NEWSLETTERS-2024
BI-WEEKLY NEWSLETTER
Who's Giving You Advice?
April is Financial Awareness month. I believe this month was chosen to coincide with paying your taxes. I felt that Financial Awareness month would be a good time to review the title of “Financial Advisor”. Unfortunately, this is a title that pretty much anyone in the financial world can use, which I think can be misleading to individuals shopping around for an advisor. It does not give you the ability to distinguish between an individual’s background, education, how they get paid or what industry they represent, because they can all call themselves “Financial Advisors”.
I started down this road after many interactions with prospects about the services they were receiving from their advisors. The majority of these individuals were using advisors in large financial firms. What I have seen, is that many of the individuals within these firms, promote themselves as Financial Advisors. What I find interesting, is that when we start talking about taxes, Roth conversions, healthcare, long-term care and estate planning, these are new conversations with little discussion of these topics from their “Financial Advisors”. What tends to happen instead, is that clients are really on their own to figure out the best path forward in these areas. What this demonstrates to me, is that the only advice given, is on the investments these advisors manage– which is fine, but I don’t believe they should be promoting themselves as Financial Advisors when all they are doing is managing investments and not looking at the bigger financial picture. This definitely makes it more difficult for you, as the client, when you are trying to make a decision on who to go to, because essentially this title can be completely misleading. Is this person going to give you the full scope of advice or just advice on the investments they oversee? That is why there is a big fight in the financial industry about what titles people can use, so individuals like yourselves can understand who is giving you advice.
The other area which can be problematic, is insurance agents calling themselves Financial Advisors. When the only options they can provide are insurance products, how can they demonstrate the full spectrum of all of the options available to you, as the client? It’s kind of like showing up to a construction job site with just a hammer. You simply will not be able to complete every job with that one tool. I use a ton of different insurance products and believe in the value they bring to the table. However, they are not the answer to every situation. It is also worth noting that insurance agents are paid 100% by commission. Therefore, they only get paid if you purchase something. This can create a difficult situation because insurance agents are not fiduciaries, so what they are offering may not be in your best interest, but they may not want to tell you that because then they are not getting paid for their time. In an ideal world, they would use titles that expressed that they only offered insurance. Then, when you sat down with them, they would explain that this is what the insurance side of the world can offer you as a solution, but there are other options outside of insurance and you may want to do your research prior to signing paperwork. Unfortunately that is not how the world works. In the insurance industry, I have heard it said too many times; “Just get their signatures on the paperwork.”
One last thing I would like to discuss is the “alphabet soup” after everyone’s names. What do all of these letters/designations mean? Well, they do not all carry the same weight. Some designations can be earned after one eight hour course, while others, like the CFPⓇ designation, are earned after taking five full courses and passing a difficult 180 question exam. When you search FINRA, under Professional Designations, there are 250 listed. In The Alphabet Soup of Financial Certification article on Investopedia, they break down several of these designations to help you understand what they each mean. For me, it was pretty simple when it came to deciding which direction to go. To be able to offer the most comprehensive advice for clients in the financial industry, the Certified Financial PlannerⓇ designation seemed like the logical choice. It has provided me education in all of the areas in which I advise my clients. Personally, I do not like giving advice on something, unless I have a full understanding of the topic. That being stated, you will soon be receiving newsletters from me, outlining my recent conversations with; a Funeral Director, Nursing Home Administrator, Estate Planner and CPA (once the tax season is over).
Simply stated, it is important that you understand who is giving you advice and their background. You probably do not want to be getting advice from a podiatrist on what to do about your shoulder problem. Financial advice should be sought in a similar fashion; you want the best advice regarding the problem(s) you’re trying to solve, from someone who has the knowledge in that specific area.
Enjoy the next couple of weeks preparing to get those yards back in shape after this winter. I will be back with more thoughts from behind my desk in a couple of weeks…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
Questions for a Financial Advisor
To keep up with our Financial Awareness theme in April, we’ve created a list of questions for interviewing a Financial Advisor. We’ve gathered the top questions clients often ask and have answered them below, tailored to our firm.
