tax refund

Mailbag: Answering Your Questions About Gold, Divorce, and the Election

The Bird’s Eye View:

Should I invest in gold? How will the election affect my financial strategy? Will a divorce tank my retirement? Scott answers these questions and more in today’s podcast. 

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, he takes your questions about gold, divorce, the election and much more.

Will I spend more money in the first few years of retirement?

“I would say 100 percent, you will probably spend more money in the first few years of retirement,” said Scott.

You’ve likely built a giant bucket list and will want to travel and do other things that cost some money. That’s especially common in the first year of retirement, or the transition year, as we call it.

Should I buy gold coins, gold bars, or no gold at all?

“I get this question all the time about gold and precious metals,” said Scott. “Precious metals are a store of wealth. They’re not an investment.”

Gold is not the best hedge for your retirement dollars, but if you have some, hold onto it for a rainy day.

Should I be investing differently since we have a national election coming?

“The fundamentals don’t change depending on the whims of the political climate,” said Scott.

No matter what, you need a good financial plan that relies on facts and logic, not emotion. That should include short-term accessible cash for necessities. We suggest a six-month emergency fund at a minimum.

You should also have some conservative, moderate and maybe some aggressive investments.

Can I overcome a divorce financially in my late 50s?

“I definitely think it’s doable, you’ll just definitely have some headwinds that you’ll have to accommodate for,” said Scott. “It all comes back to planning.”

Most people don’t start really saving for retirement until they’re in their 50s, so it is possible to make some headway. You can delay your Social Security in order to get the maximum payment and put more money in your 401K since you’re over 50.

Is it better to get a big tax refund or keep more money throughout the year?

“There’s the logical side and the emotional side to this,” said Scott.

It’s exciting to get money back, but you’ve essentially just given the government your money to use interest free for a year. Most of our clients would rather write a small tax check than get a refund. But for some people it’s a forced saving mechanism.

Should we renovate our kitchen or save more for retirement?

Couples need to be on the same page financially and have definable goals. This is a common problem in marriages. You should work with a financial planner to develop your goals and how to get there.

Listen to the full episode or use the timestamps below to hear more.  

[1:38] – Will I spend more money in the first few years of retirement?

[4:17] – Should I buy gold coins, gold bars, or no gold at all?

[6:59] – Should I be investing differently since we have a national election coming?

[8:47] – Can I overcome a divorce financially in my late 50s?

[11:09] – Is it better to get a big tax refund or keep more money throughout the year?

[12:47] – Should we renovate our kitchen or save more for retirement?

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact