Category Archives: Retirement

Financial Basics: Building a Financial Reserve

Posted August 2, 2012 by admin. tags:Tags: , , ,
Standing on a ticking clock

Written by Dave Young, President

We have 24 hours in a day to do whatever we want with our time and money. No matter what we do, the clock keeps ticking.

In order to make the best decisions with our time and money, we need to make goals and have a plan.

In order to build a reserve of money for the future, I suggest making these four goals.

1- Manage & Reduce Debt

Debt can get out of control and we need to make sure we manage our
current debt. Make sure you know exactly how much debt you have and take
steps to reduce it.

2- Get out of Debt

It will take time to get out of debt, but it is possible. Take small steps to reach your overall goal.

3- Build a three month reserve

You never know what will happen. I suggest building a three month
reserve. Don’t live pay check to pay check. Put money aside so that you
could live for three months if something were to happen.

4- Invest for the future

Start investing for the future today. Open a savings account, add to your retirement plan through your work, open an IRA, etc.

Budgets may not seem exciting or even interesting, but they are the key to making your finances work.

A good example is when you make a goal to stay in shape.

You can’t get anywhere unless you start with a goal to know where you  are going. Then, you must have structure in your eating and exercise. You can’t just do whatever you want and hope you will get in better shape. Finally, you must exercise a lot of patience and persistence.

Do you realize how much money will go through your hands over the next 40 years?

$20,000 a year= $800,000 (save 10% and invest at 10% return, you will have $885,000 saved)

$40,000 a year= $1,600,000 (save 10%  and invest at 10% return, you will have $1,770,000 saved)

$60,000 a year= $2,400,000 (save 10% and invest at 10% return, you will have $2,656,000 saved)

Those numbers are hard to believe when we only see the numbers on our pay checks every two weeks. Over time what seems like a little, adds up to a huge amount.

It is important to take notice of where our money is going on a regular basis. Is it going to provide for our wants or our needs?

Teeter Totter Example

If you put your income on one side of a teeter totter and your needs (groceries, utility bills, mortgage, etc.) and wants (dining out, entertainment, new clothes, etc.) would the teeter totter be balanced? If not, it’s time to reevaluate.

Money doesn’t make you happy, but it sure helps your
situation if you stay within your means and don’t go into excessive debt. People are happy at all levels of income. If a person makes $40,000 a year and saves $5,000 they are probably happier than a person
that makes $250,000 and spends $300,000. It is all relative.

The level of control over the resources (or money) that a person has does have a direct impact on happiness. The key to that control is developing and following a budget. This will help you build wealth over time.

Visit our website, www.paragonwealth.com, for more information.

Leave A Legacy By Planning For Retirement

Posted July 19, 2012 by admin. tags:Tags: , , , ,
Family


Written by Dave Young, President of Paragon Wealth Management

On a recent trip, I recognized the value of leaving a legacy. My trip reminded me of the sacrifice, hard work, vision and commitment made by others that have benefited me immensely. The gift of my ancestors has enriched my life and provided amenities for which I am grateful.

As I reflected on the greatness of leaving a legacy, it brought to mind the importance of leaving a financial legacy and the benefit of creating a nest egg for progeny and future generations.

It is prudent to not only prepare for retirement, but to keep in mind the beneficiaries of residual retirement and other savings and the enriched lifestyle it affords to them. I have one client in particular who communicated how important it is to him that his spouse and his children and their children are financially taken care of upon his death. His top priority for investing prudently and wisely is for the benefit of his family. In choosing Paragon as his financial advisor, it was important to him that his priorities were equally important to us.

The value of leaving a financial legacy is priceless for both you and your family. First, your financial preparation allows you to be self-sufficient during retirement. Your preparation contributes to your peace of mind knowing your family will have increased financial ease. And in some cases, a monetary gift now to family members translates into tax benefits to you now. Most importantly, the simple act of giving is empowering and fulfilling for you.

