Lucia Capital Group Weekly

New Rules for Hardship Retirement Plan Distributions
Lucia Capital Group Weekly

New Rules for Hardship Retirement Plan Distributions

May 21, 2020

The recently-enacted CARES Act introduced us to some new rules regarding qualified retirement plans (like a 401-k) and IRAs. These new rules are actually more like temporary “allowances,” as they provide a window of opportunity that may allow you to take advantage of some penalty-free distributions during the pandemic. What’s new is something called a CRD — COVID-Related Distribution — and it’s important that people who need to access their savings during this time of crisis know how they work. If done properly, they may provide some much-needed relief. And while we don’t always recommend that someone take loans or premature distributions from their retirement plans as their first option, this may be the right thing for certain people to consider.
Staying Financially Healthy
Lucia Capital Group Weekly

Staying Financially Healthy

May 14, 2020

There’s a lot of talk these days, understandably so, about health. This is extremely important, and following proper guidelines may help save your life. But besides personal health, it’s also important to make sure you’re financially healthy as well. Thus, it’s a good idea to do a checkup every so often to assess where you are right now, and decide if you’re prepared for any potential roadblocks that may occur.   So where does financial health start? It begins with the simple things: an emergency fund, one that may cover your basic expenses in case your income is slowed or stops. But there’s more to it. What about debts? Are you taking advantage of any employer matches in your company retirement plan? Have your goals changed in the past few years? If so, are you still set up to get to where you want to be? 
The Often-Neglected Part of Your Plan
Lucia Capital Group Weekly

The Often-Neglected Part of Your Plan

May 7, 2020

With so much happening in our lives these days, it can be easy to lose track of the things that we normally let cruise on auto-pilot.  Of course, when it comes to our finances, that auto-pilot feature can be great: it allows us to save in our 401(k) plans, it makes sure that our bills are automatically paid on time, and it keeps us from over-thinking things, which we’ve shown can be dangerous to our portfolio’s health.
Navigating These Treacherous Stock Market Waters
Lucia Capital Group Weekly

Navigating These Treacherous Stock Market Waters

April 23, 2020

We’ve seen several eras of stock market volatility over the past few decades: the dot-com bust, 9/11, the Great Recession of 2008.  But somehow, this market, this new era, feels a lot different. Whether it is or is not remains to be seen, but as we work our way through this time of absolute uncertainty, it seems more important now than ever before to have a steady hand on the wheel and an eye on the long term. We’re hearing a lot of talk about a “flight to quality,” or a “flight to safety,” and the potential benefits of active management versus passive management when the markets do crazy things.  But what does that mean? Do you really change your investment style in times like these, or did you already have a strategy to deal with these inevitable turns so that you can just stay the course? Difficult questions, indeed.
Four Things You Must Do at Age 50
Lucia Capital Group Weekly

Four Things You Must Do at Age 50

April 9, 2020

A person in their 20s seems to have just about all the time in the world – or so it may seem to them. And that may be a somewhat correct assumption when it comes to their long-term finances, like saving for retirement. But ask just about anyone who’s at least age 50, and they’ll tell you that the time went by quickly, and now that their retirement date is much closer, they realize they have far less margin for error. If you’ve reached the age of 50 and your retirement date is approaching, but still a decade or more away, you may have a unique opportunity to take care of a few very important things. In fact, making a few small changes or updates right now could potentially save you time, money and aggravation when you finally make it to retirement.

The College Saving Dilemma
Lucia Capital Group Weekly

The College Saving Dilemma

April 2, 2020

Every parent wants what’s best for their kids, so it’s natural for them to feel the need to help them wherever they can. As a result, many new parents begin to save for their child’s college education immediately, guessing (perhaps correctly) that tuition costs 18 years from now will have risen almost unimaginably high. And that may be a very good idea. What’s not a good idea, though, is to take the money you were saving for your own retirement and redirect it to a college savings account for your children. Shortchanging your retirement savings, especially in the earlier stages of your working life, can ultimately cause much bigger problems for you down the line.
This Is Why We Strategize!
Lucia Capital Group Weekly

This Is Why We Strategize!

March 13, 2020

When markets are good, when equity values are rising, it can be difficult to be the lone voice that sets out to remind people that the good times don’t last forever. It’s a tough sell. But as we’ve seen over just the past several days, things can turn around, and turn around quickly. We can’t predict when, why or how – we only know they will. Absent a fully-functioning crystal ball, the only thing we really can do is to be ready when it hits. This is why we say that having a strategy is absolutely crucial. Buildings have fire exits, homes have storm cellars, and prudent investors have a plan. And while no plan or strategy is completely infallible, it’s a good bet that those who strategize for the bad times may be better prepared when they occur. True, the up-markets don’t last forever, but then again, neither do the down-markets. Lucia Capital Group Chairman and CEO Ray Lucia Jr. offers some words of encouragement in this Bonus Edition of Lucia Capital Group Weekly.

Is It Time to Restructure Your 401(k)?
Lucia Capital Group Weekly

Is It Time to Restructure Your 401(k)?

March 5, 2020

One of the nice things about a 401(k) plan is that it’s automatic. You set it up, create your allocation, decide what percentage of your income will go in each pay period, and just let it happen from there. Many people don’t give it much thought after that. And that may be fine, if you’ve still got 10 years or more until retirement. But as the date gets closer to when you’ll actually need to access that 401(k) money, the set-it-and-forget-it approach often becomes less beneficial. You begin to subject yourself to market risks if you don’t change your allocation to include some less-volatile assets. Many people recognize this, and actually do make changes to their 401(k) allocation. But there’s another step that you may be missing — a crucial step that you need to consider, well before you retire.