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What is your retirement savings goal? Have you established a dollar target that you have confidence in? It can be tough to do when there are so many mixed messages and competing demands for cash. If you’re looking for a straightforward answer, or simple way to set the bar, you may be coming up empty - and that’s actually a good thing. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. Retirement savings goals should be unique for you and your household and a general “rule of thumb” for retirement savings won’t necessarily get you where you need to be. Develop a Retirement Savings Goal That’s Unique to You It’s impossible to use a generic savings goal because your expenses are going to be different than everyone else’s. You need to get a good read on your fixed expenses like electricity, food, health and medical needs during retirement, living situation, lifestyle decisions, and more. Instead of trying to reach an arbitrary savings goal - like $1 million or $2 million - by the time you retire, take the time to develop a goal that’s tailored to your specific situation throughout your retirement. No one can predict the future, so we need to start with today’s best idea of the retirement picture that you envision and that will take care of your “needs” while also reaching your strong “wants” and even a few “wishes”. When you tailor a retirement savings goal that fits your specific needs, you’re able to: Account for hobbies you want to pursue in retirement such as travel Prepare for any family-related or hereditary medical problems that could result in hefty expenses Prioritize your spending in a way that lines up with your values Decide how you want to leave a legacy through charitable giving, or providing for your family - and incorporate that into your retirement savings goal Are you ready to get started developing your unique retirement savings goal? Let’s dive in. Start By Listing Your Expenses According to a recent NerdWallet study , retirees spend an average of $3,507 after-tax each month on living expenses. This figure can be divided up into several expense categories: Information on Expense Estimates from NerdWallet When listing your retirement expenses, be as comprehensive as possible. These percentages are a good baseline to help get you started on brainstorming expense categories and knowing roughly what to expect. But, you’re bound to have some that are completely unique to you. For example, some clients we serve anticipate spending $35-40,000 on a new car every 7-8 years in retirement, while others may only spend $25,000 every 10 years. While not reflective of the “average” family, we often find that our clients want to travel more in retirement. The cost of travel can increase annual retirement expenses by $10,000 to $15,000 per year! A sound retirement plan should incorporate these quality of life goals as well. Your location can also be a major factor when it comes to ‘cost of living’. For example, individuals living in Richmond, Va can expect to pay nearly 41% less in living expenses than those in Washington DC. Some folks choose to relocate in retirement to be near kids or take advantage of lower state taxes. It’s also wise to leave yourself a little bit of wiggle room when gauging your expenses. Don’t “round down” when trying to figure out how much you might spend in one category or another. Be as realistic as possible, then you can budget for the unexpected on top of your realistic expense projections. There’s no reason to hold yourself to an impossible standard of sticking to your current projections down to the penny. Sometimes, life happens. That could mean you’re blindsided by a hefty medical expense after you retire. Or maybe you find a new hobby you’re really passionate about as a retiree. Bottom line, you need to give yourself some space to live your best retirement, no matter what that looks like as the years go on. Reaching Your “Number” Once you know what expenses you anticipate, and have allowed some flexibility for life’s uncertainties, you can work backward to reach your retirement savings goal. This part of the process is relatively straightforward. Calculate the total annual expenses you’ve estimated. Then, reduce this number by guaranteed sources of annual income like pensions and social security. Now, multiply the balance by 25. Again, it’s wise to give yourself some wiggle room here. You want to plan with longevity in mind, meaning you want to plan for a long, healthy, and happy life when it comes to your retirement savings. Retirement Savings Goal Example: Joe and Susan estimate their annual after-tax fixed living expenses to be $55,000 per year. They plan on spending an additional $15,000 per year on travel and $12,000 per year on healthcare related expenses. Their combined spending comes to $82,000 per year in after tax dollars. Additionally, they will receive $35,000 per year in guaranteed income from social security. This means they have an additional income need per year of $82,000-$35,000 = $46,000. To determine their retirement savings goal, multiply $46,000 x 25 = $1,150,000. This is a rough estimate of how much Joe and Susan will need in retirement savings. Does that number look daunting? Don’t worry. Chances are, it’s not as bad as you may think. This is the number you’re aiming to save (in addition to what you already have put away), but in most cases, it doesn’t all need to come directly from you. Some part of your retirement savings will grow over time, as your funds continue to grow in their diversified investment accounts. If you’re working on coming up with your unique retirement savings goal, it can help to speak with a financial advisor about where you currently stand, and what you need to do to put yourself on the path toward success. Getting expert guidance to create a personalized retirement cash flow analysis can help. At Covenant Wealth Advisors, we work with clients who are nearing retirement, or currently going through the retiring process, to develop a comprehensive financial plan that addresses everything from their expenses during retirement to the mitigation of taxes on their retirement income. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosures: Covenant Wealth Advisors is a registered investment advisor . Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

As we enter 2019, you may be questioning the benefits of diversification. With US stocks outperforming non-US stocks in recent years, some investors have again turned their attention towards the role that global diversification plays in their portfolios. After all, for the five-year period ending October 31, 2018, the S&P 500 Index had an annualized return of 11.34% while the MSCI World ex USA International Index returned 1.86%, and the MSCI Emerging Markets Index returned 0.78%. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. As US stocks have outperformed international and emerging markets stocks over the last several years, some investors might be reconsidering the benefits of investing outside the US. While there are many reasons why a US-based investor may prefer a degree of home bias in their equity allocation, using return differences over a relatively short period as the sole input into this decision may result in missing opportunities that the global markets offer. While international and emerging markets stocks have delivered disappointing returns relative to the US over the last few years, it is important to remember that: 1. Non-US stocks help provide valuable diversification benefits. 2. Recent performance is not a reliable indicator of future returns. Let's take a look at three little known benefits to diversification. THERE’S A WORLD OF OPPORTUNITY IN EQUITIES The global equity market is large and represents a world of investment opportunities. As shown in Exhibit 1, nearly half of the investment opportunities in global equity markets lie outside the US. Non-US stocks, including developed and emerging markets, account for 48% of world market capitalization and represent thousands of companies in countries all over the world. A portfolio investing solely within the US would not be exposed to the performance of those markets. As of December 31, 2017. Data provided by Bloomberg. Market cap data is free-float adjusted and meets minimum liquidity and listing requirements. China market capitalization excludes A-shares, which are generally only available to mainland China investors. For educational purposes; should not be used as investment advice. The Lost Decade We can examine the potential opportunity cost associated with failing to diversify globally by reflecting on the period in global markets from 2000–2009. During this period, often called the “lost decade” by US investors, the S&P 500 Index recorded its worst ever 10-year performance with a total cumulative return of –9.1%. However, looking beyond US large cap equities, conditions were more favorable for global equity investors as most equity asset classes outside the US generated positive returns over the course of the decade. (See Exhibit 2.) Expanding beyond this period and looking at performance for each of the 11 decades starting in 1900 and ending in 2010, the US market outperformed the world market in five decades and underperformed in the other six. This further reinforces why an investor pursuing the equity premium should consider a global allocation. By holding a globally diversified portfolio, investors are positioned to capture returns wherever they occur. S&P data © 2018 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. MSCI data © MSCI 2018, all rights reserved. Indices are not available for direct investment. Index performance does not reflect expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. Pick a Country Are there systematic ways to identify which countries will outperform others in advance? Exhibit 3 illustrates the randomness in country equity market rankings (from highest to lowest) for 22 different developed market countries over the past 20 years. This graphic conveys how difficult it would be to execute a strategy that relies on picking the best country and the resulting importance of diversification. Source: MSCI country indices (net dividends) for each country listed. Does not include Israel, which MSCI classified as an emerging market prior to May 2010. MSCI data © MSCI 2018, all rights reserved. Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. In addition, concentrating a portfolio in any one country can expose investors to large variations in returns. The difference between the best- and worst performing countries can be significant. For example, since 1998, the average return of the best performing developed market country was approximately 44%, while the average return of the worst-performing country was approximately –16%. Diversification means an investor’s portfolio is unlikely to be the best or worst performing relative to any individual country, but diversification also provides a means to achieve a more consistent outcome and more importantly helps reduce and manage catastrophic losses that can be associated with investing in just a small number of stocks or a single country. A DIVERSIFIED APPROACH Over long periods of time, investors may benefit from consistent exposure in their portfolios to both US and non US equities. While both asset classes offer the potential to earn positive expected returns in the long run, they may perform quite differently over short periods. While the performance of different countries and asset classes will vary over time, there is no reliable evidence that this performance can be predicted in advance. An investment management approach to equity investing that uses the global opportunity set available to investors can provide diversification benefits as well as potentially higher expected returns. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosures: Covenant Wealth Advisors is a registered investment advisor . Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training. Source: Dimensional Fund Advisors LP. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. Diversification does not eliminate the risk of market loss. There is no guarantee investment strategies will be successful. Investing involves risks, including possible loss of principal. Investors should talk to their financial advisor prior to making any investment decision. All expressions of opinion are subject to change. This article is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their financial advisor prior to making any investment decision. [1]. The total market value of a company’s outstanding shares, computed as price times shares outstanding. [2]. Source: Annual country index return data from the Dimson-Marsh-Staunton (DMS) Global Returns Data, provided by Morningstar, Inc.

