Inheritance, by definition, is the devolution of property on an heir or heirs upon the death of the owner. Wow! Can you imagine a more impersonal definition of inheritance? I know the topic is controversial and not everyone views an inheritance the same way, but it is a very important subject to reflect on. Granted, not all inheritances are equal. However, those that do receive them should be careful on how they proceed with them.

Before I dig into this topic it is very important to know that you should consult a tax professional and possibly an attorney with any inheritance you receive before you begin to determine what you might do with it. My article is more prevalent to what you do after your inheritance has cleared taxes, probate and any legal hurdles before getting into your hands.

Most inheritances come in the form of some type of monetary value. With that said, you should know that the most common theme when we talk about estate planning is not leaving an inheritance but leaving a legacy. I can’t tell you how many times that we have spoken with clients about their estate planning needs and we hear about how concerned they are about getting things right for their heirs. There is a lot of sentimental value in play, and they truly want their heirs to get more than just monetary property. The overwhelming majority want to leave a legacy of how they want to be remembered. They also don’t want to hurt anyone with or without money. Don’t misunderstand that last sentence. They are truly concerned about leaving money behind to someone they think might not be capable of handling it for fear that it might do more harm than good. Sometimes, it makes more sense to spread that gift over years instead of a mere lump sum to protect heirs from themselves and or their family. No matter how or what you receive, you need to follow a few steps.

First, slow down once you receive the inheritance. It’s very important to allow yourself the time to reflect upon the gift before you decide what you will do with it. You could have a multitude of options with your inheritance unless the gift comes with specific instructions for use. Time will help you decipher what makes the most sense for you and your family before actually moving forward with your plans.

Second, understand that the inheritance is yours! So many times I see heirs hanging on to items whether it be real estate, stocks and bonds, cars, and a host of other things because they still see them as their benefactors items. The reality is they left it to you for your discretion. As long as you took the proper amount of time to reflect on what to do and how to do it, then you should be at peace making informed decisions about the steps you take with those items.

And lastly, make preparations to put yourself in a position where you might be able to do the same thing for your heirs one day. Remember, for the vast majority, it’s not about leaving an inheritance but more importantly leaving a lasting legacy. With proper planning, you could do the same.

If you happen to follow any type of financial news, you may have noticed a large interest being placed on gold in the current market.  There are television commercials offering cash for gold as well as local and home business’s that are sprouting up everywhere to get in on the modern day rush.  However, before deciding whether gold has a place within your portfolio, make sure you understand the factors that drive demand as well as how gold has historically complemented other financial assets.
According to the World Gold Council, demand in 2010 has been driven by a growing desire for jewelry in China and India, strong interest from European and US investors in the wake of economic instability, and fears about the potential for a double dip recession.  A weak dollar has also contributed to rising gold values.  This is know to happen when the fed cuts rates because it makes the dollar less attractive to overseas investors which in turn helps push up gold prices.  All of these concerns have driven gold to an all time high but is the recent surge justified or are we inflating another bubble that might soon pop?

Those that question current valuations point to a period between January 1979 and January 1980.  During that time, the price of gold more than tripled from $227 an ounce to $678 an ounce.  As the price of gold subsequently declined, those investors who purchased gold at its January of 1980 inflation adjusted peak would have had to wait until April of 2007, more than 27 years, to break even.[1]  This, of course, does not necessarily mean that gold is set to take another fall but it does point to the investment risk of purchasing an asset that has experienced a significant surge in value such as housing did in previous years as well as oil did in 2008.

If and when you start evaluating whether gold is a suitable investment given your situation, consider its potential diversification benefits when included in a portfolio along with other assets.  Historically, the correlation between gold and other financial assets; such as domestic stocks, foreign stocks, government bonds, REIT’s, and cash,  has been low.  That means that if the above mentioned assets declined in value, then gold may hold steady or increase which in turn helps reduce a portfolio’s overall volatility.  And if you are thinking about investing in gold, do it carefully.  Make sure you talk with a qualified advisor who understands the gold markets and can help you make an educated decision about your next steps and what are the best ways to purchase gold.  No matter which direction you go, make sure you make your decisions based more on good information and less on emotion.

[1]Source: Standard and Poor’s.  Gold is represented by the 4 p.m. London fix.

