ll divide jointly owned assets. Usually this is through court orders and/or divorce agreements. Then securing any signatures guarantees or documentation required by your financial institutions will be needed to make the necessary changes.

Caution: Attention needs to be paid to the conditions and methods under which you divide assets or change ownership. Following the wrong advice could result in significant tax burdens. You should consult your tax or financial planner…not your broker.

2. Divide or roll over retirement assets.

Pension and retirement account assets have their own set of rules when it comes to changing ownership or splitting the assets.

Death of a spouse
Generally, upon the death of the account owner, retirement account assets will pass directly to the beneficiaries designated on the account. Some questions to consider in this case might be 1) Should you withdraw funds, 2) Should you rollover the assets into your own IRA or 3) Do you create a Beneficiary IRA or 4) Waive your right to the assets? The answers might not be easy. Do you need the money now? Will you be subject to tax and/or penalties? Will you be required to take a required minimum distributions? What will this do to your estate? Depending on your personal circumstances, the answers will be varied. It’s important to consult with a financial planner or accountant to evaluate your situation before making decisions.

The next critical issue to address here is updating the beneficiary designations on your own retirement accounts—such as 401(k)s, 403(b)s, and IRAs. Even if your will were to include your retirement assets, your beneficiary designations supersede them.

Divorce

Retirement assets are often split up as part of a divorce settlement through a qualified domestic relations order (QDRO). A QDRO is a legal arrangement that either recognizes an alternate payee’s right to receive (in this case the ex-spouse) or assigns to that alternate payee all or a portion of his or her former spouse’s retirement account balance and/or pension benefits.

IRAs are divided through a one-time distribution from one spouse’s IRA into the other spouse’s IRA, without income tax or early withdrawal penalties. But this must be a court-approved transfer; otherwise, the distribution is treated as taxable to the original account owner, while the spouse on the receiving end gets the money tax-free.

3. Re-evaluate your income and budget.

Chances are, when you’re suddenly single, you may be taking a cut in your income, so you may need to adjust your budget accordingly. Start by listing your essential expenses (housing, food, insurance, transportation, etc.) and your discretionary expenses (dinners out, vacations, clothing, etc.). Try to match reliable sources of income (salary, Social Security, pension, etc.) to your essential expenses and see where you might trim your discretionary spending.

If you’re near retirement or are already retired and fear an income shortfall, you might consider creating a regular source of income by focusing your portfolio on income producing investments or yield. This can turn your retirement savings into a source of predictable income that you can use to budget wisely.

4. Evaluate your insurance needs.

What you’ll have and what you’ll need for insurance can change dramatically when you lose a spouse through death or divorce. It’s important to take a careful look at all the different types of insurance that are available to see where you may need to adjust your coverage. Be sure to review:

Life insurance. If you are the surviving spouse and the beneficiary on your deceased spouse’s life insurance policy, you will typically receive the proceeds tax free. But if you are still caring for children, you may want to either purchase or increase your own life insurance coverage to make sure they will be protected in the event of your death.

If you divorce, remember to consider (1) changing the beneficiary on your life insurance if it is currently your ex-spouse, and (2) purchasing or modifying your coverage to adequately protect your children if either you or ex-spouse dies.

Health insurance. Even if your spouse carried your family’s health insurance coverage, you can continue to maintain it for a period of time, whether you are divorced or become widowed.

Through the Consolidated Omnibus Budget Reconciliation Act (COBRA), if you’re going to lose health benefits (because of death, divorce, job loss, etc.), you can continue coverage for up to 36 months—so long as you pay the premiums, which can be up to 102% of the cost to the plan.

Because COBRA coverage is expensive in many cases and doesn’t last indefinitely, you may want to check out other insurance options, whether through your own employer or by evaluating individual plans available through the Affordable Care Act (ACA).

Disability insurance. We all hope we will never need it, but disability insurance is one of the least understood and most useful ways of protecting ourselves and our loved ones. What if you were injured or sick and couldn’t go to work? Disability insurance is designed to protect you and your loved ones against lost income.

Long-term-care insurance. If you’re over the age of 50, you may want to consider buying long-term care insurance (LTCi) to help keep potential costs of nursing home stays and home health care from depleting your income resources if you become seriously ill or injured.

5. Review your credit.

When you’re suddenly single, your credit can be among your most valuable assets—so protect it wisely. After divorce or the death of a spouse, you may want to request a copy of your credit report to take inventory of all the accounts that are open in your name and/or jointly with your former spouse.

If you’re divorced, you’ll want to close joint credit accounts and shift to single accounts so that an ex-spouse’s credit score won’t affect your credit rating. If you’re widowed, contact all three credit bureaus (Experian, Equifax, and TransUnion) to let them know that your spouse has passed away, to keep others from falsely establishing credit in his or her name.

Unfortunately, a surviving spouse is often responsible for paying the deceased spouse’s credit card bills, whether these were joint or individual accounts. It’s always worth calling the credit card company, however, to negotiate better payment terms if necessary.

6. Maximize Social Security benefits.

Here’s some good news: Even if you’re now on your own, Social Security recognizes that you were once part of a married couple, and offers benefits to both surviving and ex-spouses. Widows and ex-spouses are generally entitled to 50% of their former spouse’s Social Security benefits, if those benefits would be greater than their own Social Security benefits.

As a surviving spouse, you can receive full Social Security benefits at your full retirement age or reduced benefits as early as age 60. A disabled widow or widower can get benefits as early as age 50.

If you’re divorced, you could be eligible for Social Security benefits, based on your ex-spouse’s record, if those benefits would be greater than your own retirement benefits. However, your ex-spouse must be eligible for Social Security benefits, and generally you must be unmarried and at least 62 years old. In addition, you must have been married for at least 10 years.

