Wolf Retirement Navigation AUG 2017

904-232-8760 www.wolfretirement.com MONTHLY August 2017 RET IREMENT NAV IGAT ION

Threats on the Horizon How You Can Avoid These Risks to Your Retirement

Interest Rate Fluctuations Years ago, when interest rates were higher, the need to dip into your principal to live was lower. For many, your savings was able to generate enough safe income with higher historic interest rates. Nowadays, interest rates are near historic lows, and retirees need smart ways to generate reasonable growth in our lower interest rate environment. Retirement Income Fluctuations This is a risk that stems from both stock market and interest rate fluctuations. If your portfolio performs well, you might enjoy higher income month to month, but if the market were to suddenly decline, you could see your income fall alongside it. Additionally, your retirement income could be impacted by factors that have nothing to do with the income, such as death or divorce. If you get divorced or if your spouse passes away, their pensions or Social Security could be lost, and you can no longer rely on that income to meet your lifestyle. These aren’t just random risks. Historically, these fluctuations are a major threat to a person’s retirement. Thankfully, there are many ways to prepare for and overcome these risks. Most retirees would be better suited to a more diverse portfolio, one that meets their growth concerns, produces guaranteed income to cover their retirement expenses for life and protects savings. Furthermore, when you’re dealing with a market that could take a

It’s been over eight years since the bottom of the most recent stock market crash in March 2009. In that time, the S&P has risen over 250 percent, reaching record-breaking highs. We’re currently in the second longest bull market in history. It’s a good time to be planning your retirement, and many economists are seeing clouds approaching the horizon. While we enjoy these good times, it’s always wise to prepare for when things get rocky. In my experience, I’ve identified and helped to combat three common threats to my clients’ retirement plans. We’re currently in the second longest bull market in history. It’s a good time to be planning your retirement, and many economists are seeing clouds approaching the horizon. Stock Market Fluctuations If you’ve ever watched financial stock market news, even for just a single day, you’ve seen market fluctuations in action. If you’ve invested in the stock market, you’ve felt these fluctuations firsthand. Up or down, good or bad, the stock market is always moving. Only having a stock market-based portfolio in retirement can seem great because of all the potential for gains. However, putting the majority of your savings at risk can be less than ideal.

turn for the worst at any time, it would be in a retiree’s best interest to have a tactical portfolio that’s actively managed in case of any threats. We need to be aware of the risks and be smart about how we handle these risks. Worst-case scenario planning isn’t negative thinking. It’s smart strategy. Take a step back. Look at where you are, where you want to be, and all the obstacles that could go wrong to prevent you from getting there. Then make a plan to overcome those obstacles.

– Adam Wolf, CPA, CFP ®

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The Effects of Negative News

They Say Ignorance Is Bliss … But Is It Healthy?

for something to be “newsworthy” — negative or not — it needs to be the exception to the rule, not the norm. That means watching the news might give you an inaccurate view of what daily life is like in the world. How to Fight the Negativit y It’s important to understand important issues of the day. But when the news becomes too much, psychologists encourage you to take a break with some good news — or no news at all. Advances in medicine and technology happen all the time! Seek out those stories, or take a break from news altogether. That’s when no news can become good news.

than people who watch happy or neutral events. That means people watching the news don’t just feel anxious about the world — they feel more anxious about their own lives. British psychologist Dr. Graham Davey, who specializes in the effects of media violence, says negative news can affect how you interact with the world around you. As you consume threatening news, you’re more likely to spot threats in your day-to-day activities that aren’t there, which leads to anxiety. Why Is the News So Negative? As news media revenue goes down and people become desensitized, news organizations feel the pressure to show emotionally relevant material such as crime and accidents. At a basic level,

It’s nearly impossible to log on to social media or turn on the TV without seeing something distressing. Instead of dwelling on what’s

troubling, let’s focus on how to protect our mental health.

The Psychology of Bad News A study by

Psychology Today found that people who watch negative news feel worse about pre-existing worries


Fast Financial Tip

Take Advantage of the Fiduciary Rule

On June 9, 2017, the Department of Labor enacted the “fiduciary rule,” which legally requires advisors and brokers who work with retirement accounts to put your best interests ahead of their financial gain. Investors should always know what they are being charged, so ask your retirement advisor what their commission model is, if they receive a commission of investment sold, and whether they see a flat fee or a percentage of assets. Be sure your advisor’s recommendations are the most cost-effective for your situation.

Every day, we’re grateful to our clients who continue to trust us as we help them navigate the road to financial security. It means a lot when you introduce your friends and family to us so we can help them too! This month, we offer our special thanks to: John O. Barbara C. Susie E. Toni C.