It’s safe to say when it comes to money that we all have different emotions with handling it.  If that weren’t true, we would all have stress free relationships when it comes to the topic.  So, why is there no simple formula that works for everyone?  The answer is that we all have different financial blueprints.
I once was told that a budget tells you what you can’t afford but it doesn’t keep you from buying it.  Some people might laugh at that statement and others might cry because it holds true for them.  The reason being is that we all have a different blueprint when it involves money.  A lot of people derive their financial DNA, both good and bad, from their childhood.  I’ve seen instances where parents did everything they could to teach their kids about money and saving.  They penny pinched and made sure they were resourceful with their funds and did what was needed to provide for the family needs as well as saving for their future.  Some kids grew into adults and thrived and others went broke.  Why is that? Well, one child sees the value of saving and planning and the other sees that scenario as a financial jail and wants to let the money out.  It seems strange but it is very real.  It’s like the person who was handed down clothes their entire life growing up and when they start earning their own money has a new piece of clothing every week.  This happens because in both instances the kids had different emotions to money.

The same dynamic holds true in regards to investments.  Some people are naturally conservative while others are not.  Yet time after time, I see people make the fundamental mistake of investing outside of their natural comfort zone with money whether it is too conservative or too aggressive.  They usually do this because that’s what they were told to do, they didn’t understand their financial blueprint, or they didn’t truly understand their investments.  That’s why there is no one size fits all category with money.  We all are shaped differently in regards to money and have different needs and wants.  However different we are, there is a solution to every problem if you unlock your blueprint and find the right combination whether it’s with budgeting, saving, investing, or any other thing with money.  So, what should you do?

 First, embrace the fact that we’re all different.  You’ll save yourself a lot of time trying to make sense of it all.  Second, start uncovering your blueprint.  Go back through some of your most recent purchases or financial decisions and determine why you made them the way you did.  This is not meant for you to second guess yourself.  You want to uncover what makes you tick and embrace the parts that work and acknowledge the parts that don’t.  And lastly, take a second look at your financial plan and see if it truly fits you.  Just like every house has its own unique blueprint to the lay of the land, you also have your own unique financial blueprint to yourself.  Improve the parts that need improving and embrace the parts that are just right and you will start living within a happy home of your financial self.

Information is provided for informational use only and should not be construed as legal, tax, accounting, or investment advice. You should consult a qualified professional for advice specific to your situation. Any opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions. Past performance does not guarantee future results. 

Kevin MacWilliams is a Financial Advisor at Clearview Financial Group.   Securities are offered through Securities America, Inc., Member FINRA/SIPC.   Advisory services offered through Securities America Advisors, Inc.  Kevin MacWilliams, Representative, Clearview Financial Group and the Securities America Companies are unaffiliated.  Kevin MacWilliams is licensed to conduct securities business in the states of AL, GA, IN, NC, OH, TN, and TX.  Kevin MacWilliams is also licensed to conduct insurance business in OH and TN and advisory business in OH and TN.  For more information, please call Kevin at 826-2279 Ext 4, or e-mail  and or visit Clearview Financial Group.

As individuals and families nudge ever so closer to the end of their career and the beginning of retirement, their minds can’t stop from wandering about the what if’s that lie ahead.  The most popular question I’m asked when working with these fine people is “Do I have enough money to provide an income for the rest of my life?”  This simple question is by far the most analyzed and thought provoking question they ponder before retirement comes whether by choice or not.  That’s why it’s so important to know or at least plan for the new beginning that retirement holds.  It’s a mindset change from accumulating wealth over a span of years to distributing that wealth over a lifetime.

 Perhaps today more than ever before, retirees face a different reality in retirement.  We are looking at a generation of people that are stepping into retirement with more uncertainty about what the future holds.  They’re not convinced about the security of social security, the healthcare benefits they’ll have with Medicare, or the inflationary costs of healthcare and taxes in the years ahead.  The same holds true of their income.  Soon to be retirees face the uncertainty of what their nest egg is really supposed to do for them.  They have always been focused on growing their assets but not truly understanding how that will translate to income for future years.  Retirees see commercials of what retirement looks like from all different types of sources and they all simply give a preconceived notion of what happiness in retirement looks like.  What it doesn’t show is the pitfalls that potentially lie ahead that I mentioned earlier.  So, the question remains “Will you have enough money to last your lifetime?”

