Serving Cumming, Forsyth County GA and surrounding John's Creek, Alpharetta, Milton, Duluth, Buford, Suwanee, Flowery Branch, and Gainesville
Originally written on 5/8/2017.
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I get impatient when the traffic around Cumming turns a 5 minute trip into a 15 minute trip. I remember how it used to be in Forsyth County, as many of you do, before this became the land of a thousand traffic lights. As an eighth-generation Forsyth County resident, no doubt my nostalgia causes me to overlook many of the benefits of progress. I can’t help but miss some of the good ole days here.
I remember when there was more open land
One of the things I miss is the landscape--the pastures, the fields, and the woods we used to play in, work in, and just enjoy gazing upon. When Lisa married me and moved here 20 years ago, she was impressed that so many people mowed their lawns with tractors. We used a red Farmall tractor with a belly mower (which could also be used for other tasks like hauling firewood and plowing gardens). Times have changed. Today I live in a subdivision and mow my lawn with a small, light-weight, battery-powered push mower.
Photo 1. Dad hauling firewood with the tractor and trailer
Before these acres of woods and pastures were transfomed into strip malls, subdivisions, and schools, we had access to them for hunting, camping, and exloring. My Dad, my uncle, and my neighbor made dune buggies out of Volkswagon Beetles. On Sunday afternoons we would have fun riding them all over the woods, creeks, and the right-of-ways of the power-lines and pipe-lines.
Photo 2. Dune buggy day and my sister in our yellow dune buggy
I remember going to my grandmother’s house on highway 20, where the Sun Trust Bank is now. My Uncle and cousin lived where the Ingles is located. My Dad and Elon grew yellow-meated watermelons on this property and on the spot where the CVS was built. Some of you will remember them selling them on the side of the road.
Photo 3. My Dad (Gerald Echols), my grandmother (Gordie Newton), and step-grandfather (Elon Newton) with watermelons to sell on the roadside where SunTrust bank is now on Highway 20
I remember when there were more shenanigans (and the innovative consequences that followed)
The first school I attended was Cumming Elementary School on Elm Street. The cafeteria was built on a lower level than the class rooms, and one of the punishments used on the misbehaving children was making them duck walk up and down the ramp from the hall to the cafeteria. Part of the corrective experience was the principal overseeing us, standing at the top of the ramp with paddle in hand.
One of my favorite teachers there was my fourth grade teacher, Mrs. Helen Fowler of the Fowler Park family, who really helped cultivate my love for math and for silence in the rest room. One day she heard us boys in the rest room making too much noise, so on the way out each of us, whether guilty or innocent, got a lick on the rear end with a paddle. If we were innocent that day, we just mentally accounted the chastening to a transgression in which we didn’t get caught.
In the 7th grade, I attended the old Upper Elementary School where the Cumming Playhouse is now. This is the same building where my parents and grandparents went to school, and my great grandfather graduated from in 1932. In 1975, the last year school was held at that facility, it was a little like the Wild West. The day would start with us being dropped off by the buses to sit and wait in the old gym until classes started. There was a teacher on guard in the front to make sure kids didn’t leave, but we figured out a way to jump out of a high window in the back and walk all the way around the block to avoid being spotted. We could then go to town, particularly Earl Gilstrap’s store in front of Heard’s Florist, and stock up on our water guns and candy for the day--and then make it back by the start of class time. Boy, we had some great water fights using squirt guns, water balloons, and any other thing you could think of to get someone wet.
I heard a story of someone lighting an M-80 explosive in one of the urinals, blowing it up. I remember someone rolled a smoke bomb down the aisle of the bus on the way home one afternoon. With heads hanging out windows to breathe, the bus driver turned the bus around and went back to the school that day. To my knowledge, the culprit was never discovered.
