10 steps to take if you want to retire in 10 years

Include these steps in your overall retirement plan….

• Review your social security account at: http://www.ssa.gov/myaccount/
• Make sure your account looks correct and get an estimate of the benefits you’ll receive.
• Save as much as you can now – max out your 401K savings; IRA accounts; and other investment savings. These are your high-earning years – use them wisely.
• Eliminate as much debt as possible and try not to take on any new debt.
• Take a look at your expenses. Where is your money going now? Review your bank statements and credit card statements? Prepare n estimated summary of your expenses. Where can you save money? (e.g., restaurants, entertainment, vacations?)
• Come up with an estimate of how much money you’ll need annually to live on for your retirement.
• Review your insurance needs, including long-term care. (We have some exciting new hybrid options that you may want to hear about.)
• Take a look at your current portfolio – is it diversified enough? Do you need to rebalance your investments or change your risk level? Do you know what fees you’re currently paying?
• Make sure you have your financial plan in place. You need to understand where you stand right now and what investment options there are for your future. This will help you come up with a clear vision for your financial needs and goals…and to help you achieve your financial objectives.
• Contact me to be sure your retirement plan is on track!

karen@pangarowm.com.

Investment Mistakes Made by My Younger Self…and What I Learned

When I was in my twenties and newly married, I went to have a financial plan done with one of the popular investment firms in this vast marketplace. I ended up investing in a number of products I did not fully understand, including a variable life insurance policy and a long-term partnership fund. My hard-earned savings (which I thought was a lot at the time), quickly disappeared into the insurance policy–along with the monthly payments now due for the policy. The partnership and a number of small mutual funds never grew much. When making mistakes, the best part is learning from them, right? These are mine: 

• Investing in partnerships and insurance I didn’t understand.
• Thinking fee-only was a bad thing. I realize now that its the best way to get truly independent, unbiased financial advice. I chose the advisor I did because he was ‘free’. I did not realize there were substantial commissions and charges I did not see. 
• Buying a stock because I heard it was a great stock and about to come out with some great new products…without doing the necessary research. Nowadays, I encourage clients to do research on investments so we can share the knowledge.
• Making investment moves based on emotions, i.e. taking money out of the market when it went down and staying out of the market due to fear.
• Luckily in my later years, I realized that a fee-only registered investment advisory firm is one of the best ways to get truly independent, unbiased, advice. You also need a well-thought out financial plan with clear objectives and long-term goals. 

Is your current plan on track? Want to chat about how we can create a successful plan? 

Contact me @: Karen@Pangarowm.com to take steps now.

Who’s in the Bunker?

Well that was a pretty wild roller coaster yesterday, wasn’t it? How many times did you cover your eyes but peeked through your fingers? Did you immediately go to your account balances and cringe? If you did, that’s certainly ok—and a normal reaction. It’s also perfectly normal for you to have either called your advisor or thought about taking everything out yourself.
It’s not OK if your advisor was sitting in a bunker waiting for the storm to pass, ignoring emails and phone calls. As an investor, it’s you who should be hunkering down and watching this volatility from a distance. Have confidence in the plan that you have in place. If you don’t have a plan, now is the perfect time to devise one with a trusted professional so that when these days happen—as they so often do—you’re not walking around all day with your hands over your eyes.
2008 is still a pretty fresh wound for a lot of us. It’s changed the way that we look at money and our long term goals. Yesterday’s jolt certainly brought some extra attention back to the forefront of our financial priorities. It reminded us to take a step back, breathe for a second and then focus on the road that you’re on. Market volatility is going to happen whether you’re 2 years away from retirement or 20. Being proactive instead of reactive is what keeps the wise advisors and investors ahead on days like this.
Call your advisor today and find out what they’re doing to be proactive. Call us, we’re happy to have a conversation to illustrate what we’re doing to prepare for the days to come, allowing you to feel at ease in your own bunker.

Do you know more than your financial planner?

Ever read an article, watch a how-to YouTube video or a presentation at work and think ‘Well, I knew that already.”? Do you finish reading or keep listening? Most people do. And they sit and be quiet without asking or thinking about questions and initiating a more in-depth conversation.
In most cases, you ARE going to have some prior knowledge about your finances, your goals, or suggestions your planner is already sitting across the table discussing with you. And that’s perfectly OK. No one wants to have a one-sided conversation rattling off a grocery list of items to do in order to get your financial plan in place.
Both sides of the table should be asking probing questions. Don’t be afraid to be the expert in your own financial situation. You might be really into reading blogs (like this one!) and know the plethora of financial guidance online is overwhelming, but you know that most adults should consider some form of life insurance. Say that to your advisor? Share what you’ve read and ask questions.
Did you overhear another mom talking at the parent pick-up line about how they’re trying to figure out a way to pay for camps, dance class AND the new car that they need; and felt a little relieved that you weren’t the only one? Don’t be afraid to say that to you planner. No question is too ridiculous, or vague or assuming. Something might pique the others curiosity by that question or the tidbit of information that you share—which only leads to an even more tailored plan geared directly for you.
Try asking the following questions to yourself and be prepared to share, with confidence, the answers to your planner:

• Is it true that I can get all the quality financial advice I need online?
• What about finances peaks my curiosity?
• Am I stressed out about money for all the right (or wrong) reasons?
• What are the most passionate things in my life?
• What can I do to dedicate more efforts to my financial plan?

