The Power Of Compound Interest

One of the most significant benefits of saving early and often is the power of compound interest. Compound interest helps the money you put away grow faster due to interest building upon itself. It means that not only do you earn interest on your principal, but on the interest you’ve already earned as well, so you are earning interest on interest. You can make your money work smarter rather than harder to pursue your goals.

If you procrastinate and don’t prioritize saving, you not only lose out on your money working for you, but you’ll also have less time on your side. For every year you delay in saving, you’ll have to contribute exponentially more to reach your savings goals because of compound interest. If you start saving $400 per month at age 25, you would have $1 million saved by age 65 (assuming a hypothetical 7% annual investment return). If you don’t start until age 35, you’ll have to save around twice as much to reach $1 million by age 65.

Make Saving A Priority

If compound interest is so powerful, why don’t more people take advantage of it? Over 46% of Americans are putting less than 5% of their income into long-term savings. Even those who are saving 5% are still not saving enough.[1] We live in an instant gratification society that struggles to sacrifice short-term pleasures for long-term gain. Our culture tells us to work hard so we can buy the things we want. We trade our time for money, then trade that money for things that will supposedly make us feel good, like a new pair of shoes or the latest cell phone. But little by little those trades add up, and we end up in debt because of our daily habits and desires for the latest toys. Case in point: the average American household has $16,883 in credit card debt.[2]

 Even if you don’t earn a lot of money, you can still buck the trend and give your money a purpose. Be aware of where every dollar goes. Budgeting may seem stressful or boring, but you will be amazed at the power and freedom you obtain when you are in control of your finances. Find ways to make it fun and personal, and reward yourself in small ways for reaching significant goals. Whether retirement is on the horizon or several decades away, it’s important to start saving as early as possible. Make saving for retirement a top priority that gets funded at the cost of other expenses, like dining out, vacations, and hobbies. Resolve to save any extra income that comes your way, whether from a bonus, an inheritance, or a raise.

Get Started Today

It may feel like you will never have enough “extra” money to save. The cost of living keeps rising and there will always be things to spend your money on. But if you create the habit and discipline of saving early and often, you won’t even think about spending that money. Do your future self a favor by saving your money from a young age, and you will give yourself financial peace of mind for the rest of your life.

If the idea of saving regularly and reaping the benefits of compound interest seems overwhelming or impossible, reach out to us. We at Capital CS Group can help you make the most of your money and get you closer to your ideal Second Growth phase of life. Contact one of our offices or call us today for a no-obligation, no-cost consultation.

About Capital CS Group

Capital CS Group (CWS) is an independent Registered Investment Advisory (RIA) firm that provides proactive financial advice and investment management for high net worth families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience, qualifications and is uniquely qualified to serve a broad range of client needs. CWS’s experience and expertise have been the foundation for their proactive client service process and client Standard of Care. CWS’s multi-generational approach focuses on efficiently protecting and growing wealth while providing proactive financial advice as a client moves through each new stage of life. With offices in Palm Desert, CA and Anchorage, AK, the firm serves clients across the country. For more information: visit  www.CapitalCSGroup.com or call us.

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Money is not everything, but it does create opportunities such as providing for your family, sending your kids to college, landing your dream home, and creating an ideal retirement. This is what financial success looks like. When you have total control over where your money goes and how to make it grow, you are setting yourself up for security and abundance.

Here are my four recommended habits for achieving financial success. 

1. Save For Retirement, Pay Yourself First

As tempting as it is to just focus on the short-term expenses and ignore the long-term need to save for retirement, don’t. Especially if you don’t want to worry about finances in your old age. Your dream retirement is your responsibility and it can only happen if you make a point to make it happen. 

In fact, the sooner you start, the easier it is to reach your goal. You can pay in smaller increments over a longer period of time while taking advantage of compound interest as opposed to playing catch-up with larger sums in a shorter amount of time. This is an effective method to reach your financial goals with less stress and worry. 

2. Spend Less Than You Earn

Spending less than you earn is easier said than done, especially when there are bills to pay and money is tight. However, robust emergency and savings accounts are vital for financial success. Life throws curveballs (e.g., unexpected medical expenses or car repairs) and there are big dreams to fulfill (e.g., travel). Using whatever extra money you have left over for savings will prepare you for the highs and lows of what is ahead. 