1. What are your qualifications?
I hold a Series 65 License: Designed by the North American Securities Administrators Association (NASAA) and administered by the Financial Industry Regulatory Authority (FINRA), the Series 65 is an exam and securities license required for individuals to act as investment advisers in the US.The Series 65 exam, known formally as the Uniform Investment Adviser Law Examination, covers laws, regulations, ethics, and various topics important to the role of a financial adviser. (Investopedia, https://www.investopedia.com/
2. Do you have qualifications above the minimum required?
Voluntary accreditations: I am a Certified Financial Planner Ⓡ and I am a National Social Security Advisor Certificate Holder*
3. Are you a fiduciary?
Indeed. Holding both the Series 65 and CFP designations ensures that I act as a fiduciary.
4. How do you get paid?
Financial and insurance industries compensate advisors or agents in various ways, primarily through Assets Under Management (AUM) and commissions. We operate under both models without any preference, focusing instead on what best suits your needs and goals. Under the AUM model, we charge a percentage of the assets we manage, ranging from 0.85% for assets under one million to 0.75% for assets over one million, with additional fees from Brookstone Capital Management for investment oversight. Typically, clients pay around 1.25% of their total AUM annually, deducted monthly from their investments. Commissions, common in insurance, don’t reduce your initial investment; they’re already included in product costs and can be a one-time or ongoing payout for agents.
5. How will our relationship work?
Once you become a client, we’ll hold semi-annual meetings to review and update your plan as needed. These meetings will occur in the Spring and Fall. Additionally, I’ll be available by appointment throughout the year if you need to discuss any matters that arise.
6. Can I call you any time for advice?
Our philosophy is to get back to everyone within 24 business hours, to schedule a time that works for both of us to discuss what’s on your mind. Obviously, when emergencies arise, we will work to resolve your situation as soon as possible.
7. What is your investment philosophy?
We recommend using a diversified investment approach to support your goals, considering the uncertainty of the future and the unpredictability of events. Instead of reacting hastily to short-term changes, we acknowledge their ongoing impact on the future. Therefore, in crafting your investment strategy, we take a forward-looking view, accommodating potential fluctuations. While some investments may bring higher volatility but historically higher returns, we balance these with lower-risk options to suit your individual needs and timeline. With confidence in the strength of America, its economy, and our ability to overcome challenges, we aim to set your investments up for long-term success.
8. Do You Specialize in Certain Types of Clients?
Certainly. Our focus is on individuals nearing retirement and those already in retirement, and we remain committed to serving clients throughout their retirement years.
9. How Do I Plan for Taxes in Retirement?
Financial decisions have tax implications, so it’s crucial to know your tax situation. We’ll ask for your tax returns to consider their impact on our recommendations. We also suggest consulting a tax professional before making major decisions.
10. What services do you provide clients?
We offer advice and solutions for all aspects of retirement planning. These include: Income planning, tax planning, risk management (Health Insurance: Pennie & Medicare, Life Insurance & Long-Term Care Planning), Estate Planning and Investment Management
11. Does Your Firm Hold My Money and Investments?
We do not hold your funds. For Assets Under Management (AUM), funds are held by custodians like Fidelity or Charles Schwab. Additionally, we are contracted with various insurance companies where funds may be held.
12. Describe the process you use with clients.
We follow a three-meeting process for individuals interested in becoming clients:
- The first meeting, a discovery session, involves discussing your needs and goals while we explore how we can assist you in achieving them.
- In the second meeting, I’ll present you with a One-Page Financial Plan, which we’ll go over together. If we both feel it’s a good fit, we proceed to the third meeting.
- The third meeting involves signing paperwork to officially become a client of K Financial. Throughout this process, Jill will keep you updated on the status of applications and funds transfers.
