Mattson Financial Services - September 2018

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F I N A N C I A L S E R V I C E S , L L C

616-514-3831

www.MattsonFinancial.com

September 2018

CONGRESS EXPLORES CHANGES TO THE 401(k)

You’ve probably heard all the talk about how Social Security is going to run out of money. Some reports say the program will dry up by 2034, but that’s not necessarily the case. The reserves may start to get smaller, but the program will remain in place. People planning on incorporating Social Security into their retirement plan will get their benefits, though it may be less than they expect. To potentially help compensate, Congress is exploring the possibility of expanding 401(k) retirement plans. Part of that plan includes giving investors more opportunity to utilize annuities as part of their 401(k). Additionally, investors would know just how much annuity income their 401(k) could support. Congress is also looking into making it easier for small businesses to help their employees open a 401(k). As part of this plan, small businesses would be able set up automatic enrollment for their employees, and those employees would be able to save at a rate of more than 10 percent of their annual income. Of course, nothing is set in stone just yet. But this possible future of the 401(k) is important to us all when it comes to our retirements. Congress is looking at options in order to give more people the dollars they need to retire successfully. There is still a large portion of the population that isn’t properly prepared for retirement, and they won’t have the income flow they need once they stop working.

To make sure you don’t run out of money in retirement, there are two things you need to consider: Critical Income Need: This is the money you need in order to pay ordinary recurring bills. This includes housing costs, food, gas, and so on. These are the expenses that, for the most part, are going to be there month to month. This is one area of your income you want to remain stable. Lifestyle Wants: Once you stabilize your critical income need, you can turn to your overall lifestyle goals. This is more related to the investment risk you are willing to take on, particularly as you save for retirement. This is the opportunity to make your dollars grow into additional income you can use to fulfill your goals in retirement.

These are topics you need to discuss with your financial advisor or retirement planner. You don’t want to be left playing catch-up with your retirement plan. After all, that’s exactly what Congress is trying to prevent as they decide what changes, if any, to make to 401(k) plans. Here at Mattson Financial, we’ve had this kind of planning in place since the very beginning. We understand what it takes to not only get to retirement, but to get through retirement. We want to make sure you have the money you need to enjoy the retirement you’ve envisioned for yourself. –Gary Mattson

And, as we all know, retirement is about income flow.

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THE ROAD MAP EVERY 55-YEAR-OLD SHOULD FOLLOW 3 STEPS TO RETIREMENT

If you’re age 55 or older, it’s time to get serious about planning for your retirement. In fact, most industry experts recommend far longer lead times of 20 years or more! But don’t be discouraged! Even if you’re a late planner, there are steps you can take to ensure you get themost out of your retirement. Here are the threemost important steps you need to take to secure your future. GETYOUR FINANCES INORDER The first place to start when preparing for retirement is your own checkbook. By gauging your overall financial readiness, you can identify whether your spending and lifestyle habits are in need of a course correction. You’ll need to consider all of your finances as well as your income tax rate, the rate of return on your savings, and any benefit plans youmay have fromyour employer. If your financial readiness falls short of the income you expect to live off of in your retirement, it’s time tomake some adjustments. Cutting back on day-to-day expenses, working a second job, and increasing your

contributions to salary deferral programs are all great ways of boosting your readiness ahead of retirement. KNOWYOUR PORTFOLIO The stockmarket is a tempting gamble for those looking to jump- start their nest egg. However, investments with the highest returns also come with significant risk. The last thing anyone wants is to end up losing their principal right before retirement. That’s whymost financial planners recommend investment strategies that growmore conservative as you age. If you are thinking about investing—or have been doing so for some time— it’s a good idea to check in regularly with your portfolio and ensure that you are comfortable with the amount of risk you are incurring. SETTLEYOUR DEBTS Debts, especially ones with high interest rates, can chew through your retirement savings. If you can’t get it all paid off before retirement,

GREG MCKEOWN’S ‘ESSENTIALISM’

Will Help You Declutter Your Workload

found was that many people suffer not from being lazy, but from allocating their time ineffectively. The impulse to “do it all” keeps folks from spending their time on the things that actually matter. The book, then, serves as a guide to cutting out the extraneous and focusing on the essential. “Life is not an all-you-can-eat buffet,” McKeown says. “It’s amazingly great food. Essentialism is about finding the right food. More and more is valueless. Staying true to my purpose and being selective in what I take on results in a more meaningful, richer, and sweeter quality of life.”This metaphor can be applied to your work life as well. There aren’t enough hours in the day to accomplish every task. The essentialist works to spend their time diligently by pursuing what actually matters, rather than filling their days with meaningless busy work. Early in the book, McKeown uses famed Braun designer Dieter Rams as an example of an essentialist. He notes that Rams’ design philosophy can be characterized by three

simple words: less but better. This, in essence, is what essentialists believe.

Doing your best work where it matters and cutting out the superfluous will allow you to better manage your time and increase your performance. As McKeown puts it, “It is about making the wisest possible investment of your time and energy in order to operate at your highest point of contribution by doing only what is essential.” Instead of having their energy spread out in a million different directions, essentialists channel it into what really matters. McKeown also advocates for defining your purpose in order to accurately assess what’s essential and what isn’t. The more a task contributes to your purpose, the more essential it is. Many business owners and leaders struggle to let go of tasks that are best left to other employees. If you’ve ever found yourself struggling to manage a massive workload while resenting the fact that much of what you do is needless, then it’s time to pick up a copy of “Essentialism.”

