The idea of uncertainty in retirement can exciting, but what about when it comes to your income in retirement?

When you give up the nine-to-five, each day can feel unpredictable compared to the last. For what feels like the first time in your life, the trajectory of what you accomplish that day is driven by you and your goals. Retirement means that it’s time to “say goodbye” to long work days, “clock-in” punches, or that dreaded work commute, and “hello” to vacations, time with grandkids, and the 

Although we can agree that the idea of uncertainty in retirement can be exciting, what about when it comes to your 

in retirement? Well, in retirement income planning, the word “

. In fact, it’s been said that when it comes to retirement, the most “boring'' aspect of your plan 

 in layman's terms: where your money is coming from, when you’ll receive it, and how much you’ll receive. No longer are the days where you can work extended hours or look forward to a Christmas bonus to bring home some extra cash; you’re officially on a 

When your income is fixed, big expenses (fun or not!!) can make your retirement account feel like an ATM. Between all of the fees, fines, and taxes, if you aren’t aware of the potential 

 of the current plan you’re in, it could negatively impact your future 

So, how do you prepare for big expenses on a fixed income in retirement? We have a few ideas.

Sometimes the simplest solution is the one that is most often overlooked. According to a recent survey by Bankrate,

fewer than 40% of Americans can pay for a $1,000 expense

out of your monthly income; and when that income is fixed during your retirement years, it can be 

 to make up the difference between the money you have and the money you need.

So, how much do you need to set aside in your retirement emergency fund? You can start by tallying your

 such as: housing, property taxes, utilities, medical, debts, necessities, insurance, and so on. Once you have your monthly totals established, think about how big of a financial cushion you’ll need to be stress free, in order to get your final monthly number. 

 having anywhere from 3-6 months of expenses saved, so multiply your final number by whichever range of time makes the most sense to you. 

For example, if your monthly expenses for retirement are $3,200 per month, multiply your ideal number of months times $3,200 to get your ideal emergency fund balance. If you want 6 months of cushion in the bank, you’ll need to work your savings up to $19,200.

Is there a dream car you're saving for? Ready to finally remodel that kitchen? How about a family vacation to The Bahamas? No matter how big or small your goals are, 

 of mapping out your income plan in retirement. 

 has with someone who walks through our doors for the first time is centered around exactly that: 

. We want to know you, your family, your goals, and your dreams. The more we get to know you, the easier it can be to create a plan that accomplishes 

 objectives. Confused on how to break your goals down?

Here are a few examples of how to break down your goals, based on different 

Each type of goal requires a different approach, so we recommend 

 to see what investment options make the most sense for you. It’s important to prioritize out all you’d like to achieve, so that your financial plan can be the roadmap that leads you there.

If the idea of preparing for retirement (

) seems overwhelming, there are plenty of options to help simplify the process. 

 not only can help you articulate your financial goals, but also can set 

 for the steps required to achieve them. 

 you navigate your retirement plan by working with you to answer questions like:

Mapping out your goals with your advisor provides you with an additional level of accountability, as well as 

, the more likely you are to succeed (to learn more about goal setting, 

You’ve Done the Work, Now Find Your Retirement Guide

, our goal is to help you enjoy your retirement with confidence, not worrying about whether or not you have enough money to enjoy. 

Sit down with a Fullerton Financial Advisor today

 to discover if you are on the right track for your retirement goals. 

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. When you 

schedule a call with Fullerton Financial Planning

, you’ll discover how we can help you manage your finances so you can pursue your goals, be it a room with a view, or a ticket to travel the world.

Don’t leave your financial future to chance.

 Let us help you create a personalized plan so you can enjoy the retirement you’ve worked so long and hard for.

