Platinum Point Financial

The universe rewards those who practice discipline, consistency, and patience. The same is held true with personal finance & investing.

Prepare for uncertainties in life. Life in uncertain - spending shocks and/or job losses can happen at anytime. Emergency savings can help pay for these uncertainties and keep retirement savings intact. Workers vs. Retirees Workers typically encounter spending shocks more frequently than income shocks. For workers, a general rule of thumb is to set aside 3-4 months of pay to offset any financial changes. Retirees encounter more spending shocks in larger amounts than workers, likely due to unpredictable costs such as healthcare. For retirees, a general rule of thumb is to set aside 3-6 months of income. These numbers can change and depend on the specific situation.

Estate planning tools to manage your affairs: 1. Durable Power of Attorney: Allows you to have control over who will manage your financial & legal affairs in the event you become incapacitated. Avoids time & expense of your family waiting on a court to appoint a conservator or guardian. -Necessary for all adults. 2. Beneficiary Designations: Gives you control and may preserve tax options for individuals named as beneficiaries. Avoids probate. -Necessary for individuals with retirement accounts & life insurance. 3. Will: Allows you to control your legacy. Gives you the ability to appoint a guardian for young children. -Necessary for all adults with property or young children. 4. Trusts: Allows family to avoid probate, more private than a will, maybe be used for tax planning and/or more complex goals such as providing for special needs relatives. -Necessary for specific situations. Don't wait to take care of your estate planning items!

Reasons why Roth Conversions can be impactful: 👉 Diversifying Your Tax Lability in Retirement -It is generally prudent to build a mix of retirement assets. Building a 100% traditional pre-tax nest egg can cause a tax bomb in retirement. 👉 Higher Tax Rate in Retirement -If you expect your tax rate will be higher in the future, converting traditional accounts to Roth accounts and paying the tax now could make sense. 👉 Longer Time Horizon -The longer your time horizon, the more time you have to recoup taxes paid on the conversion. The monies converted are then free and clear of taxes on any future interest accrued and can lead to a massive future tax savings. 👉 Relatively High-Income Beneficiary -Roth conversions may reduce income taxes for beneficiaries if the original account has been open for 5 years (may also have other requirements). There are many other factors to consider before converting to Roth. Make sure to research your specific situation to see if it makes sense or you are speaking with a certified professional before making any of these important decisions. Have questions? Feel free to reach out: https://lnkd.in/eeeZtmSQ

Principles for Successful Long Term Investing: 1. Plan on living a long time. The average lifespan is only increasing, which puts additional pressure on the amount of money you will need for retirement. To combat this, plan on saving and investing more. 2. Cash isn't always king. Overtime, inflation erodes cash and its purchasing power. Consider investments that keep pace or outpace inflation. 3. Harness the power of compounding. 4. Avoid emotional biases by sticking to a plan. Volatility is normal, so don't let it derail you. 5. Diversification is generally prudent and is a winning strategy in the long run. 6. Staying invested matters and is the most essential principle of all. Time in the market trumps timing the market.

You cannot build wealth if you keep spending more than you make. Wealth building has more to do with how much you are able to keep, not how much you earn.

What procrastination on managing your overall finances steals from you is one of the most important assets: The time to let money invested compound into wealth.

A properly structured plan will balance out the variables so you are diversified by asset class, risk levels, tax treatment, and time horizon.

"How much should I be saving?" A good goal to work toward is saving and investing around 20% of your gross income each year. Some years you will save less, and others more, aim to hit the 20% average over your working years. If you are getting a later start toward saving towards retirement, you may need to save more.

Investing is not about predicting the market's future moves, but much more about positioning you money across various asset classes so that your money can earn interest and sustain purchasing power over the years.