Take a look at your monthly expenses and see if there are any spending habits that can be cut down or eliminated—perhaps eating out less and cooking at home more often, or setting some ground rules when it comes to impulse purchases. The more control you have over your numbers, the closer you will be to financial success. 

3. Have A Financial Plan And Invest Wisely

To reach any goal, there needs to be a sound and laser-focused strategy behind it. This is where an effective financial plan comes in. A financial plan will lay out where you want to go, how much money you need to get there, and what exactly needs to happen in order to get from Point A to Point B. Spending and saving habits need to be taken into account as well as an effective method for growing your money further through smart investments. Seek advice from your financial planner to figure all of this out. 

4. Give Back To Charities And Society

Practicing generosity with an open heart allows you to truly see the impact of your hard-earned money when you can give back to organizations and charities who are doing great things in the world. Building financial success is not just about the money, it’s about making your dreams come true and creating your legacy. 

While no one can truly tell the future, one thing is for certain: You have control over your money. The sooner you realize that, the sooner you can set yourself up on a path to grow your wealth, secure a hearty emergency fund for whatever life throws at you, and create opportunities to enjoy life and give back. 

We’re Here To Help

Planning for financial success can be overwhelming, but you are not alone. We at Capital CS Group would love to help you create a plan that will pursue the best outcome for any situation. Call our office today or contact one of our offices today. 

About Capital CS Group

Capital CS Group is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Capital CS Group is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. The firm serves clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CapitalCSGroup.com or call us.

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Get Familiar With Medicare

Medicare eligibility begins at age 65. If you aren’t already receiving Social Security, you will need to manually apply for benefits. You can sign up as early as three months before your 65th birthday so that your coverage begins as soon as possible. You have plenty of choices for your Medicare plan, such as original Medicare coverage, prescription drug plans, and supplemental insurance. Your premium costs will depend on your coverage choice and your income. Medicare can be complicated and overwhelming, so start researching now to make informed choices.

Make A Social Security Plan

If you have yet to tap into Social Security, be mindful of the fact that 65 is not quite full retirement age (FRA). If you were born between 1943 and 1954, your FRA is 66. Starting in 1955, two months a year is added again until the FRA becomes 67 for those born in 1960 or later. If you want to maximize your Social Security benefit, you’ll need to wait a bit longer before claiming Social Security. Regardless, turning 65 is a good time to get the details in place and paperwork ready to start collecting your benefits. If you are still working or don’t need the money to cover living expenses, you can delay receiving your benefits until age 70.

Keep in mind that the income you earn in the year before FRA and the year you reach FRA will impact your benefit amount. Any income you earn before the year in which you reach FRA reduces your Social Security benefit once it surpasses a specific limit. For 2019, the limit is $17,640. Once your earnings exceed that, your Social Security benefit will be reduced by $1 for every $2 you earn. The income restrictions change the year you reach FRA. That year there is a higher limit, which is $46,920 for 2019. Your Social Security benefit will be reduced by $1 for every $3 you earn once you pass that limit.

Creating a Social Security strategy will help you determine the best time to claim benefits and guide you in making decisions about how much to work in the years leading up to your full retirement age.

Consider Long-Term Care Insurance

An average 63% of today’s 65-year-olds will require some form of long-term care during their lifetimes. On average nationally, it costs $253 per day or $7,698 per month for a private room in a nursing home. But the older you get, the higher your cost for a long-term care insurance policy will be and the greater the likelihood of your application being denied. Generally, the last age long-term care insurance is affordable is when you are in your mid-60s.

Cover Your Legal Bases

Although age 65 is far from the end of your life, as you get older and your health risks increase, it would be wise to use this milestone to get your affairs in order so your family is taken care of. Consider drafting a will, finding a power of attorney for your finances and health, and creating an advanced medical directive in case you cannot make decisions on your own.

Maximize Your Catch-Up Contributions

If you are still working, these next few years are your last chance to really build up your nest egg for retirement. For 2019, you can contribute an extra $1,000 to an IRA and an additional $6,000 to a 401(k).

Create A Savings Withdrawal Plan

When you do start living off of your hard-earned savings, you need a plan in place to ensure your money lasts you through your retirement. You don’t have to start taking required minimum distributions (RMDs) from your IRA or 401(k) until you are 70½, but you may want to withdraw some money now to lessen the tax impact later. The key is to sit down and map out multiple scenarios to minimize your tax bill, make your money last as long as possible, and enjoy your future retirement with less worry.

