In The News
NEWS FROM CREATIVE WEALTH MANAGEMENT, LLC
Welcome to the news page of Creative Wealth Management, LLC. When you log in to take a look at your accounts, we hope you’ll stop by the news page to keep up to date with our events and activities.
Finding ways to continue to earn money can be very powerful in retirement, especially if you can delay taking social security and increase your base for it. When you retire, you'll need to figure out how to spend your time. There could be things you can do that don't feel like work, things that you would have never considered your "career", but things that can help get your retirement meaning and make it mathmatically possible.
Money and investing share a lot in common with diet and exercise, so much of it is tied to behavior. Making small modifications, you can stick with will give you a better chance at success than something like a fad diet or some program to get your perfect body in 30 days.
Check out the recent Redfin article we were featured in:
Inflation and House Prices: What Homebuyers, Sellers, and Renters Need to Know- June 1, 2022
Prices are up almost everywhere – from food, to gas, to home prices. In February 2012, the nationwide median sale priceof a house in the U.S. was $160,000. More than ten years later, that number is up to a record $412,000. Homes in markets like Seattle, WA, regularly face bidding wars, while nationwide, nearly 6,000 have sold for $100,000 or more above asking price this year. Home prices have been steadily rising for years, but they have dramatically increased in recent months. Why?
It depends a little bit on your situation, but if people depend on your income it's incredibly important for them to have a way to replace it should something happen to you. There are lots of insurance products out there, some of them include investments and build-up cash value while others don't. If you have multiple professionals for insurance, investment, tax, and legal considerations, it's probably a good idea for all of them to be communicating with eachother. You may have a great advisor, a great attorney and a great accountant, but a bad plan if they're not all on the same page.
Redefine Retirement, maybe you're retiring from your career, but that doesnt have to mean stopping any sort of gainful employment. Finding ways to continue to earn money can be very powerful in retirement, especially if you can delay taking social security and increase your base for it.
How much should retirees withdraw annually and from what accounts should they draw income first? What is the best strategy to ensure that retirement funds last? What are the worst retirement moves for retirees, contrary to popular belief? What are the biggest retirement regrets?
What are a few credit card myths people shouldn't believe? What should they do instead?
Rising rates means 2% interest on savings could be 'new normal'- January 14th, 2018
If the Fed continues to raise rates,The downside: Lenders are likely to charge more for all loans, says Solomon. Know too, that " long-term bonds are in more jeopardy as the Fed rises rates. They are more unstable in a rising interest-rate enviornment," says Michael Kresh, cheif investment officer with Creative Wealth Management in Islandia. So what should you do? Play defense
The new senate tax plan could mean the wealthy benefit in the long run while the middle class american will only temporarily benefit.
" “If you’re taking the standard deduction now, you’ll most likely get a tax break,” says Michael Kresh, a certified financial planner based in Islandia, N.Y. “But if you itemize, there's a 50-50 chance you’ll pay more." "
What Rally? Mom-and-pop investors are getting left in the dust- March 20, 2017
It may just be that the institutional crowd has more of a stomach for all of the political volatility happening in Washington. " Those two behaviors are really detached, because an institutional investor is looking specifically at how is the overall economy going to do, and an individual is looking at their own comfort," said Michael Kresh, managing member of Creative Wealth Management, a boutique firm based in islip, New York. " This isn't a fear of the market, this is fear of what's going on in Washington and how that's going to come out."
Thanks to Sarah Morgan, financial writer, who contacted Michael to speak with him on tips on making a nest egg last longer - 30 or 40 years - for those considering an early retirement. Even those who are retiring at age 65 need to consider some of these ideas, as today's lifespan is far longer than it once was. Some of these tips include keeping about two years of living expenses on hand in cash or short-term investments to avoid having to sell into a down market if you should need cash. Also, Michael advised being wary of friends or family members who approach you with "no fail" investments. Just because you have been successful early in life does not mean that you need to get involved with an investment in someone else's idea of a great opportunity.
Long Island Business News – May 13, 2015
Now that real estate values have returned to near pre-Recession values, using the equity in the home is again a viable way for some families to help defray the high cost of a college education. Michael Kresh was interviewed by reporter Kristin D’Andrea for this look at why and how to make this work.
News 12 - Spring 2015
A report on the 50 worst states for retirement placed New York as the 49thout of 50. The problem with retirement in New York State is mostly a problem with the cost of living in NYC and its suburbs. That leaves many potential retirees with the problem of high home equity and high costs. He recommends figuring out how long you can stay, and then using the home equity to supplement retirement (by moving to a lower cost state, or possibly another method of getting access to that asset).
Long Island Business News – May 2014
The wisdom of borrowing from your own portfolio is as collateral for a line of credit was discussed in “Becoming Your Own Banker,” an article appearing in the May 9 edition of LIBN. Michael was interviewed as a source for the article, and pointed out several reasons why this is not a good idea for investors. He noted that taking out a home equity loan would be a better strategy, and if the person does not have any equity in their home, advises that they likely should not be adding to their debt burden.
Bloomberg On Demand - 2012
Michael was interviewed for a series on retirement produced by the prestigious Bloomberg media platform that appeared only on select cable stations worldwide.
News 12 On the Money
Michael Kresh is a regular guest, appearing with business reporter Stone Grissom and anchor Lea Tyrell on segments relating to a variety of financial topics, including looking at financial market news and personal finance segments.
What to Expect in 2012
Retirement Tips – Advice on 401(k) discussion with Stone Grissom.
Retirement Finance – How much do you need to retire? Michael and Stone discuss factors needed to be considered to ensure that your savings do not run out.
Turmoil in Greece – A look at the impact of Greece’s vote on the Eurozone.
Stock Market Turbulence - A discussion of large market moves and how big investors impact the numbers differently than in the past.
Investing and Hidden Risks – Be wary if investments are illiquid or are not publicly traded.
Long Island Business News - Finance and Accounting Guide - June 2013
Michael Kresh was featured in an article titled “Take the Reins to Enjoy Retirement” that appeared in this special section of a local business newspaper. He discussed the problems faced by employees who have 401(k) plans and are making decisions without understanding the long-term consequences. A large sidebar article “Advice from the expert – Michael Kresh” provides five key insights about retirement planning.
Michael contributed to an article by Sheryl Nance-Nash on advice to rescue a retirement plan by doing a Reality Check. For six months, live on the income you expect to have in retirement and save the rest. If you don’t have enough, reset your expectations.
Michael served as a key source in this detailed article about the dangers of employees borrowing from 401(k)s that are meant for retirement income. He notes that using retirement plan funds to solve financial problems is extremely risky and very expensive. Employees who borrow from their 401(k) plan before age 59 ½ face a 10% penalty as well as state and federal taxes in addition to having to pay themselves back with interest.
Michael Kresh was interviewed by Tim Grant, Financial Reporter, concerning the potential impact of the new tax brackets. Michael noted that the passage of the new tax laws are only the first part of a larger problem facing the national economy - the sequestration cuts, which are as yet unknown.
An article about investment strategies in the face of a looming debt ceiling included a wry quote from Michael: “We must be prepared because there are too many different ways of screwing things up” in Washington.
Financial reporter Tim Grant spoke with Michael about Required Minimum Distribution withdrawals from IRAs (Individual Retirement Accounts) that are required to be taken annually. Many investors miss this deadline and the cost in tax penalties can be as much as 50% of what they should have taken.
Michael spoke with Sheryl Nance-Nash about the lure of using a layaway plan at a retail store for holiday shoppers. He noted that while layaway does not involve the interest rates of credit cards, the underlying principle is the same: helping consumers spend more money.
Michael was interviewed on the possible impact of a fiscal cliff scenario long in the late spring, when it was still a remote possibility. He explained that while the news is daunting, the world is not coming to an end.
Michael was interviewed by Stone Grissom on the Facebook initial public offering and discussed the pros and cons of investing in the high profile stock offering.
News about shrinking Social Security Trust Funds and how to plan for smaller benefits was discussed in an interview with Darla Mercado. The firm held several Social Security workshops during the spring and summer to educate the public to the role that Social Security benefits fit into retirement plans for those over 70 and already retired and those who are younger.
An article on a series of educational workshops on Social Security entitled “What Baby Boomers Need to Know to Maximize Retirement Income” appeared in the local newspaper serving Long Island’s north shore.
Legislation aimed at hedge fund managers that would require investment managers and CFPs to register as lobbyists was the topic of an interview with Michael Kresh and CNBC. Michael explained that CFPs are held to a high level of fiduciary responsibility and ethics and requiring them to register as lobbyists doesn’t make sense.
New York Times– September 11, 2012
An article by personal finance reporter and author Fran Hawthorn looks at the risks for individuals who try to invest in the same way as large pension funds. Michael noted that while defined-benefit managers have access to professional advice and complex investment choices, there are simplified versions of these investment options. He presents several different ways to mirror these large fund investments by individuals.