Happy New Year! At the start of each year, we often dream up new visions for what we want our lives to look like, and those dreams take the form of resolutions. These resolutions allow us to reflect on the things in our lives that we would like to change. Have you made any resolutions this year? If not, you should put savings at the top of the list. You may be thinking, why should I make a resolution that won’t last? Get your Retirement Checklist of over 30 things that you need to think about for your retirement. But the reason that about 80% of resolutions fail is because they aren’t rooted in intention. Without intention, or a distinct “end goal” that makes your resolution relevant, it’s tough to find the motivation to follow through. So, don’t simply say you want to save more this year. Instead, put an intention or motive behind it and think about why you’d like to save. There are so many different ways to save, and each has its own “why” behind it. Building an Emergency Fund Picture this: A frost covered night in the thick of January. The brisk wind forces the snow to harden into ice, even the door seems to shake each time you open it. The pipe inside your crawl space bears the brunt of the wind’s rage and begins to freeze. Unable to withstand the pressure caused by the ice’s expansion, the pipe bursts. Water damage holds the largest expense when a pipe bursts, leaving you responsible for a $5,000 or more clean-up fee. What do you do now? This is where an emergency fund comes in. Designed to live in a separate, high interest account, an emergency fund is there to help pay for unexpected costs. Emergency funds are a safeguard against numerous curve balls life can throw your way such as: House repairs Car repairs Long-term injury Surgery Unexpected travel for ailing family members Loss of employment An emergency fund is the physical manifestation of the phrase “just in case.” Building one is imperative so that when an emergency does occur, you aren’t forced to take out loans, max out your credit line, or go into debt. How Much Cash Should You Have on Hand? Since emergency funds help ward off debt in unfavorable circumstances, we often advise clients who are still working to keep anywhere from 6-12 months of living expenses in the account. If you have a family to support, have only one earner in the family, or have a career that may take a long time to find a job replacement, you may need even more than that. If you are retired, we often advise clients to keep closer to 18 to 24 months of living expenses, if possible. This can help mitigate the risk of running out of money when taking portfolio income withdrawals during stock market declines. Think through your fixed living expenses including: Rent/mortgage Food Utilities Healthcare and insurance premiums How much do you spend on these expenses per month? Use that number to calculate your projected expenses and work toward that goal. If you unexpectedly lose a job, for example, you will want to have a contingency plan with savings to cover your house payment until you are able to secure additional work. Emergencies are not easy, often wrapped in stress and anger. With an emergency fund, you at least give yourself some breathing room to deal with the situation without having to immediately panic about your finances. What an Emergency Fund is NOT For We have talked a little bit about what an emergency fund is for, but it is also important to talk about what it isn’t for. Planned large purchases House Car Education Vacation Recreational spending Avoid the temptation to dip into your emergency fund for personal spending. You have spent a lot of time building the fund, discipline yourself to save it for when you actually need it. It's also important to remember that your emergency fund isn't intended to cover business expenses. If you own your own business, keeping your finances separate is a huge challenge. Do not use your emergency savings for business costs. Emergency situations can devastate your finances if you are not prepared for them. Once you have established an emergency account, keep it separate from your other financial obligations. By separating it, you will be less tempted to draw money from that account for non-emergency purposes. Where Should You House Your Account? Emergencies happen unexpectedly and often at the most inopportune times. That being said, you want to have your emergency savings as liquid as possible. Liquidity simply means the rate at which your money can be turned into cash. There are many prevailing theories as to where you should store your emergency cash, but the truth is it shouldn’t ever be housed anywhere except a traditional or high-yield savings account. Investing your emergency fund puts it at risk based on stock market volatility, or even normal portfolio fluctuations over time. We want you to be able to access your funds in case of an emergency - and that means keeping them secure in a low-risk savings account. One of the simplest ways is to open up a separate savings account through whichever bank you like the best. Opt for one that gives you the best interest rate. While many savings accounts are earning less than 0.50%, there are a handful of options that pay considerably more interest. High interest savings and money market accounts you may consider include: American Express High Yield Savings Max My Interest Capital One 360 Money Market Savings and money market accounts are low risk, your money is fully accessible and liquid, and yields are making a comeback, creating a great option for your emergency savings account. There are many ways for you to save money. An emergency fund is there to protect you and your family when the unexpected occurs. No one knows what 2019 will bring, so try and be prepared for whatever tricks it has up its sleeve. Beyond Emergency Savings Unfortunately, many Americans don’t have an emergency fund in place, even as they get closer to retiring. In fact, many of the high net worth families we serve often overlook the benefit of keeping reserves on hand. However, you may also find yourself on the opposite end of the spectrum: worrying about having too much cash sitting around in a savings account. If this is you, you have a unique advantage. You’re able to start building a financial strategy that helps you to earn more interest on your savings, and potentially boost your retirement income for the next several years. Need help allocating your savings? Reach out ! We’d love to help you build a strategy that’s unique to your financial goals and needs. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosures: Covenant Wealth Advisors is a registered investment advisor . Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

You have a beautiful home that you've enjoyed for years. Right? But since your adult children have moved out, it’s empty more often than not. As you struggle to keep up with the housework, home maintenance, and landscaping, you might wonder if it’s time to move to a retirement community in Williamsburg, Va . Moving to a senior living community before you need assisted living, nursing, or memory care carries many advantages, especially for active adults. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. With nearly a dozen communities catering to the unique needs of 55+ retirees, your likely to find a perfect location in Williamsburg, Va. But, not all senior living communities are the same. While Williamsburg has some great communities, there are three primary types of services you need to understand: Independent care Assisted living Memory care Nearly all retirement communities provide independent care, but only a handful provide what is now called a Life Plan Community (formerly known as a Continuing Care Retirement Communities are CCRC for short). In short, a life plan community in Williamsburg, VA should: Offer more than one level of care on a single campus Have a focus on an active lifestyle Be integrated into the community with an emphasis on giving back and being socially responsible. In addition, you'll want to evaluate many different factors including accreditation and awards, independent living options, activities, dining, health and fitness facilities, and of course, health care services. Is healthcare a concern? Don't worry. Williamsburg has two major hospitals supporting a population of 15,000 people. While many retirement communities have healthcare services, you can rest easy knowing knowing there are great hospitals nearby. Do you like to travel and enjoy day trips? Retirement communities in Williamsburg have that covered. Travel is easy with an Amtrak station and three airports located within just an hour from Williamsburg. But, you don't have to go far for fun. When your grandchildren visit, you'll have a blast taking them to Water Country USA, Busch Gardens, and Colonial Williamsburg . These three major tourist destinations are located just miles from most retirement communities. Moreover, many retirement communities in the area are conveniently located near medical centers, shopping centers and pharmacies. Equally as important, they provide free transportation for seniors. Finally, retirement communities in Williamsburg make it easy for you to enjoy life. Meet new friends your own age, engage in activities arranged by the community, and enjoy your golden years in vibrant and safe neighborhoods. Here is a run down of the major retirement communities in or around Williamsburg, VA. Brookdale Senior Living Brookdale Senior Living in Williamsburg provides exclusive Independent Living, Assisted Living and Memory Care services for seniors suffering from Alzheimer’s and Dementia. With a continuum of care, Brookdale is designed to support seniors who have independent lifestyles and those needing assistance with daily activities. Residents have the security of knowing they can life at the community for life. You won't have to relocate and separate from your familiar surroundings, should your needs change over time. If you want to get the most out of life, you'll appreciate that Brookdale participates in the Optimum Life® initiative. This program helps seniors start their journey towards maintaining overall health and well-being. As a resident, you will learn how to balance the emotional, physical, spiritual, intellectual and social aspects of your life for lifelong fulfillment. Independent Living Options at Brookdale Brookdale has multiple floor plans available for both independent living and assisted living needs. Plans are pet friendly and include one or two bedroom apartments with furnished units available. Some units may include a balcony as well. Brookdale management also assures incoming residents they have services available to address the changing needs of seniors who can continue living as they please. Activities at Brookdale Brookdale offers a handful of activities for active seniors. While not the most robust menu of activities on the list, you enjoy: Excursions into Williamsburg, Jamestown, the Williamsburg Winery and the DeWitt Wallace Decorative Arts Museum. Swimming in the outdoor pool Game room w/billiards Piano Arts & crafts studio Putting green Gardening/greenhouse Ammenities at Brookdale Community amenities include an onsite cafe, chapel, computer rooms, educational services, fitness center and library. The community also has a full-service dining room. Transportation services are available to independent and assisted living residents. Staff professionals offer speech and physical therapy as well as help with residents dealing with incontinence. Learn more about Chambrel at Williamsburg by calling (757) 220-183. Williamsburg Landing If you're looking for a premier, fully accredited retirement community, look no further than Williamsburg Landing. Nestled in the gorgeous countryside of Tidewater, Williamsburg Landing is a 137-acre senior retirement community consisting of apartments and cluster homes in a luxurious resort setting. "The Landing", as the locals call it, offers independent living, assisted living, and memory care. As a result, Williamsburg Landing is a Life Plan Community . It is the first and only CARF-CCAC accredited Life Plan Community in the Hampton Roads area of Virginia. Only 15% of accredited Life Plan Communities in the country are awarded this distinction! Living Options at Williamsburg Landing The Landing offers independent living at its best. As a resident, you'll enjoy residing in maintenance-free, independent living accommodations. Chose from single-family homes to luxurious apartment settings. Architectural styles of Williamsburg Landing homes include executive-style ranch, charming cottages, and lovely Colonials. Various floor plans