Retirement Guidance

Retirement brings up a number of questions and decisions, from deciding where you’ll live to how much you can spend. While working with a financial advisor can be beneficial at any time in life, receiving objective advice and personalized guidance can be especially helpful as you walk through your golden years.

At Capital CS Group, our goal is to make it easy for you to understand what you need to do to achieve your retirement dreams. We want to help you navigate the path to retirement, no matter what questions come up along the way. To learn more or to schedule an appointment, contact one of our offices today.

About Capital CS Group 

Capital CS Group is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Capital CS Group is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. The firm serves clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CapitalCSGroup.com or call us.

The post What To Do When You Turn 65 appeared first on Capital CS Group.

The linemen are ready to read the defense and block. The running backs and receivers are ready to execute with any number of different plays. But no one does anything. Because they don’t know what to do. There is no one on the field calling the plays.

Without anyone to give direction and coordinate to the offense, they won’t accomplish anything, regardless of how skilled they are or how close they are to the end zone. Imagine the uproar if that happened in real life.

A Financial Quarterback

It would never happen in a football game, but in the financial game of life it happens all the time.   How well coordinated is your financial life? You probably have an attorney and a CPA, maybe an insurance broker, too. While they may have years of schooling and are highly qualified, are they working together toward a common goal? Then you add in giving to charities, supporting family members, as well as leaving a legacy for them. Who is making sure everything and everyone is moving in the right direction?  Who is your financial Quarterback?

Many times people try to be team owner and also the quarterback. This can lead to significant gaps in seeing the game and the future of your team clearly. If there isn’t a financial professional in your life taking the role as quarterback and executing on the field for you, the legacy of your team may have some difficult times ahead.

So now the question is, who should you get to run the field?  The ideal person is someone who understands your financial life and communicates well with you, your spouse and other family members. A good financial advisor should understand investing but also estate planning and tax implications. They can take on this role for your team as the financial quarterback.  They don’t replace the CPA, estate planning attorney or other advisors, but rather facilitate communication among them and the team owner. If done properly, this can also greatly increase the success as your legacy is passed down. With every financial professional understanding your game plan and watching over each other, you greatly reduce the risk of one party going rogue.

Defining Your Winning Legacy

The first step in a championship season (or life) is defining what a win looks like. For football it’s easy—you want touchdowns. In life, it’s not as clear-cut. Every individual defines a winning life differently, so it’s important to understand priorities. Possibly more important is to understand the existing roadblocks and develop a game plan to overcome them.

Once you have defined a win, there needs to be a playbook for everyone to follow with roles and responsibilities. Just like in a football game, your financial life has a lot of moving parts. There are family dynamics, investments, insurance, estate and tax planning, charitable giving, cash flow, etc. Every player on your financial team has an important part to play, from your CPA to your attorney. The financial quarterback’s job is to get everyone working together to accomplish your goals.

Make Your Team A Dynasty

If you really did own an NFL team, chances are that if you intend to hand over the team to your children you would help prepare them for it. Yet, when people hope to leave a financial legacy to loved ones, little is done to help prepare those receiving it.

Under the direction of the team owner, a good financial quarterback will be working with the next in line to own the team. They will help them understand the game on the field so that when they step into the owners’ box they can avoid costly mistakes and have a deeper understanding of what it takes to be financially successful. You have worked hard for everything you have, so you want to ensure that the next generation is ready to take it on.

It’s Draft Time!

You own the team, but who is your quarterback?  If you don’t know, it’s probably time to find one. There is a good chance you already have a financial planner/financial advisors, but are they “Financial doers”?

Nobody is ever going to take your role as team owner, but maybe you are ready to direct the plays on the field from the skybox. If you would like more information on finding a financial quarterback, please call 1-866-888-6563 or email info@capitalcsgroup.com.

About Capital CS Group

Capital CS Group (CWS) is an independent Registered Investment Advisory (RIA) firm that provides proactive financial advice and investment management for high net worth families, business owners, and institutions. Capital CS Group comprises professionals with diverse backgrounds and extensive experience, qualifications and is uniquely qualified to serve a broad range of client needs. CWS’s experience and expertise have been the foundation for their proactive client service process and client Standard of Care. CWS’s multi-generational approach focuses on efficiently protecting and growing wealth while providing proactive financial advice as a client moves through each new stage of life. With offices in Palm Desert, CA, and Anchorage, AK, the firm serves clients across the country. For more information, visit  www.CapitalCSGroup.com or call us.

