Saturday Everyday: 9 Simple Steps to Live Your Best Financial Life

By Michael Crews MBA CFP®

Nine simple steps could mean the difference between living your best financial life or not.

Michael Crews, who owns a financial practice with more than $500 million in assets under management as of August 2019, reveals those steps in simple langauge in this guide to pursuing financial freedom.

By following his advice, you’ll be able to spend more time doing what you love so that every day is a Saturday. Learn how to:

• build a foundation to survive financial downturns and life emergencies;

• determine what you really want to spend your time doing;

• design a life based around positive cash flow;

• invest your money so that it works to grow over time; and

• protect and keep more of what you earn.

The book also explores how to maximize savings in an individual retirement account or 401(k) plan, active investments versus passive investments, fundamental versus technical analysis, annuities, social security, Medicare, and more.

Crews’ collection of simple but powerful principles which can help you succeed no matter what career you choose or where you live. They are timeless and can be passed on so future generations can also live their best financial life.

• Language: English
• Publisher: Archway Publishing
• Release date: Nov 15, 2019
• ISBN: 9781480879775

Michael Crews MBA CFP®

Michael Crews, MBA, CFP® graduated from college in Hawaii, where he studied international business and learned to surf, SCUBA dive, and spear fish. He is an Eagle Scout, private pilot, earned a Certified Financial Planner certificate, and graduated from Southern Methodist University’s Executive MBA program. Crews owns a financial practice with more than $500 million in assets under management as of August 2019. He has been married for eighteen years and has three children.

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Copyright © 2019 Michael Crews, MBA, CFP®.

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

This book is a work of non-fiction. Unless otherwise noted, the author and the publisher make no explicit guarantees as to the accuracy of the information contained in this book and in some cases, names of people and places have been altered to protect their privacy.

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ISBN: 978-1-4808-7976-8 (sc)

ISBN: 978-1-4808-7975-1 (hc)

ISBN: 978-1-4808-7977-5 (e)

Library of Congress Control Number: 2019910162

Archway Publishing rev. date: 02/17/2020

To my sweet wife,

Melissa, and to my children, Clayton,

Kylie, and Caroline, who make my life the best.

The material in this book is educational and general in nature, does not take into consideration the reader’s personal circumstances, and is therefore not intended to be a substitute for specific, individualized financial, legal, and tax advice. The opinions expressed in this material do not necessarily reflect the views of LPL Financial. Tax laws and provisions are subject to change. For advice specific to your own personal circumstances, we suggest that you consult with qualified financial, legal, and tax professionals. The author, Michael Crews, MBA, CFP® and LPL Financial do not offer tax or legal advice or services.

All entities, websites, and programs mentioned in this book are not affiliated with nor endorsed by the author, Michael Crews, MBA, CFP® or LPL Financial.

Any experiences described within are for illustration only, and may not be representative of any future experience of our clients, nor considered a recommendation of the advisor’s services or abilities or indicate a favorable client experience.

Hypothetical examples are for illustrative purposes only, and are not representative of any specific situation. Your results will vary. Any hypothetical rates of return illustrated do not reflect the deduction of fees and charges inherent to investing. Individual results will vary.

There is no assurance that the techniques and strategies mentioned are suitable for all individuals or will yield positive outcomes.

All investing involves risk including loss of principal.

Investing in mutual funds involves risk, including possible loss of principal. Value will fluctuate with market conditions and may not achieve its investment objective. Index funds are subject to index tracking error.

Variable Annuities are suitable for long-term investing, such as retirement investing. Withdrawals prior to age 59 ½ may be subject to tax penalties and surrender charges may apply. Variable annuities are subject to market risk and may lose value.

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

At the time of printing, Michael Crews was a registered representative with, and securities and advisory services are offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.

CONTENTS

Acknowledgments

Introduction

Principle 1    More Money Coming In Than Going Out

Cash Flow

Budgeting Techniques

How the Budget Will Change in Retirement

Emergency Fund

Principle 2    Pay Yourself First

Investing the Excess, Identifying How Much and Where to

Save

Types of Money

To Roth or Not to Roth

Investments

Passive Investments

Active Investments

Fundamental versus Technical Analysis

Valuation of a Stock

Annuities—The Good, the Bad, and the Ugly

Diversification

Golden Eggs—Principal versus Interest

Contributions versus Rate of Return

Principle 3    Replace Your Paycheck

When You Turn Off the Paycheck, You Have to Be Able to Turn On Other Sources of Income

Understanding Lifetime Income Sources

Social Security

Social Security Disability

Spouse Benefits

When to Begin Social Security Benefits

Taxes on Social Security

The Defined Benefit Pension Plan

Defined Contribution Plans

Lump Sum versus Annuity Payment Options

Principle 4    Fund the Gap

401(k) Pretax—Matching and Contributions

Inside the 401(k)

After-Tax Contributions

401(k) Loans

Retirement Is All about Cash Flow

Living Longer

Health Insurance Reduces Cash Flow

Medicare

Medicare Gap Plans

Retiree Medical Insurance

Consolidated Omnibus Budget Reconciliation Act

(COBRA)

Principle 5    Climbing Mount Everest

The Same Accumulation

Strategies Won’t Work in Retirement

Distribution Planning Impact

Cash Flow Is More Important Than Interest Rate Savings

Time-Based Segmentation

Systematic Withdrawals

Importance of Separating Income and Growth Assets

Should I Use Pretax or After-Tax Money for My Income Plan?

