Managing Your Financial Future with Lucia Capital Group

There are many things a retiree needs to know about their finances – some more important than others. But how can you tell which ones are best to learn, and which ones can be ignored?   We've narrowed it down to what we believe are three of the most important concepts that every retiree should know. And these aren’t hypothetical concerns. They’re real potential landmines that can affect almos...

Many people with high incomes assume they make too much money to contribute to a Roth IRA. And they’re right – sort of. The IRS does put income limits on Roth contributions, but there are a few lesser-known workarounds that high earners can use to get money into a Roth anyway.   The potential tax-free growth inside a Roth IRA can be especially enticing to people who both earn a lot and save a lot,...

There’s a lot of confusion about what a financial advisor actually does. Some people think it’s all about picking investments or predicting the market, but the best advisors focus on something much more personal: you and your goals .   The best advisors explain how they’re paid, talk openly about risk, give you time to make decisions, and encourage your questions. So what else should you expect wh...

You’ve probably heard that taxes are unavoidable. Fair enough. But what if we told you that in some cases, you might be paying more than you should, simply because you didn’t know the rules? Taking money from the wrong account, misreporting after-tax IRA contributions, accidentally triggering Medicare surcharges: These are tax traps that are hiding in plain sight. They're real mistakes people...

There are perhaps many thousands of books out there that purport to tell you how to "win" in investing. Many of them contain various gimmicks and "secrets" that are supposed to help you beat the market and earn a fortune.  Here's another secret: not a single one of them is worth what you pay for them. A better way to potentially win in investing is simply to avoid losing....

If there's one thing we can always be sure of, it's this: the stock market is unpredictable.  There will be months or years where the market exceeds expectations, and there will be other times when it underperforms and winds up below where you expected it to be – sometimes, way below.   A strong risk management approach to investing may help stave off that dangerous and damaging volatili...

Did you know that what happens with the stock market in the first few years of your retirement can either make or break your entire nest egg? It's true. If you retire just when the stock market takes a downturn, and you're selling stocks to provide yourself with an income, you're courting disaster.  Of course, there's nothing you can do about market volatility. The movement of...

You're probably familiar with bonds as an asset: you make a loan to a company or state or municipality, and you hope to be paid back over time with interest and, ultimately, your principal.  And while that is the most basic definition, the real working of bonds and the bond market are far more complex. Underneath the surface, there are many things that are important to consider: the bond’s cu...

In the financial world, there are many "rules" that have become so ubiquitous that people are really reluctant to break them: Should you never take more than 4% out of your portfolio each year in retirement? Is it always best to wait until age 70 to take your Social Security benefits? These are just a few. The problem with using the words "always" and "never" is that...

When it comes to stock market investing, what creates the most anxiety and fear?  Usually, it's when the markets are behaving erratically.  Put another way, it's when the markets are volatile.  Or to put it yet another way, it's during virtually every short-term measurable time period. It would be tough to find any period of time when the stock market wasn't behaving in some so...

You may have noticed that real estate prices have been soaring over the past five or so years.  And with the stock market gains we've experienced over that same period of time, you may have also seen a similar increase in the balances of your existing IRAs.  This has caused some people to wonder: if I want to buy real estate now, but most of my money is tied up in my IRA, is it a good idea to...

Here's a question: Is it really possible to take a six-figure income and pay no federal taxes on it? Depending on the sources of your income and how you use the tax brackets, it may indeed be possible. What it all comes down to is knowing how the tax brackets work, and knowing what income is taxed at what rate.  The bigger picture for you is this: tax management is one of the keys to potentia...

The question of when to take your Social Security retirement benefits often comes down to whether you need the money now or can wait until later.  Larger benefit checks await those who take it later, but is there a way to perhaps get the cash flow you need right now from another source while delaying your benefits as long as possible? Bucket 1 may be able to help.  By creating your own cash flow f...

With the cost of college in the US skyrocketing, many parents find they need to begin saving almost immediately if they want their children to be able to attend. One avenue for doing that is the 529 Plan, which comes with both benefits and costs. Lately, though, the 529 has become less popular among savers. The reasons? Tuition costs, market uncertainty, and no guarantee that a job will be waiting...

A good financial plan will contain many elements: a source of cash flow, assets that are matched to liabilities, tax management, and investment oversight, to name just a few.  And while these are important parts of a financial plan, there is perhaps one additional component that is above all else: room for error. In investing, as in life, there are certain scenarios that can break you - perhaps pe...

In the investing world, there are certain things that are out of your control: the short term direction of the stock market and where the economic trends are headed, to name just two.  These are, of course, impossible to predict with accuracy. Because of this, we have to assume that certain unforeseeable risks will occur along the way.  And while we don't know which ones will happen when, by...

If you have a pension, the decision of how and when to take the payments is an important one – and, probably irrevocable. Maybe you have the choice to take the entire amount as a lump sum; if so, is that option potentially better than a stream of monthly payments? And then there are your other choices. For married people who want to get as much as they can now, are they sacrificing the financial s...

In early July of this year, the new Budget Reconciliation Law was enacted by Congress. It made several changes to existing tax law, introduced some new legislation, and made other formerly temporary laws "permanent". Whether you like it or hate it, there are many things within the bill that will affect a large number of people, thus presenting some new tax planning opportunities. What is...

When the federal tax code was enacted more than 100 years ago, it consisted of approximately 11,000 words.  Today, it contains north of 16 million words.  It's no wonder, then, that trying to understand all the rules, exceptions, and instructions is nearly impossible. We're going to attempt to make things just a bit easier for you today.  While we won't get into EVERY detail, there...

A few months back, we explained how the 401(k) plan has become a default retirement savings plan for most people, and is thus a very important saving vehicle. We also talked about how the rules, options, and investments of a 401(k) can be extremely confusing.   It's time to clear up that confusion - or at least address it.  With all the options, rules, tax consequences, and withdrawal methods...

One thing that most people would agree on is that paying no taxes is a lot better than actually paying them.  This makes the tax-free nature of Roth IRA withdrawals very attractive, as long as all of the specific rules are met. Although the Roth was established more than 25 years ago, for many it still remains something of a mystery.  You may have heard it's a good thing, but what should you...

For many retirees, Social Security is a cornerstone of their income strategy. That makes sense - it helps establish how much support a retirement portfolio will need to provide, and when. But understanding how to get the most out of your benefits is more than just choosing an age to start collecting. There are spousal and survivor benefits to factor in, family benefits, disability considerations,...

Many people spend years preparing financially for retirement, but almost no one prepares for the emotional side of it. When the paychecks stop, the questions often start: Am I spending too much? What if I outlive my money? What am I supposed to do with all this time? It takes a certain blend of art and skill to manage your income and taxes while also overcoming a fear of spending. What's the...

The Bucket Strategy® is both simple and complex: while the structure on the outside is easy, the inner workings can vary wildly from person to person, depending on several factors.  No wonder, then, that many people (journalists included) have some incorrect ideas about what the strategy is.  A few assumptions are that it’s only about cash and stocks, it’s static, and it only provides a steady inc...

It's true that in general, the basic Bucket Strategy® consists of a 3-, 4-, or 5-Bucket plan, with each bucket separated into short-term, mid-term, and long-term assets.  But did you know that a good Bucket Strategy will often “blend” buckets to potentially give a retiree a much better overall outcome? "Blending" the buckets means to combine the cash flow to try to get a desired out...