The post You Own The Team, But Who Is Your Quarterback? appeared first on Capital CS Group.

Revisit Your Plan

Increased market volatility and uncertainty has a way of making the most experienced investors worry and question their investment strategy. Our advice is to revisit your plan. A financial plan can keep you grounded and focused on your long-term mission. It can remind you that each of your investments has a purpose and market cycles and volatility are factors already built into the plan. The goal of a good plan is to keep you disciplined. We have attached is a great example of the S&P 500 Index showing the importance of keeping disciplined. It illustrates that while intra year declines are the norm, positive calendar year performance has prevailed in 29 of 38 years from 1980-2018.

Review and Rebalance

Diversification is a great way to reduce risk and decrease volatility. In the past nine years we have seen substantial equity market appreciation; therefore you should revisit your portfolio allocation. Your original allocation may have deviated significantly from the target, and your portfolio may no longer be as diversified as you intended.

For example, a buy-and-hold 60/40 equity/fixed income portfolio at the start of the bull market would have become an 85/15 equity/fixed income portfolio (using the S&P 500 Index as proxy for equity allocation and the Barclays U.S. Aggregate Bond Index as proxy for fixed income allocation), as equity market gains have far exceeded fixed income market gains. Our point is to review your portfolio and rebalance in accordance with your financial plan and risk tolerance.

Focus on What You Can Control

When markets get volatile it is normal to want to make a change in pursuit of “more control.” The reality is it’s impossible to control what will happen next in the markets. We recommend you focus on what you can control. For example, if you are retired living off your investments, we recommend reviewing your spending habits and budget. Clients typically pay more attention to where their money goes when markets feel uncertain. Use this time to review your budget and look for areas to save money. We also recommend you do your best to “tune out” the noise of the media. They can stoke fear and anxiety that may lead you to make irrational decisions that will cost you in the long run. The attached article provides some great information on what happens when you miss the best days in the market. Click here to view.

We Are Here to Help

While we can’t predict the future or the next move up or down, we do know that the market can be a great wealth-generating mechanism over the long-term. Unfortunately, volatility is part of investing. Every year there will be new storylines that will cause market volatility. Our goal is to keep you informed so you are comfortable with volatility and can recognize the opportunities it can present. We are here for you. Please let us know if you would like to revisit your investment or financial plan.

If you have any questions, please call us or visit us at
www.CapitalCSGroup.com.

The post What Do You Do Next? appeared first on Capital CS Group.

The Power Of Financial Planning

Your finances don’t exist in a bubble. Every decision you make and every milestone you reach impacts your financial situation. Even within your finances, there are multiple pieces that affect each other, such as income tax planning, cash flow, risk management, investment planning, estate planning, retirement strategies, education planning, and more. That’s why tax planning won’t be successful unless it’s part of a comprehensive financial plan.

When you have a financial plan that addresses every area of your life and is customized to your unique situation, you may find tax minimization opportunities that you didn’t see before. Here are a few examples of how financial planning can reduce your tax burden.

Tax Planning And Your Financial Plan

If you understand the rules of the game, you will have a much higher success rate at winning the game. The same is true for understanding tax law. If you understand tax law and the benefits available to taxpayers, then when it comes to “winning the game” of reducing your tax bill, you will be that much better off.

Retirement Planning

When working with your advisor to create your financial plan, retirement planning will often be a key point of conversation. By stress-testing your plan, you can quickly see if your current retirement accounts, savings rates, and other assets will be adequate for the retirement lifestyle you desire.

A direct way to reduce your tax bill is to contribute money into tax-deferred savings accounts, such as a 401(k) or IRA. But in order to maximize your savings, you will need to determine both your current cash flow needs and your ideal retirement income. A financial plan will look at both factors and determine the best way to use your tax-deferred savings accounts to save you money both now and in the future.

Health Savings Account (HSA)

The planning behind successfully leveraging the triple-tax savings of Health Savings Accounts (HSAs) cannot be done without thinking about the whole picture. It may sound too good to be true, but HSAs have no federal income tax, no state or local taxes, and no Federal Insurance Contribution Act (FICA) taxes. If you are eligible for an HSA, your money will be tax-deferred and can be withdrawn tax-free to pay for medical expenses. Using an HSA to reduce your tax bill is a long-term strategy that only provides tax benefits if done correctly and as part of a comprehensive plan.