You can’t avoid the turmoil that comes with divorce or the death of a spouse, but recognizing how your personal finances might change could help you make thoughtful, rather than rushed, decisions and provide more solid financial ground as you transition to being single.

The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a CFP, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Increase Your Retirement Batting Average, Don’t Close Your Eyes!

If you don’t have an actual plan for how to achieve retirement successfully, you may just be “winging it”! Really?! How do you think that’s going to work out for you?

It’s true that while many may participate in their company’s 401(k) plan or another workplace retirement plan, many workers don’t know what to invest in or how much to save. As a result, they’re not saving enough. Additionally, surveys have shown that many workers feel overwhelmed by day-to-day financial pressures, paying monthly expenses and even job security. These only contribute to taking your eye off the ball! The result…a secure retirement Strikeout!

Retirement Plans

Consider this: According to Fidelity, the average 65-year-old couple retiring today will spend about $220,000 on health-care costs alone.

Reality is setting in with American workers. Recent polls have suggested that while half of Americans say they would like to retire before the age of 65, only 20 percent believe they will realistically be able to do so. This leaves two options: working longer or saving more.

But how much more should you save?

Determining the amount of money you may need in retirement as income is an vital factor in calculating how much you may need to save today.

Fidelity took a look at how much 401(k) investors at various ages would need to save for every $1,000 they’ll need to generate in retirement income to make their money last, assuming a 5.5 percent annual return and not taking taxes into account. The analysis had eye opening results:

• A 25-year-old just starting to save would only need put away about $160 each month to generate $1,000 in monthly retirement income.
• Start saving at age 35 and you’ll need to contribute almost $270 a month to generate the same income.
• For every $1,000 in monthly income, a 45-year-old just beginning to save for retirement would have to put away nearly $500 every month.
• A 55-year-old just starting to build a nest egg would have to make monthly contributions of $1,154 for every $1,000 in monthly retirement income—that’s double the amount of a 45-year-old and more than seven times the sum that a 25-year-old would need to stash away.

That’s why financial planners suggest that the rule of thumb is you should save anywhere from 10 to 15 percent of your income towards retirement. Yet, most workers are only putting away 6 to 7 percent of the annual income into a 401(k) or workplace retirement plan, the firm has found. Some who have delayed retirement savings may have to put away 20 to 25 percent of their income.

Can’t get there yet? Smaller increases can help. Even incremental changes like a 1 percent increase can eventually make a big difference and create hundreds of dollars in potential income in retirement.

The bottom line is that most people aren’t saving enough money. In the absence of saving an adequate amount there is no other magic bullet. You cannot start so late that assuming more risk will make up for the lack of contributions. Not to mention that more risk could mean more potential losses if the market changes. Surely that will be the fastball that sends the batter down swinging. You can choose the best investments in the world but if your only putting $500 a year into your IRA or your 401(k) plan you’re just not going to get there.

 The information contained herein does not constitute tax or legal advice.  Any decisions or actions should not be made without first consulting a CFP, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

The 5 Biggest Estate Planning Mistakes

You’ve worked a lifetime for what you have. You did everything right; funded your retirement plan, paid off your home early, amassed enough savings to cover future expenses and even planned to leave a financial legacy to your loved ones. Too bad your ex-spouse—and his or her kids—will inherit it all…

Estate-planning mistakes are both costly and common, even among the smartest planners. Any number of oversights can leave you vulnerable in the event you become incapacitated. Others can seriously compromise the amount your heirs will inherit when you die.
If you want to be sure that your estate does not get impacted by predators, creditors or taxes, keep reading to be sure you’re not committing the five largest mistakes of estate planning. 

1. Picking poorly

Many people forget that estate planning is a two-part process. Some of the documents provide instruction for dividing up your estate after you die, other, potentially more important documents, outline directives for handling your finances and medical care if you become disabled.
Think long and hard about whom you select as your durable power of attorney and medical power of attorney. Your life is literally in that person’s hands. One mistake people make is picking someone not trustworthy or qualified to act on their behalf. Put the best estate plan into place, but pick the wrong person to help execute it and there is no longer any certainty.
It’s a mistake, for example, to pick your eldest child out of a sense of duty, when your youngest child may be more responsible or likely to make better decisions.
You should also consider proximity and be prepared to amend your powers of attorney as needed. Maybe you picked the child you live closest to now, but they later move halfway across the country. It’s no longer reasonable to ask them to be your medical power of attorney.
Most importantly, ask permission before naming someone as your power of attorney. The person you selected may not want the job or feel up to the task, and he or she certainly doesn’t want to be surprised by the designation after you pass.
One critical tip: Make sure you sign a Health Insurance Portability and Accountability Act release, which allows medical professionals to discuss your health with your designated representative.

     2. Leaving your IRA to your estate

What if you name your estate as beneficiary of your individual retirement account? Surprisingly, that could have very serious unintended consequences. Doing this would subject those monies to claims and creditors during probate, the legal process for settling your estate. When you die, your individual retirement account could be used to pay off any debts in your name. Whatever money remains, if any, gets distributed to your heirs—and not in a timely fashion. Probate is costly and can take years to complete. On the other hand, those assets will pass outside of probate free from creditors if you name a living person or persons as your IRA beneficiaries.
Another reason not to leave your IRA to your estate is that it denies your heirs the ability to let those assets grow. How so? Non-spouse heirs can normally either liquidate an inherited IRA and pay taxes within five years of the owner’s death, or “stretch” their required minimum distributions and relative tax bite over their lifetime. The stretch option may be far more valuable, since it enables the account to continue earning compounded interest for decades to come. By failing to name a person as your beneficiary, your heirs lose that ability to stretch and must distribute the IRA assets within five years.

