taxable investment account, you can handle your cash flow
needs from those assets, pay lower cap gains rates and no penalties, and leave your retirement accounts to grow, tax deferred.”
In fact, a recent report from the Center for Retirement
Research at Boston College warned that withdrawals from
retirement accounts — such as cash-outs when you change
jobs or withdrawals to pay for a home purchase or emergency expense — shrink Americans’ wealth in retirement
by an average of 25 percent.
Hedge Your Bets
Overall, many Marin residents are reaping the benefits of a grow-
ing economy and looking to their wealth managers or financial
advisers to help them make the most of it. The best managers help
their clients enjoy the good times without getting carried away.
“Things are better and people are more optimistic,”
Nemetz says. “The thing I would say to them is, ‘Don’t forget
your business discipline. If you’re making decisions based on
feeling good today, don’t forget to look at the numbers.’ ”
Kenneth Maring, senior portfolio manager with the
Maring Financial Strategies Group of Wells Fargo Advisors
in San Rafael, suggests being realistic about the stock market,
where the bulls can’t run forever.
He finds safety in stocks that pay good dividends, and he
favors an “absolute return strategy,” a hedge fund approach
designed to make money every year, whether the market is
trending up or down. Maring handles portfolios of $250,000
or more, but smaller investors can seek out absolute return
mutual funds, he says.
“This is a time in history that you need to be extremely
cautious with your investments. Slow down — the curve is
coming,” he warns. M
Moving the unit from the long-
term residential market to Airbnb
increased her rental income to
about $3,200 a month — enough
to pay her mortgage, insurance
and property taxes.