Charitable Contributions

Donating to charity can be personally fulfilling, but there are also tax benefits to be harnessed that financial planning can help you attain. For example, charitable giving is tax-deductible, but only if you itemize your deduction. When you take the standard deduction, your charitable giving has no effect on your taxes.

If you want to receive a tax benefit for your generosity, you can combine all your giving and make donations every other year. In year 1 you wouldn’t donate anything and take the $12,000 standard deduction. In year 2, you would give double and be able to itemize because your giving pushed you over the standard deduction amount. You can also take advantage of donor-advised funds (DAFs) to make this happen.

When you have a financial plan, you can work your charitable giving into the big picture so that you receive the maximum tax benefit possible. A financial professional can walk you through your options.

Take The Next Step

A tax-planning strategy that stems from your financial plan has the potential to provide the most tangible and real benefit. That benefit results in not just a year-by-year tax reduction, but possibly lifetime savings that could positively impact your overall financial situation. A financial plan can help you achieve that. If you’d like to take a step toward financial planning and reducing your tax bill, Capital CS Group would love to help. Contact one of our offices today to schedule a complimentary meeting!

About Capital CS Group 

Capital CS Group is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Capital CS Group is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. The firm serves clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CapitalCSGroup.com or call us.

1http://www.people-press.org/2013/04/11/a-third-of-americans-say-they-like-doing-their-income-taxes/

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Don’t Panic

Imagine checking your online statement today and realizing you lost half the value of your portfolio. How would you feel? If you’re like any normal human being, you’d feel panic-stricken. However, there is a simple solution: shift from a short-term to a long-term mindset. Think of the big picture. Historically speaking, every economic downturn in the U.S. has been followed by recovery and growth. Instead of obsessing over the momentary dip in the market over the past year, take a long-term point of view. You haven’t lost anything until you decide to sell.

Assess Your Plan

When entering a period of market volatility, it’s a good idea to reassess your plan. Is it based on sound investment principles? Are you properly diversified? Is your investment style matched with your risk tolerance? Everybody’s risk tolerance is different. There is no right or wrong level of tolerance. If you feel uncomfortable seeing the value of your portfolio bouncing all over the place, it may be a good idea to switch to a more risk-averse investment strategy.

Don’t Time The Market

In times of increased market fluctuations, you might also feel tempted to predict when it will rise and fall. In theory, it seems like a great idea; in practice, not so much. It’s easier said than done. Research studies show that those who buy and sell based on their market predictions perform worse than if they would have simply held onto those investments.^[1]

Take Advantage Of Opportunities

I mentioned timing the market isn’t a good idea, but that doesn’t mean you shouldn’t take advantage of low prices. Market crashes are like the Black Friday of the stock market—everything goes on sale. So if you find a company with a long history of consistent earnings, you might want to take advantage and buy before the sale ends.

Seek Professional Guidance

Your portfolio represents your security. You will be relying on it to survive when you retire. With so much at stake, it’s important to do everything in your power to make sure it’s there for you when you need it. One of the best ways to do this is by working with a professional financial advisor. This way you can rest assured knowing you have an expert in your corner—someone to help you navigate your investment ship through rough waters. If you’d like to learn more about how Capital CS Group can help you design a financial plan to withstand market volatility, call our office today.

About Capital CS Group

Capital CS Group is an independent Registered Investment Advisory (RIA) firm that provides proactive financial advice and investment management for high net worth families, business owners, and institutions. Capital CS Group comprises professionals with diverse backgrounds and extensive experience, qualifications and is uniquely qualified to serve a broad range of client needs. Capital CS Group’s experience and expertise have been the foundation for their proactive client service process and client Standard of Care. Capital CS Group’s multi-generational approach focuses on efficiently protecting and growing wealth while providing proactive financial advice as a client moves through each new stage of life. With an office in Irvine, CA, the firm serves clients across the country. For more information, visit  www.CapitalCSGroup.com or call us.

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The Inflation Factor

Put simply, inflation erodes your money’s value. Inflation has often been nicknamed the silent retirement killer because so many people forget to account for it in their income planning. Unfortunately, inflation is one of the few certainties in life. Over the last 50 years, the cost of goods and services has increased an average of 3.7% per year. Let’s say inflation continues to average 3% a year. In 40 years, $1 million will be worth $306,000 in today’s dollars, and that’s definitely not enough to buy you a comfortable 30-year retirement. 