13. What is your disciplinary record?
None
14. What would you like to be doing in five years?
Continuing to provide our clients with top-notch service
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
Annual Tax Talk
I know you’ve been waiting a whole year for this newsletter. You know–the one where I dive into taxes. Well, the wait is over; it is time. Those of you who have met with me, know that I talk a lot about the tax laws, especially how we will be reverting back to 2017 tax laws in 2026. It is important that you understand that because if changes are not made, you only have two years left at our current rates, to help reduce your lifetime taxes. Being an election year, and with tax laws scheduled to revert back to 2017 laws, my guess is that you will hear a lot about taxes and what each candidate would do if they were elected. I would encourage you not to make any plans around what they say they are going to do. I am approaching it this way– focus on making smart long-term tax decisions over the next two years. Then see what the President and Congress come up with in 2025 for 2026. The next two years are important; one reason being, the Standard Deduction.
The 2024 Standard Deduction is $27,700 for married couples filing jointly and $13,850 for a single filer. And, if you are over 65, you get an additional $1,850 each. Therefore, a married couple that is over age 65, gets a total deduction of $31,400. That means a married couple over age 65 does not have to pay any Federal tax on the first $31,400 they make. I have had many conversations about how the tax bracket rates will rise in 2026: 12% goes to 15%, 22% goes to 24% and 24% goes to 28%, if no changes are made. What I also recognize, is that in 2026, the Standard Deduction goes back to the 2017 number, indexed for inflation. That number is projected to be around $16,500. Therefore, this same example couple, currently getting a deduction of $31,400, could be paying tax on $14,900 more income. But wait…there’s another problem regarding the change in the Standard Deduction. This also means that you will move to the next tax bracket sooner. Here’s an example, to give you some perspective: A couple has $115,000 in taxable income: Now, $115,000 – $31,400 = $83,600 (12% tax bracket). In 2026, if we revert back to 2017 laws, $115,000 – $16,500 = $98,500 (a majority of the income would be in the 15% tax bracket, but $4,200 would be taxed at 25%). Keep in mind, there are a lot of other factors that go into taxable income, but I wanted to give a simple example to explain how the change could potentially affect you.
There is no way around it; if we revert back to 2017 tax laws, all of us will be paying more in taxes because of the decrease in the Standard Deduction and the increase in tax rates. As I have emphasized in the past, you need to examine whether or not Roth conversions make sense. And it is important to examine this because I’ve come across several cases this year, where it looked like we could move a good bit of money to a Roth, but once we dove in a little deeper, it did not make sense. This can happen when you are on Social Security or if you have insurance through Pennie. As you may be aware, Social Security is taxed differently than other income. In these cases, clients had either zero or 50% of their Social Security included in their Adjusted Gross Income. If we had done a Roth conversion, they would have pushed the Social Security amount included in AGI to 85%. So instead of that Roth Conversion costing 12% in taxes, it would have been more like 18%-20%, which would not have been a smart tax move. If you get your health insurance through Pennie, for every extra dollar we put on the tax return (aka Roth Conversions), we increase your health insurance cost, therefore, reducing your monthly cash flow. Tax planning matters and it is important to focus on this, especially over the next two years.
That’s enough about taxes. I am falling asleep writing about it. If you have not heard, we bought a building in downtown Philipsburg, which will be home to our new office. It needed a lot of work, but we are close to finishing up the outside. As usual, my dad came up and helped us get this building into shape. Unfortunately, he won’t be back until June. I guess he decided he wanted to enjoy his retirement (aka skiing) instead of dealing with our endless stream of projects. Soon we will get to dealing with the inside work. Doesn’t seem like good planning on our part, now that I think about it–work on the outside during the Winter and the inside during the Spring and Summer. I guess I ought to stick to financial planning.
More thoughts from behind my desk in a couple of weeks…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
Our Furry Friends
I actually can’t believe we never did this as a newsletter before, considering we talk about our pets all the time. As I am thinking about what to write in our next newsletter, I look over at Jill and see five dogs laying around, under her desk. Our animals are part of our family. We just had a birthday celebration, last evening, for Sunny. Therefore, that got me thinking about having pets in retirement and what the benefits are. Off to Google I go, and not surprisingly, there are many benefits of having pets during this stage of life.