Photo 4. Cumming Upper Elementary School in 1975
In high school (when there was still only one in the county), the shenanigans continued. One day toward the end of the school year, the teacher left us unattended by an adult. A student whose name was Charles stood to throw a water balloon at somebody in the back and it burst in his hand as he threw it, getting lots of us wet. Unfortunately for him, I had two fully loaded Joy bottles ready for this “make my day” moment. I handed my friend Darrell one, and he and I proceeded to drown Charles. When the teacher returned, Charles sat there soaking wet in a puddle of water. The teacher pressed Charles to give up the names of the parties involved, but he never squealed. When the teacher announced that nobody would take the final exam without the guilty individuals being identified, Darrell and I had to confess. All three of us got two hard licks with a paddle, with our classmates watching.
I also had some interesting experiences in metal fab. I met an Elvis impersonator who performed at his family's restaurant. There was the ritual of physically laying hold on every newcomer and casting him into the big sink. I also remember watching arm-punching contests, where two guys would take time about punching each other as hard as they could until someone gave up. One of the strangest things I witnessed back in 1976 in metal fab was a competition to see who could hold a burning cigarette the longest to a dollar bill wrapped tightly on the inside of their wrist. Both winner and loser would be left with a nice burn mark on their arms.
One day Mr. Stanford had to leave for a while, and for some reason a war broke out with soft drink cans, bolts, and welding rods flying through the air. I had taken cover behind a lathe and never will forget seeing a guy running with a welding rod stuck in the back of his neck. After the ruckus, we evaluated the welding rod and saw that someone had sharpened it for the occasion.
Photo 5. High School Class of 1979 (I'm in the front in a red shirt, fifth from the left)
Just one more story about Forsyth County--that involves a music star. At breakfast a few months ago at an old-timer hangout, I enquired about let’s say “a misunderstanding” with Kris Kristofferson at the Lanierland Country Music Park many years ago. It just so happened, someone at the table was one of the two gentlemen from Forsyth County who was personally involved. He said, “I can tell you exactly what happened”… and I got the scoop. Basically, Kris said some very negative things about our county on stage that led some citizens to implement some innovative consequences on him. But not to worry, it was a long time ago and Kris is OK. I heard that he apologized some years later when he was in concert nearby.
Photo 6. From Rafael Picklesimer's youtube video, Lanierland Music Park 1970s, this is Kris just before the incident.
There are many other stories I could tell, but suffice it to say, Forsyth County was a nice and interesting place to live back in the 70s. I still think it is nice, but maybe not as interesting. (I do admit I am glad we don’t have to drive to Doraville for the nearest McDonalds. Shoot, I don’t even have to drive to the one at Buford Crossing [at highway 20 and 9] where John Green used to live. But I digress.) It must be a comparatively nice place to live now, gauging by the population growth. However, when I'm stuck in traffic or dodging the pot holes in the roads due to all the pounding, please be understanding if I reminisce a little about the good ole days.
Investment Advisory Services offered through JT Stratford, LLC. JT Stratford, LLC and Echols Financial Services, LLC are separate entities.
Here is an executive summary of how to build up a portfolio for retirement in seven steps.
1. Values clarification and goal-setting . Figure out the income objective and capability of your retirement assets in lifestyle terms, then financial terms. In other words, set realistic, specific, financial goals based on your core life values.
2. Asset allocation glide path . Figure out how to diversify your retirement assets among stocks, bonds, and cash, based on your age, risk tolerance, retirement goals, and changing market values.
3. Valuation-dependent efficient frontier . Figure out which areas of the markets are historically inexpensive, and which are historically expensive. Don’t take on more volatility than you need to for the growth you need or desire.
4. Multi-asset class approach . Diversify one more step for more growth and less volatility. Put more money in the specific market areas that are less expensive and less money in the specific market areas that are more expensive.
5. Tax-aware asset location and distribution . Save as much on taxes as possible by figuring out which type of investments should be held in which types of accounts. If you are drawing an income from your assets, figure out the least-costly order for making withdrawals.
6. Investment selection based on account type (qualified, nonqualified) and asset-class propensity and magnitude of outperformance (passive, factor, managed, etc. ). Figure out what kind of investment to use (index mutual fund, factor mutual fund, actively managed mutual fund, single factor ETF, multifactor ETF, passive ETF, individual stocks, individual bonds, Unit Investment Trust, closed-end fund, etc.) based on the account type, asset class, and growth and income needs.