To put these numbers in perspective, let’s look at history. If you wanted to have the same purchasing power as a millionaire from 1914, you would have needed $3 million in 1980. But here’s the shocking number: in 2019, you would need $25 million to match the $1 million of 1914. 

Rising inflation tends to happen so gradually that it’s hard to see the effects of it on your wallet year to year. When saving for retirement, you need to calculate that effect forward anywhere from 10-50 years in the future. So if a new car costs around $5,000 in 1980 and $34,000 in 2019, you could find yourself spending over $65,000 to upgrade your vehicle in 2041.

How To Plan For Your Ideal Retirement

We can’t predict the future, but we can prepare well based on historical data. Since you need your retirement savings to last as long as you do, implement these potential solutions in your financial plan. 

Conservative Withdrawal Rates

Since you know that stocks have historically earned an average of 7-8% a year, you might assume that you can afford to withdraw 7-8% of the initial portfolio value (plus a little more for inflation each year). But in reality, to protect against the uncertainty of the market, you may need to limit your withdrawals to less than 4%.  Because there is no simple, one-size-fits-all plan, you need to figure out what will work for you and your unique situation, taking various factors into account, such as time horizon, risk tolerance, asset allocation, and unexpected living expenses.

Set Up Contingencies

There is sophisticated software available to factor in inflation and calculate how long your money will last based on where you live, which withdrawal rate you choose, and what the markets will do. But there are some things a computer just can’t predict, such as your health. 

According to the Employee Benefits Research Institute, the average couple at age 65 will require anywhere from $151,000 to $255,000 just to cover their healthcare costs in retirement. Build contingency funds over and above your regular retirement account to give yourself a bit of a savings buffer. There will always be unexpected expenses in life, whether it’s needing a new car, home repairs, or unexpected long-term care expenses. Planning ahead will give you peace of mind. 

Save More And Spend Less

The longer your planning horizon, the more resources you will need for retirement. The most obvious way of lowering the risk of outliving your money is by saving more before you retire and underspending when you reach retirement. If you have any debt, focus on reducing it as much as possible so your resources can be devoted to saving.

Adjust Expectations

Retirement often means major lifestyle changes. As a result, your expectations may need to change as well. If you want a comfortable retirement, you may have to rethink how much you will be able to give your children as a down payment on a house or an inheritance. 

You may even need to downsize your home or relocate to a more affordable area. Cost of living varies drastically across the U.S. When you are determining how much money you need for retirement, location can make all the difference. For example, if you live in California, $1 million (in today’s dollars) will only last 21 years and 6 months, mostly due to housing and utility costs. But if you live in Mississippi, it’s estimated that $1 million will last almost 26 years because of affordable living expenses that fall below the national average cost.

Stay flexible and be willing to make adjustments in order to secure your financial future and stretch your wealth as far as possible.

Secure Your Retirement  

It can be disheartening to look at the numbers and realize that what you were aiming for is not enough. But by making small changes now and planning ahead, you can set yourself up to experience the retirement you dream of. Use these pivotal years to implement strategies to protect, grow, and transfer your wealth. If you want a customized financial plan to get you from point A to point B, Capital CS Group is here to help. Schedule a complimentary consultation today by calling our office.

About Capital CS Group 

Capital CS Group is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Capital CS Group is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. The firm serves clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CapitalCSGroup.com or call us.

The post $1 Million Isn’t What It Used To Be appeared first on Capital CS Group.

Did you know that most parents spend around $233,610 on child costs from birth to age 17? It’s clear raising a child is expensive, but the good news is that there are simple steps you can take now to financially prepare for your little bundle of joy. Acting on these steps before your baby arrives means you can spend more time basking in newborn bliss and less time worrying about your finances.

Reevaluate Your Budget

List out any financial changes that may happen once the baby arrives. Will one parent choose to stay home for the first year? Will part of your maternity leave be unpaid? There are normal costs of raising a child you can plan for, such as day care, clothes, and baby gear, but plan (and save) for the unexpected, perhaps a delivery that doesn’t go as intended, higher utility bills, or loss of income.

If the amount in your current emergency fund makes you a little queasy, save more now. As your family grows, you’ll feel more comfortable having that added cushion to fall back on. When preparing for a baby, save as much as you need to have peace of mind.