and square footage options are available to accommodate senior singles and couples. Pets are also allowed at Williamsburg Landing. Residents are within walking distance of convenience stores, shopping centers and fine dining restaurants. Activities at Williamsburg Landing If engaging with others, building relationships, and living your passions is important, you may just find it at Williamsburg Landing. You'll find new hobbies, enjoy existing hobbies, and even dive into the arts, music, and theater. The Landing offers may activities for active seniors including: Art exhibits by residents and staff Art and pottery classes Museum trips Author presentations Music and opera Theatre Trips to in-state and out-of-state places of interest Learning class Charitable functions and giving back Bible studies Honestly, the list is so long, you won't run out of things to do! Dining Options at Williamsburg Landing The Landing has many dining options. Whether you are seeking a healthy meal or a once a week binge on great cooking, you definitely won't go hungry. You'll enjoy a main dining room at The Landing Building which includes many dishes and alternating menus. Residents will also enjoy a more casual atmosphere located at the Cove Cafe. Health Care Services at Williamsburg Landing Pricing for Williamsburg Landing Fees can vary greatly at Williamsburg Landing depending upon the With a 4 1/2 star rating on Google reviews as of this writing, Williamsburg Landing is loved by its residents. Learn more about Williamsburg Landing by calling 800-554-5517. WindsorMeade Retirement Community Developed within the Historic Triangle near historic Williamsburg, WindsorMeade is a gated community boasting a five-star Medicare certification rating. If good healthcare is a major financial concern for you, WindsorMeade may a great option. Spacious, single family villas and apartments complemented with many amenities are available to 55+ adults. You’ll enjoy the comfort and convenience of a 2400 sq. ft. clubhouse for private use as well as catering services for family gatherings. This community also provides meal deliveries for residents who have become temporarily home bound. Transportation is available for scheduled trips, church services, medical appointments and other planned events. Members of WindsorMeade in Williamsburg can access preventative health services such as blood pressure checks and lab work, attend recreational activities and classes on crafts and computer literacy. For residents recovering from illness or surgery, WindsorMeade offers rehabilitation therapy and massage therapy services provided by licensed professionals. Active seniors will enjoy swimming, tennis, walking paths and even strength training equipment. If staying in good physical shape and maintaining mental health is important to you, WindsorMeade has the amenities you need. An onsite convenience store, pharmacy and gift shop make it easy for seniors to accomplish essential daily tasks independently. For more information about WindsorMeade, call 866-403-5503. The Patriots Colony in Williamsburg Patriots Colony is a 55+ retirement community exclusively for men and women who served our country, civil servants, and officers in the armed forces. Patriots Colony in Williamsburg is built on over 90 acres of protected woodland. In addition to providing independent living residences, this Williamsburg retirement community offers a continuum of care services open to seniors with a non-military background who need skilled nursing car and/or assisted living services. Independent living residents at The Patriots Colony are guaranteed priority access to the community's Springhouse Memory Care and the Berkeley Assisted Living program. The Patriots Colony also has an onsite medical clinic staffed with healthcare professionals associated with Riverside Health System in Williamsburg. The Canon Community Center offers daily fine dining, educational, wellness and social opportunities. Learn more about The Patriots Colony in Williamsburg by calling 800-716-9000 or 757-220-9000. Dominion Village at Williamsburg Living options at Dominion Village include one or two bedroom apartments for independent living or assisted living seniors. Transportation is provided to nearby medical clinics and hospitals and single or multiple pets are welcome. Amenities and services include: Restaurant dining Wellness/exercise programs Recreational/educational/social activities Free Wi-Fi Game rooms Hair salons Laundry/housekeeping services. Residents of Dominion Village need only travel a short distance to visit the Botanical Gardens, Busch Gardens, Colonial Williamsburg and public parks. Do you like wine? A spectacular winery offering bi-monthly tasting events is a favorite place for residents to visit and explore the historic farm and 300 acres of land on which the winery is built. Dominion Village community members have access to a spacious private dining room for family events, secured outdoor areas and immediate snow removal. There is also a variety of exciting volunteer opportunities for independent living residents who want to give back to their community. To learn more about Dominion Village senior living Williamsburg VA residents can call (757) 258-3444. The Settlement at Powhatan Creek Located adjacent to the sparkling Powhatan Creek waters, the Settlement at Powhatan Creek offers seniors quality lifestyle living in low-maintenance townhomes or single family homes. One of the most popular amenities at this retirement community is The Resident's Club, a 15,000 sq. ft. clubhouse featuring indoor/outdoor swimming pool, locker rooms/showers, game room, ballroom, tennis court and fitness rooms. In addition, all residents can reserve The Resident's Club for special occasions. Homes available at The Settlement at Powhatan Creek feature first floor master suites and a main level living area. Townhouses and single family homes all have at least two bathrooms, two bedrooms and attached garage. Three bedroom and two attached garage homes are available. Residents pay an affordable monthly homeowners association fee to enjoy free outdoor maintenance services such as mowing, snow removal, and landscaping. Golf enthusiasts living at the Settlement will love the fact that the Williamsburg National Golf Club is just a five-minute drive away. Do you like to shop? Shopping aficionados can spend all day at the Williamsburg Premium Outlets shopping complex less than 15 minutes from their home. Talk to a staff member at The Settlement at Powhatan Creek to learn how you can book a tour by calling (757) 903-4690. The Villas at Five Forks Villas at Five Forks is a senior retirement community in Williamsburg offering park-like surroundings, tree-lines avenues, walking trails and scenic ponds. Each maintenance-free home was professionally designed to accommodate 55+ active adults with open floor plans, first floor master suites and minimal maintenance exteriors. With New Town and James River just outside the doors of residents' homes, fine dining, shopping and a spectacular variety of recreational venues. While most retirement communities in Williamsburg VA provide members only clubhouse amenities, the Villas at Five Forks offers that and more. The community clubhouse has a spacious layout featuring chairs, tables and a large kitchen to accommodate large parties. Residents can also take advantage of the clubhouse billiards room, fitness center and outdoor and indoor heated pool whenever you wish. Watch sports on large, flat-screen televisions, have barbeque get-togethers in the summer or relax by the fireplace during winter with a good book. If you like newer construction, you’ll appreciate that construction of the Villas at Five Forks homes began in 2008 and was completed in 2013. Villa-style homes are located in quad-structure style and range in size from nearly 1,800 sq. ft. to 2,200 sq. ft. Incoming residents can choose among four floor plans offering two or two and a half bathrooms, two or three bedrooms, and one attached two-car garage. The Windsor and Chateau homes have a guest suite on the second floor and first floor master suites. The Canterbury and Abbey homes are single family, single level homes. All homes have optional patios, glass-enclosed verandas and open kitchens. As a resident of the Villas at Five Forks, you don’t need to worry about mowing your lawn, maintaining your driveway or building maintenance. A reasonable homeowners association fee takes care of all these expenses. This retirement community is conveniently located near Colonial Williamsburg, the Golden Horseshoe Golf Club, art museums, restaurants, spas and boating opportunities in the Chesapeake Bay area. Call The Villas at Five Forks today at (757) 645-2506 to get information about living at one of the leading retirement communities in Williamsburg VA. Verena at the Reserve in Williamsburg With upscale apartment living for seniors complemented by active lifestyle amenities, the Verena at the Reserve in Williamsburg offers homes featuring colonial-style architecture and beautifully landscaped lawns. Verena at the Reserve has one-bedroom and two-bedroom apartment options, with balcony, patio and den options. Floor plans range between 665 sq. ft to a comfortably roomy 1300 sq ft and include nine-foot ceilings, full kitchens sparkling with attractive granite countertops, full-sized appliances, hardwood cabinets and elegant crown molding. Amenities and services provided by the Verena at the Reserve include: Meals prepared by chefs and served restaurant style Exercise/wellness programs and classes Bi-monthly housekeeping Scheduled transportation Education and social programs Landscaped walking trails Cable TV and utilities included in monthly home payment Concierge services for assistance with salon appointments, dry cleaning and fresh flower delivery Professional maintenance and repair technicians Refreshments offered throughout the day Guest suites for family and friends Library Film theater Outdoor patio with benches, tables, firepits and gazebos The Verena at the Reserve is also a pet-friendly, senior living community. Call 757-345-2995 to schedule a visit or to learn more about this Williamsburg retirement community. Morningside of Williamsburg Located in McLaws Circle near the Covenant Wealth Advisors office and within a few miles of Busch Gardens and Kingsmill, Morningside of Williamsburg provides independent living and assisted living services for people with dementia or Alzheimer's disease. With over 85 private, one and two bedroom apartments situated on landscaped grounds, Morningside residents enjoy healthy dining amenities, 24-hour staff, daily recreational and educational activities and wellness programs. Additional amenities include an onsite barber shop, beauty salon, free wi-fi, housekeeping services and on-demand transportation. Morningside of Williamsburg accommodates couples, single individuals, retired military and seniors requiring assistance with transportation to medical facilities nearby. This retirement community is also pet-friendly, permitting both multiple pets and large breed dogs. Outdoor recreation opportunities, golf, concerts, art festivals, shopping and hospitals are just minutes away from Morningside, including the historic attractions of Colonial Williamsburg. Memory care services offered at this assisted living facilities (ALFS). Services include help with personal care, making sure residents are taking medication on time, and engaging residents in daily activities meant to improve emotional and physical health. Assisted living facilities like Morningside of Williamsburg further improve the ability of residents to remain as independent as possible. They do this by incorporating housing color and structural designs proven to reduce stress and anxiety in residents needing assistance. Many people with memory issues do not require extensive medical care but rely on others to help them perform daily tasks than can be provided by home health aides. An assisted living retirement community such as Morningside offers the ability for residents to live independently in their own separate apartment if they have minor to moderate memory issues. Along with meals, transportation and housekeeping services, Morningside makes sure residents get to all scheduled medical appointments, attend field trips with other members of the community and remain involved in hobbies they enjoy. Learn more about Morningside of Williamsburg by calling (757) 221-001. Four Seasons at New Kent Vineyards Offering privacy and tranquility to seniors over 55 in a cosmopolitan ambiance, the Four Seasons at New Kent Vineyards gives seniors the option of choosing from a