First, I think we have to discuss why it might not be wise to bring home a cute little puppy or kitten. If you’re not going to be home for long periods of time, the last thing you want to be doing is arranging for someone to be watching your pet while you are off seeing the world or watching grandkids for an extended period of time. And, if you’re anything like my wife, you can’t leave your furry friends for more than a few days. We’re preparing to go away this weekend, but I know our trip time is limited. Yes, the dogs and cat are like our children, and she can’t be away from them for very long. We had a couple of dogs growing up, but my parents have not had any pets since. They have a busy life in retirement, between visiting their children and grandchildren, time on the farm in Missouri, spending time with friends up and down the east coast and traveling throughout the world. It wouldn’t make sense for them to have any pets–especially during the earlier years of retirement when they are the most active. You may want to hold off on having a four-legged creature running around your house until you know you will be home more consistently.
Now, on to the great things about having pets: Companionship is a big one, as well as the unconditional love you receive from them. It doesn’t matter how long we are gone; our dogs lose their minds when we return. They are so excited to see us and so happy that we are home, every time we enter the house. It doesn’t matter if we leave for ten minutes or ten hours, they are excited all the same. It is a great feeling when I come home from a long day and see them rushing to greet me. The love they show you can definitely help you feel good about yourself. They just want to be around you and be close to you. If you’re in a situation where the kids aren’t close and you won’t be traveling much, pets would be great daily companions to go through life with.
I talk about mobility and exercising a lot. Having a dog is a great way to get out and move around more. Dogs love to walk, so much so, that we can’t even say the word around here because they start running around the house getting ready to go. I have several clients for whom walking with their dogs is a daily part of their lives. Would they walk as much without their dogs? Maybe. But when you have this creature that brings you their leash every day, it’s extremely helpful motivation to get you out and moving. I can find excuses not to exercise but I know the importance of daily movement and quite honestly, my dogs don’t care to hear my excuses. Dogs can play a crucial role in keeping you active in life. My dogs get me outside more because they want to play frisbee every single day, or even multiple times per day, if they could get me to throw them that much.
A couple of other reasons to have pets: It’s better for your health, relieves stress and lowers blood pressure, according to an article from Cleveland Clinic. There’s the social part too–when you’re out and about walking your dog, you have a chance to run into others that love their dogs, as well. We are social creatures and interacting with others in different settings can always boost our spirits, overall. I know I’ve talked a lot about dogs, but cats can play a similar role. Our cat cuddles with us in the evening, laying on our laps. Now Sunny, our largest dog, who is 65 pounds, is a very jealous dog and tries hard to be a lap dog because she wants all the attention. She will literally jump up on our laps to prevent OBC (short for Oh Bad Cat, our cat’s name. No, really, that’s our cat’s name and it was earned. Believe me.) It’s a great feeling to have this little animal cuddle in, saying, it’s been a long day and let’s relax together because I love you.
Pets are going to be a part of the rest of our lives and play such a positive role in our daily lives now, that I have to encourage this companionship for others. More thoughts from behind my desk in a couple of weeks…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
Ideal Retirement
What does the ideal retirement look like? Well, according to the many ads we see, you’ll be walking on the beach, hand in hand, day after day, and you’ll be spending your evenings cuddled up on the beach, watching the sun set. Maybe the beach isn’t your scene though. Maybe, instead, you’ll live on a golf course and play golf every day of your life, without a care in the world. According to the sales people of the world, these are some ideas of what your ideal retirement should look like. And I am here to tell you that they have it wrong. These are people trying to sell you an idea. They want you to believe that if you work with them, that is where you will end up. The truth of the matter is, I don’t see a whole lot of individuals saying those are things they want when they envision their retirement. So what exactly is an ideal retirement?
I noticed last year, I was having several conversations in which individuals were feeling pressure about their retirement and their funds because of what they were reading or hearing others talk about. To me, that’s not what you should be feeling or what you should be focused on. It goes back to that old saying of “Keeping up with the Jones’.” All I can say is that that concept didn’t work for your mental health and your finances up to this point; it surely won’t work in retirement either. It can be difficult when you see what retirement “should” look like and you see everyone out there, putting up images of (only) the best parts of life. This can take a toll on your view of what your retirement should look like and cause you to start chasing things that are not you.