 3 Ways to Plan for the Unexpected in Retirement 

Debt. No one wants to talk about it, but over 80% of Americans have it…

By definition, debt is something (typically money) borrowed from one party to another, with the condition that it will be paid back at a later date, usually with interest. Between student loans, mortgages, car payments, credit cards, and more… debt is constantly a variable that is exposed throughout each stage of life. Although the concept is simple enough, the complexities that surround consumer debt can be a detrimental factor in any retirement plan if it’s not closely monitored. 

Now, take a deep breath and imagine what your life would be like if you didn’t owe anyone anything. Pretty nice, right? Unfortunately, as nice as it would be, you can’t just make debt disappear, but with a few intuitive tweaks, you can certainly work towards reducing it. 

That’s why at Fullerton Financial Planning, we want to remove the mystique of approaching debt by giving you a few strategies to help you live retirement in confidence. Ready to get started? 

Before you start repaying your debt, it’s important to take a moment to identify the type of debt you have. Generally, debt either falls into the category of either installment loans (mortgages and home equity loans, student loans, and personal loans) or revolving debt (credit cards, home equity lines of credit, and personal lines of credit).

These two types of debt can then be broken down further into two types:

With different types of debt comes different interest rates. Debts with a higher interest rate generally will cost you more money in the long run, compared to debts with lower interest rates, even if the amount of principal you owe is the same. If you have a high-interest rate debt, consider using the “debt avalanche” method to pay it off first. 

For example, if you owe $15,000 on a car loan to be paid over 5 years, with an interest rate of 5%, you’d end up paying roughly $16,984, or $1,984 in interest. The same loan, paid over the same amount of time, but with a 7% interest rate, will cost you $17,821-- which is almost a $1,000 increase in interest paid. By paying off your debt with the highest interest first, you could reduce your total cost over time. 

It’s important to still pay the minimum amount owed on all debts, so we recommend focusing any extra money you can spare on the debt with the highest interest rate. Although you may not see any results immediately, if you stick to the plan consistently it could lessen the time you’re in debt, since less interest is accumulating.

Although debt is a major cause of stress for Americans, most are not ready to sacrifice certain aspects of their life to become debt-free. According to a recent survey by Tally, over 52% of Americans that have found themselves in debt say they wouldn’t give up their cell phone, and 34% say they wouldn’t abstain from dining out.

Regardless of how much money you make, debt can still be a prevalent barrier to your financial freedom if you’re not willing to stick to a budget. That’s why having a basic understanding of your cash flow is a huge part of getting on track to becoming debt free. A good place to start can be as simple as cutting down on some of your monthly or yearly subscriptions.

When was the last time you looked at your recurring expenses? Gym memberships, cable TV, online streaming, and other recurring subscriptions can add up quickly. That’s why roughly 84% of Americans are underestimating their monthly spending. Although a few dollars “here and there” per month may not seem like a lot, when you actually do the math, convenience can be costly.

If canceling your subscriptions altogether feels too drastic, consider seeking out more affordable alternatives. Sharing a Netflix subscription with your friends, or even using a day pass at a gym (instead of a yearly membership) can help relieve you financially.

At Fullerton Financial Planning, our goal is to help you navigate your retirement journey. Our certified fiduciaries and experienced investment advisors have decades of combined experience helping people find answers to difficult financial questions. Sit down with a Fullerton Financial Advisor today to discover if you are on the right track for your retirement goals.

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. Investment vehicles are essential to any financial plan. When you schedule a call with Fullerton Financial Planning, we’ll help you decide which investment vehicles fit your specific plan and lifestyle.

Don’t leave your financial future to chance. Let us help you create a personalized plan so you can enjoy the retirement you’ve worked so long and hard for.

 Millionaire Habits - Retiring Debt Free 

The pathway to becoming a self-made millionaire is paved by small, daily financial habits.

Retiring a millionaire doesn’t happen overnight--

 who invested in the notoriously famous cryptocurrency

of 26,000% in the first 6 months of 2021…

). All jokes aside, to some, the idea of reaching the coveted “millionaire status” can seem far out of reach, or even virtually impossible... when that couldn’t be further from the truth.