Newsday – December 22, 2010
A discussion of giving during the holiday season included a look at the tax benefits of charitable donations and personal gifts, as well as how business owners can give their clients a special holiday gift by granting a short extension on their December invoices.
Smart Money - May 10, 2010
Michael was quoted in an article titled “Roth Conversion: Savers Say ‘No Thanks’” that took a closer look at converting a regular IRA to a Roth IRA. He discussed the upsides of converting to the Roth IRA, along with the pitfalls, which include Medicaid considerations.
CNBC.com – May 3, 2010
Michael Kresh said he's been trimming some positions to get cash for his clients—mostly retirees—but is not making any wholesale moves out of the market in this CNBC
item titled “Sell in May? Here’s a Better Way to Invest This Summer.
Money Fix: Year-end gits with tax breaks - December 2010
Year end steps to take that can benefit the giver as well as the receiver, including making charitable donations, deferring income and making gifts - this year up to $13,000 - to individuals (not charities).
Good News, Bad News: Market will get better, but not for a few years
Every person, whether they’re near retirement or in retirement, needs to get a certain rate of return on their money or they’re going to lose this battle either way. Some of your money must be at risk to earn enough to pay your bills.
Where to find emergency cash November 2009
Guidelines for tapping your assets without paying too much in penalties and taxes.
Consumer Reports – March 2009
A discussion of funding retirement accounts when employers stop making matching contribution includes Michael’s recommendation that workers should continue to maximize their contributions, regardless of what their employers do. Put any extra income from raises straight into the 401(k), he advises.
7 Ways You Can Still Retire During a Recession January 2009
Michael Kresh, a certified financial planner and author notes that “After 70, you should always have three to five years of living money in highly liquid and stable short-term accounts.”
A Few Easy Tips to Take Control of Your Finances November 2008
Financial reporter Candice Choi interviewed Michael Kresh on how to help people feel more in control of their finances in uncertain times. Among his recommendations: identify costs that are fixed and those that are not so that you can determine where you can cut costs.
NEWSDAY Diversify and don’t panic September 2008
Go shopping when investments are on sale, not when they’re at full price. If there are stocks you’ve been gazing at that previously seemed priced too high, now is the time to add them to your portfolio.
The Los Angeles Times– September 7, 2008
Michael was interviewed by personal finance author and reporter Kathy Kristof for an article that examined the metaphor of Fall as a harvest season both for farmers and for investors. He notes that the fall season is a good time to reevaluate investment portfolios, trim stocks that may no longer be a good fit and take advantage of any tax benefits from selling poorly performing investments.
US News & World Report – July 10, 2008
How to tell if you are ready to retire? Kresh advises boomers to wait until age 70 for best results both financially and emotionally, so as not to become bored after years of busy schedules.
Lovebirds Must Tackle Big Money Questions February 2008
When the financial and legal side of a relationship is taken care of and everyone feels secure, there’s a lot less stress in the relationship and a much greater sense of trust.
Why Wait for 65 When You Can Retire at 38?February 2008
If you’re drawing more than 4% annually your investment won’t last the potential 40 years that it needs to last. If you are a 40-year-old and you have $1 million in investments, how hard would it be to scale back your lifestyle so that you’re only living on $40,000 a year? That’s what it would take.
FOX BUSINESS.comDecember 2007
Michael Kresh provided a number of tips to make the most of year-end retirement investments.
*The hyperlinks included in this website are provided as a convenience and are for informational purposes only and are not part of Royal Alliance Associates, Inc., The link to outside web sites does not mean that Royal Alliance Associates, Inc., endorses or accepts any responsibility for the content or use of the web site. Royal Alliance Associates, Inc., does not guarantee the sequence, accuracy or completeness of the data or other information appearing on the linked pages. The company assumes no liability for any inaccuracies, errors or omissions in or from any data or other information provided on the pages, or for any actions taken in reliance on any such data or information.
*Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed and the accuracy of the information should be independently verified.
*All Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary.
*If converting a Traditional IRA to a Roth IRA, you will owe ordinary income taxes on any previously deducted Traditional IRA contributions and on all earnings. A conversion may place you in a higher tax bracket than you are in now and may not be suitable for all investors.
*A Roth IRA distribution is qualified if you've had the account for at least five years and/or the distribution is made after you've reached age 59½, because of your total and permanent disability, in the event of your death or for first-time homebuyer expenses. Distributions made prior to age 59 1/2 may be subject to a federal income tax penalty.