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Joe Lucey

Summer Memories, Lasting Legacies

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These long summer days have me thinking back on the summers of my youth, and all the ways life was simpler. The world was a different place back then! 

When I was a kid, we used to ride our bikes for miles and miles. If we were running late, we couldn’t just text our moms that we were on our way. We had to find a pay phone and sometimes even ask a stranger for some spare change to make a call home.

Whenever I got my allowance, the first place I rode off to was the 7-11 for a Slurpee. Perfect on a summer day!

Come dusk, we ran around the neighborhood with flashlights, scrambling through yards with the kids from our block as we played “Ghosts in the Graveyard”. We spent the entire day outside with our friends until that very last sliver of sunlight disappeared.

My fondest summer memories are of fishing with my grandfather. Those hours spent on the water, telling stories as we waited for the fish to bite, are a cherished part of his legacy for me. 

Time together in the outdoors is something I’ve tried to continue with my son and my dad, his grandfather. A few years back, we took a trip to Canada together. I was so happy when my son, Gavin – 13 at the time – commented how much he enjoyed the trip and how he would always remember it.

He’s 16 now, and we often revisit stories from that trip.

Legacies aren’t just about the money we leave behind. They’re about the values, lessons, and memories we pass along to our loved ones.

At Secured Retirement, we understand that retirement planning is a part of a deeply personal process. When we plan for retirement, we’re securing a future to continue creating special memories and preserving our values.

I hope that my son tells his own kids of the summers we spent on the water. That he shares with them the importance of time together and conveys a love of the great outdoors. 

What are you hoping to leave with those you love? Build a legacy that lives through the generations to come with Secured Retirement.

Cup of Joe

CUP OF JOE

From Joe Lucey, Founder of Secured Retirement

There’s something about sitting down with a steaming cup of coffee that always kicks my day into high gear. And it’s not just because of the caffeine it sends coursing through my veins.

Throughout my career, some of my biggest revelations have come to me in conversation with my mentor over a cup of joe. Good conversation and personal connection can pick you up in a special way. It’s that feeling that I’m hoping to bring to you with my series, your Cup of Joe.

3 Key Differences Between Life Insurance and Roth IRAs

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Life insurance and Roth IRAs are both effective tools for wealth transfer, allowing you to efficiently transfer of assets from one generation to the next tax-free. However, their similarities largely end there.  Despite their general resemblance, the rules that apply to life insurance don’t always apply to Roth IRAs. In fact, this is the case more often than not. Below, we outline three main differences in their structure that make these two retirement planning vehicles so different.

1. Estate Inclusion

Roth IRAs Are Always Included in Your Estate:

Due to the current $13.61 million federal exemption amount, which allows a substantial amount to pass estate tax-free to beneficiaries, the majority of Americans won’t owe federal estate tax upon death. However, a small segment of the population still faces estate tax concerns, especially in states like Minnesota with lower state estate tax exemptions ($3 million). In such cases, life insurance can offer a distinct advantage over Roth IRAs.

The “I” in IRA stands for “individual”. This means it’s always yours, and the value of your Roth IRA is always included in your estate. If your estate exceeds the federal or applicable state estate tax exemption amount, your beneficiaries could owe estate tax on what were thought to be “tax-free” Roth IRA assets.

Life Insurance Can Be Excluded from Your Estate:

Life insurance can be structured to remain outside your estate, providing a tax-free benefit to your heirs that is not subject to estate tax. This can be achieved through various methods, such as having an irrevocable trust purchase the life insurance policy. Consulting with your insurance advisor, Secured Retirement tax professional, estate planning attorney, or all three can help determine the best approach for your situation.

2. Contribution Limits

Roth IRAs Have Contribution Limits:

When contributing to a Roth IRA, you face strict limitations. For 2024, contributions are capped at $7,000 ($8,000 if you are 50 or older by year-end). However, you can convert existing IRA or eligible retirement plan funds to a Roth IRA. Additionally, Roth IRA contributions are subject to income restrictions. Roth IRA contributions can only be made with income that qualifies as “compensation,” which is typically earned income. So, if you have too much income from any one source, you can be prohibited from making Roth IRA contributions.

Life Insurance Has No Contribution Limits:

Life insurance is not bound by the same restrictions, but insurance carriers may limit the amount you can purchase based on factors like health, annual income, and net worth. As far as Uncle Sam is concerned, you can have as much insurance as you want, or perhaps, as much as you can get. You can purchase as much life insurance as you are eligible for, providing greater flexibility compared to Roth IRAs. Life insurance premiums can be paid with any type of income, including interest, dividends, and Social Security, none of which are not considered compensation.

3. Required Minimum Distributions (RMDs)

Roth IRAs Have RMDs for Non-Spouse Beneficiaries:

Non-spouse beneficiaries of a Roth IRA, such as children, must generally withdraw the entire account by December 31 of the tenth year after inheritance. While these distributions are usually tax-free, they are mandatory.

Life Insurance Has No RMDs:

Beneficiaries of life insurance do not face required minimum distributions. They receive the proceeds tax-free, but any subsequent investments of those proceeds may generate taxable income unless invested in non-taxable assets like municipal bonds.

Example:

Someone inheriting a Roth IRA at age 50 can leave it to grow for 10 years, with tax-free growth and tax-free distributions thereafter. In contrast, a $500,000 life insurance policy provides only the initial proceeds tax-free. A $500,000 Roth IRA, if left to grow, may double in value, providing tax-free distributions potentially worth more than the life insurance payout.

A Final Thought

When planning to leave a legacy, there are many tools to consider, including life insurance and Roth IRAs. At Secured Retirement, we know that each situation is unique, and there is no one-size-fits-all solution. Consulting with our professionals can help tailor a plan to your specific needs and goals so that you can pay taxes consciously, spend confidently, and ultimately, retire comfortably. To discuss your life insurance vs Roth IRA strategy, give us a call: 952-460-3290.

Playing The Waiting Game

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When it comes to decisions about the market, many people are currently playing the waiting game. Waiting for a recession to start, waiting for the Fed to start lowering interest rates, waiting for the election to be over. As with anything in life, those whose attention is consumed by waiting on future events often overlook the opportunities and experiences right in front of them. Have you been waiting on any of the above? Here’s our analysis of what to expect while the world twiddles its thumbs.

If you’re waiting on a recession to start. . .

The S&P 500 gained over 15% in the first half of 2024, adding to the gains from 2023. Those worried about a recession or market pullback have missed out. But this rally has been different than past ones.  The gains in the S&P 500 and Nasdaq continue to be driven by just a few stocks. Current market breadth, the measure comparing stocks with gains versus those with losses, is the lowest it has been in 25 years, since before the tech bust in the early 2000s. Similarly, the performance gap between large-cap and small-cap stocks during the first half of the year is one of the largest ever.  The small-cap market, represented by the Russell 2000 Index, has gained slightly less than 2% – much less than the large-cap indices.   

Despite the momentum of the handful of stocks driving market gains, a cooling period may be on the horizon. While a major recession seems unlikely due to the absence of a significant catalyst, the narrow market breadth and the lack of strength in many stocks warrant caution. Should there be a rotation out of the mega-cap tech stocks, the indices could suffer, but this might present opportunities in other sectors.

There are certainly signs the economy is slowing with unemployment creeping higher, downward revisions to past payroll numbers, GDP readings slowing, and inflation cooling. However, none of these factors indicate a recession is imminent.

If you’re waiting on the Fed. . .

Current expectations are that if economic data continues its current path, the Federal Reserve will begin cutting interest rates at their meeting in September.  However, we would caution there is a great deal of data to be released and digested before then so, there is certainly no guarantee this will occur. Even if they begin cutting interest rates, current projections suggest a limited number of rate cuts, perhaps leading to a short rate cut cycle.  This scenario might be the one to pause upward market trajectory, as multiple rate cuts have been anticipated and priced in. For those reliant on income, this could be good news, but also indicates that inflation is expected to remain above pre-COVID levels.

If you’re waiting on the election. . .

The Presidential election in November could introduce political dynamics into the mix. As of this writing, there is some question as to who the Democratic nominee will be. While many people have concern over the election’s market impact, historically, elections tend to have very limited long-term impacts on the stock market. There might be a quick bump for a day or two after the election outcome is known, but over time, the usual fundamentals, such as corporate profitability, drive market returns. The market dislikes uncertainty, so once there is an election outcome, the market generally responds favorably, regardless of which political party is in power.


Acknowledging there are many factors outside of politics driving the markets, the best stock market returns have occurred during times when there is a division of power in Washington, D.C. with different political parties controlling the Presidency and Congress. This suggests that markets prefer when no single party has full control and our federal government’s enactment of laws and regulations is limited.


We remain cautiously optimistic about the stock market and think it will continue its upward march in the latter half of the year. However, we also warn that that future returns may not be as strong as those experienced over the past year and a half. It is important to position your portfolio accordingly so you can take advantage of opportunities while protecting yourself in order to enjoy a comfortable retirement.
When it comes to retirement planning, do not play the waiting game. There is no time better than the present to take action and put your plan in place.

Give us a call: 952-460-3290.

Nathan Zeller Secured Retirement

Nate Zeller

Chief Investment Strategist
Secured Retirement

Freedom Isn’t Free

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The freedoms we enjoy in this great country are deeply important to me and to all of us at Secured Retirement. As a proud veteran of the US Marine Corps, I carry with me the honor and responsibility of those formative years. I am grateful to be among the generations who have served our nation.

It’s often said, but it bears repeating: Freedom isn’t free. It requires immense sacrifice from the courageous few.

The Fourth of July invites us to reflect on the life, liberty, and pursuit of happiness that our founding fathers bestowed upon us. This ideal is so precious to my family and me that we actively seek opportunities to celebrate our homeland and its values throughout the year. 

One organization particularly close to our hearts is Folds of Honor, a non-profit that provides life-changing scholarships to the spouses and children of America’s fallen or disabled military personnel. This spring, I attended a fundraiser they held at The Patriot Golf Club in Oklahoma.

The entire weekend, full of camaraderie, stories, presentations, and patriotism was incredibly moving. Hearing from the families of the fallen was a sobering reminder of the high cost of freedom, and proof that courage and determination have the power to unlock brighter futures. 

The experience left such an impact on me that on the final night, after dinner, I approached the organizers and asked if it were possible to purchase one of the flags they had displayed during the event as a memento. They graciously gifted it to me.

That same flag will hang proudly in front of my home this July 4th weekend, as it does every day. Out there, waving in the summer breeze, it is a reminder of how 13 colonies became our 50 states. It is a reminder of the hope, dreams, and perseverance of those who came before us, and the banding together of people that carried us here. 

This Fourth of July, I encourage you to take a moment to give thanks for this nation and its abundant resources, for the extraordinary sacrifices of everyday people, and for the full lives we’ve built in this land of the free.

 God bless America.

Travel in Retirement: Tips to Finance Your Adventures

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The opportunity to travel is something many people look forward to in retirement. All that time and freedom to explore the places you’ve always dreamed of visiting! We want to help you live your adventure. Here’s a few financial considerations to keep in mind before you plan your itinerary and pack your walking shoes.

Invest Appropriately

To best finance your retirement travels, you have to invest smart! Because of the market’s volatility and despite our best predictions, it’s important to protect the funds you’ve set aside for your jetsetting. Generally, one-time expenses, like a trip you plan to take within the next two years, should be held in cash alternatives, rather than portfolios.

To avoid the risk of market downturns affecting your travel budget, we would urge you to consider keeping these short-term funds in things like treasury bills, certificates of deposit (CDs), or money market funds. These options offer principal protection so you’ll have the funds for the travel you’re planning for the relatively near future.

For travel plans further into the future, you can afford to take on a bit more risk with your investments. For instance, expenses planned three or more years in the future might be better financed by a mix of fixed-income investments and stocks. This balanced approach can provide higher returns over time, helping your travel savings grow, grow, grow.

Building a Budget

Having some semblance of a plan for what kind of travel you’d like to do can help you best budget for it. If you imagine you’ll go on a few major trips a year, allocating a lump sum at the beginning of the year can be most helpful as you plan out your retirement withdrawal strategy. If you think you’ll be taking shorter, more frequent trips, maybe to visit loved ones, it might be better to incorporate those anticipated costs into your monthly budget. With an idea of your travel-style in mind, you can best tailor your budget to your lifestyle!

Quick Tips To Keep In Your Rucksack

And now it’s time for the portion of our show when we hand out some quick tips to maximize your travels. Whether you’re planning your Alaskan cruise adventure or a relaxing stay in the south of France, these smart strategies will serve you well:

  • Secure Travel Insurance: While it does add a little to your travel expenses, travel insurance is an investment that’s well worth it in the event of the unexpected – illness, injury, or otherwise. It can also cover lost luggage and trips to the emergency room, potentially saving you from substantial financial setbacks and protecting you abroad.
  • Maximize Credit Card Rewards: Many credit cards provide points, miles, or cashback on travel-related purchases, along with perks like rental car insurance discounts and airport lounge access. There are so many ways to get a greater bang for your buck with reward cards, especially while traveling. If one of your main goals for retirement is travel, we highly recommend learning the ins and outs of the world of travel credit cards. Of course, to avoid interest charges and get the most out of these rewards, it’s essential to pay off your balance each month.
  • Leverage Senior Discounts and Travel Groups: Take advantage of senior discounts available through various travel companies, airlines, and accommodation providers. They are designed to allow you to celebrate your golden years! Joining travel clubs for retirees can also offer unique group travel experiences at reduced rates. Who knows – you might even make some new friends along the way.
  • Stay Flexible: You know this already, but when planning a trip, shop around for the best prices on flights, hotels, and activities. Even better, staying flexible with your travel dates and destinations can lead to significant savings. If you’re able to travel mid-week when others aren’t, do it! Additionally, consider traveling during off-peak seasons to stretch your travel budget further.

