Patriot Wealth - November 2018

NOVEMBER 2018

PATRIOTWEALTHNC.COM

PHONE | 919.322.4113

PATRIOT WEALTH

ARE YOU PREPARED FOR WINTER? MONEY SAVING TIPS YOU CAN TAKE TO THE BANK

TRIM THE FAT A couple of months back, I cut cable TV from our budget. Now, that doesn’t mean I don’t love watching the occasional show or Hurricanes game. My wife and I looked at our budget and saw cable and internet were costing us roughly $225 per month. After reviewing what shows the streaming services provided, we found that cable was unnecessary and that cutting it would save us money. Going from $225 to $135 per month may seem minute, but an extra $90 adds up quickly. TIME IS MONEY Money saving advice usually focuses on how to maximize the bottom line of your personal budget, but how much is your time worth? I don’t know of a single person who likes fighting the lines at Costco. However, most grocery stores offer free delivery over a certain price threshold. We’ve used Amazon Fresh a few times at our house, and it’s a luxury to have your groceries delivered because it saves so much time. These services also allow you to view a running subtotal to help you stay within your budget.

REQUIRED MINIMUM DISTRIBUTIONS (RMD)

When homesteaders settled in the American plains, one consistent threat plagued their livelihood: the harsh winters. If they didn’t prepare properly, entire families would starve or freeze. To compensate, these early Americans would stockpile food, firewood, and other necessities months ahead of time. Those that were diligent ensured their safety, and those that underestimated Mother Nature’s brute force faced difficult decisions — if they ran low on food, how would they ration? If firewood ran out, how would they keep warm? For those who exhausted their supplies early, it often meant someone had to brave the cold in search of a different opportunity. Survival was anything but guaranteed. Your retirement should look better. As you transition into the winter of life, it’s pivotal to prepare your homestead in a way that will not just sustain you, but also help you thrive. I’ve seen too many people struggle in retirement to the point where they’re forced to abandon it and rejoin the workforce. As a financial planner, it’s my job to help prevent this, and that’s why I want to offer a few money saving tips.

The annual withdrawals from your retirement accounts must be taken before Dec. 31 during the year when you turn 70 1/2 years old. If you have an IRA and fail to take your RMD on time, the IRS can penalize you for 50 percent of the value. DECLUTTER As I get older, I find myself looking at all the material items I’ve collected over the years and wonder if holding onto them is worth it. Places like Plato’s Closet will take your used clothing and pay you a few bucks for them as well. For the clothes you can’t recoup cash from, donating them will free up space for more pertinent necessities. Many homesteaders had the support of a community — family, nearby towns, or neighboring homes — to help prepare them for a time of need. That’s what I’m here for. If you’re not preparing for the winter of your life today, when will you start?

— Wes White

Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Patriot Wealth and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. Please note that Patriot Wealth and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

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