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Fortify Your Fortune: Surviving Economic Storms

Economic squalls—recessions, surging inflation, market crashes—make headlines because they strike fear into every investor’s heart. Yet history confirms that downturns are cyclical, not catastrophic, for those who plan. Wealth protection is less about bracing for a single hurricane and more about engineering a home that can withstand many seasons. As an advisor, I’ve walked clients through 2008’s credit crisis, 2020’s pandemic panic, and 2022–23’s inflation spike. Each time, those who anchored their portfolios in preparation, not prediction, emerged stable and, in many cases, stronger.

wealth protection

Storms Are Inevitable—Loss Doesn’t Have to Be

When markets tumble, the urge to “do something—anything” surges. Fear and panic amplify every headline; social feeds drip with doom-scrolling. Acting on those emotions by liquidating equities at the bottom, hoarding cash, or chasing trendy “safe” havens, often inflicts more damage than the downturn itself. A thoughtful wealth protection strategy acknowledges emotion but channels it into disciplined action. Instead of reacting to daily volatility, you respond to long-term objectives, preserving both capital and composure.

Core Principles of Wealth Protection During Downturns

1. Diversification: Never Bet on One Sail

A portfolio concentrating on a single asset class is like a ship with one sail; tear it, and you stall. Spreading investments across equities, high-quality bonds, cash, real estate, and alternative assets reduces the impact of any one market’s decline. True diversification also spans sectors (e.g., tech, healthcare, utilities) and geographies (domestic and international). Effective wealth protection balances growth engines with defensive holdings so winners offset laggards.

2. Liquidity Planning: Your Financial Lifeboat

Downturns can bring layoffs, lower bonuses, or business slowdowns. Maintaining 6–12 months of essential expenses in cash or short-term instruments prevents forced selling of long-term investments at depressed prices. Liquidity is the lifeboat of wealth protection; you hope never to use it, but its presence lets you sleep at night.

3. Dynamic Asset Allocation: Trim the Sails, Don’t Abandon Ship

As economic clouds gather, modestly reducing equity exposure or adding high-quality bonds can meaningfully cut volatility. Conversely, when markets recover, shifting back toward growth re-accelerates gains. Scheduled, rules-based rebalancing (rather than gut feelings), keeps asset mix aligned with risk tolerance and time horizon.

4. Tax-Efficient Moves: Turning Losses into Levers

Market dips present unique tax opportunities. Harvesting losses in taxable accounts can offset current or future capital gains, effectively boosting after-tax returns. Deferring the sale of appreciated positions, maximizing contributions to tax-advantaged accounts, or converting a portion of a traditional IRA to a Roth when account values are lower all serve broader wealth protection goals.

5. Sustainable Income Planning

For retirees, sequence-of-returns risk (drawing income while markets fall) can permanently erode portfolios. A layered approach helps: keep one to two years of withdrawals in cash-like vehicles, hold intermediate bonds for years three to five, and let equities power long-term growth. This “bucketing” cushions withdrawals so short-term storms don’t sabotage lifelong income.

6. Insurance and Risk Transfer

Insurance can’t prevent a bear market, but a well-built policy suite shields against life events that often coincide with downturns: health crises, disability, or premature death. Proper coverage such as life, disability, long-term care, and umbrella liability completes the wealth protection framework by transferring catastrophic, non-market risks to an insurer.

Mistakes That Sink Even Solid Ships

  1. Panic Selling. Selling quality assets into a falling market locks in losses and forfeits the rebound.
  2. Flight-to-Nowhere “Safety.” Chasing ultra-high-yield bonds or speculative products labeled “crisis proof” can magnify risk.
  3. Ignoring the Plan. Discarding long-term strategy for short-term comfort derails compounding.
  4. Going It Alone. DIY decisions made in an emotional vacuum often lack the objectivity a professional provides.

Recognizing these pitfalls, and planning around them, is central to true wealth protection.

The Advisor’s Role: A Steady Hand on the Wheel

During calm seas, it’s easy to underestimate the value of guidance. Yet when markets stagger, a seasoned advisor adds four crucial benefits:

  1. Perspective. We translate headlines into data, helping you distinguish noise from signal.
  2. Process. Formal rebalancing, tax-loss harvesting, and scenario analysis implement wealth protection with discipline.
  3. Behavioral Coaching. We temper fear and greed, ensuring decisions sync with objectives.
  4. Proactive Adjustments. By stress-testing portfolios against multiple downturn scenarios, we refine allocations before storms hit.

Client snapshot: In 2020, a couple planned to retire within three years. However, the pandemic crash slashed their equity holdings by 25 %. Rather than selling, we tapped their cash-reserve bucket for living expenses, rebalanced into beaten-down sectors, and harvested tax losses. By late 2021, their portfolio not only recovered but exceeded its pre-crash high, enabling them to retire on schedule. Structured wealth protection turned panic into opportunity.

Build a Fortress, Not a Forecast

Economic storms will come, but they need not capsize your future. Diversification, liquidity, dynamic allocation, tax efficiency, prudent insurance, and expert guidance form a fortress around your fortune. Ask yourself:

  • Do I have cash reserves to weather a job loss or revenue dip?
  • Does my asset mix balance growth and defense effectively?
  • Have I identified tax moves that downturns can unlock?
  • Am I protected against non-market shocks like illness or liability?
  • Most critically: Is my current plan designed for fair weather only, or can it stand firm in a gale?

If any answer is murky, now is the time to reinforce your wealth protection strategy. Preparation, not prediction, is the surest path to peace of mind, and long-term prosperity, no matter what the economy throws your way. Reach out, and together we’ll fortify your fortune for any forecast.

ABOUT JEFF

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic wealth management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Retire at 60 with Josh Bliss

Will Your Nest Egg Last? Assess Your Retirement Savings Target

By Jeff Gilbert

The ability to reach your retirement dreams often depends on having a solid “nest egg.” But the real question is, how long can that nest egg last? Even sizable retirement savings can quickly deplete due to unexpected costs, lifestyle shifts, and market volatility.

To determine whether your retirement savings target is on track, it’s essential to go beyond basic formulas. A deeper dive into your desired retirement lifestyle, current savings, expected expenses, and potential income sources is key.

Let’s explore the essential steps to accurately assess whether your retirement savings can support you all throughout your retirement years.

When Do You Want to Retire?

The first thing to consider when deciding how much money you need to save is your age, both now and in retirement. If you wish to retire early, you have fewer years to save for a longer retirement. Additionally, if you begin receiving Social Security payments prior to reaching full retirement age, you’ll have to account for a lower monthly payout. 

The state of the stock market can also influence how much money is required and how long it lasts. Of course, you can’t actually predict the state of the stock market when you retire, but it’s still a wise idea to plan for the possibility of retiring in a bear market.

What Type of Lifestyle Do You Envision for Yourself?

Have you given any thought to the kind of retirement lifestyle you want to live? If you’re certain you want to travel, play golf, or spend time with your grandchildren, consider what that entails and the associated expenses.

For example, if you intend to travel, ask yourself the following questions:

  • Do I want to travel abroad or domestically?
  • How frequently would I like to travel?
  • How would I prefer to travel? (e.g., car, airplane, or RV) 
  • Where would I like to stay? (e.g. a five-star hotel, an Airbnb, or with family members)
  • Do I want my family to join me on the trip? Do I plan to cover their expenses too?
  • Can I continue to live at my primary home? If so, who can watch my house and maintain it while I’m traveling?

Even if your dream is simply to spend time with your grandchildren, you should still think through the associated costs. To some, spending time with grandkids means babysitting a few times a week. For others, it means footing the bill for various trips for the entire family. 

Either way, plan out the specifics of your vision so you can see how much money is needed to make that dream a reality.

What Is Your Current Debt Level?

Let’s talk about another retirement-income influencer: debt. 

There are two significant drawbacks of taking on debt in retirement:

  1. It reduces your cash flow for non-essential items like housing, travel, and hobbies.
  2. It can deplete your retirement funds more quickly, meaning you might eventually run out of money or have to change your lifestyle.

If you carry debt, a smart move is to carefully examine your debt and determine how much cash flow you need in retirement to pay for anticipated expenses. 

Before they retire, some people prefer to pay off any high-interest consumer debt. Some even go so far as to pay off their auto loans and mortgage.

Are You Planning to Work in Retirement?

One of the better ways to stay active, keep your mind sharp, and feel purposeful after retirement is to work.

Some retirees decide to pursue consulting as a second career. Others choose to take a part-time, low-stress job and work at a retail store or family office. 

Whatever you decide, you won’t need to save as much to live comfortably if you plan to work after retirement.

Schedule a Retirement Planning Consultation

Analyzing your retirement savings target starts with understanding your full financial picture, including your lifestyle needs, debt obligations, and long-term goals.

At Balboa Wealth Partners, helping you define and build your unique retirement savings target is our priority. When you entrust us with your financial journey, you gain peace and clarity knowing your future is being handled with experience, care, and integrity. To schedule a consultation, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Scottsdale, Jeff and Balboa work with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

From Start to Finish: Understanding the Different Phases of Retirement Planning

By Jeff Gilbert

Retirement might feel like something far off in the future that you don’t need to think about yet. You can plan for it, save up for it, and even daydream about it, but we often overlook the nuances and details of each retirement phase. Similar to how you started your career at the bottom and worked your way up to being a seasoned pro, you’ll likely go through a few changes during your 20-plus years of retirement.

The path to and through retirement is a slow one, like reading through the chapters of a book. Each chapter has its own challenges, wins, and choices to make. Beginning with the years before retirement in your 50s, here’s what you should know for each part of your retirement journey.

Chapter 1: Your 50s

At this stage of life, retirement becomes less like a far-off dream and more like a forthcoming reality. You begin to seriously think about when you can retire and how to take the right steps to retire comfortably.  

During your 50s, you will likely launch your kids into adulthood and experience your highest earning years, which gives you more to work with. But that extra money you aren’t used to having can result in “lifestyle creep,” where your expenses grow along with your pay raises. These increased expenses may not always be nonessential either, as you might become responsible for increased housing costs, education expenses, healthcare costs, and even eldercare costs. 

