Although everyone should be saving for retirement, few actually are. According to statistics published by the Employee Benefit Research Institute, approximately 60% of adults in the workforce are actively saving for retirement and only 65% of those that are saving have more than $50,000 saved. The worst statistic, however, is only about half the savers actually crunch the required numbers to know how much they need to save. Before you can make a plan, you need to know a few things: 1) What … [Read more...] about Developing A Retirement Plan
Financial Planning
Nursing Homes and Long Term Care
Aging is a fact of life. Another reality is there is no health guarantee in the latter years of life. Some seniors remain relatively healthy until their last days. Others, however, are not so fortunate. When a senior becomes unwell or has mobility difficulties, tough decisions have to be made. The two most common choices available in these situations is home care or residential care. Long Term Care Health Insurance Long term care health insurance provides numerous benefits: Sickness and … [Read more...] about Nursing Homes and Long Term Care
The 411 on 401Ks
It’s difficult to imagine a retirement plan without a 401(k) account, but in reality they have only been in existence for 30 years. A traditional 401(k) is a retirement savings plan, usually sponsored by an employer, which allows a person to save for retirement by having their savings invested. This savings tool defers income taxes for the employee on both the money saved and its earnings until the funds are withdrawn. With a 401(k) sponsored by an employer, a worker will normally have a … [Read more...] about The 411 on 401Ks
Buying Insurance for Peace of Mind
Although “estate planning” might conjure up images of Wills and Trusts, buying the right insurance is also a part of creating a comprehensive plan for your estate. Of course these days, you can get insurance for just about anything – so, which policies do you really need? Health Insurance Maintaining good health is important to your financial well-being because it allows you to keep working and paying your bills. But even the most health-conscious can become sick or injured, so having … [Read more...] about Buying Insurance for Peace of Mind
Does Your Estate Have Enough Liquidity?
Estate liquidity is the amount of cash and cash equivalents available in your estate to pay creditors and other bills that may arise after you pass away. Many estates are heavy on illiquid assets like real estate, and too light on liquid assets. This means that when the cash runs out, illiquid assets have to be sold in order to pay the bills and settle the estate. Forced sales always put the estate at a disadvantage. For this reason, it’s important to plan for sufficient liquidity. One way to … [Read more...] about Does Your Estate Have Enough Liquidity?
Estate Planning Basics: Calculating Your Net Worth
When planning your estate, you want to be sure that you give your attorney your complete financial picture. One way to do this is to calculate your net worth. Doing this on an annual basis will also give you an idea of the financial progress you have made over the year. All that’s needed to do this is information on the assets you own and the liabilities you owe. Step I: List all your assets Start with your big assets, such as your home, your cars, boats, rental properties and raw land. … [Read more...] about Estate Planning Basics: Calculating Your Net Worth
What is a 403(b)?
A 403(b) plan is an employer-sponsored retirement savings account that’s for employees of public schools, 501(c)(3) charities, and other tax-exempt organizations. It’s very similar to a 401(k), which is the better-known type of retirement account available to employees of for-profit companies. Sometimes 403(b) plans are called tax sheltered annuities (TSA’s) or tax deferred annuities (TDA’s). As an employee, a 403(b) plan offers you several advantages for saving for retirement. When you … [Read more...] about What is a 403(b)?
Wondering When to Start Social Security? Consider This
The vast majority of American workers are eligible for social security. For most people, 10 years of work means that you and your spouse will be able to count on payments from social security as part of your retirement income. But when should you start collecting benefits? The Social Security Administration determines your “full retirement age” based on the year you were born. For example, if you were born between 1946 and 1954, then your full retirement age is 66. Everyone is eligible to … [Read more...] about Wondering When to Start Social Security? Consider This
Borrowing From Your 401(k)
Although many employers have programs that let employees to take out loans on their 401(k) plans, there are often a number of different rules governing the loan so it is important to be aware of what those rules are. The first thing to remember is that it is, in fact, a loan and you’ll be required to pay back whatever you withdraw. Often, that payment will be deducted directly from your paycheck. There are also limits on how much can borrow, which is usually about half of what you have … [Read more...] about Borrowing From Your 401(k)
How the Windfall Elimination Provision May Affect Your Social Security
Are you eligible for a pension from a job where Social Security was not withheld from your paycheck? If so, the Windfall Elimination Provision, part of the Social Security Amendments of 1983, may affect your Social Security payment. This change was introduced to eliminate the unfair advantage of those who did not pay into Social Security but still received a pension and full Social Security payment. When you receive your yearly Social Security Statement, you will see an estimated payment … [Read more...] about How the Windfall Elimination Provision May Affect Your Social Security