     3. Forgetting to update beneficiaries

Failing to update your beneficiary forms after a divorce or death in the family is about the most common error!This is particularly critical where IRA beneficiaries are concerned.
For example, if you update your will but forget to change the designated beneficiary to your IRA, the person named to your IRA is legally entitled to that asset when you die. That could be your estranged ex, who can then leave that money to his or her own children from another marriage.
Thus, it’s important to review your designated beneficiaries on all documents, including retirement accounts and life insurance, after every life event and be sure they all reflect what’s written in your will.
Many people inadvertently circumvent their own! They’ll indicate in their will that they want their assets divided equally among their three children, but then they go and name one child as the beneficiary to their IRA account and another to their house or a joint bank account.
If you plan to divide your estate equally among your kids, each beneficiary form for each of your accounts should indicate that the assets are to be divided equally among your children.

     4. Failing to sign a health-care directive

Equally egregious, where estate planning is concerned, is failing to create an advance health-care directive, also known as a living will. This document lets your family, physicians and friends know what your end-of-life preferences are, as far as procedures such as surgery, organ donation and cardiopulmonary resuscitation are concerned. In short, it’s the piece of paper that tells them whether to pull the plug or not.
Such guidance spares your family the emotional angst of having to guess at your wishes when they are already under stress.
We are an aging society and with that comes the potential for loss of capacity and ability. Without these documents, it’s a much more complicated process and it opens the possibility that your family will disagree over what they believe your wishes are and who should be in charge. That’s doubly true if you remarried and your spouse and children are at odds.
Keep a copy of your signed and completed health-care directive safe and accessible to ensure that your wishes will be known and carried out at the critical moment. Give copies of all your estate planning documents to your attorney or family members as well.
Many people, park their paperwork in a safe deposit box, forgetting that the bank is not allowed to release the contents of that box to beneficiaries until probate is complete. By then, the funeral is over and assets divided according to state law.

     5. Leaving a living trust unfunded

A living trust allows you to pass assets to heirs outside of probate and can be a valuable estate-planning tool. But it cannot work if you fail to title assets to the trust. Once you set up a living trust, you must retitle your assets under the name of the trust.
There’s a lot of misunderstanding when it comes to trusts. Many people think that the schedules attached to the trust, which asks them to list the assets they will transfer, means they’ve actually transferred those assets. That’s not the case. The schedule merely indicates which assets you intend to transfer. You must still take steps to physically change the title of those assets under the name of the trust. For real property, that involves changing the deed. For assets such as stocks and bank accounts, the accounts must be retitled by the financial institutions where they are held.

     And, most importantly, don’t delay!

Many people delay estate planning, partly because it’s unpleasant to contemplate our own mortality, partly due to the expense, and partly because younger adults believe such paperwork isn’t necessary until they reach old age. Big mistake, especially if you have small children.
If you don’t create an estate plan, you’re letting the courts decide how to divide your assets, which may not reflect your wishes, particularly if you have children or specific distribution desires. If you wish to donate to charity, for example, the courts aren’t going to grant that unless it is specified in your will. Without a road map, it just makes it much more difficult for everyone.
Postponing the process may also limit your ability to maximize the amount you leave to your heirs. If you wait too long, some of the best planning opportunities may be gone; i.e. gifting money/stock or restructuring assets.
So you can avoid the biggest estate-planning mistakes with just a few signed documents and some vigilance. Because of the complexity involved however, it’s vital that legal counseling be used. This is one of those areas where it’s even more expensive if you don’t take care of it correctly. Just know what you’re asking for and what it is that you want.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The information herein contained does not constitute tax or legal advice. Any decisions or actions should not be made without first consulting a CPA or attorney.

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC

Shortcut to Super College Savings Plan

For parents looking to plan a college education, here are three numbers that will make the task much easier:…5… 2… 9!

We’re talking about 529 college saving plans, which are named for the IRS tax code that created them. With a 529, you can save for college tax-free, as long as the money is used for higher-education expenses. Despite the tremendous tax advantage, 529 plans are still under utilized — only 25% of parents saving for college are putting money in a 529, according to a recent survey by lender Sallie Mae.

College Savings Plan 529

Calculator: How much will college really cost?

Why are families missing out on 529s? Well, chalk it up to confusion. Nearly every state has its own plan, and some operate more than one, so shopping around can be daunting. You can invest in nearly any state’s 529, not just your own. Much like a 401(k), each 529 presents you with a wide array of investment choices to sort through. Still, you can quickly drill down to the right choice for you — just follow these five steps:

1. Check out your state’s tax breaks. First determine what tax benefits your state offers — most states let you claim a deduction for contributions to a 529. Go to SavingForCollege.com to look up each state’s tax breaks for the respective 529 plans. If you live in a state with no income tax, or one that doesn’t offer a tax deduction, you’re free to look elsewhere. You can also shop around if you live in one of the six states that allow you to deduct contributions to any state’s 529 plan.
2. Assess your state’s plans. If your state offers tax breaks, you could be better off investing at home, especially if the deductions are generous. There are exceptions to that rule. When the local 529 offers poorly performing funds or charges high costs — say, more than 0.5% — you may do better by going elsewhere. For those planning to invest for young children, you may be able to start out with your in-state plan and later roll over your money to a better plan elsewhere. Some 14 states allow you to move your funds to an out-of-state 529 without penalty as long as you stay invested for a few years.
3. Keep your costs down. For many years 529s levied higher fees than retail brokerages did for comparable offerings, which took a big bite out of returns. But competition is finally pushing down costs.
4. Consider if the option of an age-based fund is right for you The simplest choice for many can be an age-based portfolio, which is similar to a retirement target-date fund: You get immediate diversification and the asset mix shifts to become more conservative as your child nears college. That automatic feature is especially helpful for 529s, since you can generally make only one investment change a year. Just be sure you’re comfortable with the asset mix, since some age-based portfolios are more risky than others — an aggressive fund for a 10-year-old might have 70% in stocks, while a conservative choice might hold less than 30%.
5. Protect your portfolio. When you’re one or two years away from paying that first tuition bill, you may want to shift out of the age-based fund to even safer assets. Just make sure they really are safe. Generally speaking, 529s offer many low-risk options, such as a high-quality short-term bond fund, which is likely to hold up relatively well if rates rise. You can look up the average maturity and credit quality of the mutual fund at Morningstar.com. Many 529s also offer stable value funds, which are backed by an insurance company and hold a steady net asset value — they pay a yield equivalent to a short-term bond fund. And some plans, like Ohio’s “CollegeAdvantage 529”, let you invest in bank CDs. You can’t get safer than that.

