The father and son duo of SHM Financial Group have been navigating the waters of investing, retirement planning and more for over 65 years. Their motto is: “Think positive – hope for the best but prepare for the worst.” Stan and Lee Molotsky have written two books. Their most recent book is SHM Financials’ Smartest Book on Pre and Post Retirement Planning that You Will Ever Read and all of its proceeds support the Jewish Federation of Southern Jersey’s special needs endowment fund.
Preparing to send your child off to college
For those getting ready to send their kids off to college, “do yourself a favor and complete these documents,” Stan says. “As parents and guardians, it’s important to make sure you have access to your children’s medical and financial records such as universal HIPPA release forms which allow important medical information to be shared; health care proxy or health care power of attorney forms which allow someone to act on behalf of another who is unable to act for him or herself; and there are FERPA waiver forms allowing parents or whomever is paying tuition access to their child’s grades and school records. As for health insurance – young people can stay on parents’ plans, in most cases until age 26, however some people may elect to purchase college plans that might be less expensive.”
Stan adds that durable power of attorney for finances allows parents to step in to help financially without seeking judicial permission to act on a child’s behalf. Also, if a medical crisis occurs, you want to be ready with a living will that allows young adults to spell out ahead of time what would be acceptable to them. These forms are readily available from your attorney or even online in some cases and having them in place helps in providing peace of mind.
Investing in a changed world
Think carefully about not investing in your 401(k), Stan says. “Bad 401(k) plans limit options while charging high fees. Low-fee taxable brokerage accounts and IRAs are worth considering, especially ones that guarantee a return. Limit your fees as much as possible. “Over your working lifetime the fees can become a staggering amount.”
“Stimulus programs over the past few years have helped businesses and people stay afloat, but free money is rarely free. Living is more expense these days,” Stan continues. “If you needed $85,000 in 2010 you would need $101,000 to have the same buying power today. In terms of saving, always look for the investments that can increase with inflation.”
In the past, Stan notes, putting funds into real estate, gold, precious metals and commodities like lumber and food staples have paid off.
“Think twice before buying stocks,” Stan says. “Whether you are new or experienced at investing it is best to focus on companies that thrive when times get hard. Build your watch list of shares you would someday like to own. You will then be ready to act.”
Finally, update your will. “Don’t leave your plan for distribution of assets up in the air,” says Stan. “It’s important that your will is up to date and has the proper powers of attorney.
Retirement Planning
Retirement planning is a heady, deeply personal and individualized process. Stan says it can be distilled into basic approach – L.I.V.E. – longevity, inflation, volatility and events.
“You have to look at your retirement plan and make tweaks to it as you move along,” Stan says, adding to make sure you have a team of people – a CPA, an attorney and a financial advisor – who you can utilize to help you implement the things you want to do.
According to Stan, one has red money and green money. “The red money has risk and a greater chance of return but also has the possibility of loss. The green money is protected and will be there no matter what.” SHM will keep looking at your risk tolerance and making adjustments along the way.
“As you get closer to retirement and the first year or two into it, one of the things you’ll want to do is make sure you have enough liquid assets available to you in a short period of time to get you through six, 12, 18 or 24 months without having to touch your investments,” Stan advises.
Maximizing Social Security will provide a benefit. “Everyone is different, as far as whether they can wait until they are 75, 72, 70 or take it at 65,” Stan says. “There are different things you can use based on what your other assets are to tell you if you should take it earlier or wait. When you’re in your 60s and are starting to look at what you might want to do, you have to consider that the longer you wait, the higher the number will be, but if you take it earlier you have to use the money which you could invest and hopefully do as well if not better in generating a higher income.”
Whatever your current and future goals are, give the team at SHM Financial Group a call for a plan and most of all for peace of mind.
SHM Financial
Voorhees
SHM Building
Collingswood
(800) MONEY-SHM
SHMFinancial.com
Published (and copyrighted) in Suburban Family Magazine, Volume 15, Issue 2.
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