Whether it’s a job loss, layoff, or furlough, the quicker you start making changes, the better. Acting quickly ensures you can continue meeting today’s expenses without accruing further debt and will allow you to keep on-track for your retirement goals.

1. Get your mindset right.
   1. Even if the loss seems insignificant at first- a 10% pay cut or reduction in 401(k) matching - it can be just as damaging to your finances. As soon as you find out you will be experiencing a reduction in your income, start thinking about how you can spend less.
      

Why Isn’t It Working?

Have you ever seen the old Popeye cartoons?

If you have, then you know there was a certain vegetable that gave Popeye super strength as soon as he ate a can of it. That’s right, spinach.

He would eat that can of spinach and his muscles would immediately get bigger and he would suddenly be able to defeat his arch enemy Bluto and rescue his true love Olive Oyl.

Your home is often the most valuable thing you own; not only for sentimental reasons, but just for the sheer dollar amount.  I am guessing that while the vast majority of you have homeowners insurance, people often do not know or understand the coverage they have.  In some cases, this can be costly if a claim is made later.  Here are a few things to review in your homeowners’ policy that are common points of confusion.

With the new restrictions for inherited IRAs for non-spouses due to the new SECURE Act, it may make sense to use life insurance as an estate planning tool.

With the passing of the SECURE Act last year, there is a significant change to inherited IRAs for non-spouses.  Rather than withdrawals being taken over the course of the recipient’s life, they must now be taken fully over 10 years.  This can cause creation of a higher tax burden as this money counts towards the income of each beneficiary.

The Warning

If you are a typical investor (or financial advisor for that matter), it is possible that the S&P 500 index could do a great deal of damage to your retirement plans.  To be clear, the problem with the S&P 500 index is not that it has performed poorly or that I’m predicting that it will perform poorly in the future.  The problem is that way too many investors and financial advisors give the S&P 500 stock index way too much power over their financial lives.