In life, each one of us starts out with a unique set of advantages and disadvantages that play a pivotal role in the opportunities we’re given. Although inherited wealth can greatly factor into the

 you may have, what about if you have to start from Ground Zero? 

Here’s a secret: The pathway to becoming a self-made millionaire is paved by

 that add up over time, regardless of where you start.

 are people who reach high levels of wealth without the help of a large inheritance or trust fund. They simply build their wealth over time, from scratch, by integrating basic money skills into their daily routines such as

Fueled by their innate desire to achieve financial freedom, self-made millionaires typically start with little to no advantages compared to the average investor.

, certified planner and CEO at Harrison Wallace Financial Group, disclosed in a recent interview with CNBC that

some of his wealthiest clients started with $50 or less

 in their checking accounts when they graduated college. Now, these clients have an average net worth around

That’s why developing a financial plan is so important. It doesn’t matter where you’re at when you start, but rather the steps you take to get to your end destination. The last thing you want is to get to retirement and realize you don’t have what you need.

 make it into the millionaire club by the time you retire? We have some ideas.

It can be difficult to define a goal, especially if you aren’t even sure where to begin. One of our favorite frameworks for setting goals is using the S.M.A.R.T. Method (

check out our blog on S.M.A.R.T. goals here

). S.M.A.R.T. is an acronym for S(pecific), M(easurable), A(ction), R(ealistic), and T(ime-Frame). It focuses on creating specific, small goals, as a way to work towards a larger goal. When you create a more specific goal - save $1000 a year for 10 years, for example, you are working toward the larger goal of saving $10,000. 

Funding your retirement to reach that “million-dollar mark” is similar. A very broad goal might be to do just that: fund your retirement, but that’s not specific enough that you can cross it off a list and move on. Instead, you might start by making an appointment with a financial advisor or eliminating any debt you might have. Eventually, you might move to contributing a higher percentage of your income to an IRA or your 401(k). 

Once you’ve established your goals, you’re ready to do the

Did you know the world’s third richest man still lives in the same house

 Probably not, but we bet you know his name-- Warren Buffet. With a net worth of over

, Buffett is the epitome of sacrificing temporary desires for long-term success. In fact, most millionaires (or billionaires in this case) don’t care about “

 like saving up for a large down payment on a home, investing for retirement, or funding an education. 

, and can even be as simple as forming a budget. If you’re one of the

60% of households who does not have a budget they regularly follow

 spending on your “needs” such as living expenses and groceries, and how much you allocate for “wants” like eating out. By narrowing down your expenses, you’re able to get a better idea of your

 from month to month. Even by just saving and re-investing

, you can set yourself up for financial success. 

Investing at a young age can feel daunting, especially if you don’t feel comfortable with your cash flow. One prominent trend in the past year has been the growth of debt among younger generations, with

Millennials’ level of debt increasing on average at 11.5% a year

With student loans, credit card debt, mortgages, and more

, it’s no wonder the younger generation feels

. A recent study by Ally Invest found that

 find the stock market “scary or intimidating,” with the majority of respondents citing they’re either afraid of losing money, or don’t know how to get started. Although the idea of opening and significantly contributing to your retirement portfolio by your early 20’s sounds nearly impossible, it’s actually

, a millennial who wants to start investing, but regardless of her number of promotions and raises, feels like she is always living paycheck to paycheck.  She then begins to monitor her daily, small expenses (like a cup of coffee), and realizes that as her career has progressed, so has her

Although spending $3.50 a day for a cup of coffee may not seem like a bad idea, if you take that amount compounded at

Want a complimentary copy of The Latte Factor?

, our goal is to help you reach your retirement dreams.

 Our certified fiduciaries and experienced investment advisors have decades of combined experience helping people find answers to difficult financial questions.

 to discover if you are on the right track for your retirement goals.

 We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. Investment vehicles are essential to any financial plan. When you

, we’ll help you decide which investment vehicles fit your specific plan and lifestyle.