 This is a serious question that should not leave room for doubt.  If you are nearing this phase of your life whether that is 10 years or less from now, you owe it to yourself to do some real self examining of what has to happen to prepare for the expected as well as the unexpected in the next phase of your life.  There are solutions to this problem if you plan accordingly and take the necessary steps to put your retirement plan in focus of your overall long term income needs.  It might not be easy and there could be hurdles to overcome but the sooner you address it the more prepared you might be. 

 In closing, talk with an advisor that can outline a plan that fits your overall objective and risk profile.  The financial realties of our world are changing and we should be changing with it.  My company provides options such as the NextPhase Retirement Income Solutions which is specifically designed to face head on the retirement income needs questions we will all face at some point in time.  Please feel free to reach out to our office or speak with your advisor about working toward your goal of having a retirement income to last your lifetime. 

Information is provided for informational use only and should not be construed as legal, tax, accounting, or investment advice. You should consult a qualified professional for advice specific to your situation. Any opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions. Past performance does not guarantee future results. 

Kevin MacWilliams is a Financial Advisor at Clearview Financial Group.   Securities are offered through Securities America, Inc., Member FINRA/SIPC.   Advisory services offered through Securities America Advisors, Inc.  Kevin MacWilliams, Representative, Clearview Financial Group and the Securities America Companies are unaffiliated.  Kevin MacWilliams is licensed to conduct securities business in the states of AL, GA, IN, NC, OH, TN, and TX.  Kevin MacWilliams is also licensed to conduct insurance business in OH and TN and advisory business in OH and TN.  For more information, please call Kevin at 826-2279 Ext 4, or e-mail  and or visit Clearview Financial Group.

If you’re considering retiring in the near future, you’ve probably heard or read that you need about 70% of your end salary to live comfortably in retirement. This estimate is frequently repeated … but that doesn’t mean it is true for everyone and it may not be true for you.

You won’t learn how much retirement income you’ll need by reading this article. You’ll want to meet with a qualified retirement planner who can help you plan to estimate your lifestyle needs and short-term and long-term expenses. That said, there are some factors which affect retirement income needs – and too often, they go unconsidered.

Health. Most of us will face a major health problem at some point in our lives – perhaps even multiple or chronic health problems. We don’t want to think about that reality. But if you’re a new retiree, think for a moment about the costs of prescription medicines, and recurring treatment for chronic ailments. These minor and major costs can really take a bite out of retirement income, even with a great health care plan.

Portfolio. Many people retire with investment portfolios they haven’t reviewed in years, with asset allocations that may no longer be appropriate. New retirees sometimes carry too much risk in their portfolios, with the result being that the retirement income from their investments fluctuates wildly with the vagaries of the market. Other retirees are super-conservative investors: their portfolios are so risk-averse that they can’t earn enough to keep up with even moderate inflation, and over time, they find they have less and less purchasing power.

Spending habits. Do you only spend 70% of your salary? Probably not. If you’re like many Americans, you probably spend 90% or 95% of it. Will your spending habits change drastically once you retire? Again, probably not. Most people only change spending habits in response to economic necessity or in pursuit of new financial goals. People don’t want to “live on less” once they have had “more”.

Social Security (or lack thereof). In 2005, SSI represented 39% of a typical 65-year-old retiree’s income. But by 2030, Social Security may only replace 29% of that income, after deductions for Medicare premiums and income taxes. Since 1983, retirees earning more than $25,000 in SSI have had to pay income tax on a portion of their benefits.  This is all presuming Social Security is still around in 2030.

So, will you have enough? When it comes to retirement income, a casual assumption may prove to be woefully inaccurate. Meet with a qualified retirement planner while you are still working to discuss these factors and estimate how much you will really need.

Information is provided for informational use only and should not be construed as legal, tax, accounting, or investment advice. You should consult a qualified professional for advice specific to your situation. Any opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions. Past performance does not guarantee future results. 

Kevin MacWilliams is a Financial Advisor at Clearview Financial Group.   Securities are offered through Securities America, Inc., Member FINRA/SIPC.   Advisory services offered through Securities America Advisors, Inc.  Kevin MacWilliams, Representative, Clearview Financial Group and the Securities America Companies are unaffiliated.  Kevin MacWilliams is licensed to conduct securities business in the states of AL, GA, IN, NC, OH, TN, and TX.  Kevin MacWilliams is also licensed to conduct insurance business in OH and TN and advisory business in OH and TN.  For more information, please call Kevin at 826-2279 Ext 4, or e-mail  and or visit Clearview Financial Group.