Adjust Health Insurance

While things are calm, review your health insurance coverage. When looking over your policy, evaluate the cost of:

• Adding your baby to your insurance plan
• Any changes to premiums, deductibles, and copayments
• Extra doctors’ visits for prenatal care, childbirth, and post-delivery checkups

If both spouses have employer-sponsored health insurance plans, compare the costs of having your baby on either plan and decide what works best for your family. In the beginning, you’ll worry about every little cough or sneeze your baby makes, so account for those unexpected trips to the pediatrician or urgent care as well.

Save For Your Child’s Future

Let’s look at the average cost of college tuition, fees, and room and board for the 2018-2019 school year:

• $21,370 for a public in-state four-year college
• $37,430 for a public out-of-state four-year college
• $48,510 for a private four-year college

As you can see, college can be brutally expensive. Starting a college fund for your child as soon as possible will help you avoid being blindsided. Even if you can only save small amounts, it can quickly add up with the help of compound interest and time. If you’re unsure about which college fund may be right for you, seek guidance from a financial advisor.

Review Life Insurance & Will

Take a look at your current life insurance policy and increase the coverage if needed. The amount of your current policy should factor in the number of years you want your income to replace, current debts, and funeral costs. Now that you have a dependent, you’ll also want to account for child-related expenses like college costs.

If you haven’t already created a will, now is the time to do so. A will ensures your child is taken care of in the event something happens to both you and your spouse. Yes, it protects your assets, but it also outlines a plan of care for your child.

Your First Step

Having a baby is a scary, exciting adventure that’ll change your life forever. At Capital CS Group, our goal is to help you be as financially prepared as possible for this exhilarating time in your life. No matter what questions you may have, we want to help you leave a lasting legacy for your children. To get started, call our office today or contact one of our offices today.

About Capital CS Group 

Capital CS Group is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Capital CS Group is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. The firm serves clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CapitalCSGroup.com or call us.

The post Financial Steps To Take When You Have A Baby appeared first on Capital CS Group.

If you’re divorced, here are 6 things you can do to secure your financial future and start living life on your own terms.

1. Examine Your Current Financial Picture

Take a few hours and review what your finances look like post-divorce. Calculate your monthly income and expenses to determine if you’re spending more than you make. Look at your debt and credit card statements to identify any spending habits that need to be changed. Review your savings, investments, and retirement accounts to get a clear picture of how much money you have. Once you’ve gathered all this information, create a budget that works for you.

2. Review Investment Accounts

If you received any investment accounts as part of your divorce settlement, you’ll need to review them and make adjustments if necessary. These adjustments may include estimating capital gains or losses, reallocating assets, or rebalancing portfolios.

If you’re unsure how to do these things, meet with a financial advisor who can help you create an investment strategy that directly aligns with your short-term and long-term financial goals.

3. Adjust Insurance Policies

If you shared any insurance policies with your spouse, you may need to purchase new policies of your own. This could be anything ranging from car and home insurance to health and life insurance. If you have children, determine whether they will be on your health insurance policy or your ex’s.

4. Update Legal Information

Was your spouse listed as the beneficiary on any of your legal documents? If so, you’ll need to get those updated as soon as possible. For financial documents, check over any insurance policies and financial accounts you have. Double-check medical documents as well. You may have listed your spouse as your power of attorney or point of contact on medical directives.

5. Trust The Process

Divorce is uncharted territory for most people. While you once made decisions as a team, now you’re making them on your own. Your routine is completely thrown off, so don’t beat yourself up if it takes a while to find your new groove. Trust the process as you adjust to your new normal.

6. Get Support From A Professional

If your marriage was like most, one spouse was in charge of managing the finances. If that spouse wasn’t you, don’t panic. Get support from a professional who can show you the ropes. A financial advisor, for example, can help you review your investment options, adjust your insurance policies, and even teach you basic financial management skills. Just because you’re divorced doesn’t mean you have to do this alone.

Our Hope For You

The quickest way to build financial confidence after a divorce is to assess your current financial situation, define your goals, and create a solid financial plan. At Capital CS Group, we bring clarity and confidence to your financial life. We understand that divorce is likely unfamiliar to you, and we welcome the opportunity to help you organize your finances, plan for the future, and invest your money efficiently. To learn more about how we can work together, call us or contact one of our offices today.

About Capital CS Group

Capital CS Group is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Capital CS Group is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Capital CS Group is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. The firm serve clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CapitalCSGroup.com or call us.

The post What To Do If You Get Divorced appeared first on Capital CS Group.