Your progeny, of course, also benefits from you gift and preparation in countless ways. First, your monetary gift continues its growth possibly for years after death. Your gift enriches the lives and lifestyle of its beneficiaries– college education paid for, down payment for your newly married son or daughter, unforeseen financial strains eased etc. etc. Your preparation also sets a precedent and begins the pattern and habit of financial intelligence and education for years to come. Your gift opens doors and opportunities to financial success that otherwise may not have been available. Most importantly, your forethought, sacrifice and commitment will be remembered, appreciated and emulated by the next generation.

I am a big proponent of retirement planning, and planning now. One way to give to our families is by naming spouses and/or children as beneficiaries of IRA’s, 401(k)s, etc. Not only designating beneficiaries, but apprising family members that they are the recipients of such a gift. And then follow up with education on prudent investing when the funds transfer to their possession. Several different retirement options allow significant contributions, tax deductions, and ample time for growth and compounding. Of course, it is always important to consider risk, inflation, tax bracket, and investment time horizon, etc. when considering how to invest retirement monies.

Another option to ensure future generations benefit from your financial success is to establish trust. Trusts specify to whom assets are to be allocated and of course, are legally binding. Trusts also aid in estate planning and reconciling this aspect of financial planning. Most importantly, as my client did, make it a priority to leave a financial legacy.

My trip was enlightening as it reminded me that it isn’t all about me or us, but about what we give to others and the principle this instills in ourselves and in our families. Leaving a financial legacy to our families and future generations is empowering to both the giver and the recipient, and it is a gift that can grow for years to come.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

It’s Time to Enjoy Your Retirement

Posted July 21, 2011 by admin. tags:Tags: , , ,
6a00e54fa07ce28833014e8a073c32970d-800wi


COMPLIMENTARY RETIREMENT ANALYSIS
From now until Sept. 1, we are offering our blog readers a complimentary retirement analysis. Contact us at 800-748-4451 to schedule a meeting in person or over the phone with one of our wealth managers to get a second opinion on your retirement plan to see if it is aligned with your goals and investment strategies.

IT’S TIME TO ENJOY YOUR RETIREMENT

Written by Dave Young, President of Paragon Wealth Management
Taken from Paragon’s 2Qtr 2011 print newsletter 

Retirement Should be Enjoyable, Right?

If you are retired, it is important to stay focused on the purpose of retirement. What is your goal? Retirement should be a time that is enjoyable and relatively stress free. You should be able to spend your time doing the thngs you have always wanted to do such as travel, provide service, and enjoy your relationships with those close to you.

Your list of daily activities should not include checking CNBC and being worried about the financial markets. You should not worry when the markets go down or feel euphoric when they go up. You should not care what they do because you have other things to keep you busy. Investing according to your risk tolerance will help you do this.

When you are invested properly you should be completely comfortable with your investments. If you feel anxious or concerned about them, you should consider lowering the level of risk in your portfolio. You are probably invested correctly when you do not care what the market does on a day-to-day basis.

While it is impossible to have a completely stress-free experience, it is possible to reduce stress significantly by building a portfolio that is aligned with your specific risk tolerance. Your risk tolerance determines how aggressive or conservative you are invested. Your particular mix might be 20 percent conservative and 80 percent growth, 50/50, 70/30 or some other combination. It is different for each person. It depends on your individual goals and objectives and what you are comfortable with.

You cannot control world events or the “Big Scary” issues that are announced each day on the news. While there are a lot of things in life you cannot control, the key is to figure out what you can control and focus on that.

At Paragon, we can help you with the things you can control, such as having your portfolio managed in a way that is as conductive to your retirement goals as possible. We can also help you set your risk tolerance properly in order to reduce stress. Every investor has an amount of risk they are comfortable with. Let us help you make your retirement as stress free as possible.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.  

Estate Planning Tips

Posted February 10, 2011 by admin. tags:Tags: , , ,

Taken from an interview on Paragon TV with Dave Young, President of Paragon, and Randall Paul, Paragon TV’s host.

“When I retire, I am concerned about my spouse,” said Randall Paul. “What counsel would you give us to make the transition seamless if I were to pass away before her? Should we both be involved our financial decisions?”

Dave Young, President and founder of Paragon Wealth Management said every situation is different as some couples are both involved in their financial decisions, others only one person. He said it depends on the couple. Young said the most important thing is to have a structure in place. Both people should know where their important paperwork is kept and understand what the plan is if either one were to pass away first.