Despite these financial strains, the inflow of new money into retirement accounts must not cease; your retirement plan assets should not be drawn down through loans or withdrawn too early. Rather, these should be the years where you maximize your retirement plan contributions. If you are over 50, you can make catch-up contributions to beef up your nest egg. 

Chapter 2: Your Early 60s

You are so close, you can almost taste it. Now you are starting to think about the many details that make up the process of retiring and the financial and lifestyle decisions involved. 

If you find yourself in this phase, it’s time to get realistic about the near future. Do you know what you will do next? How will you make it a reality? For example, will you be able to keep up with your current expenses while on a fixed income? Be sure to test out different budgets to make sure your finances are set. Do you want to volunteer or start an encore career? Start mapping out the details now. If you do not have a set plan for the next chapter of life, a phased retirement may give you more of an opportunity to figure it out.

Usually, this is the time to dial down risk in your portfolio. Market downturns have a greater impact on your long-term success as you don’t have the same time to recover. This is what is called sequence of negative return risk. You should speak with an advisor to make sure you have the correct mix of investments that will provide cash flow in the short term and growth in the long term. You also can’t afford to be too conservative as lower growth will be eroded by the rising cost of living.

Chapter 3: Retired Life Begins

The first year or so of retirement is akin to a “honeymoon phase.” You have the time and perhaps the money to pursue all kinds of dreams, so the key is not to spend wildly. Lifestyle creep also affects new retirees, and free time often means more chances to spend money. 

When it comes to your investments, your portfolio looks very different than it did when you were in your 20s and 30s. Bond funds and fixed income may make up a larger portion of your investments. Your focus is on generating cash flow to live on and preserving what you’ve worked so hard to save. However, you should still have exposure to the stock market. If you retire at age 65, there is a good chance you have a 30-plus-year retirement ahead of you. As such, you should keep exposure to stock funds for their growth potential. 

Up until now, you’ve probably received healthcare coverage from your employer. When you retire, it’s a new ball game. Medicare eligibility begins at age 65. You have plenty of choices for your Medicare plan, such as original Medicare coverage, prescription drug plans, and supplemental insurance. Your premium costs will depend on your coverage choice and your income. Medicare can be complicated and overwhelming, so if you are in this chapter, start researching now to make informed choices. 

Chapter 4: Mid 60s Through Late 70s

This is the chapter where restlessness can begin to set in. If you didn’t make concrete lifestyle plans before retiring, you might get bored with your all-leisure, all-the-time lifestyle and decide to volunteer or work on your own terms, health permitting. 

It’s also the time when people begin to worry about how their retirement savings is growing smaller. You may want to adjust your retirement income strategy or see if new streams of income can be arranged.

Chapter 5: 80s and Beyond

The last chapter of retirement is one frequently characterized by the sharing of legacies and life lessons, a new perspective on the process of living and aging, and deeper engagement (or reengagement) with children and grandchildren. This is also the time when you should think about your financial legacy and review or update your estate plan so that when you leave this world, things are in good order and your wishes are followed.

Which Phase Are You In?

No matter where you are in life, it’s always helpful to work with an experienced financial professional. They can provide objective advice and answer your questions about income, investments, wealth preservation, and wealth transfer—and instill confidence in your overall financial plan.

At Balboa Wealth Partners, we’re committed to supporting, educating, and guiding each client. We’d love to help you explore your options and create a financial plan for every stage of life. To get started, schedule a no-obligation introductory meeting by giving me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

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Retiring Comfortably: Determining Your Retirement Savings Target

By Jeff Gilbert

How much cash do you need in order to kick back in retirement? The experts throw around figures like 55-80% of your pre-retirement income, but is that the full story?

Spoiler alert: it’s not. Your dream retirement is as unique as you are. Maybe you’re envisioning cozy nights in your hometown surrounded by loved ones. Or perhaps you’re dreaming of globe-trotting adventures or soaking up the sun on a tropical beach. The bottom line? Your retirement, your rules.

But before you start picturing those carefree days, let’s dig into the details. Here are a few key questions to help you pin down your magic retirement savings number.

What’s Your Ideal Retirement Date?

Your age (now and in retirement) is one of the most significant factors to consider when determining how much money you need to save. If you want to retire early, you’ll have fewer years to save for a longer retirement. And if you start claiming Social Security benefits before full retirement age, you’ll also have to factor in a smaller monthly benefit amount.

The state of the stock market can also play a role in how much money you need and how long your money lasts. A Vanguard study found that you have a 31% higher chance of running out of money if you retire near or during a bear market. Of course, you have no way of knowing if we’ll be in a bear or bull market when you retire—but this is a scenario you must account for in your retirement planning. 

What Do You Want Your Retirement Life to Look Like?

Have you thought about the type of lifestyle you want to have in retirement? If you know you want to travel, play golf, or spend time with your grandkids, you need to factor in what that looks like and how much it will cost.

