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(520) 325-1600 WWW.SHEPHERDWEALTH.COM Your SIMPLE SECRETS TO Retirement Planning WE A L T H JULY 2018 ®
T he number one financial worry in survey after survey is the fear of running out of money in retirement. Whether it’s not saving enough, having investment losses, or medical bills, there are many smaller components that contribute to this financial pitfall. Here are four broad areas to think about so you can pull together a retirement plan that sets you up for success. 1 There are always going to be events that you can predict, and it’s pivotal to have a plan in place for these. I recently helped clients sort through deferred compensation, pension options, stock options, and Social Security choices to figure out cash flow in the early part of retirement. Situations like a forced payout from a deferred compensation plan, stock options that have to be exercised, or a business that is sold are predictable. Summarize these things and put them on a timeline so you can see how they will interact together. 2 When it comes to your income choices, things like Social Security, pension options, and the like, it’s important to understand what steps you can take to give yourself the opportunity to receive the maximum benefit. What are your options
4 What could go wrong? What are the things you need to protect yourself from? Health care costs, long-term care costs, premature death, market losses, death of a spouse, loss of pension ... There is an endless list of things you may want to have insurance or other backup plans for. Now you can project on your timeline when these things might happen. All of this will prepare you for when you do the final step that comes next. The best thing to do at this point is to take all the information you have gathered and put it in a high-quality financial planning program where you can see the long-term effects of the different choices you can make. This will help you confirm your thinking and make better choices, and it can be used on an annual basis as necessary to make sure you’re on the right track and that forward projections and your current path still look good.
when payment starts? Do you know your benefit amounts and beneficiary options for your survivor and spousal protection? When do pension choices need to be made or how long can you defer and let a benefit grow? The answer to these questions can be added to your timeline as items that you have control over. 3 Now add up all your savings and investments and calculate a reasonable, conservative future return that could be made on your investments. One thing to keep in mind when planning your retirement is return consistency is so much more important when you are withdrawing than it is when you are saving. For example, most people have heard that continuing to invest in down markets helps you buy shares at low prices and increases return over time. But withdrawing when markets have fallen and being forced to sell at lower prices for your income needs is harmful to your long-term financial health. This is a great time to find ways to avoid the biggest losses possible in risky assets and find more consistent options to invest in. Now you can show on your timeline the payout amount you expect from your savings and investments.
-Dave Shepherd
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THE EXERCISE VENUE THAT WILL KEEP YOU COOL AND FIT THESE MALLS WERE MADE FOR WALKING
The ultimate vacation is one where you can shut down your brain and just have fun. It’s easy to let the burdens of life drag you down, but to lead a fulfilled life, you have to enjoy every moment you can. That doesn’t mean you’re not going to encounter complications, but a healthy goal to shoot for is having a 5:1 ratio of fun to problems. With that in mind, here are three ways you can create a vacation jampacked with memories this summer. TURN OFF We live in a digital world, but that doesn’t make technology a requirement . When you’re on vacation, your time is your own. By putting away the electronic devices and being present in the moment, you’ll find a world full of opportunity in front of you. A detox from devices could be all you need to create a joyful vacation. BRANCH OUT Maybe it’s trying a new destination or finding an unfamiliar beach, restaurant, or hotel in a familiar area. Whatever the case, taking a risk and finding something fresh will be an experience you'll be less likely to forget. Neale Donald Walsch said it best when he stated, “Life begins at the end of your comfort zone.” Anyone can travel to the usual destinations, but only a select few are brave enough to experience the unknown. While hopping on life’s equivalent of the USS Enterprise may be scary, it is sure to provide you with adventure. SHARE MEMORIES Vacations are nothing without people to share them with. Having those you love by your side is a meaningful way to enrich any experience. Companionship on vacation can turn the ordinary into the extraordinary. Summer is the time to write your family history. How many of you experience fun at a 5:1 ratio? It’s time for us to get out, experience life's beauty, and leave the problems for another day. 3 VITAL WAYS TO CREATE LASTING VACATION MEMORIES MAKE YOUR EXPERIENCE UNFORGETTABLE
If you’re young at heart and looking to stay (or get) in shape this summer, consider taking a trip to the mall. No, not to pick up some hot new exercise product or dietary supplement, but to walk a few laps. Safe and convenient, “mall walking” has become one of the biggest trends in senior fitness. COOL IN THE SUMMER, WARM IN THE WINTER This time of year, heatstroke can be a real concern when exercising outside. But that doesn’t mean you have to be a homebody. Because malls are spacious and climate-controlled, they make great year-round walking venues, especially when summer temperatures spike. You don’t While the average American shopping center isn’t as scenic as the Appalachian Trail, they are far more convenient. Replete with bathrooms, cool drinking water, and plenty of benches, the mall lets you focus on exercising and removes all of the “what ifs” that come with aging. Most malls are also outfitted with EMT kits in the event of a medical emergency. SQUEEZE IN SOME SHOPPING It is still a mall, after all. Why not check a few items off your shopping list or reward yourself with a new pair of sneakers? Getting things done as you exercise makes the experience that much more rewarding. Just remember not to overdo it. Carrying too many shopping bags can place undue stress on your back — and your wallet. YOU WON'T BE ALONE Today, malls are the second-most popular places to walk in America, after neighborhoods. Mall walking has become so big that many communities and senior living centers have put together official groups to stride together. Your local mall may already open early to accommodate walkers. So if you’re looking to make friends in an active, fun-loving community, do some research. Chances are there’s a mall- walking club near you! even need to put on sunscreen! REST STOPS ABOUND
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THINK ABOUT YOUR THOUGHTS Introspection Is the Key to True Content
We want to challenge you to do something that can be uncomfortable. Many of us have a specific worldview formed from our interpretation of life’s events. We see something happen, think about it, and develop a conclusion. Humans are always processing, but we rarely ever think about our thought process. What I’m referring to is not merely reflecting but truly looking inward to understand the purpose of your actions. As an example, a couple at a recent meeting could not overcome the idea of moving to stable assets in a market downturn. The money manager of the two struggled to accept the notion of risk management and had become emotionally attached to a fast-rising stock that was the basis for thinking he was great at managing a portfolio. An investor who does TAKE A BREAK!
