Eric T. Nichols

05/19/2023

Of all the questions you should be asking about retirement, top of the list should be:

How Do I Spend My Savings in Retirement?

I am not talking about where you’ll spend it. That will be bills (especially medical), travel, and day-to-day living. I am talking about where you withdraw funds first, and how you withdraw funds from your accounts.
Most will roll their 401(k), or other group retirement plans, into an IRA. They then link the IRA to their bank account. Funds can be sold from the IRA and then cash transferred to your bank account.

The problem with this strategy, as with all strategies you read online, is that it is not a one size fits all.

Potential penalties and fees are associated with rolling, and then taking funds from an IRA. We are looking for efficiencies.
There are three types of investment accounts: Taxable, Tax Deferred, and Tax Exempt. Each account type has many different options for how you save, invest, and then withdraw income from them in the most efficient manner. Efficient withdrawals mean your investments are allowed to grow while your tax bite is kept as low as possible.

Unfortunately, there is no single answer to how to save, invest, and withdraw from these accounts. Everyone is a little different, and it will depend on your savings, tax brackets, and overall spending needs, as well as your goals in retirement.

If you haven’t evaluated your overall retirement income strategy in the last year, let’s talk.

04/27/2023

Teaching your kids about money management is one of the best gifts you can give them. But when should you start?

Every child will have a different age where they will be most receptive and capable of fully understanding financial concepts. But, there are certain concepts that can begin to be taught at a very young age. If there’s one thing I’ve learned as a parent, it’s that kids can surprise you with how smart and adaptable they really are.

Here are a few things that I believe we should all be teaching our kids to help them live the most successful financial life they can.

•Earning Money. As your kids become old enough to do chores around the house or yard; let them. Start an allowance system that requires them to earn their money. Also, encourage their early entrepreneurial ideas. Whether it’s making bracelets, selling lemonade, or offering a service, give them guidance and support. These ideas will set the tone for the rest of their life.

•Spend Wisely. No matter how old your kids are, they want things. The only difference between a 5-year-old and a 16-year-old is the cost of the things they want. Teach your kids patience and restraint when it comes to spending. Taking a step back and thinking about the financial big picture will be an invaluable skill later in life. Help them create a budget and refer to it before any purchases.

•Saving Money. As kids start earning money teach them about saving. Stress the importance of putting money aside. One of the biggest regrets that most people have about their early years of earning is that they didn’t save as much as they should.
These concepts will give your children a great foundation for their financial life. If there’s anything I can do to help you pass along these concepts to your kids please reach out.

04/21/2023

One of the questions I often get as a financial advisor is, "What is your risk management strategy?”

It’s a good question, but I often find that the focus of that question is on the wrong thing. Most of the time when someone asks me that question, they are referring to how I manage the risks inherent in the investments we choose. For example, they want to know if they’ll experience that dip in bank stocks, or how exposed they are to geopolitical headlines.

While my team and I thoroughly evaluate each of these and many other scenarios for each investment in the portfolios we manage, our focus is a little different when it comes to our clients.

You see, we focus on what the risks are to your ultimate investment objective being met. Will you live the lifestyle you want in retirement? Will you afford that vacation home? How much will you be able to impact your charity of choice?

Obviously, the risks involved in each investment have a say in whether your investment objectives are met. But that’s it. It’s just ‘a say’. What about taxes? Inflation? Regulations? What about your health? What about your family? These are all the things we would like to know about and plan for in your investment strategy. It’s what we look at as full financial risk planning.

So, if you’re feeling like all the risks to your investment objectives have not been planned for, let’s talk.

01/27/2023

What does "wealth" mean to you? https://www.erictnichols.com/blog/what-does-wealth-mean-you

11/24/2022

From our family to yours we wish you a Happy Thanksgiving!

09/15/2022

September is life insurance awareness month! Ensure your loved ones are protected by contacting our team to get a personalized quote in as little as 5 minutes!

Business owners often need assistance gaining direction for their business, determining how to financially manage growth, provide retirement and other benefits to their employees, and plan for their own retirement.

08/05/2022

Financial Planning for Young Professionals

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Understanding your risk tolerance is considered one of the most important elements of investing . . . read more here.

The recent stock market volatility, the bear market, the ever-growing inflation rate, and ongoing supply issues have taken a severe toll on the American psyche. For some, it has forever altered how they perceive and manage risk. Understanding your risk tolerance is considered one of the most importa...

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Learn about some little-known investment extremes to avoid in the current 2022 bear market and beyond . . .

It can be tempting to have extreme thoughts when it comes to investing. After all, public markets can increase or decrease by as much as several percentage points per day! Yet, be sure to keep calm and follow your financial plan. This includes having a risk-adjusted asset allocation and knowing your...

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Are your emotions controlling your personal finances?

Are Emotions Controlling Your Personal Finances?

06/03/2022

As a young parent looking to the future, you may be faced with a daunting choice: do you save earnestly to secure your retirement, or save to fund your children’s education?

Should I prioritize saving for retirement over college?

05/10/2022

While you may encounter some resistance, it’s important to talk to your parents about their finances and work through potential issues they may face as they age . . .

For many families, finances are rarely discussed in detail, even as children mature into adulthood. But as your parents' age, especially if they live into their 80s and 90s, there's a chance that they may lose their cognitive function and be less capable of managing various tasks . . . While you may...