For example, if you plan to travel, you’ll need to consider: 

  • Will you be traveling stateside or internationally?
  • How often do you want to travel?
  • How would you like to get there? (e.g., car, plane, or RV)
  • Where would you like to stay? (e.g., 5-star hotel, Airbnb, with family members)
  • Will you be traveling with your family? Would you like to cover their expenses too?
  • Will you maintain your primary residence? If so, who will watch your house and maintain it while you’re gone?

Even if your dream is simply to spend time with your grandkids, you’ll still need to think through your expectations and expenses. To some people, “spending time with grandkids” means babysitting a few times a week. To others, it means footing the bill for all-expenses-paid trips to various destinations of their choosing. Whatever it is you want to do with your time, map out the details so you can have a clear picture of how much you’ll need to make it a reality. 

Will You Earn an Income in Retirement?

Working during your retirement is a great way to stay active, keep your mind sharp, and maintain a sense of purpose. Some retirees choose to build a second career through consulting. Others decide to pick up a low-stress, part-time job at a family office or retail store. No matter what you do, if you plan to work during retirement, you won’t have to save as much to live comfortably. 

How Much Debt Do You Carry?

Bringing debt into retirement has two major drawbacks: 

  1. It reduces the amount of cash flow you have for housing, travel, hobbies, and other non-essential purchases.
  2. It can potentially drain your retirement savings quicker, which means you may run out of money or have to adjust your lifestyle down the road.  

If you carry debt, take a close look at what you owe and figure out how much cash flow you’ll need in retirement to cover these expenses. Some people prefer to pay off any high-interest consumer debt before they retire. Others will take it one step further by paying down their mortgage and auto loans too.

What Kind of Healthcare Coverage Do You Expect to Have?

Right now, you most likely have health insurance through your employer. When you stop working, you’ll need to have a plan for healthcare coverage another way. You may be able to hop on your spouse’s plan, if he or she is still working. Or you can get coverage through the healthcare marketplace. You qualify for Medicare starting at age 65, but even then, you may want additional coverage to pay for prescription drugs, dental care, eye exams, and other expenses. 

Retirees sometimes fail to fully plan for expenses during the later stages of retirement, and medical care often tops the list. It’s estimated that retirees will use 15% of their income for health expenses, and the average retired couple could see healthcare expenses of approximately $315,000 after age 65. Don’t let this be a planning oversight that prevents you from retiring comfortably!

Will You Have Any Dependents?

Your kids may be grown and out of the house by the time you retire, but that doesn’t necessarily mean you’ll stop supporting them financially. Over 79% of parents said they still give financial support to their adult children (ages 18 to 34), according to a Merrill Lynch study, and the COVID-19 pandemic caused a boomerang effect, with 67% of adult children still living at home with their parents after returning home in need of financial help.

And even if you aren’t helping your kids out with daily expenses, you may want to contribute to their weddings or down payments on home purchases down the road.  

Where Will You Live?

Housing may be your biggest expense in retirement. And even if your home is paid off, you might want to consider downsizing to a smaller place that requires less maintenance and has cheaper utility costs. 

To save even more, you can think about relocating to an area that has an overall lower cost of living. For example, the cost of living in Orlando, FL, is only 3.3% higher than the national U.S. average, whereas the cost of living in Los Angeles, CA, is 76.2% higher than the U.S average. As you can see, where you live can make a huge impact on the overall cost of retirement.

What Is Your Family’s Health History?

The average 65-year-old man has a 35% chance of living until age 90; that rate goes up to 46% for a woman the same age. And while life expectancy is unpredictable, if your family has a strong history of living to age 90 and beyond, your chances may be even greater than these odds. In this case, you’ll need to determine if your planned retirement savings will last long enough. 

Similarly, if you have known health conditions and/or a family history of health problems that could affect your life span, you’ll want to consider this too. 

Plan Ahead for a Comfortable Retirement

Figuring out the ideal amount for your retirement isn’t as simple as plugging numbers into a formula. It’s a personalized journey that involves understanding your financial landscape, family dynamics, and future aspirations.

At Balboa Wealth Partners, we’re dedicated to simplifying retirement planning and tailor our solutions to fit your unique needs, which include determining your retirement savings goal. With us by your side, you can gain the confidence to make informed financial decisions, knowing that your money is in good hands. Let us take the weight off your shoulders so you can enjoy life without worrying about your finances.

Ready to partner with a financial planner who cares about your future as much as you do? Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com, and let’s start building your customized retirement plan together.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Kingswood Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Kingswood. Neither firm is affiliated.

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Common Retirement Mistakes and How to Avoid Them

By Jeff Gilbert

Making mistakes is an inevitable part of being human, and we often use past mistakes as a way to learn and make better decisions in the future. However, in retirement, there is far less room for error. Making such a significant financial transition involves shifting from earning an income and building wealth to depending on that wealth to sustain you for the rest of your life. Even if you’ve been preparing for retirement for years, it’s important to stay vigilant in order to avoid making costly mistakes. 

Rather than coasting on autopilot, there are several key decisions and actions you can take to help smooth the transition into retirement. Let’s explore five common mistakes made by retirees and discuss tips on how to avoid them.

