April 2017
“Think of all the beauty still left around you and be happy.”
– Anne Frank
TRAVEL TIP
Read the news before a new travel experience. Heading to another part of the country or the world? Head to the local newspaper’s website and read what’s going on. What you learn will give you a better feel for the place you will soon visit.
BRAIN TEASER
Sibling Stumper.
The Chandlers have six daughters. Each daughter has a brother. So what is the minimum amount of people in the Chandler family?*
DID YOU KNOW?
Soap doesn’t kill bacteria.
In combination, soap, water, and the friction of washing and scrubbing removes bacteria from the surface of your flesh. Bacteria doesn’t die in the process. Instead, it either rinses off with the water or is transferred to a towel or washcloth.4
MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
Why You Might Not Want a Lump-Sum Retirement Payout
Do you have the option of receiving your retirement money as a lump sum? You may want to turn that choice down. A new MetLife study, Paycheck or Pot of Gold, warns of the “lottery effect” that can occur when all that money makes its way into a household at once. Surveying more than 1,050 retirement plan participants who had taken lump-sum payouts, MetLife found that 21% had already used up 100% of that money; on average, it had disappeared in less than six years.
Like a lottery winner bereft of financial counseling, a recipient of a lump-sum retirement payout can too easily find ways to part with those dollars. What did the respondents to the MetLife survey do within a year of taking their lump sums? In some cases, the money was practically spent: 27% used the funds to attack debt, and 20% said that they made home improvements. On the other hand, 22% gave some of the money away (sometimes to family members and friends), and 12% bought a new car or took a major vacation. Looking back, 31% lamented some of their buying and spending decisions in the first year after taking the lump sum, and 23% regretted financial gifts they had made. Education about the merits and demerits of lump-sum payouts may be insufficient – in the survey, only 45% of pension plan participants offered the choice between a lump sum or a lifelong income stream remembered being given a comparison of the two options.(1)
Baby Boomers Redefine the Recliner
The easy chair – a mainstay of living rooms during the 1960s and 1970s – is making a comeback thanks to demand from boomers. Recliners back then were often big, bulky, and ugly; now, they have cleaner lines and smaller footprints. Lift chairs, which help seated people rise more easily, are also losing their institutional look.
La-Z-Boy introduced the recliner back in 1928, and if the furniture makers who came up with that first design were to see recliners today, they would undoubtedly be impressed with their evolution. Some of the new reclining chairs and sectionals are “wall huggers” – the seat moves forward when the unit reclines, which means you can place the recliner against a wall. Many have better lumbar and neck support than their predecessors, and some will even charge your phone or keep your drink cool. A 2015 Furniture Today study showed that 40% of recliners were being bought by baby boomer households.(2)
On the BRIGHT SIDE
A little-known IRA fact: if you retire, but your spouse keeps working, your spouse may be eligible to contribute up to $6,500 a year to an IRA (or IRAs) you own.(3)
For more information about Adams Wealth Management, click here.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
Citations.
1 – nextavenue.org/lump-sum-annuity-retirement/ [4/11/17]
2 – mercurynews.com/2017/03/27/embraced-by-baby-boomers-recliners-get-a-makeover/ [3/27/17]
3 – kiplinger.com/article/retirement/T054-C000-S001-4-overlooked-tax-breaks-for-retirees.html [3/14/17]
4 – todayifoundout.com/index.php/2015/01/plain-old-soap-doesnt-kill-bacteria-can-really-effective-getting-rid/ [1/8/15]
Other Information:
Adams Wealth Management Group LLC (“Adams Wealth Management”) is a registered investment adviser offering advisory services in the State of Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Adams Wealth Management in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Adams Wealth Management, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment strategy or plan will be successful.
MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
Why You Might Not Want a Lump-Sum Retirement Payout
Do you have the option of receiving your retirement money as a lump sum? You may want to turn that choice down. A new MetLife study, Paycheck or Pot of Gold, warns of the “lottery effect” that can occur when all that money makes its way into a household at once. Surveying more than 1,050 retirement plan participants who had taken lump-sum payouts, MetLife found that 21% had already used up 100% of that money; on average, it had disappeared in less than six years.
Like a lottery winner bereft of financial counseling, a recipient of a lump-sum retirement payout can too easily find ways to part with those dollars. What did the respondents to the MetLife survey do within a year of taking their lump sums? In some cases, the money was practically spent: 27% used the funds to attack debt, and 20% said that they made home improvements. On the other hand, 22% gave some of the money away (sometimes to family members and friends), and 12% bought a new car or took a major vacation. Looking back, 31% lamented some of their buying and spending decisions in the first year after taking the lump sum, and 23% regretted financial gifts they had made. Education about the merits and demerits of lump-sum payouts may be insufficient – in the survey, only 45% of pension plan participants offered the choice between a lump sum or a lifelong income stream remembered being given a comparison of the two options.(1)
Baby Boomers Redefine the Recliner
The easy chair – a mainstay of living rooms during the 1960s and 1970s – is making a comeback thanks to demand from boomers. Recliners back then were often big, bulky, and ugly; now, they have cleaner lines and smaller footprints. Lift chairs, which help seated people rise more easily, are also losing their institutional look.
La-Z-Boy introduced the recliner back in 1928, and if the furniture makers who came up with that first design were to see recliners today, they would undoubtedly be impressed with their evolution. Some of the new reclining chairs and sectionals are “wall huggers” – the seat moves forward when the unit reclines, which means you can place the recliner against a wall. Many have better lumbar and neck support than their predecessors, and some will even charge your phone or keep your drink cool. A 2015 Furniture Today study showed that 40% of recliners were being bought by baby boomer households.(2)
On the BRIGHT SIDE
A little-known IRA fact: if you retire, but your spouse keeps working, your spouse may be eligible to contribute up to $6,500 a year to an IRA (or IRAs) you own.(3)
For more information about Adams Wealth Management, click here.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
Citations.
1 – nextavenue.org/lump-sum-annuity-retirement/ [4/11/17]
2 – mercurynews.com/2017/03/27/embraced-by-baby-boomers-recliners-get-a-makeover/ [3/27/17]
3 – kiplinger.com/article/retirement/T054-C000-S001-4-overlooked-tax-breaks-for-retirees.html [3/14/17]
4 – todayifoundout.com/index.php/2015/01/plain-old-soap-doesnt-kill-bacteria-can-really-effective-getting-rid/ [1/8/15]
Other Information:
Adams Wealth Management Group LLC (“Adams Wealth Management”) is a registered investment adviser offering advisory services in the State of Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Adams Wealth Management in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Adams Wealth Management, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment strategy or plan will be successful.
