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Catherine Bennett

Jan 17

Retirement: You’ve Got This!

By Advice

Prepared for retirement?

Not everyone is financially prepared for retirement. Earlier this year, the Employee Benefit Research Institute estimated almost 41 percent of American households will run short of money in retirement. That’s an improvement over 2014 when almost 43 percent of 35- to 64-year-olds were unprepared.1

Here is some good news:

Many Americans are doing better financially in retirement than they expected.2

Each year, T. Rowe Price conducts a survey of Americans who participate in or are eligible to participate in employer-sponsored 401(k) plans. The results have consistently confirmed retirees’ experience exceeds workers’ expectations.2

For instance, people who have been retired for 10 or more years were asked, “Given your savings, income, and expenditures, which of the following statements are true of your retirement?” The answers may be surprising to some:2

  • 81 percent have enough money to pay for healthcare
  • 72 percent live as well as or better than when they were working
  • 66 percent will be able to leave money to family members or charity
  • 28 percent will be able to help out younger family members with tuition/housing
  • 11 percent will work at least part-time in retirement
  • 10 percent will run out of money

While retirement has a different story for everyone, the survey found satisfied retirees tended to have more income than unsatisfied retirees:2

  • Median household income: $90,000 vs. $65,000
  • Average household debt: $15,000 vs. $24,000
  • Money in retirement accounts: $370,000 vs. $281,000

Even when you have set aside significant savings and investments, transforming accumulated wealth into a steady stream of income that will support you throughout retirement can be challenging. Many strategies for generating retirement income include one or more of the following resources:

Social Security:

Nine out of 10 Americans receive Social Security benefits in retirement. It’s a steady source of income that is periodically adjusted for inflation. The average monthly benefit in June 2019 was $1,471.3, 4

Retirement plan savings:

A fair number of American workers have set aside savings in defined contribution plans, like 401(k), 403(b), or 457 plans. When it’s time to retire, talk with an investment professional before taking any action. Taking the right steps can ensure you don’t lose tax advantages or pay too much in taxes when you take plan distributions.3

Pensions:

Just 17 percent of Americans working in the private sector have pension plans that will provide steady income after retirement. If you have a pension, the amount of income will be determined by your tenure, earnings, and retirement age. If you’re not sure whether your employer offers a pension, talk with the Human Resources department.5

Other retirement accounts:

Many people own traditional IRAs, Roth IRAs, and other types of retirement accounts that can provide income during retirement. Distributions from traditional IRAs are usually taxed as ordinary income, while distributions from Roth IRAs are tax-free, as long as certain conditions are met.*6

Stocks and bonds:

Many people have savings invested in stocks and bonds. Some stocks pay dividends and some bonds pay interest. Both can be sources of retirement income.7

Health Savings Accounts (HSAs):

If you have high-deductible health insurance, then you may qualify for an HSA. It provides an opportunity to save pre-tax money in an account that can be used to pay qualified medical expenses today or in retirement. You can invest the savings in your HSA, too.8

Inheritance:

Receiving an inheritance from parents or loved ones is less common than many people think. The most recent research from the Bureau of Labor Statistics found from 1989 to 2007, just 21 percent of American households received an inheritance. If you’re one of the lucky few, the assets you receive can be used to generate income in retirement or leave a legacy for your heirs.9

Guaranteed income sources:

Having a stable and predictable income is a high priority for many retirees. The 2019 Retirement Confidence Survey reported income stability is a higher financial priority than conserving wealth for two out of three retirees. There are a variety of products in the market that offer guaranteed income.10

Home equity:

Your home is probably one of your most valuable assets. Your equity – the difference between the value of your home and what you owe on your home – could be a source of retirement income. Home equity loans and reverse mortgages can help you access home equity without selling your home.11

The first step in building a retirement income strategy is deciding what you want life in retirement to be like. Once you know, you can estimate costs and develop a plan. Typically, a sound retirement income strategy will have guaranteed income, flexibility, and growth potential.

*Distributions from Roth IRAs generally will be tax-free and penalty-free, as long as the account has been owned for five or more years and the owner is age 59½ or older.

Sources:
1 https://www.ebri.org/content/retirement-savings-shortfalls-evidence-from-ebri-s-2019-retirement-security-projection-model
2 https://www.troweprice.com/content/dam/fai/Collections/DC%20Resources/helping-workers-prepare-for-successful-retirements/DCSystemSuccess.pdf
3 https://www.finra.org/investors/learn-to-invest/types-investments/retirement/managing-retirement-income/sources-retirement-income
4 https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
5 https://money.usnews.com/money/retirement/articles/a-guide-to-getting-a-pension
6 https://www.investopedia.com/ask/answers/102714/how-are-ira-withdrawals-taxed.asp
7 https://www.investopedia.com/articles/financial-advisors/020116/are-dividend-stocks-good-substitute-bonds.asp
8 http://www.hsabank.com/hsabank/learning-center/health-savings-accounts
9 https://www.bls.gov/osmr/research-papers/2011/ec110030.htm
10 https://www.ebri.org/docs/default-source/rcs/2019-rcs/2019-rcs-short-report.pdf
11 https://www.investopedia.com/mortgage/reverse-mortgage/reverse-mortgage-or-home-equity-loan/

This material was prepared by Carson Coaching. Carson Coaching is not affiliated with the named broker/dealer or firm.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities.