1. Overspending in Retirement

Do you know what you will do with your newfound freedom in retirement? Many people start by pursuing all the things they didn’t get to do while working—traveling the world, picking up a new hobby, remodeling their home, and the list goes on.

But many people underestimate the amount of money they’ll spend in those first few years of retirement. With so much extra time on your hands, it’s easy to make a lot of little purchases that add up to a lot over time. 

If you want to avoid this mistake, create a detailed but realistic budget and stick to it. Yes, you can budget for extras such as a vacation or a new hobby, but make sure you know how it will affect your nest egg before you follow through with it. And be sure to work with your advisor to find a withdrawal rate that will stretch your money for as long as possible.

2. Underestimating Healthcare and Long-Term Care Costs

Retirees receive Medicare after age 65, but most of the time, this isn’t enough to cover chronic healthcare needs in retirement. For example, did you know dental, basic vision, over-the-counter medication, and long-term care are not covered by Medicare? 

The average couple at age 65 will spend $315,000 after tax on medical expenses. What’s more, the real retirement enemy often comes in the form of long-term care costs. Nearly 70% of retirees will need some form of long-term care during their lifetimes, and with average long-term care costs hovering around $315 per day or $9,584 per month for a private room in a nursing home, it’s critical for you to have a plan in place to cover these expenses. 

First, cautiously watch your spending in retirement to ensure there is a financial margin in place to protect you when larger medical bills hit later in life. And when choosing your health insurance for retirement, make sure you understand all Medicare options and supplements and work with an experienced professional to help you evaluate your options. Finally, explore your long-term care coverage options, such as traditional long-term care insurance, life insurance with a long-term care rider, and annuities with long-term care riders. The earlier you get coverage, the better, since the older you get, the higher your cost for a long-term care insurance policy will be and the greater the likelihood of your application being denied.

3. Overreacting to Stock Market Volatility 

Retirees usually want to play it safe in the stock market, by investing conservatively and safeguarding their nest egg as much as possible. But when you play it too safe, your savings can’t keep up with inflation and you end up losing money down the line. With inflation hitting a staggering 9.1% in 2022 and still hovering around 6% in February 2023, most retirees can’t afford to avoid the stock market volatility that comes with investing at least a portion of their savings in growth assets.

Since your retirement may last anywhere from 20 to 30 years—as much time as you’ve spent in the workforce—don’t get caught up in investing too conservatively just to avoid short-term volatility. When your portfolio is too conservative, inflation becomes the biggest threat to your assets. 

4. Claiming Social Security Too Early

Don’t assume it’s best to start collecting Social Security at age 62 (or at full retirement age, for that matter). If your full retirement age is 66, for example, you could receive a 32% increase in monthly benefits by waiting to collect Social Security until age 70. This means if your standard benefit amount is $1,500 per month, you could receive $1,980 by waiting four more years. This equates to thousands of extra dollars over the course of your retirement.

When deciding when you should start collecting Social Security, consider the size of your nest egg, your retirement date, and the current state of your health. Calculating when to claim your benefits is both an art and a science. If you need help, reach out to a trusted financial advisor who can help you run the numbers.

5. Miscalculating Taxes on Retirement Income

Your retirement accounts are all taxed differently. If you don’t have a strategic withdrawal plan in place, you could end up with a large tax bill at the end of the year. For example, a $50,000 withdrawal from a Roth IRA will have a wildly different tax impact than that same distribution from a traditional IRA. If you blindly take your money and run, you could trigger an avalanche of higher Social Security taxes, investment surtax, capital gains taxes, and even higher Medicare premiums, which will eat away at the funds that were supposed to carry you through retirement. Creating a tax plan can help you strategically withdraw from your various retirement accounts and minimize your tax liability. 

Speak with a financial planner or tax advisor about creating a tax-efficient distribution strategy for retirement. This professional can look at your tax bracket, retirement accounts, and Social Security to help you withdraw money in the most tax-efficient way. 

Partner With a Professional

Although it’s impossible to avoid all mistakes, it is essential to take proactive steps toward a satisfying retirement. At Balboa Wealth Partners, we specialize in wealth management and can assist you in sidestepping the expensive mistakes often made during retirement. As your dedicated partner in this journey, we can collaborate with you to create a practical budget and develop a tax-efficient distribution strategy to help increase your savings. If you’re interested in our services and how we can help you enjoy a worry-free and comfortable retirement, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com. Or complete a complimentary risk assessment here.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Kingswood Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Kingswood. Neither firm is affiliated.

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Leave a Lasting Legacy: What Inheritance Are You Passing On to Your Kids?

By Jeff Gilbert

When we think about the legacy we want to leave for our children, it goes beyond just money. We want to make sure our gift to them provides stability for many years. We don’t want to pass on a jumble of assets, debts, and documents that can take a long time to untangle.

Passing wealth on to your children can be a difficult transition, and you want it to be as stress-free as possible. Estate planning can help keep your children from having to face the extra burden of navigating a complex inheritance process while also dealing with grief and making difficult decisions. Helping them experience a smooth and organized inheritance process can be a great gift.