Sustainable Withdrawal Rates

Monte Carlo Simulation

Sources of Lifetime Income

Principle 6    One Shot to Get It Right

Income Strategies

Essential versus Discretionary Income

The Solution: The Quadrant Strategy

Quadrant 1—The Emergency Fund

Quadrant 2—Lifetime Income Sources

Quadrant 3—The Growth and Inflation Assets

Quadrant 4—Estate Planning

Quadrant Strategy

Why Invest in Two Strategies

Why After-Tax Assets Should Be Positioned for Growth Rather Than Income

How to Draw Up Your Own Plan

Principle 7    A Bucket of Taxes

The Tax Bucket

Age Rules

Retiring Too Early

Retiring Too Late

Age 59½—Diversifying the 401(k)

Principle 8    Maximizing Leftovers

Estate Planning

Last Will and Testament

Durable Powers of Attorney

Medical Powers of Attorney

HIPAA Authorization and Release

Directive to Physicians / Living Will

Declaration of Guardian in the Event of Later Incapacity

and Need of Guardian

What to Expect from an Estate-Planning Attorney

Other Ways to Transfer Assets

The Importance of Elder Law Planning

Principle 9    Live a Life without Limits

A Great Example: Megan Getrum

What It Means to Live a Life without Limits

How Will You Spend Your Time during Retirement?

Finding New Challenges

Financial Health Includes Your Health

What Will You Be Remembered Most For?

Conclusion

Works Cited

ACKNOWLEDGMENTS

Special thanks to the following:

My wife, Melissa, for encouraging me to complete the process and giving me the time to do so.

My business partner, Chris Scarborough, CFP® for his contributions to the retirement strategies developed for our clients, which greatly contributed to the content of this book.

My mentor, Sue Ricker, for exposing me to the industry, transferring her knowledge, and giving me a once-in-a-lifetime opportunity to help others.

My coworkers for always listening and motivating me to finish the book!

My parents, Wes and Cassie, for being great examples.

My brother Wesley for coming over each week to collaborate on ideas and life.

My sister Jennifer for allowing me to share her story.

My mom, Cassie, for being the first to read my manuscript and give me honest feedback.

My author coach, Ann McIndoo, who helped me get this book out of my head and on paper.

Special thanks to Larry Hornbeck, PhD, Johnny Garrett, Rick Pooler, Ernest Marcos, Erin Peirce, Mark O’Briant, Craig and Debbie Fisher, Jo Umberger, and Leonard and Diane Getrum for their interviews and contributions to this book.

And most of all, thank you to all my incredible clients who have trusted me with their financial futures.

INTRODUCTION

The secret of getting ahead is getting started.

—Mark Twain

What do you imagine when you think of Saturday mornings? For me, Saturdays are a chance to wake up extra early and enjoy the freedom to do whatever I want. I think of taking a drive with the windows down and listening to music with a feeling of freedom.

Saturdays are an escape from school, work, and have to tasks. I enjoy the excitement of wanting to capture the day and not let it slip away. I look forward to packing in the activities to live life to the fullest. To me, Saturdays are invaluable.

I think having more Saturdays sounds great, and having every day be Saturday sounds even better. Saturday Everyday is an easy read and overview to motivate you to get started on your way to making every day be your own self-designed Saturday. Just knowing you are taking the right steps to take charge of your own finances will energize and excite you about your life. You will awaken each day more confident and ready to pursue your passions, instead of just working for a paycheck.

There are many books about building your own real estate empire or becoming your own boss and escaping the nine-to-five grind. This is not that book but rather a collection of simple yet powerful principles that if followed may help you create financial freedom and more Saturdays. These principles will prevail, even if you decide to become a real estate tycoon, win the lottery, or evolve into the next Steve Jobs. The very nature of principles means they are applicable in a broad set of circumstances and are timeless. These principles will still be relevant to your grandchildren who want to create financial freedom.

First, let’s gain a clear picture of what you’d really want if you had financial freedom. How do you define your Saturday? What does Saturday mean to you? What types of activities do you look forward to doing? The very idea of retirement is changing rapidly from the traditional retirement that your grandparents experienced. Take a moment and think about how you would spend your time if you no longer needed to work for a paycheck. What would you do that you can’t do while you’re working?

In retirement, you can do things for more fulfilling reasons, rather than for a paycheck. So what fulfills you? Do you like helping others, donating your time to charity, spending time with family, working on restoring cars, wood carving, or traveling?

To get to the core of these questions,