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Are you financially ready for 2013?
December 31, 2012
by Brian Wolf

This week I’d like to cover three areas of planning you should be thinking about in 2013, if you haven’t already.

1: Income planning – if you haven’t already had an income plan put into place, 2013 is a great time to do so. If you’re a current client, this has already been done for you. If you’re not a current client and aren’t sure what an income plan is just give us a call.

One of the biggest areas where we see people get into trouble is when they try to create a stable and secure retirement income stream from accounts that are anything but stable and secure. Creating a stable income out of a mutual fund or stock portfolio, for example, only works when the markets cooperate. You would be wise to look at other options in 2013, as markets are expected to be volatile.

2: Tax planning – we all know that tax changes are coming in 2013 – it’s just a question of how much this change will affect you. In our office, we like to review our client’s tax returns each year to make certain our clients are getting the best deal they can with the IRS. Is that happening for you?

You would be amazed at how much you can lose to the IRS if you don’t have good tax professionals scouring your return each year. 2013 is a particularly good year to get this done! I’ll be covering a lot of great tax information in the coming weeks, so please stay tuned.

3: Healthcare planning – this is the year that we are starting to see Obamacare phased into our daily lives. Healthcare expenses represent one of your biggest risks during retirement. The costs continue to escalate, and Medicare continues to be examined closely as it pays out far more than it takes in. Long-term care expenses are rising, as well.

Fidelity says that a 65-year-old couple retiring today will need to pay out more than $240,000 over their lifetimes on healthcare. This figure does not include any long-term care expenses. Are you prepared for this? Are you ready?

This coming year is one of those years where we will see change that will likely impact each and every one of us. A lot of Januarys roll around on the calendar with not much change. This January, however, things will change.

Don’t just put your head in the sand and hope for the best. Pay attention, plan accordingly, and make sure you end up in good shape. We stand ready to answer any of your questions and we are happy to help you overcome these issues.

And, of course, happy holidays!


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