The Importance of Estate Planning

Estate planning should be an integral part of your financial and retirement planning. Failing to have an estate plan may not have a significant impact on your own life, but it will undoubtedly affect the lives of your loved ones after you’re gone.

In the absence of an estate plan, your death will be considered intestate, which means there was no valid will in place at the time of your death. The state in which you lived will determine who inherits your property through a process called probate, which can take anywhere from 6-9 months or even several years without proper planning. 

In addition to this process lasting a long time, your inheritors may face expensive fees, predatory claimants, and loss of control over what happens to your estate. Probate can cost up to 3-7% of your total estate value. And because this process becomes public information, this means that greedy creditors or estranged relatives may attempt to claim portions of your wealth.

Good estate planning mitigates these risks and provides your family with a secure plan for how your wealth will be transferred. The professionals in your life, such as your estate planning attorney and financial advisor, can become trusted resources for your family to lean on during this difficult transition.

Create a Lasting Legacy

Additionally, good estate planning incorporates legacy planning, which can be even more beneficial to your inheritors. Legacy planning allows you to incorporate family or financial values into your wealth transfer. If your children aren’t as adept at money management or have made financial mistakes in the past, your legacy planning can help guide them through what to do with their new wealth. Finally, legacy planning may help to protect your grandchildren and encourage generational wealth-building for decades to come.

Set Your Heirs Up for Success

It’s important to consider what legacy you want to leave for your children. The last few years have shown us that the future can be unpredictable, so it’s wise to plan ahead. Even though we may not want to consider our own mortality, having a plan in place can bring some reassurance to our families.

Allow your family to benefit from your legacy by partnering with Balboa Wealth Partners. Our team is committed to helping clients make the most of their finances. We are dedicated to providing guidance and support that will empower you and your family to make financial decisions with clarity, peace, and confidence. Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Kingswood Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Kingswood. Neither firm is affiliated.

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3 Tips to Make Your Money Last a Lifetime

By Jeff Gilbert

You’ve got big plans for your retirement. But nothing spoils a happy retirement more than the fear and anxiety of running out of money. Every retiree wants the comfort and confidence of knowing their retirement funds will allow them to check off every item on their bucket list. Nearly 56% of Americans worry they’ll outlive their retirement savings, so it’s more important than ever to make sure you’re prepared. 

Of course there’s no quick-fix guarantee you will never run out of money, but there are certain steps you can take to maintain your wealth and improve your financial stability. Rather than worrying about running out of money in retirement, take these 3 steps to make your money last a lifetime.

Diversify Your Income

A great way to make your retirement funds last is to diversify your income. The truth is, no matter what your net worth, your income will always be your greatest wealth-building tool. That’s why a solid income stream is great, but multiple streams of income are even better. 

Diversified income streams act in much the same way that diversified investments do. They allow for less demand and stress on any one income source, so that if an unforeseen event were to occur, the remaining income streams can pick up the slack. There are many ways to diversify your income, including:  

  • Invest in real estate. Owning rental properties is a great way to earn passive income without dipping into your retirement savings. Real Estate Investment Trusts (REITs) are another popular option.
  • Continue to earn active income. You could also pursue a passion, become a freelancer, or work for a nonprofit. You will earn less than what you’re making now, but all these options will provide flexibility and a form of income diversification that will keep your retirement savings intact for longer.
  • Use dividend-paying stocks. Often considered an annuity-like cash stream, dividend-paying stocks give company earnings to investors, typically once a quarter. The top dividend-paying stocks even raise their payouts over time. This not only gives you an income stream, but you can also reinvest the dividends to pursue more growth.

Avoid Overspending & Invest for Growth

Do you know what you will do with your newfound freedom in retirement? Many people start by pursuing all the things they didn’t get to do while working—traveling the world, picking up a new hobby, remodeling their home, and the list goes on.

But many people underestimate the amount of money they’ll spend in those first few years of retirement. With so much extra time on your hands, it’s easy to make a lot of little purchases that add up over time. Avoid overspending by creating a detailed (but realistic) budget for your retirement years. You can budget for extra expenses like vacation or pursuing a new hobby, but make sure you know how it will affect your nest egg before you follow through.

In addition to budgeting, another strategy for making your retirement income last is to invest excess cash for growth (stocks) instead of fixed income (bonds). This may sound counterintuitive since retirees tend to invest in more conservative investments to maintain steady income. But as bond yields remain historically low and inflation reaches new highs, many experts have expressed concerns over the sustainability of retirement investments that have a larger allocation toward bonds.

You certainly need the fixed-income component, but it’s important to consider including investments that have a greater growth potential in order to keep up with inflation and maintain your ability to withdraw funds every year. 

Make sure you are investing with the proper perspective, and don’t cheat yourself out of years (or even decades) of potential growth. 

Create a Withdrawal Strategy

When it comes to withdrawing from your retirement accounts, how you take your distributions can make all the difference. Your retirement income sources are likely produced from a variety of assets, including employer-sponsored retirement plans, Social Security, personal IRAs, or other income-generating investments. Each asset has different tax characteristics, and properly structured investments can help lower your tax burden if you plan how and when you’ll withdraw from each.