Jul 29
An estate

Heidi Foster: Charitable Giving is a Good Way to Reduce Estate Taxes

By Published Articles

Many Americans, even with the present downturn in the economy, will have taxable estates. Unless Congress passes changes, a number as high as $3.5 million per individual has been cited.

Benjamin Franklin said many years ago, “Nothing is certain but death and taxes.”

Reduce or Eliminate Estate Taxes

America’s wealthiest families will be looking for ways to reduce estate taxes. By giving to a qualified 501(c)(3) charity at their death, which approximately 80 percent of Americans do at some point during their lives, individuals can reduce or eliminate estate taxes.

However, some statistics show that as few as 20 percent of individuals with taxable estates include charities in their estate plans (source: www.leavealegacy.org). Charitable giving not only allows tax reduction, it further permits people to benefit society and pass on their values.

Gifts can be made in several ways. The simplest method to give is through a gift or a bequest, which excludes these assets from a person’s estate.

Estate Planning

In estate planning, people often overlook their retirement assets since they generally have designated beneficiaries. When these assets are transferred to family members, they are responsible for not only estate taxes but also income taxes. But retirement assets transfer tax-free to charities.

Another way to structure gifts is by using charitable trusts that allow up-front tax deduction while removing assets from an estate. By placing assets into a charitable remainder trust, a family receives an income stream for its lifetime with the remaining assets going to charity. Another option is a charitable lead trust, where a charity receives an income stream for a designated period, with the remaining assets going back to the donor’s family or other designees.

Family Foundations

Another alternative to consider is the use of a family or community foundation. Family foundations, although generally more work than the other alternatives discussed, allow their creator to truly pass on their beliefs and values to their family.

Heidi Foster, Wealth Advisor and Investment Manager with American Wealth Management and may be reached at 775.332.7000 or heidi@financialhealth.com. Securities offered through Foothill Securities, Inc. member FINRA / SIPC. Investment advice offered through American Wealth Management, a registered investment advisor and a separate entity from Foothill Securities, Inc. This information should not be construed as investment, tax or legal advice. The author is not engaged in rendering legal, accounting or other professional services. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. If assistance or further information is needed, the reader is advised to engage the services of a competent professional.

The Reno Gazette-Journal featured this article written by Heidi Foster.

Jul 29

Committed to Your Financial Vision

By Published Articles

Your financial life can be broken up into many parts. However, finding financial success and reaching your goals means putting these parts together and creating a financial vision that will give you clarity, confidence, and peace of mind about your future.

Since 1988, American Wealth Management has been providing caring, knowledgeable financial advice and individualized solutions with the goal of enabling our clients to attain their lifetime goals and aspirations.

Investment Management and Financial Planning

Investment management and financial planning are ongoing processes that address your continually changing circumstances. Continually listening to your unique needs is the foundation of our advice and service to you. You want someone on your team who shares your vision, understands your needs, upholds the highest ethical standards, and honors your confidentiality.

Top Financial Advisors

We are proud that Pat Meidell has been recognized by Barron’s magazine as one of the Top 100 Women Financial Advisors – June 2006 and as one of America’s Top 100 Independent Advisors as published in Registered Rep Magazine – August 2007 and 2009. Additionally, Laif Meidell is a regular guest on CNBC, Fox Business, Market Watch, Reuters, as well as KUNR in Reno and has a daily column in the Reno Gazette-Journal. Further, Heidi Foster is a regular guest on KUNR and a monthly contributor to the Reno Gazette-Journal.

“We should not look back unless it is to derive useful lessons from past errors, and for the purpose of profiting by dearly bought experience.” George Washington

Financial Advisors in the Greater Reno-Tahoe Area

Contact an American Wealth Management financial advisor to learn more about our advisory services and how we can work with you to develop a personalized plan aimed at supporting your financial goals and long-term objectives.

American Wealth Management is a leading provider of fee-only financial planning and investment management services. If an integrated approach to financial planning and investment management from a firm recognized for its quality and expertise is of interest to you, please call us at (800) 288-2772, or you can e-mail us at heidi@financialhealth.com.

 

For more information regarding your financial professional designation(s), click here.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S. Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation

The Best in Business 2025 Contest for Northern Nevada is presented by Northern Nevada Weekly and is determined through public voting held from October 8, 2025 through October 26, 2025. Nominees were selected by open nominations. Voting may include clients and non-clients. American Wealth Management did not pay a fee to be nominated or included. After the voting period, American Wealth Management did not pay a licensing or promotional fee related to the results. This recognition is based solely on the number of votes received and is not indicative of investment performance or client experience. A nomination or award is not a guarantee of future investment results and should not be construed as a testimonial or endorsement by any current client. The rating organization’s methodology, eligibility criteria, and limitations can be reviewed here: Best in Business 2025. Participation in voting is voluntary and open to the general public. Clients are under no obligation to vote, and their decision to do so will not influence their current or future advisory relationship with American Wealth Management.

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