not take time to think about their thinking will see results differently and could overreact accordingly. They get involved emotionally and use surface-level deduction to make decisions. Chapter 2 of The Forever Millionaire discusses brain biases, but the only way to discover these flaws is to think about our thinking. As the market turns, this couple could be faced with the hard, painful, and frustrating emotions of losing money because of their inability to grasp this concept. As professional investment advisors, we are always analyzing. Our job is to find the most proven way to manage your assets and guide your financial future. One potential challenge that we encounter is paralysis by analysis. The most difficult part of any situation is making a decision. Too much internal processing can
lead to a convolution of ideas that hinders forward progress. But overthinking is really just another form of procrastination. Whether it be intense emotional pain, fear of the unknown, or some other roadblock that holds you back, a decision has to be made in order to grow. The second-hardest part of making the decision is sticking to it when times are difficult or the choice seems to be wrong. That’s why it’s essential to have experts manage your portfolio. We not only apply ourselves to overcoming brain biases and paralysis by analysis, but we also specialize in effective decision-making. If you’re interested in learning more, reach out to us today and let us show you how we plan on taking care of your future.
Inspired by Bon Appetit magazine
Chili-Cheese Corn CHARRED
INGREDIENTS • 4 ears of corn, husked • 4 tablespoons high-smoke-point oil, such as canola or vegetable
• 1/4 cup fresh lime juice • 2 ounces fresh cotija cheese (or feta), crumbled • 1/4 cup cilantro • Salt and pepper, to taste
• 1 large shallot, thinly sliced • 1/2 red chili (such as Freson) or jalapeño, thinly sliced
DIRECTIONS 1. Heat grill to medium. 2. Brush corn with 2 tablespoons oil and grill until visibly charred, 10–12 minutes. 3. Cut kernels off cob and combine with shallots, chilis, lime juice, cheese, and remaining oil. 4. Season with salt and pepper, garnish with cilantro, and serve. Investment advice is offered through Shepherd Wealth Group, a Registered Investment Advisor doing business as Shepherd Wealth & Retirement. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators, nor does it indicate that the advisor has attained a particular level of skill or ability. Content should not be construed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell any securities mentioned. Certain content was prepared by a freelance journalist.
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The Simple Secrets to Retirement Planning
This Surprising Exercise Venue Can Keep You Cool and Fit 3 Ways to Create Lasting Vacation Memories This Amazing Process Can Help You Think Better
Charred Chili-Cheese Corn Battling the Summer Sun!
KEEP YOUR FAMILY SAFE HowMuch Sunshine Is Too Much?
T o many people, summer is all about heading outside to enjoy the weather. But getting too much sun can be dangerous. To have a fun-filled summer with your family this year, remember that it’s essential to protect yourself from harmful UV rays. COVER UP Covering your skin is one of the best ways to avoid skin damage. Wide-brimmed hats, long-sleeved shirts, and long pants or skirts can protect your skin from direct exposure to UV rays. While this tactic protects you from the sun, it offers poor defense against the heat. So, if you opt for cooler attire, it's important to cover all exposed skin with a copious amount of sunscreen. Be sure to reapply every two hours for maximum skin protection. SPEND LESS TIME IN THE SUN If you’re planning to spend a significant amount of time in the sun, consider your environment. Will there be plenty of shade? Will you have to bring your own? What’s the best way to step out of the sun for a few minutes? Wearing sunscreen and protective clothing are great ways to shield yourself from UV
rays, but it's important to avoid being in direct sunlight for long periods. Taking a break from the sun gives your body the time it needs to recuperate and helps prevent sunburn and heatstroke. COMMON MYTHS ABOUT SUN EXPOSURE Many people think that a tan is better than a sunburn, but the result of tanning is still sun damage. When your skin tone changes due to the sun, regardless of whether it tans or turns red, it's a result of the epidermis reacting to damage caused by UV rays. Both are symptoms of harmed skin. While vitamin D is important, the sun does not contribute to its creation as much as you might think. Doris Day, a New York City dermatologist, explains that if your skin were to constantly produce vitamin D from being in the sun, it would reach toxic levels. Vitamin D is the only vitamin that your body can produce on its own, through a common form of cholesterol or 7-dehydrocholesterol. Spending time in the sun does help vitamin D form, but you need far less exposure than you think.
Knowing how to protect yourself from UV rays is the first step to having a safe, fun-filled summer!
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