For example, most people will receive Social Security benefits during retirement, but 85% of your Social Security income can be taxed at your regular tax rate if your income exceeds a certain amount. 

Regarding your personal savings, a $50,000 withdrawal from a Roth IRA will have a wildly different tax impact than that same distribution from a traditional IRA. If you blindly take your money and run, you could trigger an avalanche of higher Social Security taxes, investment surtax, capital gains taxes, and even higher Medicare premiums, which will eat away at the funds that were supposed to carry you through retirement. Creating a withdrawal strategy and a tax plan can help you maximize your retirement funds and improve your financial situation.

We Can Help Make Your Money Last

Your situation is unique to you, so there’s no cookie-cutter answer to when you can retire or how much money you need to live a comfortable life. But there are concrete ways to improve your financial stability. At Balboa Wealth Partners, we’re here to help you achieve your short-term and long-term goals, worry less about your finances, and focus more on your life’s passions. 

If you would like to learn more about how to manage your money through retirement, we’d love to hear from you! Schedule an introductory appointment online, or call us at 949-445-1465. For any questions, feel free to reach out to me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Kingswood Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Kingswood. Neither firm is affiliated.

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4 Steps to Take Toward Your Dream Retirement

By Jeff Gilbert

As financial advisors, we are often very focused on the long-term goals and the big picture. While this is certainly a good strategy because solid financial plans take time and consistency to be successful, it’s easy for us to forget about the present. Sure, it’s great to know that you’re getting top-notch financial planning and investment management, but we are also interested in improving your day-to-day life now—not just in the distant future. There is no guarantee about what the future will hold, so it’s our mission to strike a balance between the present moment and your long-term goals.

At Balboa Wealth Partners, we take financial planning further by helping our clients create a balance between working toward the retirement of their dreams and living their retirement dreams now. Here are four tips to help you get started.

What Do You Want Your Life to Look Like? 

Financial conversations can often be left-brain dominant. But since money impacts every area of your life, it’s critical that financial discussions also include your hopes and dreams for life. That means we need to dig into the emotional side of our thinking.

One simple way we do this is by asking our clients specific questions about what their retirement goals look like, such as:

  • Tangible goals: What would you like to have? 
  • Conceptual goals: What would you like your life to be like?
  • Freedom goals: What would you like to be able to do?

Principle in Action

Many people don’t even know where to begin when faced with the above questions and will sometimes provide a surface-level answer, something like “I’d like to travel” or “I’d like to spend more time with my family.” These are great starts, but it may take some time to truly uncover what’s most important to you. That’s okay. Even if you don’t know exactly what you want, there are ways to take practical steps toward leading a happier, more fulfilled life now. 

1. Expect Less

It’s no secret that money can buy comfort, stability, and less stress. But can money buy you happiness? The answer? To an extent. Researchers have found that increased income is associated with increased levels of happiness and life satisfaction up to a point—$105,000 to be exact. (1) Beyond that threshold, happiness levels plateau and additional increases in income result in negligible changes in happiness. 

Instead of focusing on the ultimate retirement dream (e.g., a certain amount of money in the bank, or a specific car or household item), try focusing on what you do have and live in the moment as much as possible. Practicing meditation or mindfulness can have significant impacts on your overall sense of happiness and well-being, (2) and letting go of expectations of what your life should look like can be a great first step in living your retirement dream now.

2. Set Sub-Goals

If your dreams are more on the tangible side, that’s great too. To help with these goals, try setting smaller sub-goals that can be achieved more quickly than the ultimate retirement dream. For instance, if your retirement dream consists of retiring in a condo on a beach in South Florida, maybe set a sub-goal of vacationing in South Florida first. Taking that trip could inspire you even more to make your ultimate dream a reality, while also allowing you to live your dream in the moment as well. 

3. Find Purpose

Studies show that individuals who live a purpose-driven life are happier and healthier on average than those who don’t. (3,4) Not only that, they also live longer! (5) A purposeful life is commonly associated with fulfillment and motivation, and can be found in many ways. Volunteering for a local nonprofit or church, spending time with your children, or pursuing a newfound hobby are great ways to find purpose in your day-to-day life.

4. Prioritize Family & Friends

This one sounds obvious, but it’s often one of the hardest things to do. Life gets in the way and before you know it, you’ve spent a whole month getting stuff done but not really spending any true quality time with the people who matter most. Living your retirement dream now often comes in the form of just slowing down for a moment. Realizing that the laundry list of stuff to buy, deadlines to meet, and things to do is important, but so is connecting with and learning from those around you.

The great news is that you don’t have to wait until retirement to do that. You can start setting aside time every week to check in with your loved ones and find meaningful ways to connect. You might just find that in doing so, your to-do list becomes a little lighter and maybe even easier to accomplish.

Get Started Today

So, what are some of the action steps you can take to start pursuing your dreams now? You may be surprised to realize that some of your goals can be accomplished sooner rather than later. 