“If you don’t prioritize your life, someone else will,”writes Greg McKeown in “Essentialism: The Disciplined Pursuit of Less.”When he set out to write the book, McKeown wanted to know what keeps skilled, driven people from achieving as much as possible. What he

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A Guide to Picking a Post-Career Hobby NEWAND REDISCOVERED PASSIONS IN LATER LIFE

consider moving your credit card debt and other loan balances to accounts with a lower rate to ensure you are paying as little in interest as possible. These tips provide a general roadmap to amore stable retirement. Your own goals and financial situationmay provide unique challenges and opportunities on the path to your post-work life. To understand your best options, reach out to a trusted financial advisor.

Aside from financial concerns, the No. 1 question that most impending and recent retirees struggle to answer is how they will fill up all their time. While spending time with family and relaxing are priorities for most folks entering the post-career chapter of their lives, these aren’t enough to fill up the bulk of your newly acquired free time. Cultivating a hobby is a great use of your time at any age, but especially during retirement. As Dick Van Dyke once said, “To me, retirement means doing what you have fun doing.” Here are three questions to help you discover a hobby that’s right for you.

LAUREL’S LATE-SUMMER PANZANELLA

DOYOU HAVE A DORMANT PASSION?

Work has a tendency to put our other interests on the back burner. Maybe you painted for pleasure during college but put the canvas away to focus on your career. Perhaps you were once a chess fanatic, and today you find your board gathering dust from lack of use. Now is the perfect time to rediscover those once-beloved activities.

Inspired by Food Network

Ingredients

• 1 small loaf French bread, cut into 1-inch cubes (6 cups)

• 1/2 red onion, thinly sliced

WHAT HAVE YOU ALWAYSWANTED TO DO?

• 1 cucumber, sliced into rounds

Discovering new hobbies is just as rewarding as rekindling old ones. Have you ever heard about a pastime and thought, “I’d love to do that, if only I had the time”? Former NFL quarterback Drew Bledsoe opened a winery after retiring from football. While you probably don’t have the financial resources of a professional athlete, there’s nothing stopping you from pursuing a newfound passion at the same velocity as the footballs Bledsoe threw.

• 3 tablespoons extra-virgin olive oil

• 20 basil leaves, chopped

• 2 large tomatoes, cubed

• Salt, to taste

• 2 red bell peppers, seeded and cubed

• Vinaigrette

Directions

IS THERE A CAUSE YOUWANT TO SUPPORT?

1. In a large sauté pan, set to medium-low heat and add olive oil. Add bread and 1 teaspoon salt, and toss often for 10 minutes or until toasted. 2. In a large bowl, mix vegetables and herbs. Toss in bread and your favorite vinaigrette and mix again. 3. Serve immediately or allow to sit up to 30 minutes to allow the flavors to meld together.

Volunteer work can be incredibly fulfilling, especially when you have the time and energy to devote to it. Many older adults find that giving back to the community adds meaning and purpose to their lives. The best way to figure out how to donate your time is to think about a cause dear to your heart. From there, find a reputable organization that supports said cause, and see what you can do to help.

Retirement is the perfect opportunity to throw yourself head-first into something you’re passionate about. So what are you waiting for?

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Is Congress Going to Change the 401(k)?

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Jump-Start Your Path to Retirement A Guide to Workplace ‘Essentialism’ Laurel’s Late-Summer Panzanella What Have You Always Wanted to Do?

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Have You Heard About Mauritius?

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**Reminder: If you have any changes to your financial situation, please notify us as soon as possible.

Investment advisory services are offered through Mattson Financial Services, LLC, a Registered Investment Advisor in the state of Michigan. Insurance products and services are offered through Lakeview Financial Group, LLC. Mattson Financial Services, LLC and Lakeview Financial Group, LLC are affiliated companies.

Marvelous Mauritius A SECRET ISLAND OF ADVENTURE

WALK THROUGH HISTORY

Just over 1,000 miles off the southeastern coast of Africa in the Indian Ocean lies the small island of Mauritius. The island is often overlooked by the rest of the world. Most people are more likely to have heard of the island’s most famous extinct occupant, the dodo bird, than the island itself. This is shocking when you discover how much fun there is to be had in this tropical wonderland.

More than a tropical escape, Mauritius is an island full of history and culture, so there are plenty of opportunities to learn about the island’s layered past. You can visit one of the historical rummeries or explore Mauritius’ two UNESCO World Heritage Sites. You can also check out Aapravasi Ghat, the Immigration Depot, and Le Mourne Brabant.

ADVENTURE AWAITS

TASTE THE MEMORIES

Looking for fun in the sun? Start your trip to Mauritius with a hike up the lush Lion Mountain, or take time to snap a photo of the Seven Coloured Earths, where volcanic soil has created sand dunes of seven distinct colors. And what’s a trip to an island without the beach? Beautiful coral reefs surround Mauritius, keeping sharks away from the pristine beaches. Island guests and locals can fearlessly scuba dive around the brilliant reefs, swim with dolphins, kite surf, and find lots of other ways to enjoy the warm ocean waters.

A day spent playing on an island is always better with great food. Influenced by its French, Creole, Indian, and Chinese heritage, Mauritius offers a vast menu of delicious dishes to try, from curry to dim sum. And the rich soil and bountiful ocean provide more than enough fresh fruit and seafood to go around. Despite its amazing vacation potential, Mauritius is all but unheard of to people in the United States. This means travelers can find amazing five-star resorts at unbeatable prices! With this in mind, isn’t it time you got to know the island of Mauritius?

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