Investing in experiences, like that dream trip to Italy or a cross-country road trip, is a significant part of enjoying your retirement. Planning ahead ensures that you won’t have to worry about financial setbacks, allowing you to enjoy your experiences to the fullest. If you want to learn more about planning out your finances for travel in retirement, give us a call: 952-460-3290. Bon voyage!

Rethinking The Classic “60/40” Portfolio

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The “60/40” portfolio, made up of 60% equities and 40% bonds, has been a staple of investment management for several decades. The strategy gained mainstream acceptance after William Sharpe and Harry Markowitz won the Nobel Prize in Economics in 1990 for this portfolio optimization model. Mutual funds further popularized the investment strategy in the late 1990s and early 2000s. And it worked well for the better part of the past three decades, but is it still relevant today?

So, Why 60/40, Anyway?

The 60/40 portfolio has become the generic term for a diversified portfolio, with the mix between stocks and bonds varying based on the investor’s risk tolerance and goals. Stocks are held in hopes of capital appreciation growing the portfolio and maintaining purchasing power against inflation, but they also carry varying amounts of risk. Bonds, used in conjunction with stocks, provide safety and reduce volatility. Bonds worked well in portfolios in the 45-year period leading up to 2020, at which time interest rates steadily decreased. This period saw bond prices rise (as bond prices move inversely to yields), providing investors with income and rising values. Government bonds, in particular, acted as a strong equity hedge during the Great Financial Crisis of 2008 as interests quickly dropped while investors sought safety in U.S. Treasuries.

Recent Underperformance and Challenges

However, things have changed. Over the past few years, portfolios with a mix of stocks and bonds have underperformed due to rising interest rates pushing down bond prices. In response to inflation spikes post-COVID, the Federal Reserve raised short-term interest rates, resulting in some of the most significant bond losses of the last hundred years. The so-called “safe money” in bonds has not fared well over much of the last three years. While stocks have generally performed well, bonds failed to provide the expected protection during the stock market downturn of 2022.

The Outlook for Interest Rates and Bonds

Current expectations suggest that interest rates will drop, pushing bond prices higher, and enabling the traditional stock/bond portfolio to regain its strength. However, we are not fully convinced that this will be the case. The yield curve has been inverted (short-term rates higher than long-term rates) for nearly two years. When (if) the Fed does lower rates, the yield curve will likely normalize, with short-term rates dropping and intermediate to long-term rates holding steady or even rising. Short-term bonds will likely provide a positive return but those gains may be somewhat limited since gains in bond prices may be offset by the reduction in interest received as a result of lower rates. Long-term bonds offer limited upside, outside of interest paid, if long-term rates hold steady and create potential for further losses if rates rise.

Despite these challenges, fixed income yields are at their highest levels in nearly 20 years, so investors get “paid to wait” and collect interest. However, after accounting for taxes and inflation, real returns on many fixed income instruments are minimal and barely maintain purchasing power.

Adapting With Changing Markets

A diversified asset portfolio still makes sense to lower volatility and preserve capital. However, asset allocation should be dynamic and adjusted according to current economic and market conditions. Modern Portfolio Theory, introduced by Markowitz in 1952, was based on three asset classes: stocks, bonds, and cash. Today’s investment landscape offers considerably more strategies and options for generating income and protecting against stock market losses than there were in the past.

Secured Retirement Will Explore Your Options

If you haven’t already, it may be time to look beyond the traditional 60/40 portfolio and consider alternative strategies. There isn’t a single right or best way to build an asset allocation, but mistakes can lead to poor outcomes. With the help of a knowledgeable professional, each investor needs to find the balance that best aligns with their unique goals and objectives. If you’re struggling to find your balance, give us a call: 952-460-3290.

Nathan Zeller Secured Retirement

Nate Zeller

Chief Investment Strategist
Secured Retirement

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Danielle Christensen

Paraplanner

Danielle is dedicated to serving clients to achieve their retirement goals. As a Paraplanner, Danielle helps the advisors with the administrative side of preparing and documenting meetings. She is a graduate of the College of St. Benedict, with a degree in Business Administration and began working with Secured Retirement in May of 2023.

Danielle is a lifelong Minnesotan and currently resides in Farmington with her boyfriend and their senior rescue pittie/American Bulldog mix, Tukka.  In her free time, Danielle enjoys attending concerts and traveling. She is also an avid fan of the Minnesota Wild and loves to be at as many games as possible during the season!