dozen different home designs. Located just 30 minutes from Williamsburg in New Kent County, the Four Seasons is within short driving proximity to airports, fine dining, shopping/boutiques and medical centers. First-class amenities at the Four Seasons include the Rees Jones golf course and the 18-hole golf course at New Kent Vineyards . Residents also have 24/7 access to the Four Seasons' community clubhouse. The clubhouse comes complete with meeting rooms, state-of-the-art exercise center and catering kitchen. Home designs include large, four-bedroom and three or four bathroom floor plans as well as two or three bedroom homes. Single family residences have suites and open kitchens with options for two car-garages, lofts or dens. Spacious rooms have nine-foot ceilings and windows allowing plenty of sunlight to stream in during the day. Popular destinations for Four Seasons residents are the New Kent County Historical Society , Martha Washington's birthplace, Colonial Downs Strawberry Races and St. Peter's Church. Having the Richmond International Airport less than 30 minutes from the Four Seasons makes it easy for family and friends to visit you any time of the year. Learn more about this wonderful Williamsburg retirement community by calling 703-885-7265. The Cost of Living in a Retirement Community According to SeniorHomes.com, a continuing care retirement community (CCRC) is the most expensive type of community available simply because they offer residents ongoing healthcare services for the remainder of their lives. CCRC entrance fees can range between $40,000 to as high as $365,000. Monthly rates for living in a CCRC average from $700 to $4200 in 2018. However, these rates almost always include transportation, meals, housekeeping services, utilities and maintenance. Telephone, Internet and cable expenses are the responsibility of residents. The cost of nursing home care or living in CCRCs or assisted living retirement communities is available annually through AARP or other senior retirement websites. Unfortunately, the cost of living in independent retirement communities is not readily available. SeniorHomes.com lists high and low average monthly rates for independent living communities of each state. In Virginia, the average monthly cost is $2200 while the monthly maximum is $3800. Conclusion If you are seeking a wonderful place to live in retirement, Williamsburg, Va has many great retirement communities. Ultimately, the community you choose may depend on your financial strength, your quality of life desires, and the life amenities for which you are accustomed. As a trusted wealth management firm for individuals and families age 50 plus, we serve dozens of families who enjoy independent living in Williamsburg. As your trusted financial advisor in Williamsburg, Va , we can help design a financial plan that helps you live comfortably in retirement. If you need objective advice on whether or not you can afford one of these great communities, just give us call at 757-259-0111. We’re happy to help. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosures: Covenant Wealth Advisors is a registered investment advisor . Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

Money is the No.1 cause of stress on Americans according to Northwestern Mutual’s 2018 Planning and Progress study . At 44%, money was said to be more stressful than relationships (25%) and work (18%). How did finances reach the top of the list? Money infiltrates every aspect of our lives. It supports our lifestyle, fuels our social engagements, and sustains our livelihood. We find it present in our marriages, partnerships, jobs, and recreations. In fact, money is the benchmark for our society. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. The world puts a lot of pressure on money and on our ability to manage it. As pressure builds and capital dwindles, desolation is right around the corner. This cycle often leads us to develop an unhealthy relationship with money. How can we change the narrative and start a new chapter in our financial journey? Back To The Beginning The introduction to a story is the most crucial part. It sets the scenes, establishes characters, and situates the reader in the narrative. Though important, introductions are one of the most skipped or skimmed sections of a book. Why? They often do not have any action and are expositional in nature, but if you skip it you may miss crucial details that inform the plot later on. Don’t skip the introduction to your relationship with money. How does it start? Perhaps your parents were not avid savers and did not teach you the value of saving. Maybe you grew up in an environment where money was never an issue so you always assumed there would be enough. You may have been exposed to financial troubles, leaving you acutely aware of your finances. Think through the beginning of your story. The introduction to your relationship with money has laid the groundwork for your current relationship with it. Be honest with yourself here. Knowing your background with money will be able to better inform your future with it. The way we view wealth is a testament to our ability to live a fulfilling life. Assess Spending Habits Now that memory lane isn’t so far in the past, it is time to critically examine your current financial situation. Are you where you want to be? What areas of your finances need some TLC? The first thing to do is look at your spending habits. Think through the questions below to figure out where problems might be emerging. -What do you spend your money on? -Are you living within your means? -Does your spending have a value or intention behind it? -How does your spending make you feel? Spending is one crucial area that everyone can improve upon. Our society depends on the exchanging of money, but it is important to know how and why we spend. The questions above are difficult and will force you to be honest with yourself about your finances. But if answered genuinely, these questions will show you areas where you can improve and will provide a clear path forward. Spending Before and During Retirement It is also important to note that spending habits change depending on the state of life you are in. Pre-retirement spending should look different than post-retirement spending due to the many changes that occur. Your cash flow will significantly change once you retire, and you need to be prepared for that shift. Developing healthy spending habits before you retire is a great way to ensure that you do not spend too much of your savings early on in retirement. This is why making a retirement budget is so important. But your retirement budget will not be realistic if you don’t have a solid foundation in your relationship with your finances. Conclusion: Set New Goals After assessing your current relationship with your finances and the areas you wish to improve, set new financial goals. Make these goals attainable and positive in order to give you momentum to keep going. It may be necessary to talk with a financial advisor to help you set those goals and give you a new path to embark on. Don’t be afraid to reach out to an expert . We are here to help you in your financial journey. Relationships take time to build and time to fix. Give yourself the resources to rebuild your relationship with money. With honesty, time, attention, and care you will be able to see a huge change in the health of your finances, building a relationship that lasts a lifetime. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice. Registration of an investment advisor does not imply a certain level of skill or training.

There are many questions on the minds of pre-retirees. One of the main ones is simple: when? When is the best time to retire? When should I dip into my savings? When should I claim Social Security? For most of your working life, 12.4% of each paycheck has gone toward Social Security. Once you have entered retirement, you are tasked with deciding when to start claiming your social security benefit. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. The answer is not a simple one, rather one that changes with your personal situation. For average income earners, about 40% of pre-retirement income comes in the form of social security benefits. But, if you earn considerably more than “average income”, social security may replace far less than 40% of your income. Even so, it is a good idea to maximize the overall benefit you can receive. Expert financial analysts and actuaries have their theories and I’d like to lay out the three main options you have: claiming early, at your full retirement age, or claiming late. There are both positive and negative points to each one, but it is important to know that what is right for one person may not be right for another. You’ll want to take a close look at your financial profile including the full scope of your assets, income needs, liabilities, health, and desired livelihood to help inform your choice. Before The Clock Strikes - Social Security at Age 62 The earliest age you can begin taking Social Security is 62, and many people do elect for this option. Depending on your financial and health situation, claiming early may be your best bet. Theoretically, Social Security benefits are meant to pay the same amount of money over the span of your life no matter when you elect to enroll. However, there are distinct advantages and disadvantages to claiming your benefit early. Let’s take a look. Positive You will receive more monthly checks over the course of your lifetime. The money can help supplement cost of living. You can enjoy the time to travel and experience new things while your health is still good. If you are married and have earned less money than your spouse, claiming at 62 while your partner waits until 70 will help maximize your overall earnings as a couple. You can keep more money in growth-oriented investments for longer. Negative Your monthly checks will be significantly lower. If born 1960 or later you will receive a 30% decrease in overall benefit by claiming early. If you are still working, not yet at full retirement age, and taking benefits you could face a large tax penalty. In 2016 that penalty was $1 for every $2 earned over $15,720. Sound Of The Alarm - Social Security at Full Retirement Age Waiting until your full retirement age to claim Social Security is another popular option. Full retirement age is not the same for each person. The IRS has created a table indicating that age based on the year you were born. For those both in 1960 or later, it is 67. Here are some reasons why claiming at full retirement age may be the right move for you. Positive You will get 100% of your earned the benefit. You are able to be flexible in your saving and investment strategy. You can continue working and claiming without enduring a penalty. There is minimal risk with this option. Negative Health concerns may require you to claim early If Social Security is a necessary income generator, you may not be able to wait. Hitting Snooze - Social Security at age 70 The snooze button has quite a bad reputation, but in terms of claiming Social Security, hitting the snooze button may just be the best financial decision for your retirement lifestyle. The latest you can wait to claim your Social Security benefit is age 70 (if you wait longer, you won’t get any additional benefit). Each year you wait to claim after your full retirement age, you will see an increase of about 8% of your benefit. Let’s see how waiting may be the right choice for you. Positive Your monthly checks will be significantly higher, about 124% more. This strategy is tax-friendly since most of the benefit will not be subject to income tax. Minimal risk. You will have more money to be able to fully enjoy retirement and if your health prevails still get to go on new adventures. Negative Health concerns may not allow you to wait. Financial need may not allow you to wait due to heavy drawdown of existing assets for income. Married couples may not benefit from both spouses waiting to claim. Conclusion As you can see, there are many factors to consider when deciding when to claim Social Security. Whether you decide to claim early at 62, wait until your full retirement age, or delay until 70, you have to stay true to you and make the most sound decision for you and your family. We want your retirement to be a happy one and would love to talk with you about any questions you have about claiming benefits. Together, we can help guide you in the direction you want to go. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice. Registration of an investment advisor does not imply a certain level of skill or training.

One of the most common workplace benefits that employees often take for granted is their retirement plans or any other savings accounts they have available to them. These accounts often take a backseat in our financial lives, largely because we automate how we use them. Automating our contributions often feels like a “set it and forget it” task that we can check off our financial to-do list. This is a double-edged sword. On one side, automating retirement savings - or any savings, for that matter - is a fantastic way to ensure that it gets done. When we have to manually save each month, we’re less likely to follow through. However, on the other side, automation often lulls us into complacency. We often get so accustomed to saving the same way: we have the same amount taken out of each paycheck to fund workplace savings accounts, even if we can (and should) be saving more. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. For example, did you know that if you’re over the age of 50, you’re eligible to contribute more to several workplace savings accounts each year? Many people have heard of catch-up contributions, but only 16% of eligible plan participants take advantage of them. Whether you’re enrolled in a 401(k), 403(b), or 457 plan - or you have access to a Health Savings Account or a SIMPLE IRA - you could be taking advantage of an increased contribution limit. These contributions, known as “catch-up” contributions, are structured by the IRS to help people nearing retirement give their savings a little extra boost. What Are Catch-Up Contributions, and Why Should You Use Them? Catch-up contributions, offered by the IRS, are intended to help people age 50+ put more toward their retirement savings. This added benefit is twofold: You’re able to sock more away before retirement. This is a benefit whether you’ve been saving over the course of a long career, or got started a little bit late. Having a few extra thousand dollars lining your retirement nest egg is never a bad thing. You lower your taxable income even more. While this may or may not push you into a lower income tax bracket, it will save you some money on taxes during your next filing season. Additionally, many employers offer a 401(k) catch-up match. Most 401(k) plans offer catch-up contributions, and of them, a full 36% of employers sponsoring the plan match those contributions. This could mean by not participating in catch-up contributions, you end up leaving money on the table. What Accounts Offer Catch-Up Contributions? Several savings accounts (retirement or otherwise) offer a catch-up contribution. The I RS’s official list includes: 401(k) 403(b) 457(b) SARSEP SIMPLE IRA SIMPLE 401(k) Traditional IRA Roth IRA HSA (Health Savings Account) What Limits Should You Be Aware Of? Each type of account has a different contribution limit associated with it. These limits can change year-to-year, so it’s important to check in periodically to see if you can potentially contribute more than you could in previous years. For example, in 2019, you can make the following catch-up contributions. 401(k), 403(b), SARSEP, 457(b) : $6,000 in addition to your annual limit of $19,000 SIMPLE IRA, SIMPLE 401(k) : $3,000, salary reduction contributions aren’t treated as catch-up contributions until they exceed $13,000. Traditional IRA, Roth IRA : $1,000 in addition to your annual limit of $5,500 HSA : $1,000 in addition to your annual limit of $3,500 (single) or $7,000 (family) All told, taking advantage of catch-up contributions across multiple health or retirement savings accounts could help you grow your retirement savings by several thousand dollars each year - and that’s nothing to sneeze at! The Untold Benefit of Catch-Up Contributions The benefits of catch-up contributions may seem obvious. You get to save more for retirement and reduce your annual taxes - what more could you possibly ask for? The truth is, there’s another benefit of catch-up contributions that nobody’s talking about: catch-up contributions force you to do a pre-retirement financial pulse check. You may think you know your financial situation inside and out. Maybe you’ve been saving dutifully for years, and know exactly what your “magic number” is for retirement savings. Unfortunately, more often than not, we view retirement savings as a static path. There’s one end goal, and we work toward it kind of mindlessly. There’s one thing we consistently forget to take into account: life changes. Our goals change. Our investments change. Our job security as we near retirement can shift. There are thousands of unknown variables that make retirement savings a full-contact sport. Automation is a fantastic way to ensure you get somewhere in the right savings zone by the time you retire, but checking in and reevaluating your goals as you get closer to the end-date of your career is non-negotiable. Checking in on your savings progress is an excellent first step. From there you can start to consider how you want to spend your days as a retiree, build a retirement budget, and start making financial and lifestyle changes that will help you achieve the retirement you’ve always envisioned. Want help? Contact us today . We’d love to help you evaluate your eligibility for catch-up contributions and kick off your retirement planning journey. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice. Registration of an investment advisor does not imply a certain level of skill or training.

U.S. stocks have been rising ever since the Great Recession ended. Along the way, there have been multiple times when companies have suffered bouts of decreased prices. We just experienced one of the bouts of volatility in October when the U.S. stock market declined approximately 10% from a recent high. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. Many pundits have been quick to assign blame to rising interest rates, the lengthening trade negotiations, the weakening impact of tax stimulus, and even mid-term elections, and, in some cases, all of the above! The truth is that we don’t know, and we likely will never know, what caused stock prices to fall. What we do know is that stock market price swings are normal and expected. In fact, since 1945 to September 2018, there has been 55 times that the stock market has declined by 10% or more! That means investors are faced with a decline of 10% or more every 16 to 17 months. We also know that investors are typically rewarded for tolerating market uncertainty. So, the ups and downs we experience from time to time is the price we pay for the returns we have received, and expect to receive, from our stock investments. A quick example will help make this point. Over the past 20 years ending September 30, 2018, the return on safe 30-day Treasury bills was an annualized 1.8%, but the return on S&P 500 Index was an annualized 7.4%. In dollar terms, $1 invested on October 1, 1998, would have grown to $1.42 in short-term U.S. Treasury Bills, while that same dollar would have doubled more than twice to $4.19 if invested in stocks. It absolutely was a rocky ride for stocks over the past 20 years (recall that we experienced two major bear markets), but investors were rewarded for being willing to ride through many market ups and downs. Given that stock prices do swing and that they don’t move in a straight-line, we diversify our investments among multiple asset classes. We continue to be invested in large and small companies, non-U.S. stocks from developing and emerging countries, real estate, and bonds. While we don’t expect all of these investments to deliver diversification benefits at the same time, we feel we use enough to have one or two of them provide some benefit. Depending on your asset allocation, you may have a portion of your investments in short-term, high-quality bonds. Short-term bonds are not as sensitive to the rising interests we see in the market and they are now offering a much better yield than they were just three years ago. These investments can help provide stability when our stocks are volatile. While market volatility makes some investors nervous, we take comfort in knowing that we’ve seen this before and that we’ve historically been rewards for staying the course. Given this, we don’t foresee the need to make any changes to our approach at this time, unless your tolerance for risk has changed. If you have any questions, please feel free to reach out. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: All expressions of opinion are subject to change. This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.Diversification does not eliminate the risk of market loss. Investment risks include loss of principal and fluctuating value. There is no guarantee an investing strategy will be successful.Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Registration of an investment advisor does not imply a certain level of skill or training.