What you need to focus on is what makes you feel fulfilled and what brings joy to your life. From what I’ve seen, it is not endless days on the beach. Yes, travel is a common theme in retirement, but the beaches are just a small part of what I hear retirees want to do. The problem I see is that retirement is made out to be a long vacation…but it really isn’t. You still have a lot of idle time that needs to be filled. Also, once everyone discovers you’re retired, you’ll end up with a lot of requests for your time that you didn’t get when you were working. Before you know it, you’re busier than you were when you were employed. As a client just brought up to me, you need to develop a routine. Otherwise, before you know it, you will be wondering where the days have gone and why nothing has been accomplished.
The ideal retirement looks totally different from retiree to retiree. But guess what? It’s your ideal retirement to build–yes, build. You need to build your life around what is important to you, not what the ads are telling you is important. Sure, you can build your retirement up to be a grand adventure, which can be awesome. However, I’ve noticed that the most satisfied retirees are the ones that understand who they are and the ones who do the things that bring them the most joy. My grandparents did woodworking for themselves, their family and friends. That filled the majority of their days in retirement. However, they also did a ton of bus trips throughout the country. Somehow they built their ideal retirement on a farm, in the middle of southwest Missouri. It was a great retirement, after a long life of farming and factory work. Stop looking around at others’ social media and all these advertisements to find the answers. It just leads to this pressure that you simply do not need. There is no “correct” way to retire. Comparing your life to others can lead to disappointment and keep you from focusing on what you want in life. Focus on you and only you. What is going to feed your joy? Find whatever that is and ride that joy the rest of the way. That, to me, is the ideal retirement.
I read a great article that I wanted to pass along, 5 Things You Need To Know Before You Retire. Give it a read as you think through your own retirement.
Let’s not let the snowy, cold weather get us down. It’s one of the reasons we live here, right? Ahh, the beauty of the four full seasons. I do actually enjoy it though, because Jill and I get under a nice warm blanket and savor some down time, catching up on our shows. Now, if only I could keep her awake long enough to enjoy a full episode!
Two down, twenty four more to go! Have a great couple of weeks. More thoughts from behind my desk soon…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
Core Beliefs
We are living in the information era, and while it presents numerous benefits, it also poses a challenge: the overwhelming abundance of choices and data. This can complicate decision making and lead to confusion. Therefore, instead of contributing to this information overload, we have chosen to provide some clarity and guidance, regarding what we stand for and what we believe, as an organization.
Core Beliefs:
RELATIONSHIPS: Above all else, our interactions with clients stand as the cornerstone of our work. We are unwavering in our commitment to nurturing enduring connections. While this sentiment is often echoed, we strive to transcend mere transactions, aiming for meaningful, lasting relationships. Our aspiration is for every client who joins our community to remain with us for the long haul.
LIVE YOUR BEST LIFE: We aspire to lead fulfilling lives and contribute to the betterment of others. With our time on Earth being finite, every moment holds significance. Our aim is to inspire and support you in maximizing your experiences. Ultimately, if each client feels we’ve helped them to live their best life, we’ll consider our mission accomplished.
CASH FLOW: Your daily finances revolve around cash flow, making it a pivotal aspect of our focus. We prioritize comprehending your cash flow requirements. Our commitment lies in helping facilitate stable cash flow, not only for the present but also for the entirety of your life, achieved through meticulous planning. This commitment remains a top priority.
TAXES: Financial choices carry tax consequences, underscoring the importance of understanding your tax situation. To ensure comprehensive guidance, we will request your tax returns and factor in their implications with every recommendation. Additionally, we advocate consulting your tax professional to validate significant decisions.
INVESTMENTS: Given the inherent uncertainty of the future and the fallibility of predictions, we advocate employing a diversified investment approach to support your objectives. Rather than reacting to transient events, we acknowledge their perpetual influence on the future. Therefore, when devising your investment strategy, we adopt a forward-thinking perspective, accommodating potential fluctuations. While some investments may entail higher volatility yet historically offer greater returns, we balance these with low-risk options to align with your specific needs and timeline. Amidst our belief in the resilience of America, its economy, and our nation’s capacity to weather challenges, we strive to position your investments for long-term success.