In the end, the most powerful aspect of any well planned investment is time.
The sooner you get started the more you’ll have in the end!

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The information herein contained does not constitute tax or legal advice. Any decisions or actions should not be made without first consulting a CPA or attorney.

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC

Where there’s a Will, There’s a Better Way

Once again a celebrity has died, leaving an estate in chaos. Clearly good intentions but poorly planned and with no follow through. As unfortunate as this might be, there are lessons to be learned and mistakes not to be repeated.

Most recently, the Oscar-winning actor Philip Seymour Hoffman became deceased, leaving an estate reportedly worth $35 million to his partner and mother of his three children, Marianne O’Donnell. Yet because the plan was not reviewed periodically, she is likely to face a multi-million dollar tax bill.

Last Will & Testament

One of the mistakes Mr. Hoffman made was not updating his will after the birth of his last two children. The will was reportedly drawn up in 2004, more than nine years before his death, when he had only one child. The will provides for that child, a son, but because it was never updated, it fails to account for his two daughters.

Perhaps the biggest mistake of all was in leaving the estate directly to his partner instead of setting up a trust. That means the estate will get taxed now and then again at her death. Additionally, a trust also would have protected the estate from creditors and passed the assets on to descendants after the survivor’s death.

Lesson to be learned: Review estate plans and wills annually and update as appropriate for changes that have occurred over the previous year. That includes births, deaths, divorces, inheritances, etc.
No estate is too small to be affected in some way.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The information herein contained does not constitute tax or legal advice. Any decisions or actions should not be made without first consulting a CPA or attorney.

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC

Successful Retirement Planning Strategies For Women

Everyone faces similar challenges in planning for their long-term financial goals, such as a successful retirement.

But women seem to have a few unique obstacles to overcome. Fortunately, through a well conceived financial plan and implementing a solid strategy, women can alleviate those obstacles:

Retirement Planning for Women

• Longer life expectancies – Women on average live seven years longer than men which means they need to plan for a longer, more independent retirement.
• Lower earnings: – According to Women’s Institute for a Secure Retirement (WISER), men are out-earning women at an average of 23 cents on the dollar. Lower earnings result in less money contributed to retirement plans and social security.
• More time out of the workforce – Women typically are the caregivers. They may spend time out of the work force to raise a family or care for ailing parents or other relatives. This time away can potentially negatively impact the raises and promotions. To compound this, while they are out of the workforce, women are not contributing to their pension, other retirement plans or social security which means they end up with less in savings than men.

Creating a retirement plan will help women to feel more in control of their finances and give them confidence about achieving their long-term financial goals.  There are a couple of steps women can take:

• Educate yourself by reading and attending workshops.
• Review your credit usage and reduce any unnecessary debt.
• Take an active role in your investments including your retirement plans.
• Invest for long-term growth, being balanced in your risk tolerance.
• Maximize your contributions to your retirement plan.
• Consider working with a financial planner.

Remember, you are in control of your financial future. Careful planning and putting a long term strategy in place can go a long way towards overcoming the obstacles, achieving your long term retirement goals and living the retirement lifestyle you desire.

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC located in Newburgh, New York and specializes in planning for women. His goal is to empower, educate and engage women around money matters.

For more information contact Steven at Compass Asset Management Group, LLC at 845.563.0537 or Contact@CompassAMG.com

Steven M DiGregorio is an Investment Advisor Representative with Spire Wealth Management, LLC a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.

The Most Expensive Social Security Mistakes

After decades of paying into the Social Security system, soon to be retirees are eager to start collecting! You’re at the “Finish Line” and ready to leave behind the daily grind! But you have options. And making the wrong decision now can be an irreversible and costly mistake! You’re not across the line yet…pay attention! 

According to the Social Security Administration, you’re allowed to start claiming Social Security benefits as early as age 62.  Do you have visions of travel & leisure in your head? But wait, there are some caveats to collecting early! Claiming Social Security Retirement at age 62 reduces your monthly income by about 25% compared with waiting until your full retirement age! Wow, that’s a whopper of a loss! How unfair!

Rather, waiting a few years until full retirement age though can add thousands of dollars to your payments over a lifetime. Reason being, you don’t actually qualify for all of your earned benefits until you reach “full retirement age,” which is 66 for most Baby Boomers and 67 for those born in 1960 or later.

Did you know though, that by waiting a few years longer, your annual benefits will grow by another 8% for each year you wait up to age 70! That difference can really add up. 

Example: Let’s say 61-year-old Mary, who currently earns $55,000, is deciding when to retire. If she were to file for Social Security benefits next year at 62, she would receive around $15,400 a year, according to the Social Security Benefits Evaluator. If she waits until 66, however, her annual benefits would grow to around $20,500 per year. And if she is able to hold off for several more years, until age 70, her annual benefits would climb to roughly $27,100 per year.