Did you know that October 15th, 2018 through December 7th, 2018 is the annual open enrollment for Medicare Part D coverage for 2019? If you have a Medicare Part D prescription drug plan, or if you intend on enrolling in a plan, now is a great time to start thinking about how to reduce the costs of your prescription drugs. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. What is Medicare part D prescription drug coverage? Medicare Part D (drug coverage) was instituted in 2006 as part of the Medicare Modernization Act of 2003 . As a Medicare beneficiary, Medicare Part D prescription drug coverage is an optional insurance coverage to help you cover the costs of prescription drugs. It can be a valuable component of reducing your costs in retirement if you take prescription medications. Unfortunately, if you don’t sign up for Medicare Part D Coverage when you’re first eligible at the age of 65, a late-enrollment penalty may be imposed if you decide to enroll later. Many people are automatically enrolled in Original Medicare, Part A and Part B , when they reach 65 years of age. But, did you know that Original Medicare doesn’t cover most of your prescription medications (except those you may receive at a hospital inpatient or, in some cases, outpatient)? Medicare Part B covers certain prescription drugs that you get in an outpatient setting, like a doctor’s office. However, these medications are typically ones that a doctor needs to administer. If you want help with most other prescription medication costs, you’ll need to sign up for Medicare Part D coverage. Your Medicare Part D Coverage May Be Costing You Money In the past, there has been a lot of confusion as to who needed Medicare Part D, what plans were “the best”, and how penalties would work if you did not sign up when eligible around you 65th birthday. As a result, most people who did not have other “creditable” drug coverage , either through work or a retiree benefit, made their decision based on a company they were familiar with or medicare part D premium cost. Sadly, many people who enrolled for medicare part D didn't choose the best plan for their personal situation. Those plans are often kept over time without any review of the plan, even though there are many plans available. For example, in 2018, there are 24 Medicare Part D plans available in the marketplace. Each coverage plan has a different combination of costs based on premium, co-pay structure, deductibles, and how their drugs are treated in the “donut hole.” Additionally, some plans cover certain prescription drugs, while others do not. Every Medicare Part D prescription drug plan changes one or more cost variables every year. Additionally, your drug needs may change from year to year. As a result, the Medicare Part D prescription drug plan you had last year, may not be the best plan for you this year! The only way to properly analyze which plan meets your individual needs and has the lowest total annual cost (the only number that counts) is to run the comparison program available on the Medicare website and/or get expert advice on your medicare part D options. However, running the medicare comparison program on your own can be time consuming and often confusing. As a result, you may avoid doing it and risk paying higher out of pocket costs for you and your family. Reduce Your Prescription Drug Costs with Medicare Part D Consulting Our team at Covenant Wealth Advisors has seen how valuable it can be to analyze your Medicare Part D options. After all, every dollar counts. To help you better manage your Medicare Part D prescription drug costs, we are partnering with Margaret Mondul of Household Document Organization . Margaret is an expert when it comes to understanding medicare. She has been instrumental in helping many of our clients analyze their personal Medicare Part D insurance coverage. As a result, she has been able to reduce out-of-pocket prescription drug costs for many of our clients. Margaret typically offers her Medicare Part D prescription drug plan comparison analysis for $75.00 per person . However, due to our great relationship with Margaret, we have partnered together to offer her service at $50.00 per person. If you would like to schedule a meeting with Margaret to analyze your Medicare Part D prescription drug coverage for 2019, please email us at info@mycwa.com. We will be holding Medicare Part D consulting with Margaret on Tuesday, October 16th and Thursday, October 18th. There is limited availability to please contact us as soon as possible to reserve your spot. Margaret is a great resource and we encourage those clients who are currently on a Medicare Part D plan to see how your current plan compares with other 2019 plans. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: All expressions of opinion are subject to change. This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Diversification does not eliminate the risk of market loss. Investment risks include loss of principal and fluctuating value. There is no guarantee an investing strategy will be successful. Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Registration of an investment advisor does not imply a certain level of skill or training.

With school back in session in most of the country, many grandparents and parents are thinking about how to prepare for their grandchildren's or children’s future college expenses. Now is a good time to sharpen one’s pencil for a few important lessons before heading back into the investing classroom to tackle the issue. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. AVERAGE COLLEGE TUITION COSTS IN 2017 According to recent data published by the College Board, the average annual cost of attending college in the US in 2017–2018 was $20,770 at public schools, plus an additional $15,650 if one is attending from out of state. At private schools, average college tuition costs and fees were $46,950. It is important to note that these figures are averages, meaning actual costs will be higher at certain schools and lower at others. Additionally, these figures do not include the separate cost of books and supplies or the potential benefit of scholarships and other types of financial aid. As a result, actual education costs can vary considerably from family to family AVERAGE COLLEGE TUITION COSTS IN 18 YEARS To complicate matters further, college costs have historically increased every year. This increase is due to inflation. Inflation makes the amount of goods and services $1 can purchase decline over time. One measure of inflation looks at changes in the price level of a basket of goods and services purchased by households, known as the Consumer Price Index (CPI). Tuition, fees, books, food, and rent are among the goods and services included in the CPI basket. In the US over the past 50 years, inflation measured by this index has averaged around 4% per year . With 4% inflation over 18 years, the purchasing power of $1 would decline by about 50%. Said another way, the amount of goods that $1 will purchase today, will only purchase $0.50 worth of goods in 18 years! However, the cost of college tuition has historically risen faster than average inflation. In fact, over the past 5 years, college tuition costs have risen 5% per year. What does this mean? Well, if you plan on funding your grandchildren's or children's education, you might be in for a shock. Based on data from CollegeBoard.org , at a 5% inflation rate, the total cost to attend just one year at a public, in-state college including room, board, tuition, and fees will increase from $20,770 to $49,985! This is per year. If you want to pay for 4 years of college, total costs may rise to $215,444 in just 18-years as seen in the chart below. Going forward, we do not know what the cost of attending college will be. But again, we should expect that education costs will likely be higher in the future than they are today. So, what can grandparents and parents do to prepare for the costs of a college education? How can they plan for and make progress toward affording those costs? BEST WAYS TO SAVE FOR COLLEGE To help reduce the expected costs of funding future college expenses, grandparents and parents have several options. Invest in a 529 College Savings Plan. A 529 plan is a college savings plan that offers tax and financial aid benefits. 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. Investment earnings in a 529 plan are not subject to federal capital gains tax and generally not taxed by state governments when used for the qualified education expenses. Additionally, some states, like Virginia, allow a state tax deduction up to $4,000 per account. There are two types of 529 plans: college savings plans and prepaid tuition plans. Almost every state has at least one 529 plan. Using a tax-deferred savings vehicle, such as a Virginia 529 plan or other state sponsored 529 plan, parents may not pay taxes on the growth of their savings, which can help lower the cost of funding future college expenses. Invest in assets expected to grow faster than inflation. First, you can invest in assets that are expected to grow their savings at a rate of return that outpaces inflation. By doing this, college expenses may ultimately be funded with fewer dollars saved. Because these higher rates of return come with the risk of capital loss, this approach should make use of an adequate investment management strategy to balance the returns you need with the amount of risk you are willing to experience. While inflation has averaged about 4% annually over the past 50 years, stocks (as measured by the S&P 500 Index) have returned around 10% annually during the same period. Therefore, the “real” (inflation-adjusted) growth rate for stocks has been around 6% per annum. The real rate of return is simply the return of your investment minus inflation during the same time frame.Looked at another way, $10,000 of purchasing power invested at a 6% real rate of return over the course of 18 years would result in over $28,000 of purchasing power later on. We can expect the real rate of return on stocks to grow the purchasing power of an investor’s savings over time. We can also expect that the longer the horizon, the greater the expected growth. By investing in stocks, and by starting to save many years before children are college age, parents can expect to afford more college expenses with fewer savings. It is important to recognize, however, that investing in stocks also comes with investment risks. Like teenage students, investing can be volatile, full of surprises, and, if one is not careful, expensive. While sometimes easy to forget during periods of increased uncertainty in capital markets, volatility is a normal part of investing. Tuning out short-term noise is often difficult to do, but historically, investors who have maintained a disciplined approach over time have been rewarded for doing so. A key part of maintaining this discipline throughout the investing process is starting with a well-defined investment goal. This allows for investment instruments to be selected that can reduce uncertainty with respect to that goal. When saving for college, risk management assets (e.g., bonds) can help reduce the uncertainty of the level of college expenses a portfolio can support by enrollment time. These types of investments can help one tune out short‑term noise and bring more clarity to the overall investment process. As kids get closer to college age, the right balance of assets is likely to shift from high expected return growth assets to risk management assets. Diversification is also a key part of an overall risk management strategy for education planning. Nobel laureate Merton Miller used to say, “Diversification is your buddy.” Combined with a long-term approach, broad diversification is essential for risk management. By diversifying an investment portfolio, investors can help reduce the impact of any one company or market segment negatively impacting their wealth. Additionally, diversification helps take the guesswork out of investing. Trying to pick the best performing investment every year is a guessing game. We believe that by holding a broadly diversified portfolio, investors are better positioned to capture returns wherever those returns occur. Partner with your financial advisor. Working with a trusted financial planner who has a transparent approach based on sound investment principles, consistency, and trust can help investors identify an appropriate college savings strategy. Such an approach may limit unpleasant (and often costly) surprises and ultimately may contribute to provide you and your family more money long-term. The money you save may be reallocated toward retirement, giving to your favorite charity, or improving your lifestyle. CONCLUSION Higher education may come with a high and increasing price tag, so it makes sense to plan well in advance. There are many unknowns involved in college education planning, and no “one-size-fits-all” approach can solve the problem. By having a disciplined financial planning approach toward saving and investing, however, parents can remove some of the uncertainty from the process. A trusted advisor can help grandparents and parents craft a plan to address their family’s higher education goals. Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: All expressions of opinion are subject to change. This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Diversification does not eliminate the risk of market loss. Investment risks include loss of principal and fluctuating value. There is no guarantee an investing strategy will be successful. Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Registration of an investment advisor does not imply a certain level of skill or training.

