Is America Prepared to Retire?

Two-thirds of us have no financial plan.

 

Only 48% of Americans say they think they are saving enough. And 30% feel that they are not even slightly confident that they are saving enough for retirement. That finding comes from the 2015 Consumer Financial Literacy Survey conducted by the National Foundation for Credit Counseling. (The survey collected data from 2,017 U.S. adults.)¹

Only 40% of us keep a regular budget. If you are one of those two out of five Americans, you’re on the right track. While this percentage is on par with findings going back to 2007, the study also finds that only 29% of Americans are saving any part of their annual income towards retirement.¹

Relatively few seek the help of a financial professional. When asked “Considering what I already know about personal finance, I could still benefit from some advice and answers to everyday financial questions from a professional,” 75% of respondents agreed with the statement. Yet only 12% indicated that they would seek out the help of some sort of financial professional if they had “financial problems related to debt.” While it isn’t surprising to think that 25% of respondents would turn to friends and family, it may be alarming to learn that 18% would choose to turn to no one at all.¹

Why don’t more people seek help? After all, Americans of all incomes and savings levels certainly are free to set financial goals. They may feel embarrassed about speaking to a stranger about personal financial issues. It may also be the case that they feel that they don’t make enough money to speak to a professional, that a financial professional is something that millionaires and billionaires have, not the average American worker. Another possibility is that they feel that they have a good handle on their financial future; they have a budget and stick to it, they save in an IRA (like a quarter of Americans), or a 401(k) (nearly three out of ten Americans), and many use other investments (30%, according to the survey). But that 75% admission above indicates that a vast majority of Americans are not as confident.¹

Defined goals lead to definite plans. If you set financial objectives and plan for them, you vault ahead of most Americans – at least according to these findings. A written financial plan does not imply or guarantee wealth, of course; nor does it ensure that you will reach your goals. Yet that financial plan does give you an understanding of the distance between your current financial situation (where you are) and where you want to be.

How much planning have you done? Retiring without a financial plan is an enormous risk; retiring with a financial plan that hasn’t been reviewed in several years is also chancy. A relationship with a financial advisor can help to bring you up to date about what you need to do, and provide you with more clarity and confidence when it comes to the financial future.

  

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 – http://ift.tt/1eBf561 [4/15]

 

 

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Are You Committing These Financial Illegalities?

Some people make money moves that may get them in trouble.

 

Americans do many things with their money and invested assets, most of them on the up and up. There are exceptions, however – cases in which people unintentionally break the law, flirt with illegal behavior, or pay federal tax penalties for their indiscretions. Here are a few examples, from the cavalier to the ridiculous.

Rounding up income on a mortgage application. Maybe a prospective homebuyer (or homeowner looking to refinance) anticipates a raise or bonus later this year. Or his or her spouse does. Maybe they should “err on the high side” in stating their incomes. Maybe it would help them. Come to think of it, maybe they should “err on the low side” in stating their debt.  

The days of “liar loans” are gone, but this kind of thing is still perilous. These are mortgage industry basics; lenders routinely examine them. While huge numbers of Americans arguably committed some degree of mortgage fraud in the 2000s and went unpunished, that fact should not lead anyone to be so casual about basic facts of their financial life. More than rejection of a mortgage app could result.

Signing a check in someone else’s name. This is illegal in most states; this is forgery. What if an elder can no longer sign a check, and a relative attempts to mimic their signature or just writes that elder’s name in his or her own handwriting style? What if Mom or Dad does the same sort of thing on a check from their son or daughter’s checking account? It still amounts to forgery.¹

Overestimating non-cash donations to a charity or non-profit. Someone donates a minivan to a food bank. In the donor’s mind, that minivan is worth $6,500. That was what they paid for it used. Well, some time has passed since then. The Blue Book value (fair market value) of said minivan turns out to be substantially less now – but the donor reports its value to the IRS at $6,500. If the IRS disagrees (and it very well might, assuming decent documentation is available), the donor might be in for a tax penalty.

Forgetting to report 100% of income. Some people intentionally misstate their incomes to the IRS, and other people just neglect to report miscellaneous forms of income like royalties, freelancer payments, dividends, prizes, and so on.  A penalty may await them.

The chances of forgetting the odd W-2 or 1099 form rise when a taxpayer moves during a year or works several jobs. Tips must also be taken into account when filing a federal tax return; the IRS provides Form 4137 to help individuals determine any additional Social Security and Medicare taxes they may owe as a result of tips and wages not reported on an individual’s W-2 statement.²

Years back, the federal government actually studied underreported income by occupation. Restaurateurs, clothing store owners and auto dealers were most prone to this.³

Forgetting estimated tax payments. If an individual’s freelance income is significant enough that he or she expects to pay more than $1,000 in taxes from such activity, then estimated tax payments must be made quarterly to the IRS. Penalties may be triggered if quarterly deadlines are ignored.²

Deducting too much in business-linked expenses. This can also invite an IRS penalty, and business owners, executives, and solopreneurs can fall prey to this common tendency. The IRS finds that less than 7% of such deductions are intentionally overstated or made up.³

Ruining money. Making U.S. paper currency or hard currency unusable is actually a federal crime. If someone intentionally or unintentionally defaces, perforates, glues together or mutilates bills or coins to the degree that they can no longer be used in commerce, it is a violation of federal law.¹

If you are guilty of negligence, it sure beats being guilty of fraud. The common IRS penalty for a reporting mistake on your 1040 form is 20% of the unreported amount. Contrast that with the 75% civil penalty for tax fraud. Of course, negligence can be viewed as fraud – and that alone should make people think twice about inaccurately stating details of their personal finances.³

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

     

Citations.

1 – http://ift.tt/1fIBHma [5/21/15]

2 – http://ift.tt/1ShKjSz [4/10/15]

3 – http://ift.tt/1ShKmha [7/23/15]

 

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How Might Higher Inflation Affect Your Investments?

