Financial Planning Tip of the Month

We are going to keep things very simple this month...

We just read a study from the American College discussing findings from research on the psychology of spending.  We feel compelled to share a VERY simple message from this research.  

"Spend Income, not Assets"

It can't get much more simple than that.  We all have assets.  Some have more than others.  Stocks, Bonds, Diamonds, Gold, Cars, and Houses are all assets.  Heck, even baseball cards and fine china are technically assets.  However, do we spend enough time during our retirement planning years thinking about how we will turn these assets into income?  Sadly, we think the answer may be NO.  

We introduced a topic a few months back called Income Allocation.  The exact premise of Income Allocation is just what the American College told us.  It's a process to ensure we are allocating enough "assets" to provide "income to spend" in retirement.  

That's enough for now.  I told you we would keep it simple.  Please consider your own situation and let's discuss your personal Income Allocation soon.

You can read more of the study on our Facebook page by clicking the button on the bottom of the page.

Let's talk Fiduciary again...

The Justice Department told a federal court on Tuesday, April 4th that the Office of Management and Budget has concluded its review of the Labor Department's final rule delaying the implementation date of its fiduciary rule by 60 days  —  from April 10th to June 9th.

"These fiduciary standards require advisors to adhere to a best interest standard when making investment recommendations, charge no more than reasonable compensation for their services and refrain from making misleading statements," DOL stated in the April 4th release.

There are going to be many changes in the industry (some have already occurred) because of the new legislation. Here at RAA, we are well prepared.  We are already an Independent Registered Investment Advisor and held to the fiduciary standard. On top of that, each financial designation we maintain holds us to a separate standard as well.

We look forward to continuing to live by what our moto states...

"Financially Forever in Your Best Interests".

We are looking to grow our presence on social media.  If you have not already, please like us on Facebook by clicking below.