ESTATE PLANNING: Every plan should begin with a clear vision of its ultimate goal. Hence, we’ll engage in extensive conversations regarding your desires for the future. However, to effectively achieve these goals and ensure the preservation of your legacy, we advocate for Long-Term Care planning. Collaborating with your attorney to safeguard certain assets from the potential expenses of nursing home care is essential to this process.
HEALTHCARE: As we age, it’s common for our health to deteriorate, underscoring the importance of making informed decisions about healthcare plans. Given the individuality of everyone’s healthcare needs, we are committed to assisting you in identifying the optimal plan tailored to your specific circumstances.
Time does give you perspective. I’ve been in the financial world for around twenty years and Jill for thirteen. What you might not know is that this world is a sales world, from banks to insurance companies to mutual funds to wealth management. Big businesses want you to sell and there is a lot of incentive for you to do so. Everyone is looking at your numbers. As we’ve worked hard on building our business, heading into our fifth year, we have discovered a lot about who we are and who we want to serve. It has taken time to develop these core beliefs, but we feel they will help guide us as we move forward and will also help individuals understand if our values align with theirs. I was fortunate enough to have worked for a small bank at the beginning of my journey. In that bank were great people that were focused on doing a great job for the people we served. When that bank was sold to a bigger bank, you could feel the shift in us and in the people we served. The mission was different and we knew it. It was a lesson I have never forgotten; be true to who you are, and the right people will come on board. That’s all we are trying to accomplish here–be exceptional at what we do, stay true to who we are (and who we are not) and then build relationships with the individuals who share our beliefs.
Three down! More thoughts from behind my desk in a couple of weeks…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
What's Your Healthspan?
When I am planning for clients, I always ask, “How many years are we planning for?” The majority of individuals are unsure and shrug their shoulders. Therefore, I use my default life expectancy of males to age 90 and females to age 95, unless, of course, we are already aware of some major health issues. That is your lifespan–the time from your birth until your death. Interestingly, I recently came across an article in the Wall Street Journal, Your Healthspan Is as Important as Lifespan – and It’s Declining. It gave me perspective; I definitely need to focus more on healthspan. Runstreet Blog defines healthspan as, “The period of a person’s life when they are generally healthy and free of chronic or severe diseases. Instead of looking at lifespan, which measures how long a person lives, healthspans help reflect quality of life.” To me, this is what we should be focusing on– Methods to lengthen our healthspan and improve our quality of life.
We should be more aggressive about living our lives when we are healthy because we never know when unforeseen health issues can disrupt our plans. I do talk about this during meetings and most people acknowledge that they’ll be more active during the first part of their retirement, because as we age, we will likely begin to slow down with our activities. However, the discussions I have had are centered more around our spending, and how we will do more of it in the earlier years, as we travel and enjoy other activities. This concept is referred to as the Retirement Spending Stages.
As we begin to consider healthspan, our focus should be on improving our health to sustain an active lifestyle for longer. This not only grants us more financial autonomy but also enhances our overall quality of life. On the contrary, poor health limits our options and drains our financial resources, taking away from other, enjoyable activities. The reality is simple: A longer healthspan will improve your overall quality of life. Realizing this, we should be focused on expanding our healthspan years. The Runstreet Blog suggested ten things you can do to help improve your healthspan, such as: exercising, regular doctor check ups, improving sleep and…something we’re great at–having a pet or two…or thirteen, in our case.
Sadly, societal trends indicate a decline in healthspan. Articles from WSJ and TheStreet highlight this concern, emphasizing that longevity alone isn’t sufficient if we’re not healthy. (Check out Living Long Isn’t Enough: Why Healthspan Matters More Than Lifespan.) We might be living longer but we are living longer in an unhealthy state. This has to do with our lifestyle and dietary choices. This is where you have to make the commitment to do things differently than others, which can be extremely difficult. I know that over the last several years, I have read a lot that indicates that having a great retirement begins with your health during those years. Therefore, if Jill and I want to have a long, happy retirement, we need to start new habits now, that our future selves will thank us for. Do I want pizza all the time? Yes. Should I eat pizza all the time? No. Did I have pizza this week? Yes. Knowing is supposedly half the battle, but to me, knowing is the easy part. Doing is where the winners win.