 Self-Made Millionaire Habits - Investing in Yourself 

Determining your risk tolerance is one of the first steps in choosing an investment that will impact your financial future.

When your financial goals are aligned, you’re better able to determine how much you’re willing to risk and how you’ll recover if it all goes south. Additionally, you’re in a significantly better position to choose investments that will meet those goals.

A comprehensive financial plan is a guide for assessing all types of risk, from buying that boat you’ve had your eye on, to 

. Strategy and Brand Advisor Chris Brogan 

, “The goal isn’t more money. The goal is living life on your own terms.” How you process that concept may be a good indication of where your risk tolerance is on a scale of “financial safety net” to “high-risk, high-reward.” If your goal is financial freedom, you’re likely not willing to invest in anything that has a higher chance of  

Ultimately, age, investment goals, and how comfortable you are with volatility all play a part in where you fall on the spectrum. Just because you 

 recover from a significant financial loss, certainly doesn’t mean you 

 is the degree of variability (aka loss) in investment returns you are willing to withstand in your financial planning. If you have a low degree of risk tolerance, your investments will likely be more conservative; if it’s high, you may be willing to put a lot on the line for the possibility of a big payday knowing 

 can be great for investors, because the outlook is generally good. For some investors however, it’s a dangerous temptation. 

The S&P 500’s longest bull market in history

 lasted from March 2009 until March 2020, when it hit an abrupt end amidst fears stemming from the 

. Though the market has made incredible and unpredictable strides in the year after, 

aggressive investors had a lot to make up

When it comes to risk tolerance, investors are typically divided into three categories: aggressive, moderate, and conservative.

We often visualize aggressive investors as 

-types. The focus of an aggressive investor is 

, a fancy term for money making money. A simple example is investing $1,000 in anything – stocks, for instance – where the value increases, say 50% to $1,500. That $500 difference is capital appreciation. 

That is a very simple example and not likely indicative of the type of investment an aggressive investor would make - double, triple or quadruple those figures and one may get close. These investors 

 primarily because they have great value-earning potential, but they’re also incredibly volatile due to share price falls, lack of or lower-value dividends, and the potential for shake-ups at the company that make the stock less profitable. An aggressive or high-risk investor may have a 

portfolio allocation that is 85% stocks and 15% bonds

, a smartphone-focused live streaming start-up headed by former Walt Disney Studios Chairman and film producer Jeffrey Katzenberg and former President and CEO of eBay and Hewlett Packard, business executive Meg Whitman. On paper, Quibi might have been attractive to an aggressive investor – it was led by seasoned executives in the tech space, backed by plenty of influential Hollywood heavyweights, and targeted the seemingly wide-open market of youthful, phone-obsessed Gen-Zers with bite-size entertainment. After six months, the company folded, taking with it nearly 

Unsurprisingly perhaps, this type of investor falls in the middle of those willing to endure volatility for the possibility of both high returns and high loss, and those who want to protect what they have while also earning a higher-than-inflation, but not significantly higher, return. These investors favor 

preferred stocks, utility stocks, and income mutual funds

, as well as real estate and blue chip stocks. For the most part, these types of investments are relatively stable and, with utility stocks for example, 

pay dividends of about 2% to 3% above treasury securities

. A moderate risk investor may have a portfolio that includes 

65% stocks, 30% bonds, and 5% cash or money market funds

These investors are more protective of their bottom line for many reasons, chief among them, they do not want or cannot handle significant losses. Many older investors fall into this category because they do not have the time needed (generally five to ten years) to recover from losses (or, get back to where they were). These lower risk investors 

. A conservative portfolio allocation may have a mix that includes 

25% stocks, 45% bonds, and 30% cash and money market funds

How Do You Determine Your Risk Tolerance?

Being mindful of your risk tolerance doesn’t necessarily mean investing less, in fact, it really means investing smart for your specific financial situation. Many experts agree 

asset allocation is one of the most important decisions

 an investor can make, and this is the heart of risk tolerance. 