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What will you do in retirement?

the United States. Meanwhile, you might want to move closer to your grandchildren, take on more volunteer work, or start a part-time job where you can stay active and do something you genuinely enjoy. Will you follow the status quo or reach for your dream lifestyle? Step Two: Determine if your retirement accounts can handle your lifestyle goals. A lot of retirees or soon-to-be retirees have done a great job of saving financially for their retirement, but they haven’t given much thought to the kind of lifestyle they want to live. On the flip side, there are those who have every aspect of their retirement planned out, but they haven’t done the best job saving for that retirement. It’s time to figure out where you stand. Meet with your advisor to discuss what you want to do in retirement. Then take a look at your accounts, including social security, pensions, or other savings, and the risk you face. Be sure to check out the fees you pay on your current investments. With this information, your advisor can run a “stress test” and calculate the probability of you being successful in retirement. If you’re in retirement, or close to retiring, call 904-232-8760 and compare your accounts with your lifestyle dreams. Will your current savings match your lifestyle plans, or are you on a path that will cause you to run out of money?

Some people focus solely on whether or not they will have enough to pay their bills in retirement. It’s human nature to ensure that you can take care of your necessities, but when you have your needs covered, it’s important to remember that you’ll be doing more than paying bills every month. Many retirees go from working 40–60 hours a week to having nothing but free time. Part of retirement planning must be planning for that free time. Step One: Figure out what you want your retirement to look like.

There is no one-size-fits-all guide to your retirement lifestyle. Some people would love to travel through Europe or Asia or road trip across

• Olive oil • 2 medium ripe avocados, halved • 1 large cucumber, halved • 6 stalks spring onions • 1 jalapeno • 1 lemon, juiced • ½ cup cold water 1. Preheat grill to medium-high. 2. Coat halved avocados with lemon juice to avoid browning. Brush olive oil over avocados, cucumber, spring onions, and jalapeno. Oil grill while hot. DIRECTIONS Avocado and Cucumber COLD SOUP INGREDIENTS

Watch Adam LIVE Mondays on Channel 4 at 11:00 a.m. and on the CW at noon and Tuesdays at 7:00 a.m.

• 1 clove garlic • ¾ teaspoon salt • ½ teaspoon black pepper 4. Chop grilled veggies and puree with lemon juice, cold water, garlic, salt, and black pepper. 5. Once smooth, portion soup into bowls and refrigerate to cool before serving. 6. Garnish with toasted cubed bread, avocados, spring

Watch Adam every Tuesday at 11:00 a.m. and 2:00 p.m. on Channel 12.

onions, chives, lemon zest, or a drizzle of olive oil, if desired.

3. Grill vegetables until everything is grilled or

Be sure to visit our website at wolfretirement.com

slightly charred. Once grilled, remove and place on platter to cool.

Recipe inspired by kirantarun.com.

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904-232-8760 www.wolfretirement.com 4230 Pablo Professional Court Ste. 101 Jacksonville, FL 32224


• Threats on the Horizon PAGE 1

• Ignorance Is Bliss … Is It Healthy? PAGE 2

• Fast Financial Tip PAGE 2

• Will Your Retirement Be a Dream or a Nightmare? PAGE 3

• Avocado and Cucumber Cold Soup PAGE 3

• View of a Lifetime PAGE 4

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View of a Lifetime

Where to Watch the Great American Eclipse

Sandhills, North Platte, Nebraska

On August 21, 2017, the greatest show of the summer will take place in the United States: a total solar eclipse! This eclipse will be visible across North America, but the path of totality — the area where the moon completely covers the sun — will only fall in the continental U.S., leading this cosmic event to be called the Great American Eclipse. If you’re already in the United States, a day’s road trip is all you need to grab a front row seat for this rare astronomical occurrence. Need a place to watch the eclipse in the southern U.S.? Then get yourself to South Carolina, where the state capital of Columbia is almost right in the middle of the path of totality. Plenty of hotels make Columbia a great viewing location for those who don’t want to camp out, and the vibrant city life means you’ll have a lot to do even when the eclipse is over. Columbia, South Carolina

In the heartlands, you’ll be hard-pressed to find a more perfect viewing location than the Sandhills of western Nebraska. With wide-open skies, low rolling hills, and no towering buildings to get in the way, the Sandhills are sure to be a popular viewing spot.

The Museum of Idaho, Idaho Falls, Idaho

The Museum of Idaho has been designated an Official NASA Observation Site, and the museum is hosting four days of awesome events to celebrate. Enjoy live presentations, technology demonstrations, and special exhibits as you prepare to watch the total eclipse with NASA scientists. Visit the official website of the Great American Eclipse at greatamericaneclipse.com for everything you need to know about this once- in-a-lifetime sight!

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