Retirement is a milestone that most people look forward to, but it can also be a source of stress and uncertainty. One of the most important decisions you'll make as you approach retirement is choosing a financial planner. A good financial planner can help you navigate the complexities of retirement planning, create a retirement plan tailored to your needs, and ensure that you have enough money to live comfortably throughout your retirement. In this article, we'll explore how to pick a financial planner for retirement, and provide you with the information you need to make an informed decision. Many Americans haven't contacted a financial planner simply because they don't know where to look or how to assess their expertise and cost. To address this, we've designed a free quiz to connect you with a credible, competent, and experienced financial advisor. This quiz gauges your needs and pairs you with a financial advisor who specializes in retirement income planning. You can then consider working with the advisor based on his/her specialties, pricing, and other factors. Plus, each match comes with a free consultation , empowering you to make an informed decision when choosing a financial advisor. Choosing a financial planner for retirement is not a decision to be taken lightly. Your financial planner will be responsible for managing your retirement savings, helping you invest your money, and making sure you have enough income to support yourself throughout your retirement. With so much at stake, it's important to take the time to find the right financial planner for you. To do so, you'll need to start by determining your retirement goals. What do you want your retirement to look like? Do you plan to travel extensively, or do you plan to spend most of your time at home? Do you have any specific financial goals, such as paying off debt or leaving money to your heirs? Once you have a clear idea of what you want to achieve in retirement, you can start looking for a financial planner who can help you reach those goals. Here's how to pick a financial planner for retirement. Determine Your Retirement Goals The first step in picking a financial planner for retirement is to determine your retirement goals. Retirement looks different for everyone, and it's important to have a clear idea of what you want your retirement to look like. Ask yourself some key questions, such as: When do you want to retire? What kind of lifestyle do you want in retirement? Do you have any specific financial goals for retirement? Do you want to leave money to your heirs? What kind of retirement savings do you currently have? Your answers to these questions will help you determine what kind of financial planner you need. For example, if you want to retire early and travel extensively, you may need a financial planner who specializes in retirement planning for people who want to travel. Alternatively, if you have specific financial goals, such as paying off debt or saving for a child's college education, you may need a financial planner who can help you achieve those goals. It's important to be as specific as possible when determining your retirement goals. The more specific you are, the easier it will be to find a financial planner who can help you achieve those goals. Once you have a clear idea of what you want to achieve in retirement, you can start looking for a financial planner who can help you create a retirement plan that is tailored to your needs. Research Potential Financial Planners Once you've determined your retirement goals, the next step is to research potential financial planners who can help you achieve those goals. There are several ways to find financial planners, including: Referrals from friends or family members Online search engines or directories Professional organizations, such as the Financial Planning Association or the National Association of Personal Financial Advisors Social media platforms, such as LinkedIn Once you have a list of potential financial planners, it's important to research them thoroughly. Look for information on their website or social media profiles, and read reviews from previous clients. You can also check their credentials by looking up their name on the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA) websites. When researching potential financial planners, pay attention to their experience, credentials, and areas of specialization. Look for financial planners who have experience working with clients in a similar financial situation as yours, and who have a track record of helping clients achieve their retirement goals. Finally, look for financial planners who specialize in retirement planning like we do here at Covenant Wealth Advisors, as they will have the knowledge and expertise necessary to help you create a retirement plan that is tailored to your needs. Check Credentials Once you've narrowed down your list of potential financial planners, it's important to check their credentials to ensure they are qualified to provide financial advice. Checking credentials is an important step in the process of picking a financial planner, as it helps you avoid scams and ensures that the financial planner you choose has the necessary education, experience, and certifications to provide you with sound financial advice. When checking a financial planner's credentials, there are several things to look for: Licenses: Financial planners must be licensed to provide financial advice in their state. Check with your state's securities regulator to make sure the financial planner you're considering is properly licensed. Certifications: Financial planners may also hold certifications from professional organizations, such as the Certified Financial Planner (CFP) Board or the Chartered Financial Analyst (CFA) Institute. These certifications indicate that the financial planner has met certain education and experience requirements. Regulatory Actions: Check the financial planner's disciplinary record with the SEC, FINRA, or your state's securities regulator to see if they have any regulatory actions against them. Complaints: Look up the financial planner's record with the Better Business Bureau and other consumer protection organizations to see if they have any complaints against them. Checking a financial planner's credentials can be time-consuming, but it's an important step in ensuring that you choose a financial planner who is qualified to provide you with sound financial advice. By verifying their licenses, certifications, and disciplinary record, you can ensure that the financial planner you choose is trustworthy and has the necessary skills and experience to help you achieve your retirement goals. Ask for Referrals and Read Reviews Another important step in picking a financial planner for retirement is to ask for referrals and read reviews from previous clients. Referrals from friends, family members, and other trusted sources can be a valuable resource when choosing a financial planner, as they can provide insight into the financial planner's communication style, expertise, and overall performance. Reading reviews from previous clients can also help you get a better sense of what it's like to work with the financial planner. When asking for referrals, be sure to ask people who are in a similar financial situation as you, and who have similar retirement goals. This will help ensure that the financial planner you choose has experience working with clients like you, and has the expertise necessary to help you achieve your retirement goals. When reading reviews, look for patterns in the feedback. Are there consistent complaints about the financial planner's communication style, fees, or performance? Or are the reviews overwhelmingly positive? Use the reviews as a tool to help you make an informed decision about the financial planner you're considering. It's important to keep in mind that not all referrals and reviews are created equal. Be wary of referrals from financial planners themselves, as they may have a conflict of interest. Similarly, be wary of reviews on the financial planner's website, as they may be selectively chosen to present a positive image. By asking for referrals and reading reviews from previous clients, you can gain valuable insight into the financial planner's performance and overall approach to retirement planning. Use this information to help you narrow down your list of potential financial planners, and move on to the next step: interviewing potential financial planners. Interview Potential Financial Planners Once you've narrowed down your list of potential financial planners, it's time to start interviewing them. This is an important step in picking a financial planner, as it allows you to get a better sense of their communication style, expertise, and overall approach to retirement planning. When interviewing potential financial planners, be sure to ask plenty of questions. Some questions you may want to ask include: What is your approach to retirement planning? How do you ensure that my retirement plan is tailored to my specific needs? What kind of investment strategies do you recommend? What is your fee structure? How often will we meet to review my retirement plan? How do you stay up-to-date on changes in the financial industry? Can you provide references from previous clients? Pay attention to the financial planner's communication style during the interview. Do they explain complex financial concepts in a way that's easy to understand? Do they take the time to answer your questions thoroughly? A good financial planner should be patient, knowledgeable, and able to explain financial concepts in a way that's easy to understand. It's also important to consider the financial planner's experience and expertise. Look for a financial planner who has experience working with clients in a similar financial situation as yours, and who has a track record of helping clients achieve their retirement goals. Consider the financial planner's investment philosophy and approach to risk management, and make sure it aligns with your own goals and risk tolerance. By interviewing potential financial planners, you can get a better sense of their communication style, expertise, and overall approach to retirement planning. Use this information to help you make an informed decision about the financial planner you choose to work with. Consider Their Approach and Expertise When picking a financial planner for retirement, it's important to consider their approach and expertise. Different financial planners have different approaches to retirement planning, and it's important to find one whose approach aligns with your own goals and values. Consider the financial planner's investment philosophy and approach to risk management. Do they take a conservative or aggressive approach to investing? Are they experienced in managing risk? Make sure their approach aligns with your own goals and risk tolerance. It's also important to consider the financial planner's areas of expertise. Look for a financial planner who specializes in retirement planning, as they will have the knowledge and expertise necessary to help you create a retirement plan that is tailored to your needs. Consider their experience working with clients in a similar financial situation as yours, and their track record of helping clients achieve their retirement goals. Finally, consider the financial planner's fee structure. Some financial planners charge a flat fee for their services, while others charge a percentage of assets under management. Make sure you understand the financial planner's fee structure, and that it aligns with your own financial goals and budget. By considering the financial planner's approach and expertise, you can ensure that you choose a financial planner who has the knowledge, experience, and approach necessary to help you achieve your retirement goals. Compare and Make a Decision Once you've interviewed potential financial planners and considered their approach and expertise, it's time to compare them and make a decision. This can be a difficult decision, as you want to choose a financial planner who is trustworthy, knowledgeable, and experienced. Consider the financial planner's track record of helping clients achieve their retirement goals. Look for a financial planner who has a track record of success, and who has helped clients achieve similar retirement goals as your own. Consider their communication style and responsiveness, as it's important to choose a financial planner who you feel comfortable communicating with. Compare the financial planner's fee structure and make sure it aligns with your own budget and financial goals. Look for a financial planner who charges a fair and transparent fee for their services, and who is upfront about any potential fees or charges. Finally, consider your own intuition and gut feeling. After interviewing potential financial planners and considering their approach and expertise, you should have a good sense of which financial planner is the best fit for you. Trust your instincts and choose the financial planner who you feel is the best fit for your retirement goals and financial situation. By comparing potential financial planners and making a decision based on their track record, fee structure, and your own intuition, you can ensure that you choose a financial planner who is trustworthy, knowledgeable, and experienced, and who can help you achieve your retirement goals. Establish a Relationship with Your Financial Planner Once you've chosen a financial planner for your retirement, it's important to establish a strong working relationship with them. This means communicating your retirement goals and expectations clearly, and working with your financial planner to create a retirement plan that is tailored to your needs. Establishing a strong working relationship with your financial planner also means staying engaged in the retirement planning process. Schedule regular meetings with your financial planner to review your retirement plan and make any necessary adjustments. Keep them informed of any changes in your financial situation or retirement goals, and ask questions if you don't understand something. It's also important to be transparent with your financial planner about your financial situation. Provide them with accurate information about your income, expenses, and retirement savings, so that they can create a retirement plan that is tailored to your specific needs. Finally, make sure you are comfortable with your financial planner's approach to risk management and investment strategies. If you have concerns or questions, don't hesitate to ask your financial planner for clarification. By establishing a strong working relationship with your financial planner, you can ensure that you have a retirement plan that is tailored to your needs and goals, and that you have a trusted advisor who can help you navigate the complexities of retirement planning. Conclusion Picking a financial planner for retirement is an important decision that can have a significant impact on your financial future. By taking the time to determine your retirement goals, research potential financial planners, check their credentials, ask for referrals and read reviews, interview potential financial planners, and compare and make a decision, you can ensure that you choose a financial planner who is knowledgeable, experienced, and trustworthy. Establishing a strong working relationship with your financial planner is also crucial. Be transparent about your financial situation, stay engaged in the retirement planning process, and make sure you are comfortable with your financial planner's approach to risk management and investment strategies. Ultimately, a good financial planner can help you create a retirement plan that is tailored to your specific needs and goals, and provide you with the guidance and support you need to achieve financial security in retirement. By following the steps outlined in this article, you can make an informed decision about the financial planner you choose to work with, and set yourself on the path to a comfortable and secure retirement. Are you interested in picking a financial planner for retirement? We specialize in retirement income planning, investing, and tax planning leading up to and through retirement for individuals age 50+ who have over $1 million in investments. Contact us today for a free consultation. Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view.