With the Fed poised to gradually raise rates, this is worth considering.

 

America once experienced something called “moderate inflation.” It may seem like a distant memory, but it could very well return in the second half of this decade.

A remote possibility? Most economists think the Fed will start raising interest rates in late 2015 and take them higher in 2016 through a series of incremental hikes – a march toward normal monetary policy, in which the Fed funds rate ranges between 3-5%. Once the Fed begins tightening, it usually keeps at it – as an example, the central bank raised rates 17 times during 2003-06 alone.¹

Keep in mind that there are two forms of interest rates. Short-term interest rates are mainly controlled by Fed policy. Long-term interest rates ride on the bond market’s expectations. Still, short-term rate hikes have an effect on investors as well as lenders. They influence the mood and outlook of Wall Street; they affect interest rates on credit cards, some home loans and short-term savings vehicles.

What if moderate inflation resumes & the Fed reacts? What might higher inflation (and correspondingly higher interest rates) mean for your portfolio? Under such conditions, your investments may perform better than you think.

Equities should still be attractive. The ascent of the federal funds rate should be gradual over the next couple of years, and the market may price it in. A climbing federal funds rate need not become a market headwind. Remember that as the Fed authorized all those rate hikes in the mid-2000s, the market pushed toward all-time highs. When it becomes apparent that the Fed has taken rates too high, then Wall Street tends to adopt a defensive mindset.

Fixed-income investments may hold up well. It is true, long-term bonds may lose market value in a market climate with rising interest rates (though this will eventually promote additional income for investors with patience). Many investors may see wisdom in a fixed-income ladder, which means putting money into fixed-income securities with staggered maturity dates, typically from one to five years away. As interest rates gradually increase, you can gradually take advantage by replacing the shortest-term security with a medium-term or longer-term security.  (Some of the other kinds of fixed-income investments, which have been earning next to nothing, may start to become more attractive; we might see interest-earning checking and savings accounts make a full-fledged comeback.)

In the big picture, consider how unimpeded the Barclays U.S. Aggregate Bond Index (in shorthand, the S&P 500 of the bond market) was in prior rising-rate environments. In the six such instances during the past 40 years (and these periods lasted 2-5 years), T-bill rates increased between 2.3-11.9% while the total annual return for the index ranged from 2.6-11.9%, with most of those total returns varying between 4-6%. For the record, the index posted a total return of 5.97% in 2014.²

So, gradually increasing inflation might not hold back the return on your portfolio.  Your portfolio aside, what steps could you take that may put you in a better financial position as inflation normalizes?

You may want to adjust your spending habits. If consumer prices start rising notably, you may decide to spend less and buy less often. You may want to buy durable goods such as cars now rather than later in the decade. You may also want to make your house more energy-efficient, drive vehicles that get better MPG, and take full advantage of your health care coverage – as energy, fuel, and medical costs often rise faster than others.

You could live with less debt. As determined by Bankrate.com, the average credit card currently carries a 15.91% interest rate. Can you imagine that going higher? It almost certainly will when the Fed makes its move. Credit card interest rates are based on the prime rate; movements in the prime rate closely mirror movements in the federal funds rate. Credit card issuers frequently adjust interest rates upward right after the central bank does.³

Lastly, remember the upside to rising inflation. A larger annual increase for the Consumer Price Index implies a boost in Social Security income for seniors, and rising interest rates will translate to appreciable yields for risk-averse savers.

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 – http://ift.tt/1VEJqT5 [7/16/15]

2 – http://ift.tt/1HNJdWB [4/23/15]

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China’s Chaotic Market

As the world watches, the nation’s government tries to end the downturn.

 

Investors worldwide worry about the state of China’s equity market. You could argue that these fears have impacted Wall Street as much as the crisis in Greece.

The recent ups and downs of the Shanghai Composite (SSE) have been startling: the 16 trading sessions from June 17-July 9 included daily losses of 6.42%, 7.40%, 5.77%, and 5.90% and daily gains of 2.48%, 5.53%, 2.41%, and 5.76%. To put that in perspective, imagine the S&P 500 gaining or losing 50-130 points a day or the Dow falling or rising 500-1,200 points per session.¹

The SSE is now in a bear market – it sank 24% between June 12 and July 4. Before that, it was up a dizzying 149% YTD.²

Is the summer slump in the SSE a measure of lost confidence in China’s economy? If so, will Chinese demand for oil, coal, and other imports weaken even more? The volume of imported goods to China fell 7% from Q1 2014 to Q1 2015.³  

China’s government has taken some extraordinary steps to appease investors. Its actions make the Federal Reserve’s 2008 rescue effort look conservative.

Back then, the Fed bought mortgages and securities. The People’s Bank of China is putting its money into equities. It just created a 120-billion yuan ($19.3 billion) market-stabilization fund that the nation’s leading brokerages will use to invest in the largest SSE-listed companies.^5,6

On July 8, the China Securities Regulatory Commission barred anyone owning more than 5% of a company from selling their shares for six months. Days earlier, Chinese officials suspended all IPOs, anxious about potential cash outflows from existing SSE-listed firms.^4,5

The China Banking Regulatory Commission is now letting lenders roll over loans backed by shares – and it has publicly stated its support for banks extending credit to exchange-listed firms doing buybacks. Meanwhile, the CSRC is embarking on an effort to crack down on “malicious” short selling.^2,4

Essentially, Chinese are being told that there is no downside to investing in equities – at least for the moment. (The Chinese government has even urged people to buy shares out of patriotic duty.)²

One major problem has emerged after all this: a shortage of liquidity. Only about half of Chinese firms are trading at the moment.^2,4

To some observers, these measures look like overkill given that equities amount to less than 15% of the net worth of Chinese households. (Real estate has long been the favorite investment of the nation’s rising middle class.) To economists and Wall Street analysts, these efforts are welcome correctives needed to soothe global investors as well as Chinese investors.⁶ 

The profile of the Chinese investor is changing, and it is changing in a way that might unnerve investors elsewhere. Less than 7% of Chinese own equities (90 million out of 1.36 billion people), but more are entering the market; in May alone, 12 million new retail accounts opened on Chinese exchanges as the SSE surged north. Who are these new investors? Some are college students. The Atlantic reports that 31% of Chinese university students now own equities, about three-quarters of them investing with mom and dad’s money in the process. Others lack higher education – of the Chinese households that opened investment accounts in Q1, only about a third were even headed by high school graduates.^2,7

Investors have yet to bail out. Even with its economy slowing and its market rollercoastering, the opportunity China presents is just too great to ignore. Lipper reports that retail investors have directed $3.4 billion into China-focused investment vehicles YTD, representing the largest first-half investment since 2009. While that inflow might weaken or reverse itself in the wake of China’s biggest selloff since 2008, international diversification has its merits – and institutional investors may see a buying opportunity. As fund manager Yu Zhang told Reuters, “We’re not sure how long this volatile period will last, but to me the medium- to long-term outlook for China is still trending up.” ⁸

    

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 – http://ift.tt/1HRbfy3 [7/9/15]

2 – http://ift.tt/1KkdOyw [7/4/15]

3 – tinyurl.com/ntrfw3w [5/25/15]

4 – http://ift.tt/1HRbhpD [7/9/15]

5 – http://ift.tt/1KkdOyA [7/4/15]

6 – tinyurl.com/psnwgpc [7/7/15]

7 – http://ift.tt/TWvdxG [7/9/15]

8 – tinyurl.com/nvmus8j [7/9/15]

 

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Another Glitch Hits Wall Street

The NYSE freezes floor trading for more than three hours.

 

Floor trading was abruptly halted at the New York Stock Exchange Wednesday. At 11:32 am EST, a sudden problem forced the NYSE to interrupt trading in all symbols and cancel all open orders in its main market. Trading continued, meanwhile, on the NYSE Arca Options and NYSE AMEX/Arca Options platforms, and the NASDAQ continued trading of NYSE-listed shares.^1,2

The stoppage continued until the final hour of the trading day: floor trading resumed shortly after 3:00pm EST with closing auctions proceeding as normal.³

Was it a cyberattack? A U.S. government official told the Washington Post that there was “no indication” of terrorism, and the NYSE also said no, attributing the halt in trading to an “internal technical issue.”^1,2

Still, Wednesday morning saw some other strange happenings – the Wall Street Journal’s website went down for a spell at approximately the same moment, and hours earlier, United Airlines had to ground all flights temporarily because of what it deemed “a network connectivity issue.”^1,2

Tuesday night, the notorious hacker group Anonymous posted a tweet that read “Wonder if tomorrow is going to be bad for Wall Street…we can only hope.”²

Reuters reported that the FBI, the Treasury Department and White House were all monitoring the shutdown Wednesday, with the FBI simply stating that “no further law enforcement action is need at this time.” Securities & Exchange Commission Chair Mary Jo White told Reuters that it was “in contact” with the NYSE and keeping tabs on the problem.^2,4

The trading freeze had little immediate impact on retail investors. As UBS director of floor operations Art Cashin cautioned CNBC, “This will not cause a move in any particular direction, so I would kind of wait it out and see what happens.” The day was certainly frustrating for institutional investors, triggering memories of the 2013 NASDAQ “flash freeze” and the exasperating Facebook IPO of 2012.² 

One of the leading reasons why floor trading took so long to resume might surprise you. When the NYSE froze trading Wednesday morning, all open orders had to be called off manually – an archaic repair given that NYSE floor trading amounts to about a quarter of the exchange’s composite volume.⁵

“Is the NYSE technologically the most (robust) exchange in the world? No,” Themis Trading principal Sal Arnuk explained to CNBC. “The fact of the matter is the different exchange operators have diverse standards, different architecture. Some of them are more legacy than others.”⁴

As the afternoon progressed, the NYSE tried furiously to enable floor trading before the close, as volume notably escalates at the end of a trading day. They succeeded, restoring some sense of “business as usual” while Wall Street again pondered its necessary and fragile relationship with technology.

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

     

Citations.

1 – http://ift.tt/1VpgK0q [7/8/15]

2 – tinyurl.com/otqw7gr [7/8/15]

3 – http://ift.tt/1OuvcPT [7/8/15]

4 – http://ift.tt/1VpgKgF [7/8/15]

5 – tinyurl.com/nonlszo [7/8/15]

 

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Looking for a personal financial planner can be accomplished through several resources

The work undertaken by a financial planner is called personal financial planning. India is a large country with millions of investors who want to genuinely want to see their wealth grow. 

But due to the lack of financial literacy and a proper framework, there has been a lot of mismanagement in the investment sector. But things are changing as of now. There is a whole lot of change going on in the financial sector.

Each consideration was held out and dealt with separately. One by one increments or facets of a person’s finances would be analyzed and dealt with as a singular unit. In the end it was felt that all the pieces would fall together correctly and they often did.

This would be a good time to sit down with a financial planner to find ways to provide for your family. A financial planner will be able to examine your finances as they are and help figure out ways to find the money to pay for important expenses without tapping into your existing equity or principle.

Like in finding any other services or providers, looking for a personal financial planner can be accomplished through several resources that are easily accessible for almost any interested party. 

However the credibility of these resources in providing accurate and unbiased advice, reviews, and basic information need to be gauged properly before being used in order to ensure that the prospective client will be receiving services that will actually be useful in investing and financial management. Some of the more common resources to use are trade magazines and news publications, television programs, personal and professional referrals, and internet based resources like investment websites, forums, and community pages.

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from Choosing A Financial Planner
Questions and Answers - Blog http://ift.tt/1feenfE

There are several ways a financial planner will take compensation

There are some financial planners who believe in making accessible and affordable financial planning service available for family of all income.