So what does that mean in the end game? Well if Mary lives to be 95 years old, claiming her benefits at age 70 would result in roughly $677,000 in cumulative Social Security benefits (in today’s dollars), compared to the $500,000 or so in benefits that she would receive if she’d filed eight years earlier at age 62. That’s a lot of dinero!   

How about you? Are you on track for retirement?

Still, waiting until 70, or even 66, is not for everyone.  You may be concerned that you won’t live long enough to reap the benefits of waiting for the larger checks. In Mary’s case, if she took benefits at age 70, she would need to live to at least 80 before the payments would result in greater Social Security lifetime benefits. We’ll call that as her ‘Breakeven” point.

Another concern is if you have health issues or are currently  unemployed, then you may not have enough savings to begin with. So just because it could be a better option, doesn’t mean it’s the right option for you.

While singles are only able to control the age at which they file for benefits, married couples (and divorced couples who were married for at least 10 years) have various strategies to consider. Each married partner is typically eligible for three kinds of benefits, depending on circumstances:

1. A retired worker benefit, which are the benefits you accrue over your own working years.
2. A spousal benefit, which entitles you to half of your spouse’s benefits while he or she is still alive. If you have not hit full retirement age, you are only eligible to receive a portion of those benefits.
3. A survivor benefit, which entitles you, once you reach full retirement age, to a deceased spouse’s full benefit. If you have not hit full retirement age, you are only eligible to receive a portion of those benefits.

Couples can increase their annual benefits by coordinating when and how they file for Social Security. In many cases, it may make sense for the lower-earning spouse to file first, while the higher-income earner waits as long as possible. Not only does this strategy result in larger annual benefit checks, it also locks in a higher “survivor benefit” for the lower-earning spouse.

Couples can also consider another strategy, such as the ability to “file and suspend,” which allows one partner to receive spousal benefits while the other partner delays their annual benefits to receive a larger check.

To learn more about the Social Security strategy that makes the most sense for you and your retirement goals, online tools are available, including the Social Security Administration’s Retirement Planner and AARP’s Social Security calculator. I strongly encourage you to consult your financial advisor or accountant prior to taking any action, in order to make the best decision for your personal circumstances.

The information herein contained does not constitute tax or legal advice. Any decisions or actions should not be made without first consulting a CFP, CPA or attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Making Money in an Era of Socially Responsible Investing

People everywhere are concerned about our country, the world, its people and the environment. For these and other reasons, more people are investing their money to get back more than just a monetary return on their investment. Many are investing to make a positive impact in our country and around the world as well as to feel that societal concerns should be made an important part of their investment focus. 

What is Socially Responsible Investing?

Socially Responsible Investing (SRI) is sometimes referred to as “sustainable”, “socially conscious”, “mission,” “green” or “ethical” investing. In general, socially responsible investors are looking to promote concepts and ideals that they feel strongly about.  They accomplish this in 3 ways:

1. Investment in companies and governments that the investor believes best hold to values of importance to the investor. These include the environment, consumer protection, religious beliefs, employees’ rights as well as human rights, among others. These areas of concern can be summarized as “Environmental, Social and Governance” and is referred to as ESG investing. In addition, SRI includes shareholder advocacy and community investing.
2. Shareholder advocacy is exactly what it would seem; socially responsible investors proactively influencing corporate decisions that could otherwise have a large detrimental impact on society. The various goals of shareholder advocacy is to pressure those entities into improving practices and policies and acting as a good corporate citizen, while at the same time promoting long-term value and financial performance. The goals are accomplished through various means including dialogue, filing resolutions for shareholders’ vote, educating the public and attracting media attention to the issue, which generally garners support and puts additional pressure on the corporation to do the socially responsible thing
3. Community investing has become the fastest growing segment within SRI, with some $61.4 billion in managed assets. With community investing, investors’ capital is directed to those communities, in the U.S. and abroad, which are under served by more traditional financial lending institutions and gives recipients of low-interest loans access to not just investment capital and income but provides valuable community services that include healthcare, housing, education and child care.

How is Socially Responsible Investing applied to investing?

The SRI approach is to invest in stocks and bonds from those companies and counties or municipalities that promote certain actions or eschew those, which participate in offending actions. It is not unlike the carrot and the stick premise; you reward those that you agree with by investing in their companies (the carrot) and avoid buying shares of those companies that offend your core values (the stick).

There are three general methods of screening an individual company for inclusion into an SRI fund; the Negative Screen, the Positive Screen and the Restricted Screen. A Negative Screen, for example, could be a fund manager’s conscious decision not to invest in a company that has any involvement within a particular sector, such as tobacco. Other SRI investments might seek out and invest only in those companies which are involved in activities that promote say “green living,” such as wind or solar power; those types of investment are then referred to as a “Positive Screen.”

Because many corporations tend to become highly diversified as they grow, SRI fund managers make use of a “Restricted Screen” type of filtration. In that way, though a small part of the corporation’s activities may be in a less than desirable sector because the amount is so small relative to the rest of the company’s holdings the SRI investment in the corporation would be permitted.

Socially Responsible Investing is Big Time!

Over the last two years, SRI investing has grown by more than 22% to $3.74 trillion in total managed assets, suggesting that investors are investing with their heart, as well as their head. In fact, about $1 of every $9 under professional management in the U.S. can be classified as an SRI investment.

Socially Responsible Investing investment options

When the time comes to invest you will find that you have several options. Traditionally, mutual funds have been the most common way to invest in SRI. Exchange Traded Funds or ETF’s have recently come out in the SRI format. Additionally, for hose investors with larger amounts to invest, Separately Managed Accounts may be an option. 

