Scary Financial Matters – Twin Cities


In those scariest days, we thought we’d share some of the strangest questions our clients ask us about their finances.

Will the wolves visit my door? Am I going to run out of money?

Bruce Helmer and Peg Webb

Lacking money and not being able to live independently are two of our biggest fears. The answer depends on a number of factors, some of which are under your control and some are not. Your ability to earn income is in your control; your assets and liabilities; your current savings, your investments and living expenses, and your health. What is beyond your direct control are market performance, interest rates, inflation and fiscal policy.

To be confident about your financial future, you need to know whether your current assets, income, and savings will be enough to support a retirement that could potentially last 20, 30, or 40 years. It is essential to create a financial plan that emphasizes all aspects of your financial life.

Chains in the attic: what if the unexpected happened?

Life is uncertain, and that is why we must plan for the unexpected. A job loss, a new baby, a sudden change in health, death or divorce can turn your financial life upside down in many ways. We recommend that you set up a six-month emergency fund to handle unforeseen surprises (including home repairs, replacement of a car or major household appliance). You should also consider the risk of premature death or disability. You may need to consider some form of life insurance to take care of your family in these situations.

Stacking mummies in the pyramid: How should I plan for taxes on my income?

Taxes have a disproportionate effect on the actual return you will receive from your investments. Managing your current and future tax burden is a big part of planning for retirement, as state and income taxes, property taxes, and property taxes can consume a large chunk of your nest egg. We recommend that you diversify your investments by location:

  • Taxable (like a brokerage or a bank account),
  • Tax-deferred (like your pension, 401k plan, or traditional IRA), and
  • Tax-free (like a Roth IRA, Roth 401k, and some trusts). *

Tax diversification can help you maximize your income, whether taxes are high or low.

Dread Day: Will I even be able to retire?

Reflecting an increasingly pessimistic mood, 59% of Americans say they accept having to work longer, and 36% now think they will never have enough money to be able to retire. But for those who take action, the reality is clearer. The key to a comfortable retirement is a clear understanding of the financial resources you have and the demands on your assets that will flow from the life you lead, now and into the future. This is why planning is so important – so you can be sure that your assets will meet your basic needs, the lifestyle you dream of having in retirement, and a nest egg that can be used to fund any emergency that may arise. occur.

The opinions expressed in this document are for general information only and are not intended to provide specific advice or recommendations to an individual.

* A Roth IRA offers a tax deferral on all income in the account. Qualifying withdrawals of earnings from the account are tax free. Withdrawals of income before age 59 and a half or before opening the account for 5 years, whichever is later, may result in a 10% IRS tax penalty. Limitations and restrictions may apply.

Bruce Helmer and Peg Webb are financial advisors at Wealth Enhancement Group and co-host “Your Money” on KLKS 100.1 FM on Sunday mornings. Email Bruce and Peg at [email protected] Securities offered by LPL Financial, member of FINRA / SIPC. Advisory services offered by Wealth Enhancement Advisory Services, LLC, a registered investment advisor. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial.


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