The CFP certified financial planner has extreme level of financial planning education, experience and ethics. 

The professional standards make the reach of certified financial planner designation more advanced and conspicuous. 

A CFP certified financial planner is not only taught technical education but he has also been thoroughly taken through extensive ethical and leadership trainings, which is needed to take an organization towards the high edges.

But being a certified financial planner or a financial advisor, it is your responsibility to know every detail of the economy’s activity, development on the business industry especially the trends and the obsolete. You should know the latest product in an insurance company in case your client may want to invest in an annuity or life term insurance.

As the CFP certified financial planner has been taken though high valued ethics and professional conduct, he/she would get along with your customer is quite good manner. Their behavior will attract more customers towards your business and hiring certified financial planner designation will act as advantageous tool for your marketing campaign.

There are several ways a financial planner will take compensation and they aren't necessarily equal. Some work on commission. This can be disadvantageous to the customer, as there is a conflict of interest. The advisor isn't concerned with whether or not a particular investment pans out, as they get their commission based on the sale itself. Therefore, they can be pushing investments on you that aren't necessarily in the best interests of their clients. 

There are also fee based advisors. This usually works out better, but it doesn't necessarily give your advisor an incentive beyond sustaining their reputation. Still others work off a quasi commission, taking a percentage of investment returns. All things considered, this may be the best possible form of compensation. None of these schemes are inherently bad, however. It comes down to personal preference.

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from Choosing A Financial Planner
Questions and Answers - Blog http://ift.tt/1Obtp1i

Mid-Life Money Errors

If you are between 40 & 60, beware of these financial blunders & assumptions.

 

Between the ages of 40 and 60, many people increase their commitment to investing and retirement saving. At the same time, many fall prey to some common money blunders and harbor financial assumptions that may be inaccurate.

These errors and suppositions are worth examining, as you do not want to succumb to them. See if you notice any of these behaviors or assumptions creeping into your financial life.

Do you think you need to invest with more risk? If you are behind on retirement saving, you may find yourself wishing for a “silver bullet” investment or wishing you could allocate more of your portfolio to today’s hottest sectors or asset classes so you can catch up. This impulse could backfire. The closer you get to retirement age, the fewer years you have to recoup investment losses. As you age, the argument for diversification and dialing down risk in your portfolio gets stronger and stronger. In the long run, the consistency of your retirement saving effort should help your nest egg grow more than any other factor.

Are you only focusing on building wealth rather than protecting it? Many people begin investing in their twenties or thirties with the idea of making money and a tendency to play the market in one direction – up. As taxes lurk and markets suffer occasional downturns, moving from mere investing to an actual strategy is crucial. At this point, you need to play defense as well as offense.

Have you made saving for retirement a secondary priority? It should be a top priority, even if it becomes secondary for a while due to fate or bad luck. Some families put saving for college first, saving for mom and dad’s retirement second. Remember that college students can apply for financial aid, but retirees cannot. Building college savings ahead of your own retirement savings may leave your young adult children well-funded for the near future, but they may end up taking you in later in life if you outlive your money. 

Has paying off your home loan taken precedence over paying off other debts? Owning your home free and clear is a great goal, but if that is what being debt-free means to you, you may end up saddled with crippling consumer debt on the way toward that long-term objective. In June 2015, the average American household carried more than $15,000 in credit card debt alone. It is usually better to attack credit card debt first, thereby freeing up money you can use to invest, save for retirement, build a rainy day fund – and yes, pay the mortgage.¹

Have you taken a loan from your workplace retirement plan? Hopefully not, for this is a bad idea for several reasons. One, you are drawing down your retirement savings – invested assets that would otherwise have the capability to grow and compound. Two, you will probably repay the loan via deductions from your paycheck, cutting into your take-home pay. Three, you will probably have to repay the full amount within five years – a term that may not be long as you would like. Four, if you are fired or quit the entire loan amount will likely have to be paid back within 90 days. Five, if you cannot pay the entire amount back and you are younger than 59½, the IRS will characterize the unsettled portion of the loan as a premature distribution from a qualified retirement plan – fully taxable income subject to early withdrawal penalties.²

Do you assume that your peak earning years are straight ahead? Conventional wisdom says that your yearly earnings reach a peak sometime in your mid-fifties or late fifties, but this is not always the case. Those who work in physically rigorous occupations may see their earnings plateau after age 50 – or even age 40. In addition, some industries are shrinking and offer middle-aged workers much less job security than other career fields.

Is your emergency fund now too small? It should be growing gradually to suit your household, and your household may need much greater cash reserves today in a crisis than it once did. If you have no real emergency fund, do what you can now to build one so you don’t have to turn to some predatory lender for expensive money.

Insurance could also give your household some financial stability in an emergency. Disability insurance can help you out if you find yourself unable to work. Life insurance – all the way from a simple final expense policy to a permanent policy that builds cash value – offers another form of financial support in trying times.

Watch out for these mid-life money errors & assumptions. Some are all too casually made. A review of your investment and retirement savings effort may help you recognize or steer clear of them.

    

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations.

1 – http://ift.tt/1yUYgHr [6/25/15]

2 – tinyurl.com/oalk4fx [9/14/14]

 

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The Certified Financial Planner (CFP) designation is a professional certification mark for financial planners

The Certified Financial Planner CFP honor isle a certification mark connected with financial planners conferred because of the Certified Financial Planner Board of Standards. 

To acquire permission in opposition to neglect the designation, the candidate important match education, examination, adventure as well as strength requirements, and make up an endless certification fee. It has an intense scope in India also obtaining toilet bowl gain an extreme job.