Investors may be disappointed to know there is no magic formula to spit out the perfect mix of stocks or bonds that will keep your portfolio on a permanent, upward trajectory. Even Warren Buffett, so-called ‘

, but what makes these losses important with respect to risk tolerance is that they 

didn’t represent the majority of his portfolio

How you determine your tolerance for risk is to thoroughly understand your financial plan, be honest about your goals and aspirations, and don’t get caught up in the excitement of a prospective stock or investment opportunity without making sure it aligns with those goals. 

Build Your Retirement With Investments That Matter

, our goal is to help you enjoy your retirement with confidence, not worrying about whether you have enough money to enjoy it. Our certified fiduciaries and experienced investment advisors have decades of combined experience helping people find answers to difficult financial questions. 

Sit down with a Fullerton Financial Advisor

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. If you aren’t sure what your risk tolerance is or if your financial plan matches your tolerance level, 

, we’ll help you figure out what makes sense for your situation.

 Why Determining Your Risk Tolerance Can Mean a Brighter Financial Future 

At Fullerton Financial, our goal is to help bring clarity to the complicated world of investment planning.

When you dig into investing for your retirement plan, you will come across terms like “vehicle” and “instrument” used in new and potentially baffling ways. If you’re a new investor, the only “investment vehicle” on your radar might be that dream car you’ve always wanted that sits in the garage sooner to be a money pit than an income generator. At 

 our goal is to help bring clarity to the complicated world of investment planning.

Developing a financial plan that helps you realize your goals is integral to making sense of all the options. Having a financial advisor in your corner can give you the peace of mind that you’re building your financial future in the right ways.

 is a product used by investors for positive returns—it can be almost anything wherein individuals or businesses “invest” by contributing money, expecting money will grow. A car, for example, 

, because they typically depreciate. Many advisors do not consider a house 

 because of the costs associated with upkeep.

Investment vehicles will typically be intangible–so if you’re considering low-risk options, a 

As we’ve illustrated, there are many options when it comes to investment vehicles, but they’re typically broken down into four main types.

Individual stocks are pieces of an individual company. When you purchase a stock — say Amazon (

 of that company. Shareholders are those who own stock in either publicly or privately held companies. While it seems like all major companies are public, 

 including Bloomberg, Deloitte, and Publix, all of which are privately held.

” for many reasons, including to raise money for future growth, to enhance their business reputation, or if a private shareholder wants to sell their stake. Depending on the stocks you own, you may serve on a 

 payments or additional stock options. Not all companies are available for purchase—no matter how much you like Spanx, for instance, 

. Even if you could become a private shareholder, 

the company wouldn’t be as beholden to you

 as a publicly held company might their investors.

Mutual funds are a very popular type of investment vehicle that makes it easy for people from all levels of investing to have a good mix of financial securities. Mutual funds are essentially a pool of money collected from many investors. Think of it in the same vein as when an office staff may pool together money to invest in lottery tickets. The big difference with mutual funds is you’re far more likely to see a return.

The idea is to take that pool of money and invest in securities. In finance-speak, securities refer to any kind of “

negotiable, financial instrument that holds some type of monetary value

.” Securities can be stocks, bonds, money market instruments, and more. There are a myriad of options when considering mutual funds, which is another reason they’re so popular. 

, index funds, and blend funds. Having a diversified portfolio doesn’t just mean a diverse mix of stocks, bonds, and other investment vehicles, it also means diversified even within those breakdowns. The type of fund or funds you choose 

, and is comparable to mutual funds, specifically index funds. They’re popular investments for a few reasons. First, because there’s a low barrier to entry–you can buy and trade ETFs just like you would any other stock with equally low cost. Second, you’re also able to diversify your portfolio pretty swiftly with just a few investments; an ETF based on the S&P 500 “

will give you exposure to hundreds of the country’s largest companies

 than active ones over the long term, and can be up to five times less expensive.

