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Retirement Planning: Getting Advice

Retirement Planning: Getting Advice

Q: How can I get my spouse interested in saving for retirement? My spouse isn’t a planner and feels as though we have enough assets. Are assets include a home valued just under $1 million. We have a rental property, about $75,000 in an emergency fund, and he makes $110,000 per year. We also have about 30 to 40 motorcycles valued from $5,000 to $70,000. We don’t have major credit card debt and we are insurance poor with all vehicles and motorcycles. We do not have a pension or 401k. So how can I get my spouse interested in planning for retirement and income investing?

A: Well, for not planning you two have managed to accumulate a vast pool of valuable assets. That is very good news. What you need to do is have a plan to “monetize” them if either your husband decides to retire or if an unforeseen accident or medical issue were to occur. With that being said, the way you could approach your husband is to say: “Honey, I know we have all this valuable “stuff” but I wouldn’t know what to do with it to generate the income I would need on a monthly basis if something happened to you…and I would feel more comfortable having a plan in place.”

Now, to put your mind at ease, while savings is absolutely very important, upon review of your assets it appears you would be able to liquidate some assets you do not necessary need (e.g. 30 – 40 motorcycles valued between $5,000 and $70,000) and invest the money to provide monthly income. After having that conversation with your husband I would suggest making an appointment with a financial advisor so that you have a plan on what to do with your existing assets and any additional savings to live on when your husband retires at some point, or if an accident were to happen to him.


 

3 Excellent ETFs to Explore

Each Sunday on Money Matters, our Chief Investment Strategist Wes Moss shares an ETF of the Week. The ETF of the week is an ETF (exchange traded fund) that Moss identifies as a top pick that investors may choose to consider as they are consulting with their advisors on investing options.

Let’s explore three ETFs that have been mentioned on Money Matters over the past few months:

Vanguard Dividend Appreciation ETF (VIG)

This fund is made up of heavy hitters in various industries (some companies in the portfolio include WalMart, P&G, IBM, McDonald’s) with a 2.1% dividend yield. This fund has been paying out dividends for 10 consecutive years. 

Read more at: https://personal.vanguard.com/us/funds/snapshot?FundId=0920&FundIntExt=INT

Europe, Australia and the Far East ETF (EFA)

This is an iShares international ETF. It’s almost at a 3% yield and the average company’s size is $35 billion. Overall, this ETF is considered to be very inexpensive and diversified.

Read more at: http://us.ishares.com/product_info/fund/overview/EFA.htm

PIMCO 0-5 Year High Yield Corporate Bond ETF (HYS)

This is a short-term bond with about 4.5% yield. Among the top 10 holdings are Spring, Dish, Chesapeake Energy, and others. Note that this is a “short-term” bond.

Read more at: http://www.pimcoetfs.com/Funds/Pages/HYS.aspx

 

Disclaimer: Nothing herein should be considered specific investment advice. You should consult your investment professional before making any investment decisions. The information provided contains a general guidance based upon hypothetical situations. You should not make investment decisions solely on this alone.  Information is based on past history and there is no guarantee of future results. 

 


 

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