CFP: CERTIFIED FINANCIAL PLANNER (CFPCM ) CFPCM remote island the greater part sought one time honor negligible market planner could love toward acquire. This area measured as the greatest normal place beneath the container of commercial planning. To accompany secondary e book one prerequisite employ executed the graduation plus has to contract 3 age group venture listed below the monetary guidance domains within small capacity.

The Certified Financial Planner (CFP) designation is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards (CFP Board) in the United States, and by 25 other organizations affiliated with Financial Planning Standards Board (FPSB), the international owner of the CFP mark outside of the United States.

Required   a financial planner is required by any person who has specific plans for their money and would like to achieve financially ambitious goals. This ranges from young entrepreneurs investing their money to college kids deciding on college loans and their payments. If a person is sitting with inherited money they should call a planner. This also includes a person who is thinking about investing in market shares but does not have time to keep an eye on the stock market day and night.

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from Choosing A Financial Planner
Questions and Answers - Blog http://ift.tt/1MdWCLG

At Last, a Greek Debt Deal

A look at the winners, losers & terms.

 

It looks like Greece will stay in the euro. After eurozone finance ministers pulled an all-nighter, negotiating for 17 hours into early Monday morning, the government of the beleaguered nation accepted the latest bailout terms offered by its creditors. The deal was unanimously approved by the eurozone’s 19 member countries.¹

This third bailout agreement contains the harshest austerity measures yet. There was no debt haircut for Greece, and this latest round of relief comes at a remarkable price. In exchange for another $95 billion worth of aid over the next three years, Greece agreed to more than just sales tax hikes and cuts in pension payments – it also agreed to sell off state assets.¹

To explain this a bit further, Greece will transfer about $50 billion worth of “valuable” assets into a “guarantee fund”. (This was Germany’s idea.) These assets – likely bank shares that the Greek government will buy up with bailout money in order to recapitalize its banks – will be used as collateral on the latest bailout package. The mission is to sell them in reasonable time, with half the cash going toward repayment of the bailout funds, a quarter toward investment, and another quarter applied to Greece’s national debt.^2,3

This yet-to-be-named privatization fund will be based in Greece and run by Greek authorities, but Greece’s creditors will supervise its actions. Greece might have until the mid-2020s (or longer) to sell these assets, as the new bailout loans may have long maturities.³

In the words of French President Francois Hollande, Europe had “a good night, and a good day” – and no Grexit. Who won and lost most in this new deal? ¹

The winner: Angela Merkel. Germany is the premier economy in the eurozone and Greece’s biggest creditor, and its chancellor decided enough was enough. Merkel took a very hard line in the negotiations; in fact, Germany, along with Finland, ardently supported throwing Greece out of the eurozone and letting the country take care of its financial problems without any further loans.^1,4

Merkel looks very good even after Germany’s apparent conciliation to the pleas of France, Italy and other European Union members that argued for the necessity of a third Greek bailout. As she commented, “The advantages [of the deal] far outweigh the disadvantages.”²

The loser: Alexis Tsipras. Tsipras and his left-wing Syriza party have all but written themselves out of Greece’s future. After disparaging the austerity measures Greeks live with and praising the Greek people for the “very brave choice” they made in voting against another bailout, Tsipras signed off on austerity cuts that were even deeper. 

In the end, he simply had to; for all his posturing, two financial shocks would have occurred if he had refused. Without a deal in place, Greece’s banking system could have collapsed this week. Greece also could have found itself out of the eurozone – a danger signal for institutional and retail investors.

Global markets started the week with a relief rally. Monday’s trading day found the Dow, Nasdaq and S&P 500 all rising 1.1% or higher; the STOXX Europe 600, FTSE 100 and Nikkei 225 were also up from 1.0-2.0%. The deal is not set in stone yet – eurozone parliaments must approve it – but the accord just reached relieves much uncertainty.⁵

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations.

1 – http://ift.tt/1CJOMpV [7/13/15]

2 – http://ift.tt/1HWYRSs [7/13/15]

3 – http://ift.tt/1dVMesP [7/13/15]

4 – http://ift.tt/1TFu0w5 [7/6/15]

5 – markets.wsj.com/us [7/13/15]

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Choosing a fee based finance company ensures you will receive impartial advice

When you choose a financial advisor, there are various aspects you need to consider, these include knowledge, experience and even how well you get on together. If you are looking for good financial planning advice that is going to benefit you then seriously consider a fee based financial advisor in comparison to one that works on commission basis.

Choosing a fee based finance company ensures you will receive impartial advice when making significant financial decisions as they are less likely to be influenced by any personal benefits with certain recommendations. 

Fee only investment advisors generally have set fees depending on the type of service provided, financial planning advice is designed exclusively to help you meet your goals and designed exclusively just for your needs.

With these right concepts and clear approaches advisors makes an inseparable relationship with their clients. Advisors have to keep complete up to date information about the ongoing financial affairs so that they can provide beneficial plans to their clients. Financial planning is a tool from eMoney advisor enables the advisors to have observation on the ongoing financial happenings which helps firms in booming the business. 

Financial Planning with the association of some growing cash flow and sophisticated tools making the task easy for advisors. Verification of Cross selling and introduction of advance planning opportunities for the advisors to describe easily to the clients are brought together by this Financial Planning tools.

In a bowl of alphabet soup, recognizable words may form accidentally. Your financial betterment will not take shape accidentally. Financial planning is a learnable process and knowing your vowels will assist you in developing a proficient financial plan. Keep in mind (A)sset allocation, (E)state planning, (I)nsurance, (O)wnership, YOU, and sometimes “WHY?” to have a rewarding future for you and your family.

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from Choosing A Financial Planner
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Social Security Calculators can help you determine how much Social Security benefits you will receive

What would you do if you retired at age 62, and live another 30 years? Your benefits will run out if you only have 20 year annuities to pull from. 

Social Security Calculators can help you determine how much Social Security benefits you will receive, but you can refuse them until you are 70 or even older so your amount monthly is more. 

