Steve Stanganelli

CFP®, CRPC®, AEP®
Personal Finance, Retirement, Taxes
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“Helping People Make Smarter Money Choices. Steve Stanganelli with Clear View Wealth Advisors is a fee-only fiduciary advisor and tax planner providing objective advice not tied to the sale of any investment or insurance products.”
Firm:

Clear View Wealth Advisors, LLC

Job Title:

Managing Member / Financial Planner

Biography:

As a CERTIFIED FINANCIAL PLANNER ™ Professional, Steve Stanganelli has been providing financial, tax, retirement and college funding advice for more than 30 years to individuals, families and business owners throughout Greater Boston, the Merrimack Valley and New Hampshire Seacoast.

Professionally, Steve sees himself as a financial coach or navigator. His role is to help clients navigate the sea of confusion that is personal finance. He has worked hard to develop his experience and assemble the kinds of tools that are needed to help his clients with a variety of financial challenges including divorce, funding college tuition, and building efficient portfolios for long-term investing goals.

In his professional work, Steve is humbled knowing that people entrust him with their hard-earned wealth — regardless of the amount — or seek his guidance on any number of life-changing issues that can affect their personal bottom line. He finds it rewarding and humbling each time a client entrusts him not just with their money to manage but their dreams. Like many of his peers, Steve is a member of the “Sandwich Generation” helping to care for elderly parents while raising a family of his own.

Steve knows what it feels like trying to deal with the frustrating details of Medicare and the Part D “donut hole.”  He knows what it feels like to juggle the responsibilities as an elder care giver with the demanding schedule of school-age kids. Steve knows all too well the sense of loss created by an unexpected corporate downsizing or downturn in business or sudden death of a loved one.

Like many of you who may read this, Steve leads a complex life – husband, father, son, homeowner, landlord, professional by day, weekend athlete (road cyclist). He can relate to the challenges his clients have faced or will meet.  And he genuinely wants to share his insights, experience, and training to help others make the most with their lives.

Initially, Steve was a registered representative affiliated with an independent broker-dealer.  Then he affiliated with a national wire house broker completing their extensive training programs and using the opportunity to complete the educational requirements for both of Steve's financial planning designations. Ultimately, Steve decided that he did not fit into the culture of a broker-dealer and turned toward more fee-only planning-oriented firms. In 2010 he consolidated his practice into his own firm, a state-registered investment advisor, to offer flexible financial and tax planning services as well as low-cost ETF investing solutions.

Education:

BA, Economics, University of Massachusetts at Lowell
MS, Finance, Bentley University

Assets Under Management:

$4 million

Fee Structure:

Fee-Only

CRD Number:

3217444

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March 2017
    College Tuition, Life Insurance, Lifestage Based Planning
February 2017
    Financial Planning, Personal Finance
February 2017
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January 2017
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February 2017
    Asset Allocation, Retirement Savings, Tax Deductions / Credits, Taxes

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    Retirement, Investing
What allocation strategy do you recommend for those approaching retirement?
100% of people found this answer helpful

This is a complicated answer. There really is no single allocation that is best for someone. It really will depend on your risk tolerance, risk capacity, and retirement income needs.

Risk tolerance describes your comfort level with investment variability (sometimes referred to as volatility and measured by standard deviation which you'll sometimes see listed in an investment fact sheet at Morningstar).

Risk capactity refers to your ability to take on risks after looking at the big picture of your finances. Example: You have a small nest eff and may have a high risk tolerance and willing to accept sharp ups and downs with your investments. But you lack an adequate emergency reserve account or are missing some other critical insurance coverage. In this case, you lack the capactity to take on lots of risk. Think of it in these terms: Your spirit is willing but the body is weak.

Finally, you have to consider what you need your investments to produce to support your lifestyle. There are rules of thumb (example:withdraw 4% of your total investments each year and it may last you 30 years in retirement). A better way is to factor in all that you'll need to cover your fixed overhead and discretionary (i.e. fun) cash needs. Make a best guess about your life expectancy or use online tools based on actuarial tables (see www.longevityillustrator.org). Then add up all your fixed or guaranteed income sources like pensions, Social Security, rent received. There will be a gap and that is what the investment portfolio needs to fill - preferably from gains, interest, and dividends. But if you're short, you'll probably need to take it out of the principal amounts you're investing.

All that being said, you should probably aim for setting aside a bucket into cash or near-cash investments (money markets, CDs, ultra short-term bonds) equal to a minmum of six months up to 3 years of fixed expenses. The exact amount will depend on your risk tolerance.

Then with your remaining investable resources you should aim for an amount in equities equal to about 115 minus the age of the youngest spouse. There's a general rule of thumb that says 100 minus age but with people living longer and insurance companies using life expectancy tables of 120, you'd be safer using a higher number. As uncomfortable as it may make you, the reality is that the best investments to counter the risk of inflation in retirement will be owning stocks (individually or through equity-focused mutual funds or Exchange Traded Funds).

With the balance you can allocate to fixed-income (bond funds, bond ETFs, or individual bonds).

Given low current interest rates, you may want to consider a higher allocation to equities. As the Fed increases rates, you're likely to see the price on existing bonds or bond funds go down (the price of bonds moves in the opposite direction of market interest rates). While there's no "safe" investment, you may find stocks or funds that invest in dividend-paying companies can be a lower risk option. These include "Steady Eddies" like utilties and large consumer product companies.

And if it's yield that you're looking for, you should consider adding an allocation to real estate-oriented funds.

For a more specific allocation tailored to your needs, consider reaching out to a qualified financial planner or investment adviser.

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