Social Security may seem complicated, and there are certainly a myriad of rules to consider. However, you don’t have to be a mathematician or economist to make the most of your Social Security benefits. Let’s look at the answers to some of retirees' most critical Social Security questions. How Do Social Security Benefits Work? Social Security provides retirees with a consistent income stream once they retire and claim their benefits. In general, your Social Security income is estimated to replace about 40% of your pre-retirement income, but that number could vary significantly from person to person. To qualify for Social Security benefits, you need to earn a minimum number of credits over your working years. You receive a credit by earning a certain amount of income from covered employment within a year. For 2021, you earn a credit for every $1,470 in income, up to 4 credits per year. To qualify for a retirement benefit, you need to earn 40 credits. For disability benefits, you need 20 credits. Social Security benefits are funded through payroll taxes of 12.4%. If you are employed through a company, then your employer pays half of that amount for you. If you are self-employed, you pay the full 12.4%. You do get a little break come tax-time as you can deduct your half of the tax. Ultimately, you’ll only owe 12.4% on 92.35% of your income. The amount of your income that is subject to the payroll (FICA) tax is capped by a limit set by the IRS each year. For 2021, that cap is $142,800. Social Security benefits are one of the only types of retirement income that considers inflation. Each year, the Social Security Administration announces a cost-of-living adjustment (COLA). In 2021, benefits are set to increase by 1.3%. With the modest rise in Medicare premiums, beneficiaries will actually see an increase in their monthly checks. Can You Calculate Your Benefit? Qualifying for Social Security and determining the amount of your benefit are two different situations. In addition to ensuring that you earn enough credits to earn eligibility, you also need to track your benefit amount. Social security benefits are based on lifetime earnings. The Social Security Administration calculates your benefits by indexing your highest 35 earning years against a formula to come up with your primary insurance amount. Your primary insurance amount is the value you’d get for claiming at your full retirement age—in other words, for filing “on time”. Because your lifetime earnings directly affect the size of your Social Security benefit, we recommend that you check your earnings record often. If you do and notice a problem, you have time to correct it. You can check your earnings history on the Social Security website by creating an online account. You can also check out your local Social Security office for other questions or other benefit enrollment questions. While it may seem like there isn’t much planning opportunity with your earnings record, there is a particularly key item we think you should pay attention to—your total number of earning years. Work The Full 35 Years Since Social Security benefits are calculated from your highest 35 years of earnings, it makes sense to make sure you at least have 35. If you don’t, say you only have 29 years, then the SSA inputs a 0 in their formula for every year under 35, in this case, 6. Those zeros could have a significant impact on your monthly benefit. It’s often wise to work a few extra years to replace some of those zeros and boost your future benefit. If you are in your peak earning years, then those zeros could be replaced with above-average earnings. In the grand scheme of things, those extra earnings can make a big difference in your total Social security retirement benefit. There is a maximum benefit depending on when you file, regardless of your earnings. For 2021, those maximums are: Start at age 70 - $3,895/month ($46,740/year) Start at FRA (full retirement age) - $3,113/month ($37,356/year) Start at age 62 - $2,324/month ($27,888/year) When Should You Enroll? The decision of when to claim your benefit is perhaps the most debated question about Social Security. It may also be the most important. Your enrollment plays a major role in your future benefits. If you claim at your full retirement age, you will receive your primary insurance amount as described above also known as your full benefits. However, you have two other choices. You can increase that benefit by accruing delayed retirement credits (up until you turn 70) or you can claim your benefit as early as 62 in exchange for a reduced benefit. Claiming early can reduce your benefit by up to 30%, while delaying can increase it by up to 32%. The common way of thinking about this decision is to consider when you would “break-even”. We tend to see that most clients that delay break even around the time they turn 78. After this, the clients that delay are better off for receiving the higher benefit. By today’s standards, 78 is still quite young. However, like most financial planning decisions, this needs to be tailored to your circumstances. If you're planning an early retirement or have a medical condition or family history that suggests it is very unlikely you will live past 78, then it could be better to file early. There are also special considerations for married couples . If you pass, then the benefit you leave to a surviving spouse depends on your own benefit, so it’s critical to consider how that decision affects them. There might also be other family members or dependents that rely on your income. Be sure to consider those circumstances as well. Are Your Social Security Benefits Taxed? Taxation is a key planning consideration in retirement . One of the reasons that Social Security benefits factor into your tax analysis is because they are taxed, and taxed uniquely. How will Social Security taxes factor into your benefit? First, not all of your Social Security benefit is taxed. The amount of your benefit that is subject to income tax depends on a special measure of income called combined income. Your combined income is basically your gross income (not including Social Security) plus any tax-exempt interest such as the interest you receive from municipal bonds and one-half of your Social Security benefit. Depending on your combined income, either none of your Social Security benefits is taxable, 50% is, or 85% is. For individuals, the income thresholds for these taxation levels are: Under $25,000 is 0% $25,000-$34,000 is 50% Over $34,000 is 85% Some states also tax your Social Security benefits, but not all do. Fortunately, Virginia is a state that doesn’t! How Does Working Impact Your Benefits? Many people that claim their benefit early choose to continue working full-time or part-time. If you decide to start taking your benefit before you reach full retirement age and continue to work, then you may see your benefit temporarily reduced due to the earnings test. There is a limit to how much you can earn while receiving Social Security benefits before your full retirement age. For 2021, that amount is $18,960. For every $2 you earn above that limit, your Social Security benefit is reduced by $1. However, in the calendar year you reach full retirement age, that earnings limit is increased to $50,520, and the reduction is reduced to $1 for every $3 you earn above the limit. The bright side? You don’t lose this money for good. In addition to receiving your normal benefit amount, the amount you were penalized will be added back to your monthly benefit once you reach full retirement age. Is Your Spouse Eligible? Spousal benefits are the area where Social Security planning can become more complicated. It is especially helpful to work with an experienced financial advisor to evaluate the best options for you and your spouse. Some of the available scenarios can be quite complex. For example, special rules allow a surviving widow/widower to receive a benefit as early as age 60 and continue to delay their personal benefit up to age 70. Spouses are generally eligible to collect up to 50% of the primary earner’s benefit should they both collect at FRA. The lower-earning spouse should usually choose the higher of their own benefit or the spousal benefit of 50% of the primary wage earners benefit. A common misconception is that the spousal benefit reduces the primary earner’s benefit, but that is not the case. Divorced spouses are also eligible for benefits provided they are at least 62, the marriage lasted 10 years, they haven't remarried (doesn't matter if the ex-spouse remarried or not), and the spousal benefit would be higher than their own. You may have heard about a popular filing strategy called "File and suspend," which allowed the highest-earning spouse to delay their benefit while taking spousal benefits from their spouse to help maximize their total lifetime income from Social Security. Unfortunately, that has now been eliminated by Congress through the Bipartisan Budget Act of 2015. Couples do, however, still have the option for the highest earner to delay until age 70, while other spouse takes their benefit. When the higher earner files and the spousal benefit is unlocked, the lower earner can then claim the higher spousal benefit. Keep in mind that the lower-earning spouse would have to wait until their FRA to start their benefit to get the full spousal amount as well. Let’s Make Social Security Simple Together. There is much more to Social Security than deciding when to start your benefits. The rules can be complex and Social Security decisions need to be made in the context of a broader financial plan. We can help you navigate Social Security with our training and experience. We also have access to software that helps us effectively analyze a client's Social Security scenario, and blend it in with their overall financial plan to help them make the best choices for their retirement. Let’s discover how to maximize your Social Security benefits together. Talk to one of our financial advisors and get a free retirement assessment. Scott is a Wealth Manager for Covenant Wealth Advisors and is a CERTIFIED FINANCIAL PLANNER™ (CFP © ) practitioner and a Certified Public Accountant (CPA). Scott has over 16 years of experience in the financial services industry in the areas of financial planning and investment management. Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place.