This way, when your annuity payments or other retirement benefits run out, you still have Social Security to rely on, and your monthly amount will be higher because you waited to take the money.

Another question to consider is, how is my health history?  If you come from a family that tends to live long, you may want to postpone taking the benefits so that you have a larger benefit to live on in the later years.  

Studies have shown that as people age, more of their income needs are being met by Social Security.  Since Social Security benefits have inflation adjustments, the larger monthly payment could be beneficial if or when personal savings start to run low.

Today, the statistics are growing even more, as many unemployed seniors aged 62 and up have filed for early benefits to cover their expenses as they struggle to find work again and the paychecks start flying in. Since the economic recession, unemployment figures have also been on the rise, along with retirees who've filed for early Social Security benefits.

Procrastination seems to be the rule rather than an exception when it comes to filing applications for social security benefits. There are quite a few out there who end up creating unprecedented delays in filing their applications. 

Most of these people end up waiting for more than several months before applying for these benefits that they are entitled to. Some people decide to wait, as they remain unsure about their eligibility while others do not realize the benefits that these schemes can offer. 

For those who have very little information about these Social Security Disability Benefits it is important to learn why these schemes are so useful. The entire procedure is fast and simple; making it easier for you to avail the benefits right from the day you make the request.

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from SOCIAL SECURITY BENEFITS EXPLAINED - Blog http://ift.tt/1OekE7v

Behind on Your Retirement Savings?

What steps could you take to catch up?

 

If life has not allowed you to build substantial retirement savings, what can you do to improve your retirement prospects? Here are some suggestions.

Play catch-up. If at all possible, take advantage of the catch-up contributions the IRS allows you to make to IRAs and other retirement accounts starting in the year in which you turn 50. For example, this year a worker age 50 or older can put $24,000 into a 401(k) account compared with $18,000 for someone younger.¹

Get the match. If your employer matches your retirement plan contributions to some degree when you contribute to a workplace retirement plan at a certain level, you should make every effort to get the match and take advantage of what amounts to an offer of free money.

Work a little longer. More years contributing to retirement accounts means additional inflows into those accounts, and additional growth and compounding for those assets. It means you claim Social Security later, resulting in a larger monthly benefit. It also leaves you with fewer years of retirement that you must fund.

Alternately, think about working a little early in retirement. It is true, your Social Security benefits could be docked as a result – but the tradeoff might be worthwhile.

If you are a Social Security recipient and younger than full retirement age in 2015, Social Security will withhold $1 in benefits for every $2 you earn over $15,720. This is called the Social Security earnings test. Social Security essentially balances this penalty out, however, by boosting your benefit as you reach full retirement age – and for that matter, you can earn as much as you want at full retirement age or later with no reduction to your benefits.²

If you retire at 62 and make $25,000 a year through a part-time job you hold during the first five years of your retirement, you are putting a dent in any Social Security income you receive until age 67 – but that $25,000 yearly income can represent $25,000 you do not have to withdraw annually from your retirement savings. You could also invest some of that income, and the annual yield on your investment could exceed annual consumer inflation. Not a bad move in many eyes.

Think about long-run growth investing. One of the biggest risks retirees face is the erosion of purchasing power. Some seniors invest in such a risk-averse way that they lose ground versus even minor inflation. Keeping a foot (or both feet) in the market may be essential if your retirement nest egg is small – not just because it needs to grow, but because it will need to grow faster than inflation.    

Whittle down your debt. As Ben Franklin wrote in the 1758 edition of Poor Richard’s Almanac, “A penny saved is a penny got” (he never actually said “a penny saved is a penny earned”). While you may be thinking “mortgage,” reducing your credit card debt can produce the savings you want now. So can eliminating certain household expenses. Speaking of family expenses…³

Tell your adult children that you will not be supporting them. If you desperately need to catch up on your retirement savings effort, the last thing you want to do is provide your kids with a financial lifeline. You have 15 years or less until retirement; they may have 40 or 45. Helping them pay off their college loans may feel like the right thing to do for them, but it is not the right thing to do on behalf of your retirement.

Take one crucial step before you pursue any of these options. Turn to a financial professional to see what kind of retirement income you may need to live comfortably. (Any such consultation should include a Social Security analysis.) When you retire, having adequate income becomes just as important as having adequate savings.

 

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations.

1 – http://ift.tt/1pHensR [12/1/14]

2 – http://ift.tt/1DgAPup [7/2/15]

3 – http://ift.tt/1CDz3ZC [8/18/14]

 

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Screening Financial Planners is just like choosing a doctor for your surgery

A Certified Financial Planner (CFP) who is not aligned with an organization that has a stake in specific financial products is in the best position to analyze your financial needs objectively. 

The financial needs analysis done by a Partner at our office is grounded in high levels of skill and experience, and is aimed at taking you through the whole process of financial planning.

Screening Financial Planners is just like choosing a doctor for your surgery! If you come to know that the doctor has cases of medical negligence against him, you will never choose him! 

Similarly, if any financial planner has cases of fraud or malpractice against him, make sure that you cut them out instantly. You can come to know about their past history by contacting the Financial Planning Standards Boards or Foundation of Independent Financial planners.

A certified financial planner designation helps people to select the best financial program and guides them to select the best investment and planning tool for the best allocation of their possessions. A skilled professional can sell the financial products well and can help the business to catch the attention of the major amount of customers.

Who needs a financial planner? When is your condition substantial enough for you to pay somebody to keep an eye on your money? These questions haunt every hard working Australian. We would suggest you should focus on another question. 

What does a financial planner exactly do and what situations are worthy of one? We have made today's post based on a few of these essential questions for you so that we can help you handle your decisions more smartly.

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from Choosing A Financial Planner
Questions and Answers - Blog http://ift.tt/1SjgMSV

Someone suffering from depression might have a legitimate claim for Social Security Disability

Your unmarried children and dependent grandchildren under the age of 18 (including adopted children) should qualify for Social Security benefits if you are getting SSDI.  If your child is age 18 or 19, they will also qualify if they're in school full time. 