Understanding healthspan has been enlightening, prompting me to integrate it more into client discussions. As I have said in other newsletters, as a community, we want to be the exception. This feels like it has moved to the top of the exception list. Let’s not let the rest of society dictate how we live and let’s focus on doing the things that increase our healthspan.
Check out this video regarding the market, from Brookstone: The Dow and the S&P Climb to Record Highs – Brookstone Capital Management
Four down! More thoughts from behind my desk in a couple of weeks…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.
new year new goals
Happy New Year! Yes, it’s been a while, but it’s a new year with new goals–26 newsletters, to be exact. Goals are great, but we’re not going to sweat it if we don’t accomplish all 26. I enjoy writing these newsletters and we hope they bring value to you. However, it never changes our priorities of taking care of our clients and meeting with people to discuss their future retirement plans. That’s why every Fall we usually come up a little short in getting these newsletters out every two weeks. This Fall was no different. We had a lot of wonderful meetings over the last few months of 2023, and making sure those meetings were valuable to the individuals we met with, was our top priority. That got me thinking about what these emails are all about; they are a reflection of what is going on in the lives of individuals, like yourselves. A majority of our ideas come from time spent talking to you and your peers about planning for retirement, living in retirement and the legacy you/they want to leave behind.
We are all about helping you live your best life. We are not about growing this business just to add more advisors focused on accumulating more and more assets. We recognize that we can live a great life by just focusing on giving value to our clients and our community. At one point in the future, we will have to limit our onboarding of new clients because we would have to sacrifice something in order to bring new individuals on board, and we do not see that as an option. In the words of Zig Ziglar, “You will get all you want in life, if you help enough other people get what they want.”
The ideas and topics we write about are not from some California-based retirement blog generator that doesn’t have a clue about the views of Central and Northern Pennsylvanians. Yes, there are a lot of topics that are universal, but we get how you feel on these topics and how they are affecting your life, here. I read A LOT about retirement. However, what I read is mostly general and doesn’t always reflect what I am hearing in our meetings. YOU are the best source of what retirement life is about, here in PA. What is important to us, is what matters to you, the concerns that keep coming up and how you want to live. Then you get things ruminating in our heads and these emails become the place for us to release those thoughts. That is, until someone comes in with a different perspective that we have to reflect on, because as you know, some subjects have one answer one year but have a totally different answer a couple of years later. A good example would be locking up funds for a period of time for a fixed rate…which I thought was a less than ideal idea, years ago, but over the last six months, it has been a part of our plans, as guaranteed interest rates are up.
In retirement, you start with a vision of what you want things to look like and as you get deeper into it, things can change. The same is true with our vision for K Financial. We have grown in who we are looking for to be part of our community. We are looking for individuals that have similar visions about retirement and that are enthusiastic about the approach we’re going to take on advising them, going forward. K Financial is not a “One-size-fits-all” firm. Your vision has to be aligned with our vision about retirement. What’s great about that, is that we do not have to morph into something new with each meeting so someone will do business with us. This allows us to be more connected with our clients and strengthen our relationships, because we’re all rowing in the same direction.
We look forward to bringing those ideas and thoughts that came out of the Fall meetings to these emails (e.g. What is an ideal retirement?; What qualifies someone as a Financial Planner?; Oh, I see why taxes matter; etc). We really appreciate you taking the time to read our thoughts and for providing such kind feedback. It definitely gives us the motivation to make sure we hit our 26 newsletter goal!
More thoughts from behind my desk in a couple of weeks…
Greg Korn, CFP® President & Investment Advisor Representative
Toll Free: 833-788-0404
Fax: 814-357-9070
Important Disclosures Regarding Email Communications
Advisory services through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. K Financial LLC and RWA are not affiliated. This Email is being sent by or on behalf of a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate the Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative either by phone or in person. Requests for securities transactions via email will not be executed by Retirement Wealth Advisors, Inc. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via Email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT ACT, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
Copyright (C) 2021 K Financial. All rights reserved.