How to get started with Socially Responsible Investing

If you are interested in ESG or Socially Responsible Investing, take some time to research the concepts online or read some books such as “The Complete Idiot’s Guide to Socially Responsible Investing” “Socially Responsible Investing for Dummies”.

If you are looking for professional advice, you may wish to use the services of a fee-only adviser where there are no commissions when you acquire the investments.

For more information contact Compass Asset Management Group, LLC at 845.563.0537or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.

6 Mistakes Common to Most Investors

With stocks at multi-year highs, many people are thinking about getting back into the market. But before you run off to open up a brokerage account or start playing with your IRA/401(k), it’s important to remember that the stock market has plenty of risks along with those potential rewards.

The good news is that investors who have cool heads can make it through. The biggest mistakes that rookie investors make tend to be psychological ones—and simply knowing these pitfalls and keeping perspective can result in significantly better returns.

Here are six common mistakes that many investors make:

1. Chasing the herd: Everyone knows the phrase, “buy low, sell high.” But frequently, the opposite holds true, as popular investments get widespread media coverage, and investors wind up buying in at a very high price after the run is mostly past. A good example is If you had purchased Apple (AAPL) at a price of $700/share in 2012, The rule of thumb is that momentum swings both ways, so don’t make investing decisions based only on what’s popular at the time. Know what you’re buying.
2. Time to Capture Gains: The other side of the “buy low, sell high” that investors forget, is the idea of exiting at the top. Often people fall in love with an investment that has done well, convincing themselves that if it grew 50 percent this year, it will grow 50 percent more next year. Unfortunately, that kind of track record isn’t common, and it’s safer to trim back a bit before the stock loses its luster. If you sell half your shares, for instance, you lock in some profits while still participating in a little bit more upside, should the run continue.
3. Time to Cut Losses: Of course, investments that lost value can be hard emotionally to sell. Nobody likes to lock in a loss, and it’s easy to convince yourself that the deep declines are short-lived and that a rebound is right around the corner. So remember this: If you invest in a stock that plummets and you need to make 20 percent to get back to even, there’s no rule that requires you to make that 20 percent in this specific stock instead of an alternative investment. Why not move your money? It’s often easier to find a new investment with a brighter future rather than depend on a battered stock to somehow turn things around.
4. Getting greedy: If you have big confidence in an investment, putting a lot of money behind it often sounds like a good idea. But it’s awfully risky to put all your eggs in one or two baskets. Always err on the side of diversification, and never allow a single position to represent more than 10 percent of your portfolio —even if you think it’s a “sure thing.” While a big bet pays off quickly when you’re right, it can cause serious damage when you’re wrong. Better to play it safe and stay diversified, even if it means not going “all in” on your favorite stock.
5. Timing the market: Countless reports show that timing the market—that is, trying to sit out the bad times and jump in when things are better—does as much harm as good. When you sit out the market, you often fail to participate in rallies; when you go all-in, you often pick the wrong time to buy. Then there are the extra trading fees and short-term capital gains taxes, not to mention the added stress. Unless you have a crystal ball, stick to long-term investing instead of jumping in and out.
6. Improper Portfolio Diversification – Simply put, having investments spread out among different asset classes in the capital structure is not effective enough diversification! Sorry, your broker is not telling you the whole story! Limited correlation is the imperative to good diversification. In other words, investments that truly perform differently from one another in various market conditions. Examples: 1) Stocks vs Bonds, 2)Technology vs Utilities or 3)Commodities vs Treasuries

Avoid these common missteps and removing the emotions inherent in money matters will pay big dividends!!

For more information contact Compass Asset Management Group, LLC at 845.563.0537or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.

Equal Pay for Equal Work, Empowering a Generation of Women

This year marks the 50th anniversary of President John F. Kennedy’s signing of the Equal Pay Act of 1963. This landmark piece of legislation was one of the very first to address gender-based pay disparities. Yet even then noted,”Much remains to be done to achieve full equality of economic opportunity…”

On the fiftieth anniversary, I can’t help but think about the impact this law has had for generations of women after its passage. And yet while we have made a great deal of progress, “Much remains to be done…” On average, women today earn a mere 77 cents for every dollar that men earn. The numbers are even more dismal for women of color. African-American women are paid only 64 cents and Latinas only 55 cents as compared to white men.

Equal Pay for Women

Why is this problem such a challenge? One reason may be a delay choosing to pursue greater educational opportunities for sake of family. Fortunately for humanity, that privilege is reserved for the more compassionate and nurturing gender! While many single moms manage household, family and career, I for one can’t imagine tackling even 2 out of three without many martinis and a lot of vacation time!

While women professionals have long enjoyed success in certain higher paying careers, the scope has been narrow. Now thankfully, areas of opportunity continue to increase exponentially. Today there are not just a growing number of women doctors & attorneys, but MBAs, scientists and engineers! This is as a result of focus on funding post-graduate education.

Until recently, women in executive positions were the exception not the rule. Yet today the trail is being blazed daily by many competent and confident women. Our executive offices and boardrooms are just now beginning to enjoy the wisdom, insight and perspective of diversity in gender and I can see how the future success of our corporations and economy will benefit greatly!

While the world may be waking up to a new dawn of possibilities, right now, in stores, offices and boardrooms across America millions of women are still being paid less than men doing the same job. These women are our sisters, daughters, wives and friends. So what can we do to help?

Ask your members of Congress to co-sponsor the Paycheck Fairness Act. The Paycheck Fairness Act will help end the wage gap, and make sure women get equal pay for equal work. It is time to be part of the solution! Take action today!