We’ve mentioned bonds several times, and that’s because they’re attractive to new investors because of their relatively low risk. A bond is a broad term for any type of debt investment. The expression “

” relates directly back to these age-old types of debt investment. 

, for example, occur when you loan a company money and in return, they certify their intent to repay with a bond. In simplest terms, a bond is an IOU.

Unsurprisingly, there are plenty of caveats to repayment. Depending on its terms, investors typically hold a bond for short, medium, or long terms until it reaches its designated maturity date. Terms are the single-most important concept to understand about bonds because it lays out a variety of scenarios. Most bonds are non-redeemable for instance, which means you can’t try to collect your principal before the bond reaches its maturity date. You may trade them on the secondary market if you’re willing to go that route, but the terms may hold you hostage.

Other Types of Investment Vehicles to Consider

Other popular investment vehicles geared specifically for retirement can include Employer Sponsored Plans, Roth and Traditional IRAs, SEP IRA’s, 401(k)s, life insurance, a health savings account (HSAs), and even cryptocurrency. . Though we mentioned cryptocurrency as being high risk, it is still an investment vehicle many people think is worth betting on. After the 

, many financial advisors and investors began looking into 

investments outside of the traditional markets of stocks, fixed income or cash

.” To qualify for these types of investment vehicles, one typically needs to have a high income or net worth. Investments in 

private equity, venture capital, private debt, hedge funds, real estate, and even commodities

It bears constant repeating, but an overall financial plan is a major component of any investment strategy. There are countless stories of inexperienced investors who bet the farm on mutual funds with 

hidden fees, high sales charges, and no liquidity

. An adage often repeated in the finance world is “

Past performance is no guarantee of future results

, our goal is to help you enjoy your retirement with confidence, not worrying about whether you have enough money to enjoy it

. Our certified fiduciaries and experienced investment advisors have decades of combined experience helping people find answers to difficult financial questions. 

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. Investment vehicles are essential to any financial plan. When you 

 4 Types of Investment Vehicles for a Better Retirement Plan 

our primary goal throughout your working years is to support yourself, your family, and to create a lifestyle that also leaves a legacy. So, how is it that almost 

70% of people don’t have even so much as a will?

 Many of us haven’t planned for transitioning our hard-earned wealth to others after we pass. While a financial plan sets a path for our retirement years, not having an estate plan is like letting all that work flounder.

sets a guide for how the wealth you built can continue to grow

 and support your family after your death. It’s possible many of us imagine living until a ripe old age, but sadly, that’s not always the case. A will is a small part of an overall estate plan, but it’s one of the most valuable.

What Happens if You Don’t Have an Estate Plan?

If you don’t have an estate plan in place, there are a few ways things may go. Your dependents are left guessing on a variety of issues like what, how, and when they might inherit money or property, how they’ll pay for your funeral expenses, debts, and bills, and how you would have wanted everything to play out. Grief is a powerful emotion – even the National Mental Health Association has said that “

the loss of a loved one is life’s most stressful event

,” – no one wants to leave a financial headache to their grieving families.

If you die without a will, you’re referred to as having died 

Welcome to Our Financial Tips Blog

3 Ways to Plan for the Unexpected in Retirement

Millionaire Habits - Retiring Debt Free

Self-Made Millionaire Habits - Investing in Yourself

Why Determining Your Risk Tolerance Can Mean a Brighter Financial Future

4 Types of Investment Vehicles for a Better Retirement Plan

Estate Planning 101: Why Estate Plans Matter

Estate Planning 101: The Basics

Avoid Losing Your Retirement to Taxes

Love Your Kids, but Be Loyal to Your Retirement

8 Ways Couples Can Plan for Retirement Together

6 Factors Will Decide How Much You Need to Save for Retirement

4 Reasons You Should Be Working with a Financial Advisor Right Now