“Most of the time people don’t think about that type of planning because they don’t plan on dying,” said Young. “However, it is not really about dying. Sometimes couples go into an assisted living home. Sometimes they are no longer competent to make these types of financial decisions when they get to that point. It is important for couples to plan together while they are still competent and able to make these decisions.”

Click on the video above to watch the entire interview.

Visit Paragon’s YouTube Channel to see more videos.

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Any information presented is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. All opinions and estimates constitute the judgement as of the dates indicated and are subject to change without notice. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjunction with his/her advice.

Investment Planning For 2010

Posted December 30, 2009 by admin. tags:Tags: , , ,
New Year Fireworks


photo by vogliovento

With the New Year upon us it is a good time to reflect on the lessons learned from this past year.  With the state of the economy at the beginning of 2009 would we ever have been able to anticipate or predict how the year would end?  Or can we possibly know what 2010 will bring?  Of course not.  One of the biggest lessons we can take away from 2009 is the importance of having and sticking to a long term investment plan.  Factors influencing the economy will inevitably vary from year to year but implementing a long term investment strategy will ensure we are not influenced by the fear and emotion of the moment and keep our end goals in sight.

Happy New Year from all of us at Paragon Wealth Management.

Leave a Legacy by Planning for Retirement

Posted February 7, 2008 by admin. tags:Tags: , , , , , , , , , ,
Picture of a retired couple

Written by Dave Young, President

On a recent trip, I recognized the value of leaving a legacy. My trip reminded me of the sacrifice, hard work, vision and commitment made by others that have benefited me immensely. The gift of my ancestors has enriched my life and provided amenities for which I am grateful.

As I reflected on the greatness of leaving a legacy, it brought to mind the importance of leaving a financial legacy and the benefit of creating a nest egg for progeny and future generations.

It is prudent to not only prepare for retirement, but to keep in mind the beneficiaries of residual retirement and other savings and the enriched lifestyle it affords to them. I have one client in particular who communicated how important it is to him that his spouse and his children and their children are financially taken care of upon his death. His top priority for investing prudently and wisely is for the benefit of his family. In choosing Paragon as his financial advisor, it was important to him that his priorities were equally important to us.

The value of leaving a financial legacy is priceless for both you and your family. First, your financial preparation allows you to be self-sufficient during retirement. Your preparation contributes to your peace of mind knowing your family will have increased financial ease. And in some cases, a monetary gift now to family members translates into tax benefits to you now. Most importantly, the simple act of giving is empowering and fulfilling for you.

Your progeny, of course, also benefits from you gift and preparation in countless ways. First, your monetary gift continues its growth possibly for years after death. Your gift enriches the lives and lifestyle of its beneficiaries– college education paid for, down payment for your newly married son or daughter, unforeseen financial strains eased etc. etc. Your preparation also sets a precedent and begins the pattern and habit of financial intelligence and education for years to come. Your gift opens doors and opportunities to financial success that otherwise may not have been available. Most importantly, your forethought, sacrifice and commitment will be remembered, appreciated and emulated by the next generation.

I am a big proponent of retirement planning, and planning now. One way to give to our families is by naming spouses and/or children as beneficiaries of IRA’s, 401(k)s, etc. Not only designating beneficiaries, but apprising family members that they are the recipients of such a gift. And then follow up with education on prudent investing when the funds transfer to their possession. Several different retirement options allow significant contributions, tax deductions, and ample time for growth and compounding. Of course, it is always important to consider risk, inflation, tax bracket, and investment time horizon, etc. when considering how to invest retirement monies.

Another option to ensure future generations benefit from your financial success is to establish trust. Trusts specify to whom assets are to be allocated and of course, are legally binding. Trusts also aid in estate planning and reconciling this aspect of financial planning. Most importantly, as my client did, make it a priority to leave a financial legacy.

My trip was enlightening as it reminded me that it isn’t all about me or us, but about what we give to others and the principle this instills in ourselves and in our families. Leaving a financial legacy to our families and future generations is empowering to both the giver and the recipient, and it is a gift that can grow for years to come.

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