When you become comfortable with the answers and can discuss them freely with a trusted advisor, you already walk into that meeting knowing more than they do.
Have questions that you want to ask me? I’d love to hear from you. Contact me so we can chat about your ideas.

Do you know more than your financial planner?

Ever read an article, watch a how-to YouTube video or a presentation at work and think ‘Well, I knew that already.”? Do you finish reading or keep listening? Most people do. And they sit and be quiet without asking or thinking about questions and initiating a more in-depth conversation.
In most cases, you ARE going to have some prior knowledge about your finances, your goals, or suggestions your planner is already sitting across the table discussing with you. And that’s perfectly OK. No one wants to have a one-sided conversation rattling off a grocery list of items to do in order to get your financial plan in place.
Both sides of the table should be asking probing questions. Don’t be afraid to be the expert in your own financial situation. You might be really into reading blogs (like this one!) and know the plethora of financial guidance online is overwhelming, but you know that most adults should consider some form of life insurance. Say that to your advisor? Share what you’ve read and ask questions.
Did you overhear another mom talking at the parent pick-up line about how they’re trying to figure out a way to pay for camps, dance class AND the new car that they need; and felt a little relieved that you weren’t the only one? Don’t be afraid to say that to you planner. No question is too ridiculous, or vague or assuming. Something might pique the others curiosity by that question or the tidbit of information that you share—which only leads to an even more tailored plan geared directly for you.
Try asking the following questions to yourself and be prepared to share, with confidence, the answers to your planner:
• Is it true that I can get all the quality financial advice I need online?
• What about finances peaks my curiosity?
• Am I stressed out about money for all the right (or wrong) reasons?
• What are the most passionate things in my life?
• What can I do to dedicate more efforts to my financial plan?
When you become comfortable with the answers and can discuss them freely with a trusted advisor, you already walk into that meeting knowing more than they do.
Have questions that you want to ask me? I’d love to hear from you. Contact me so we can chat about your ideas.

Put your finances at ease if you find yourself in a job transition

So you’ve decided to start a new job, a new career or were told your position is being eliminated. What’s the VERY first thought that runs through your mind? It might a big *gulp*, and then it might be ‘will I be OK financially?’ First of all, let me tell you—the answer is YES. It’s happened to more people than you probably realize, and they all figure it out just fine.
You’re going to be fine as well, because you’re going to take a look at your budget and see what you’re up against. Wait, do you HAVE a budget? Well, that’s step 1. It helps you lay it all out there. What’s coming in, what’s going out, where can you scale back, or where do you need to shift some things around? Try there first before you freak out about maybe having to dip into our savings. Chances are that you can adjust some of your budget around and find hidden opportunities.
Great, you’ve got your budget all set. Now, take a second to take a look back at where you just were. What did you leave behind (besides that stapler that was busted anyway)? Maybe you left a 401k, a group life insurance policy, or a health savings account. We need to take all those and decide what we’re going to do with them in the future. Should you roll your 401k? Possibly, if the cost/expenses of leaving it outweigh the expenses of moving it into another plan. Do you need to update your life insurance to an individual policy to either protect your loved ones? Most likely. There are many options that can satisfy that need for protection.
It’s a lot to think about. Never mind all the other thoughts running through your head about how you’re going to face this next chapter of your life. It’s scary—believe me, I speak from experience that that *gulp* from the pit of your stomach is the first thing that happens. Once you start breathing again, take a step back and say to yourself that it’s all going to be OK.

What kind of relationship do you have with your financial planner?

Relationships come in all forms these days. With social media, working remotely, and online dating options, it’s easy for someone to say they have a ‘relationship’ with you. How many of these people have you actually met? As in, had an actual conversation with? It’s fine if the conversation has been over the phone, Face Time, or in person. The point is, you’re actually getting to know them beyond the easy “it’s so hot out today, isn’t?” To have a meaningful relationship with someone means that you actually care how they are doing, what drives them every day, and most of all, what makes them smile.
Your relationship with your financial planner should be no different. After all, they are a part of the team that helps secure your financial future. You usually need to reach out to them when you get a new job, have a baby, get a divorce or inherit a sum of money after your great aunt passes away. Most planners are surprised when their client reaches out to them—they get nervous that something is wrong.
A planner that is on your side is one that knows you might be planning for a family soon, that you are an aspiring photographer wanting to save for your own studio, or your 8 year old sons birthday. A great planner is someone you trust and respect. Many times when we hear from a client, it might turn into a mini-therapy session because they are stressed about what to do next. It’s natural for someone to explain themselves trying to justify why they need your help. Simply because it’s difficult to ask for help. There should be no fear in reaching out to your planner that you need their help simply because you don’t feel comfortable—because you haven’t formed a relationship with them.
Chances are, there is an advisor or planner out there that fits your personality, your expectations and your goals. Make sure they will go to bat for you and they are someone you feel comfortable with.
What is your advisor doing for you?