7. Rules-guided rebalancing based on retirement glide path and multi-asset-class approach . Readjust the investment mix based on your changing personal situation and changing market values.
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Here is a summary of the details backing this approach. Also, click here for more background information regarding my investment philosophy.
1. Values clarification and goal-setting
Investment planning for (or in) retirement starts with retirement planning. You start with thinking about your life goals...your dreams...your ideal life in retirement. It could involve doing no work, working part-time, or doing seasonal work. Your ideal life could be going back to school, spending more time with family, traveling, ministry, etc.
Ask yourself questions like, "What would I want to do if I
didn't need to work for money?" or "What are the most important
dangers, opportunities, and strengths I need to address?" or“Ten years from now, if I am looking back on a successful
ten years, what will I have achieved?”
This conversation allows you to create specific
goals around your most cherished values. And your goals will be unique to you.
You then design an investment plan to help you live your ideal life.
This kind of goal-focused, plan-driven approach minimizes the
chances of making bad investment choices based on current events and emotions.
Instead, you can choose and maintain the
specific mix of investments that can best deliver the results you need--using a
disciplined, research-driven approach.
2. Asset allocation glide path
The next major question is what kind of investments do you need to meet your goals. All investments have risk. Even "safe" investments over long periods have inflation risk. No single investment delivers growth, high income, and safety of principal. The key is designing a portfolio that balances them in a way that supports your retirement objectives.
And this mix may change over time. For example, for most people, it makes sense to gradually decrease their exposure to high-growth, high-volatility assets like stocks (i.e., equities) as they approach retirement. In retirement, it is usually best to maintain a flat equity glide path, dynamically adjusted for valuation. This approach protects you from the retirement-danger-zone risks of portfolio size effect and sequence risk, while allowing you to take advantage of bear markets and market corrections. See How to Navigate the Retirement Danger Zone .
Protecting your lifetime retirement savings from excessive taxes is a crucial part of holistic financial planning. This involves protecting your IRA, 401k, lump sum pension rollover, Social Security, and any other type of retirement account or income stream from crushing tax rates.
So let's be sure to differentiate tax preparation
from tax planning
.
Tax preparation , also called tax return preparation, looks backward, one year at a time, to get the numbers right to accurately calculate your tax liability (and how much you owe or overpaid).
Tax planning on the other hand looks at taxes in the context of your overall financial picture. A tax planner not only looks in the rear-view mirror but will look forward 20 to 30 years at your projected tax liability and ask what can be done to lower your lifetime tax bill.
If you have savings outside of pretax retirement accounts invested in capital assets (like stocks, bonds, ETFs, mutual funds, precious metals, jewelry, and real estate) which have large unrealized capital gains, this article is for you. You may be missing the opportunity to pay zero taxes NOW instead of 15% or higher rates in the future. Sign up to receive my free monthly email articles on retirement planning--no cost, no obligation
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Originally written on Aug 2, 2018 and updated for tax law changes.
If you are no longer working and have reached the age of 72,
you probably know about Uncle Sam’s rule for you to take a Required Minimum Distribution
(RMD) from your traditional and rollover IRA(s) each year for the rest of your life. You can always withdraw more,
but this requirement is the minimum
you must take or be severely penalized. Fortunately,
this rule does not apply to Roth IRAs. (The SECURE Act of 2019 changed the starting RMD age from 70½ to 72 starting in 2020, but fortunately you can still make a Qualified Charitable Distribution (QCD) starting the year you turn 70½.)
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If you have delayed paying taxes in your pretax IRA, 401(k), or 403(b), etc, there comes a time when the IRS wants their taxes. And if you don’t give them their taxes based on their required withdrawal schedule, you'll get hit with a 50% penalty on top of what you owed.
Along with Social Security and other retirement income, this RMD can significantly raise your tax rate. Also read How to Dodge the Social Security Tax Torpedo . There are not many ways to reduce this tax burden. In the past, retirees have used various deductions including charitable cash contributions and gifting of highly appreciated assets to charities. (The latter not only gives you, the donor, a deduction but also avoids a long-term capital gains tax bill.)