For financial consultation, contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Fairy Tale to Divorce, the Alternatives to an Unhappy Ending…

It all started well!  Two people meet and fall in love. They foster dreams of sharing an amazing future together.  Unfortunately, this doesn’t always have a happy ending and a decision to move on needs to be made.  But the prospect of divorce can be lengthy and costly to say the least. Take heart, there are options. 

Those options are referred to as Alternative Dispute Resolutions (ADRs). They take the form of mediation, arbitration and the lesser known collaborative divorce. They are choices that have proven to be an increasingly popular way to resolve some Family Law disputes without having to resort to full-blown litigation. Since they all involve settlement of issues outside the realm of the traditional justice system, they tend to be quicker and more cost-effective. Might one of these options be right for you?  Let’s examine some basics:

• Mediation – The mediation process features the involvement of a trained mediator who helps couples resolve their legal disputes through negotiation. Mediation is both a voluntary and an informal process.  It is geared toward resolving issues, identifying common ground between the parties and narrowing down the challenges that remain contentious. Should mediation fail, then the parties are still free to proceed to traditional litigation.  This is a good alternative if both parties are of similar mind but just have to iron out terms.

• Arbitration – In contrast to mediation, arbitration is more similar to a formal court hearing but without all the formality. Each party is given the opportunity to tell his or her side of the story to an impartial arbitrator, who then makes a ruling that is binding on them both. Although it involves a less rigid procedure than going to court, there are still certain protocols in connection with witnesses’ testimony, and with submitting evidence and documents.  This best suits those that cannot easily negotiate but still want a resolution.

• Collaborative Divorce – The underlying philosophy of the collaborative divorce process is that the parties mutually agree to completely avoid the court process, with the result being a faster, cheaper and more amicable divorce. To achieve this, the parties each sign a contract prior to the start of negotiations, agreeing to full disclosure of information and setting out the principles of the collaborative process. Their respective lawyers – who must be trained specifically in collaborative law – also agree not to press the matter to court. There is a focus throughout the process on cooperation, disclosure, honesty, and the best interests of children. Absolutely this is the best choice for two people who will be communicative and understanding throughout the process.   

Clearly, there is not one solution that fits all. Ironically, just as in the marriage, communication becomes a key factor for any resolution. So be honest with yourself and fair to all parties.  Maybe then in the end, it can still be said, “They lived happily ever after…”

The information herein contained does not constitute legal advice. 

Any decisions or actions should not be made without first consulting an attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Estate Planning Document Essentials

Did you know that several states have investigated some of the country’s largest insurers for failing to pay out unclaimed life policies to beneficiaries? Under policy contracts, they aren’t required to take steps to determine if a policyholder is still alive, but instead pay a claim only when beneficiaries come forward.

The lesson here: It isn’t enough simply to sign a bunch of papers establishing an estate plan and other end-of-life instructions. You also have to make your heirs aware of them and leave the documents where they can find them.

Last Will & Testament

The financial consequences of failing to keep your documents in order can be significant. According to the National Association of Unclaimed Property Administrators, state treasurers currently hold over $30 billion in unclaimed bank accounts and other assets. How do you know if you have unclaimed assets? You can search for unclaimed assets at MissingMoney.com

We recommend that our clients create a comprehensive folder of documents family members can access in case of an emergency, so they aren’t left scrambling to find and organize a mess of disparate bank accounts, insurance policies and brokerage accounts.  You can store the documents with your attorney, a safe-deposit box, online data storage or keep them at home in a fireproof safe that someone else knows the combination to.

The Essentials

• The Will – An original will is the most important document to keep on file.  A will allows you to dictate who inherits your assets and, if your children are underage, their guardians. Dying without a will means losing control of how your assets are distributed, instead, state law will determine what happens. Wills are subject to probate; legal proceedings that take inventory, make appraisals of property, settle outstanding debt and distribute remaining assets. Not having an original document means family members can challenge a copy of a will in court.
• Revocable living trust – Increasingly recommended by estate planners because they are more private and harder to dispute.  A revocable living trust is flexible and can be changed anytime during your lifetime. After you transfer ownership of various assets to the trust, you can serve as the trustee on behalf of beneficiaries you designate.
• “Letter of instruction”  – A useful supplement to a will, though it doesn’t hold legal weight. It is a good way to make sure your executor has the names and contact information of your attorneys, accountants and financial advisers. While the will should be stored with your attorney, the letter of instruction should be more readily accessible.
• Health Care Proxy – Possibly the most important advance directive to complete. This allows your designee to make health-care decisions on your behalf if you are incapacitated. The document should be compliant with federal health-information privacy laws, so that doctors, hospitals and insurance companies can speak with your designee. You may also need to fill out an Authorization to Release Protected Healthcare Information form as well.  If you are incapacitated and your family can’t locate a health-care power of attorney, they will have to go to court to get a guardian appointed.
• Living Will – Sometimes it isn’t enough to establish a health-care proxy unless you have explained to your designee how you would like to be treated in case of incapacity. A living will details your wishes in print.
• DNR or “Do Not Resuscitate” order – Very sick or terminally ill patients may wish to have a document outlining their wishes in the face of long term/indefinite life support assistance, thereby removing the responsibility from their doctor or family members.
• Durable Power of Attorney is critical, allowing a designee to make legal decisions on your behalf in the event that you are incapacitated.

* AARP has a state-by-state listing of advance-directive forms on its website.

* Advance Choice Inc.’s DocuBank electronically stores copies of health-care documents for a fee. In case of an emergency, a hospital will contact DocuBank, which will fax over the information. Subscribers get a wallet sized ID card.

Proof of Ownership

• You should keep documentation of housing and land ownership, cemetery plots, vehicles, stock certificates and savings bonds; any partnership or corporate operating agreements; and a list of brokerage and escrow mortgage accounts. If you don’t tell your family that you own such assets, there is a chance they never will find out. Don’t leave them to perform their own detective work; watching the mail for real-estate tax bills, or combing bank accounts for interest payments.
• File any documents that list loans you have made to others, since they could be included as assets in an estate. Similarly, keep a list of any debts you owe to avoid surprising your family. Wills and living trusts generally are drafted to include provisions for how debts should be settled, and creditors have a stipulated period of time in which to file a claim against the estate.
• Make the most recent three years of tax returns available, too. Looking at prior year’s returns offers a snapshot of what assets heirs should be looking for.  This also will help your personal representative file a final income-tax and estate return and, if necessary, a revocable-trust return.

Bank Accounts & Safe Deposit Boxes

• A list of all accounts and online log-in information with your family so they can notify the bank of your death. Remember that if nobody ever takes any more out or puts money in, the account could become dormant and then becomes the property of the state.
• Any safe-deposit boxes you own – Register your spouse or child’s name with the bank and ask them to sign the registration document so they can have access without securing a court order.

Life Insurance and Retirement Accounts

• Copies of life-insurance policies are among the most important documents for your family to have. Family members need to know the name of the carrier, the policy number and the agent associated with the policy.
• Employer sponsored life-insurance policies, granted by an employer upon your retirement, are most often missed.  New York state alone is holding more than $400 million in life-insurance-related payments that have gone unclaimed since 2000, according to the state comptroller’s office.
• A list of pensions, annuities, IRAs and 401(k)s for your spouse and children. Tens of millions of dollars languish in unclaimed IRAs every year according to the National Association of Unclaimed Property Administrators.

Marriage and Divorce

• Ensure someone knows where you have stored your marriage license. If the document cannot be located, application may have to be made to prove the marriage validity before anything could be claimed.
• For those that are divorced, it is important to leave behind the divorce judgment and decree or, if the case was settled without going to court, the stipulation agreement. These documents lay out child support, alimony and property settlements, and also may list the division of investment and retirement accounts.
• Include the distribution sheet listing bank-account numbers that accompanied the settlement to avoid disputes about ownership or payments due. Also include a copy of the most recent child-support payment order. In the majority of states, the obligation to pay child support still exists after death.
• You also should include a copy of the “qualified domestic-relations order,” which can prove your spouse received a share of your retirement accounts.

No matter what your net worth is, it’s important to have these basic elements of an estate plan in place to ensure that your family and financial goals are met after you die. Let your legacy be good planning for your loved ones!

The information herein contained does not constitute legal advice. Any decisions or actions should not be made without first consulting an attorney.

For more information contact us at 845.563.0537 or Contact@CompassAMG.com

The author of this blog, Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.

Women Empowered Toward Investment Success

Women now comprise nearly half of the U.S. workforce, and they now earn a higher percentage of the bachelor’s and master’s degrees compared to men. So how come women’s average retirement plan balances are just 60 percent of men’s average balances?  No, it’s not because there was just a great shoe sale!

Take Control of Your Finances

CONTRIBUTING FACTORS

Several factors may play into women having lower average retirement plan balances:

• Lower average salaries In 2010, the Bureau of Labor Statistics reported that the earnings ratio of women to men was 81 percent. Lower wages may translate to lower contribution and match rates.
• Tendency to select more conservative investments Generally speaking, conservative investments may result in lower long-term returns.
• Employment breaks Not only do women take time off for maternity leave, they may take additional time away for child rearing, as well as the care of elderly parents. Most who take time off for care-giving duties do not continue to contribute to any kind of retirement plan.

Combine the above factors with the fact that women usually live longer than men and, as a result, need an even bigger nest egg, and it’s not surprising that only 24 percent of women are very confident they will have enough money to take care of basic expenses in retirement.

HELP YOURSELF

There are several steps women may take to help themselves live comfortably through retirement:

• Get an idea of how much you may need in retirement If you don’t know, don’t feel bad. Only 40 percent of women (and 45 percent of men) have ever tried to calculate how much they will need to have saved by the time they retire. Try the Retirement Calculator at Fidelity.com  to gain some perspective.
• Pay yourself first Stash cash into your retirement plan — even before saving for your children’s college education (Loans may be available for college, but not retirement). You may feel that’s selfish, but one of the best gifts you can give your children is to secure your own retirement to avoid being a financial burden upon them in the future.
• Learn about saving and investing Usually the more you know, the less scary it is. A good place to start is right here. Go to the Blogs tab on our website at CompassAMG.com  for information on many financial topics, from budgeting  and investing to estate planning
• Explore when to claim Social Security Nearly 60 percent of the people receiving Social Security benefits are women. Although Social Security was never intended to cover all your retirement needs, it may be an important aspect of your retirement. If you are married, there are several scenarios to explore to coordinate you and your spouse’s benefits. For most people, delaying claiming Social Security beyond your full retirement age equals approximately 8% more per year in benefits. (This increased benefit for delaying stops at age 70.) On the Social Security Web site is a Retirement Estimator, which will help you get immediate and personalized retirement benefit estimates. Sign up for My Social Security and view your personal information.

YOU GO, GIRL

Empower your future! Explore, learn and put to work these ideas to close the retirement gap. Begin now to make your future financially secure.  A good strategy and plan will leave a lot more dough around for the magic of martinis & Manolos!! Start today!

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

Written by Steven M. DiGregorio, President, Compass Asset Management Group, LLC.   Compass Asset Management Group, LLC is an affiliate of Spire Wealth Management, LLC.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm.
Securities offered through an affiliate Spire Securities, LLC.
Member FINRA/SIPC.