Lucia Capital Group Weekly

Can You Make Your Retirement Dreams a Reality?
Lucia Capital Group Weekly

Can You Make Your Retirement Dreams a Reality?

August 20, 2020

A little while back we related some statistics that show personal spending tends to go down over the long-term course of retirement.  But for some people, usually right after they begin their retirement, their spending will actually increase – sometimes a lot.  And that makes sense, as they begin to finally do the things they always wanted to do, now that they have the time to make it happen.   Of course, when spending goes up, it may mean that you’re relying on your portfolio to supply more of the money you need to meet your expenses. This is where having a withdrawal strategy – a spending strategy – becomes crucial. If your assets are not set up with the anticipation of a market downturn, you may find yourself in a world of hurt when you withdraw those funds. Can you make your retirement dreams a reality? And what does it take to potentially see yourself through the next 30 years or more? It may be less complicated than you think.
How Much Money Will You Need to Spend in Retirement?
Lucia Capital Group Weekly

How Much Money Will You Need to Spend in Retirement?

August 13, 2020

Have you ever worked with one of those online retirement calculators?  You plug in certain information — like your current income and savings, your expected rate of return, maybe an inflation factor — and eventually it tells you how much money you should aim to have in your portfolio at retirement in order to give you the income you need.  Here’s the problem – they often give numbers that are far higher than you’ll actually need. If you require, say, $100,000 of income to retire at age 65, will you really need $230,000 per year 30 years later just to keep up with inflation? From our experience, as retirement goes on, spending needs (and thus your income needs) tend to go down over the long term – not up. What this means is that you may not need to have as much socked away in your portfolio as those online calculators would suggest.
Did You Just Inherit an IRA?
Lucia Capital Group Weekly

Did You Just Inherit an IRA?

August 6, 2020

If you’ve been keeping up with latest tax laws, you may know that the rules regarding Required Minimum Distributions changed at the end of 2019 with the SECURE Act.  And if you look really closely, you’d see that some of those rules changed again in March with the CARES Act.  It’s not just important information, it’s also very confusing at the same time. Doing the wrong thing may cost you more in taxes than you’d normally have to pay.  This is especially true if you’ve recently inherited an IRA, or will inherit one very soon.  Knowing the rules, or at least having an advisor who knows the rules, may save you not only some taxes, but unnecessary headaches as well. 
A Long-Term Care Insurance Plan That We Really Like
Lucia Capital Group Weekly

A Long-Term Care Insurance Plan That We Really Like

July 2, 2020

As you may have heard, the costs of long-term care (LTC) keep going up, with no end currently in sight.  And along with those costs of care, the premiums for LTC insurance have also risen tremendously over the past 15 years, just to keep up. Did you know that your long-term care insurance premiums can rise even when you’ve already got a policy in force?  And what if you never even need to use that policy?  In the minds of many, long-term care insurance seems like a potential waste of money. With the uncertainties of costs, and not knowing if you’ll ever need the policy in the first place, planning for what could be a huge expense out of your nest egg is difficult at best.  Nobody wants to have their retirement savings decimated by the cost of long-term care. Yet this is exactly what often happens to people who don’t prepare for those expenses.  Since planning is ultimately about finding potential solutions to problems down the road, we have what we believe may be just the right answer to these LTC issues.

A College Education Credit You May Have Missed
Lucia Capital Group Weekly

A College Education Credit You May Have Missed

June 25, 2020

ou probably don’t need us (or anyone) telling you that college costs are high, and going higher each year.  When you consider tuition, fees and housing, and add in various supplies and more, even the cheapest local university can cost more each year than a new car.  So what can you do? To be frank, there’s not much anyone can do about these expenses by themselves, so if your child or you have decided to go the college route, you’ll either have to pay them in full, or hope the school administrators give you a break.  But there’s a little-known way that you may be able to recoup some of those costs, thanks to the federal government’s American Opportunity Tax Credit.  

Keeping Calm During Turbulent Markets
Lucia Capital Group Weekly

Keeping Calm During Turbulent Markets

June 19, 2020

Is this a time of crisis?  Many would probably say that it is, especially in terms of public health and the economy.  These days it may seem as if things will never get back to “normal,” whatever normal might be, and that any improvement in our situation is happening much too slowly. Time, of course, has historically been the great healer.  This has been true of just about everything, including the stock market.  We’ve been through times of crisis so often in the past that it’s easy to forget exactly how often we’ve had to overcome difficulty.  With each event in history, though, the markets have reacted with volatility; and so far, they’ve always come back. In this week’s edition of Lucia Capital Group Weekly, “Professor” Rick Plum, CFP discusses these game-changing events in history, and how the markets reacted both during and afterward.  How do you keep calm when everything around you is chaos? 
5 Key Factors to Consider Before Investing
Lucia Capital Group Weekly

5 Key Factors to Consider Before Investing

June 11, 2020

nvesting in the markets is tricky, and often comes with a great deal of risk, especially over the short term. Even when stocks on a solid upswing, as they were for most of the time period between 2009 and 2020, the wrong investment strategy can cause serious damage to your portfolio. But investing is not only about asset allocation, asset location, and P/E ratios: it’s also about you as an individual. Are you prepared to take a loss if you need to sell some assets? Do you have a suitable time frame for investing in order to potentially lessen that risk of loss? What are your goals for the money you want to invest? These are just some of the questions you need to ask yourself before you commit any amount of money to the stock market.  Whether times are good or times are volatile, those issue are important.
An Up Market in a Down Economy?
Lucia Capital Group Weekly

An Up Market in a Down Economy?

June 4, 2020

Just a month or so ago, oil was trading around zero, the quarantine orders were in full effect, and since that time we’ve seen more bankruptcies and stress in the economy — especially with small businesses. Fast forward to today and the market is close to where it all started. Why is that? In this week’s edition of Lucia Capital Group Weekly, Ray Lucia Jr. speaks with Lance Helfert, portfolio manager and Senior Vice President of Lucia Wealth Services, about what’s going on with stocks and the market in general. They also discuss interest rates, and why ignoring the noise and simply focusing on what is actually observable may be one of the biggest keys to successful investing.