However, with the passing of the Tax Cuts and Jobs Act of 2017 (TCJA) , with its almost doubling of the standard deduction, itemizing deductions won’t make sense for near as many retirees. Ah, but there is still a strategy. But first let’s better understand the RMD.
The latest book I am reading is “ The Psychology of Money ” by Morgan Housel. Chapter 3 is entitled “Never Enough”. In this chapter, Housel talks about when rich people do crazy things. He tells stories of wealthy people who never had a sense of enough and wrecked their reputations, families, freedom, and happiness because of it. I have also talked to older couples who tell me they once had a much better retirement in view, but the quest for more led them to make unwise investment decisions that left them financially crippled in retirement. The importance of knowing when you have enough is not only vital to when you retire but also how you retire. It can affect how you invest, how you withdraw, and your overall satisfaction before and during retirement. Be sure to read to the end where I summarize a few key takeaways. Housel makes the four following observations in chapter 3 of his book. Sign up to receive my free monthly email articles on retirement planning--no cost, no obligation
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Whether you do mini-Roth conversions over several years or big Roth conversions in a few strategic years, the Roth conversion strategy could save you tens if not hundreds of thousands of dollars over your retirement. This article will get deep into the issues of Roth conversions for retirees and the ten steps to take to be sure it is done properly. Be sure to scan or read to the end where I will give you the simple answer to getting your Roth conversion questions answered. Sign up to receive my free monthly email articles on retirement planning--no cost, no obligation
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Making big financial decisions immediately following the death of a close family member can be dangerous. It is often best to allow some time before tackling big financial decisions. On the other hand, some people find getting immersed in the finances is helpful in coping with the loss. Whatever way is best for you, you will need to give it your
careful attention to avoid big financial mistakes. The different types of accounts have different rules. I'll address the most common types. In the case of the death of a parent or anyone other than your spouse in which you are a non-spouse beneficiary, there are many rules that you must know to make the best decision for you and your family. (In this article, I use the common parent-child inheritance, but the planning strategies can apply to other non-spouse situations.) Your decisions can have major tax and investment consequences, both now and in the future. And some of these decisions have time deadlines keyed to your parent’s date of death. Also, some of these decisions are irreversible. You can download my free Estate Planning Survivor Checklist here
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So, you don’t want to rush in and make decisions without knowing the rules, and you don’t want to wait too long and be stuck with fewer options. (In this article, I am not addressing estate taxes. As of 2021, only estates valued at $11.70 million or more are subject to federal estate tax. But there are plenty of other tax pitfalls to navigate around. I am also going to focus on liquid savings like investment and retirement accounts, versus real estate which will be for another time.) Sign up to receive my free monthly email articles on retirement planning--no cost, no obligation
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Delaying Social Security makes a lot of sense for many retirees; but there are common pitfalls that can cost you a bundle. As you know, the longer you delay your Social Security Retirement benefit, the higher your lifetime monthly payments are figured to be. This increase in delaying continues until age 70, after which there are no further increases for delaying. This increase for each month that you delay filing is not small, especially considering the current low interest rates. Even after full Social Security age, your payment goes up by 8% per year until age 70. Sign up to receive my free monthly email articles on retirement planning--no cost, no obligation . Here are the five big mistakes of delaying your Social Security retirement benefit. |
Are you wondering about the impact of the
2020 election results on your retirement? If so, you are not alone. The two political parties are greatly polarized. While the Democrat party has moved further toward ethno-centric socialism, the Republican party has moved further toward nationalistic populism. The difference in the two parties’ goals for our country is wider than ever. Sign up to receive my free monthly email articles on retirement planning--no cost, no obligation . |
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Investment Advisory Services offered through JT Stratford, LLC. JT Stratford, LLC and Echols Financial Services, LLC are separate entities.
Serving Cumming, GA, Forsyth County, and the surrounding areas of John's Creek, Alpharetta, Milton, Duluth, Buford, Suwanee, Flowery Branch, and Gainesville