In some cases, your stepchildren will also qualify to receive benefits. If you have a disabled, unmarried child 18 years old or older who became disabled before they turned 22, they should also qualify to receive benefits.

If you encounter a denial of your Social Security application and you want to file an appeal, there are attorneys who can provide you the legal help that is needed. Through the help of these skilled attorneys, you will have a higher chance of having a successful appeal and receiving Social Security benefits.

There are no hard set standards for paying their child's expenses set by a country. And so, each state figures out on their own the amount of child support that the parent will have to consider, and whether they should award it or not. 

To figure this out, the states check the incomes of the parents, such as, their salary, income from other businesses, Social Security benefits, lotteries, etc.

In some people, depression can be so severe that it renders them unable to hold down a job. If that is the case, someone suffering from depression might have a legitimate claim for Social Security Disability. This article discusses the common disabling depression symptoms as well as how to apply for Social Security benefits if you are disabled by depression. 

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from SOCIAL SECURITY BENEFITS EXPLAINED - Blog http://ift.tt/1dVUtFt

Can the Market Ride Through the Greek Debt Crisis?

U.S. equities face their biggest test of 2015.

 

June definitely ended with some drama. When Greek government officials told Reuters Monday that the nation could not make its €1.5 billion loan repayment to the International Monetary Fund on June 30, the Dow plunged 350.33, the S&P 500 43.85 and the Nasdaq 122.04 while the CBOE VIX rose 36%. The Dow closed under its 200-day moving average. The big three stabilized Tuesday while investors braced for more turbulence.^1,2

Greece’s last-minute requests were turned down Tuesday. Greek Prime Minister Alexis Tsipras asked eurozone finance ministers for an extension, a haircut on the nation’s debt, or a third bailout. Each request was denied, and that meant the official end of the Greek bailout coordinated by the European Financial Stability Fund. The Greek government will present a proposal for a new, third bailout to the same finance ministers (a.k.a. the Eurogroup) on Wednesday. Approval of any such bailout package will only be considered in July.³

The next hurdle is Greece’s July 5 nationwide referendum. Tsipras and his far-left Syriza party have slated a national vote for next Sunday, in which Greeks can express whether they are for or against the current IMF/EU bailout proposal. Practically speaking, Syriza is polling the Greek people to see if they want to quit the euro.⁴

As NPR notes, while Tsipras has argued that the austerity measures imposed on the country amount to a humiliation of Greece, most Greeks want their nation to stay in the EU. Wolfgang Schaueble, Germany’s finance minister, characterized Tsipras’s stand this way: “When you’re driving down the Autobahn and everyone else is driving the opposite direction, you may think you’re right, but you’re wrong.”⁴

Still, Greece could remain in the EU even if it defaults. Though Schaueble has been a severe critic of the Greek government, Bloomberg notes that he has indicated the European Central Bank will do what it must to keep Greece in the eurozone, even if its people vote to leave it. As he told ARD Television earlier this week, “Greece is on a difficult path. But we will do everything to keep Europe stable.”⁵

Germany is Greece’s largest creditor, and German Chancellor Angela Merkel did not soften the nation’s stance in the matter, saying bluntly on June 30: “This evening at exactly midnight Central European Time the program expires. And I am not aware of any real indications of anything else.”⁶

Would a “Grexit” damage the solidarity of the EU? Spanish Prime Minister Mariano Rajoy worried about that this week, expressing that if Greece leaves the eurozone, it would send “a negative message that euro membership is reversible.”⁶ 

If Greece does leave the euro and return to the drachma, it would undeniably make things worse for a nation with 26% unemployment that just experienced a run on its banks and a credit downgrade to CCC- (junk status) by Standard & Poor’s.^4,7

On our shores, the Dow gained 23.16, the Nasdaq 28.40 and the S&P 500 5.48 Tuesday, offering a little hope that U.S. equity markets might possibly be able to decouple from this crisis.⁸ 

   

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 – tinyurl.com/ox9yrgh [6/29/15]

2 – http://ift.tt/1UtumXS [6/30/15]

3 – tinyurl.com/pboqjqr [6/30/15]

4 – tinyurl.com/pjht52t [6/26/15]

5 – http://ift.tt/1IUZWJB [6/30/15]

6 – http://ift.tt/1Iqxhfe [7/1/15]

7 –  http://ift.tt/1IUZZoI [6/29/15]

8 –  http://ift.tt/1Hq5lDY [6/30/15]

 

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Financial planners are an important part of maintaining a healthy financial status

Financial planners who are properly licensed by the regulators are often carrying designation such as Independent Financial Adviser or Licensed Financial Planner as they are independent and do not represent any product or service providers, therefore, these financial planners are able to put their client best interest on the top as they will not have conflicting interests, hence making unbiased financial advice are no longer a pipe dream but reality.

Financial planners are an important part of maintaining a healthy financial status for a lot people around the world. Their effectiveness in creating better investment opportunities as well as teaching their clients to properly handle financial challenges and problems that they may encounter as they start participating in various avenues of investment. 

There are a lot of people offering their services as financial planners or advisors, however only certified professionals should be trusted with sensitive financial information and can be relied upon to provide accurate advice and forecast that can be the difference in earning and losing cash every year.

A Financial Planner typically prepares financial plans for his or her clients. The kinds of services financial planners offer can vary widely. Ideal financial planners analyse every aspect of their clients' financial life — including saving, investments, insurance, taxes, retirement, and estate (inheritance) and help them develop a detailed strategy or financial plan for meeting all your financial goals. 

Such ideal financial planners are independent, not tied to any bank, insurance or investment companies, and act wholly for the interest of their clients. They do not receive any commission for any financial products bought by the clients, these independent financial advisers only receive fixed fee for their service.