Why is it that most people plan thoughtfully for life goals but seem to push to the side their financial planning goals?  This is a question that has confused me for years.  It’s like people are programmed to fall short on financial matters.  Then it hit me, most people are programmed to fall short on financial matters.  Think back to your time in school for instance.  Do you remember learning about budgeting your finances and investments or how to start and operate a business?  I would venture to say most likely not.  We were taught how to dissect a frog and label its intestines not to mention a score of other things we’ve never used since the day we finished a particular class.  With that said, we need to learn how to develop the right money habits to achieve financial freedom and I’d like to cover a few of those with you now.

First of all, have a budget.  This is a simple solution to a lot of financial problems out there.  However, most people live without one and that includes the affluent.  I would recommend your do a review of your most recent bank statement and write out on a piece of paper where all of your money went the past 30 days.  Once completed, most people are literally mystified by how they spent their money.  This would be a great start to prioritize your expenses and start saving.

Next, distinguish your needs from desires.  This usually is a hard sell because we are all emotionally driven when it comes to our purchase decisions.  Ask yourself this question next time, “Do I need this item or do I just want it?”  If you get in the habit of asking good questions you’ll save a lot over the course of the year and be much better off for it.

Next, you must learn the difference between good debt and bad debt.  Some experts say that no debt is the only way.  However, not everyone can do that.  That’s why it’s important to make good decisions with debt.  The basic rule is this; a bad debt is an item or good that will depreciate in value such as a vacation you can’t afford, a more expensive car, or basic extracurricular activities that use your credit card for.  A good debt is something like a mortgage, business loan, or student loan.  If used for the right reasons, these kinds of debts could be referred to as “investment debts” because they are meant to add long term value down the road.

And lastly for this article, start to set financial goals and take them seriously.  When people begin to educate themselves about money, they start to see how the financial world works and begin to see their own potential in it.  Ideally, they’ll align themselves with a financial advisor who can help guide them along the way and provide them a shared commitment to wealth building.  If you haven’t made such a commitment, then today is as good as any to make that happen.

It’s that time of year again, the time we conduct a self evaluation of ourselves and circumstances and see what areas we want to improve. We like to refer to them as resolutions even though we should call them and, more importantly, treat them as goals. Regardless of your choice of terms, this year happens to have even more significance. “Why?” you might ask. Well, not only do we close out 2009 and enter into the New Year but we also start the next decade of our lives as well. So, what financial resolutions do you have in store for this coming year and decade?

I know trying to forecast 10 years out is pretty difficult considering the last ten years we just experienced. We’ve dealt with the Y2K scare, then 9/11, two wars, the tech bubble, the real estate bubble, and the Wall Street bubble. As grim as all of that sounds, we’re still here and are pushing through. It’s not been easy and probably won’t be any easier going forward but how did you progress during that timeframe. Are you in a better financial position now than when you started? If so, what were some of the things that helped you improve your situation. Try and look back to see what things you could have done better such as household budgeting, saving more, or spending less. This exercise is not meant for you to go back and beat yourself up, it’s more for you to learn from your past decisions in case you experience the same type of challenges going forward.

With that said, what should you be doing right now to get ready for all of the positive change you want to experience in the New Year and beyond? First, write down your financial resolutions and make them public with someone that can help you stay on track. This could be a spouse or even your peers. You should also include your financial advisor on any goals you have going forward. If you don’t have a financial advisor, it’s time to find one.

Second, make your resolutions realistic. Sometimes we make our goals so big that we get easily discouraged when we don’t see the progress we were hoping for. Hope, coincidently, can be detrimental to the success of your resolutions. Most of your goals are going to take massive action on your behalf to come to fruition. Resting on hope alone can sabotage your success.

Lastly, make your resolutions measureable. Nothing will kill a resolution faster than a half hearted attempt to accomplish something. Your resolutions have to be descriptive and clear as to what you are trying to accomplish. Break them down into stages so you can easily see your progress. This will help you stay focused towards the end result you’re looking for.