At Balboa Wealth Partners, we are here to celebrate your successes and cope with your challenges as you work toward living your retirement dream now. Learn more about how we can help by calling our office at 949-445-1465 or emailing me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Kingswood Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Kingswood. Neither firm is affiliated.

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(1) https://www.gobankingrates.com/money/wealth/minimum-salary-to-be-happy-state/

(2) https://www.helpguide.org/harvard/benefits-of-mindfulness.htm#

(3) https://living.medicareful.com/finding-a-purpose-makes-you-happier-healthier

(4) https://psychcentral.com/news/life-purpose-linked-to-better-brain-health

(5) https://hrs.isr.umich.edu/publications/biblio/11635

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Financial Planning for Aging Parents

By Jeff Gilbert

Taking on the role of your parents’ caretaker comes with many responsibilities for which you may not be prepared. As they approach old age, they no longer just need help reading fine print or moving heavy furniture around the house; they will need more serious assistance like managing their finances and planning their estate. While it’s no kid’s dream to one day have to care for the people who you once believed were invincible, having a plan in place can help ease the burden, especially during a stressful time of transition. Keep in mind the following legal and financial considerations when planning for your aging parents’ financial legacy. 

1. Get That Will in Place! 

How many times have you heard a story in the news about a celebrity who died without a will and left their relatives and business partners with a raucous legal battle? Case in point: The battle over Jimi Hendrix’s estate continues to this day (more than 50 years later!) all because he had no will. (1)

While you may consider your family above such squabbles, it’s better not to test that assumption. You never know how large amounts of money will affect people and their behavior. Your parents need to have a will that spells out their final wishes, including who will carry out those wishes as the executor of their estate.

This is especially important in situations with blended families. It’s all too common for someone to neglect to update their will and leave an ex-wife or ex-husband as the sole inheritor or executor of an estate. Not only do your parents need a will, but they also need to make sure it is updated to reflect their current situation and desired legacy. 

The importance of double-checking beneficiary designations goes beyond just a will. Make sure your parents have gone through all of their accounts, including life insurance policies, retirement accounts, and other savings, and verified that their listed beneficiaries are correct. 

2. Start the Long-Term Care Conversation

If your parents are over 65, there’s a 70% chance they’ll need some sort of long-term care services in their lifetime. (2) That’s a high possibility that should be taken seriously.

Your whole family needs to come together to develop a plan for caring for your parents when the time comes. Discuss topics such as: Who will provide care for them? Who will pay for the care? Does it make sense for them to purchase long-term care insurance?

All too often, the most responsible or local son or daughter ends up shouldering the entire burden. This leads to burnout and resentment toward the other siblings. Save your family the trouble and proactively come up with a plan that everyone can agree on.

3. Assign Roles and Responsibilities

Approximately one in nine people age 65 and older are living with Alzheimer’s. (3) There’s a chance that a time will come when at least one of your parents is no longer able to make decisions for himself or herself. Who is going to make decisions for them at that point, both financial and medical?

While this can be an uncomfortable conversation, don’t avoid it. This is something you need to discuss with your parents and get the proper legal documents in place before they become incapacitated. Having simple powers of attorney written up will save you the trouble of going to court to request the right to help your parents when they need it most. And if your parents are comfortable with it, it would be a good idea to have one or more of their kids added to a bill-paying account. This way, if an emergency situation arises, they can access cash reserves to pay bills and debt payments immediately instead of waiting for assets to be released or legal documents to be enacted.

4. Invest in Your Relationship

While it is important to have all of the proper legal documents in place and have a plan for how to take care of your parents when they can no longer take care of themselves, for most people, their biggest regret is simply that they didn’t make the most of their time with their parents.  

We all know that our time here on earth is limited, so we need to spend it investing in those we love. As you watch your parents age, it’s a visual reminder that your time with them is coming to an end. Consider creating a routine to make sure you spend time with them frequently while you still can. Can you make a standing date for breakfast on Fridays or a phone call on Sunday afternoons? Carving time out of your busy schedule for your parents is one of the very best ways to prepare for these final years of their lives.

5. Enlist the Help of a Professional

Attempting to manage your parents’ financial situation on your own can feel overwhelming with all the decisions to make and various family opinions to contend with. Parents may also not be receptive to these difficult conversations with their children and the role reversal they find themselves in. This is where the help of an experienced financial advisor can make a world of difference for everyone involved. Someone knowledgeable and skilled in helping families make important decisions about such things as wills, retirement, and estate planning can be a great asset in these sensitive situations.  

At Balboa Wealth Partners, we are dedicated to supporting, educating, and providing informed direction to every client. If you would like help planning for your parents’ future, contact our office by calling 949-445-1465 or emailing jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Kingswood Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Kingswood. Neither firm is affiliated.

____________

(1) https://www.guitarplayer.com/news/the-estates-of-jimi-hendrix-and-noel-redding-and-mitch-mitchell-are-suing-each-other-heres-whats-going-on#:~:text=The%20estates%20of%20all%20three,from%20streaming%20and%20digital%20media.

(2) https://acl.gov/ltc/basic-needs/how-much-care-will-you-need

(3) https://www.alz.org/alzheimers-dementia/facts-figures