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from Choosing A Financial Planner
Questions and Answers - Blog http://ift.tt/1HVPYJ2

Married women who will qualify for survivor benefits from their spouse can consider drawing upon their Social Security benefits early...

Many Americans held their breath to see if Congress was going to extend the payroll tax cut at the beginning of this year. 

While most were happy to hear the cuts would be extended, many risk losing their benefits if these cuts continue. 

Because payroll taxes take care of a large portion of the funds by which many Social Security benefits are drawn, these cuts have taken quite a sizeable chunk out of an already dwindling pot. 

The current payroll tax cuts extension allows for employers to pay 2 percent in taxes, rather than the 2 maintained in previous years. With nearly 9 million Americans depending on Social Security benefits for their survival each month, further tax cut extensions could seriously threaten the future of benefit funds.

In 1940, benefits paid totaled $35 million. These rose to $961 million in 1950, $12 billion in 1960, $39 billion in 1970, $125 billion in 1980, and $248 billion in 1990 (all figures in nominal dollars, not adjusted for inflation). In 2004, $492 billion of benefits were paid to 45 million beneficiaries. In 2009, nearly 51 million Americans received $650 billion in Social Security benefits.

Married women who will qualify for survivor benefits from their spouse can consider drawing upon their Social Security benefits early, as long as their spouse waited until full retirement age to begin drawing benefits. 

This ensures that the survivor benefits a married woman receives is not reduced by up to 25% for early retirement, and will be an amount that is better suited to sustain her during her later years of life.

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from SOCIAL SECURITY BENEFITS EXPLAINED - Blog http://ift.tt/1HnmwIp

To turn into a fruitful Certified Financial Planner you should experience the CFP Training

Turning into a Certified Financial Planner is the most ideal route for you to be separate from other monetary organizers. 

This prestigious and universally acknowledged CFP confirmation would infer to your potential customers and businesses that you were fit to win the most abnormal amount of competency, professionalism and moral practices that are crucial in the budgetary administrations industry.

The first step to become a financial planner or advisor is to take the required exams, but most people start preparing for this career long before they decide to start studying for the exams. 

Most financial planners and advisors have at least a bachelor's degree from an accredited institution, usually in accounting, business or a similar field. A master's degree is not required, but it also doesn't hurt—especially when building credibility with clients. Once you're ready to take the exams you will probably want to find a broker or dealer who is willing to sponsor you to take the exams, but you can also do it on your own.

Once you begin working as a financial planner/advisor you will probably work long hours at first, but once your book of clients is created you can move to a 40 hour work week. The hard work and determination will pay off in the end, though. Personal financial planners and Certified Financial Advisors may start out making only $41,000 per year, but their salaries reach as high as $90,000 with success and experience.

For you to turn into a fruitful Certified Financial Planner you should experience the CFP Training. In this preparation program you can pick up the information, comprehension and discovering that you will require so that you will pass the CFP Certification Examination. Recognizing that the Cfp certificate exam is a standout amongst the most testing exams in the monetary administrations industry then you should truly take additional measures for you to pass it. 

In this instructional class you can take the formal Cfp course educational module that could be extremely helpful so that you will pick up the information and abilities that you require. Taking the formal Cfp course project will oblige you to take extraordinary course subjects that are crucial in fiscal administrations. 

These uncommon course subjects are your key to passing the CFP Exam on the grounds that the principle substance of the exam originate from these unique subjects. That is the reason it is truly paramount that you will consider your preparation program important for you to handle the discovering that is vital for you to adequately pass the affirmation exam. 

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from Choosing A Financial Planner
Questions and Answers - Blog http://ift.tt/1fxhSyP

Money management can help sustain or improve your current lifestyle

A key component in addressing the desired outcome of any financial future is to understand your options and thus develop an appropriate course of action. The multitude of options at your disposal can be as confusing as a bowl of alphabet soup. 

Letters commingle with one another to form illogical and unrecognizable words. Stop the swirling chaos and isolate the vowels. The vowels will assist you in developing a strong understanding of important financial planning concepts.

Money management can help sustain or improve your current lifestyle. This is an essential consideration when thinking about savings. Absolutely everyone aims to live a much better life. Seeking the services of a company providing financial planning in Perth may help you accomplish that. Part of preserving your standard of living is to get the appropriate coverage. 

It will protect you against financial instability. Common situations that may affect this include things like losing your career or becoming unable to work. These are just a handful of illustrations of life events you can create a safety net for, should they come about.

Strategic management is a process that helps an organization address the challenges and changes that will present. Strategic management includes financial planning, forecast based planning, externally oriented planning, and strategic management. 

To be effective an organizations strategic management process should mirror its primary reason for existing, or its mission and values. A company that engages in the process of strategic management improves its ability to make decisions that will ensure its existence and improve its financial standing. A strategic management process will also help to improve an organization’s workforce’s ability to respond to changes that will present themselves.

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from Choosing A Financial Planner
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Social Security proponents argue that the correct plan is to fix Medicare

The balances in the Trust Fund are projected to be depleted either by 2036 (OASDI Trustees' 2011 projection), or by 2038 (Congressional Budget Office's extended baseline scenario) assuming proper and continuous repayment of the outstanding treasury notes. 

At that point, under current law, the system's benefits would have to be paid from the FICA tax alone. Revenues from FICA are projected at that point to be continue to cover about 77% of projected Social Security benefits if no change is made to the current tax and benefit schedules.

These Social Security proponents argue that the correct plan is to fix Medicare, which is the largest underfunded entitlement, repeal the 2001–2004 tax cuts, and balance the budget. They believe a growth trendline will emerge from these steps, and the government can alter the Social Security mix of taxes, benefits, benefit adjustments and retirement age to avoid future deficits. 

The age at which one begins to receive Social Security benefits has been raised several times since the program's inception.

You'll need to estimate how much coverage you need, and what type of policy is best for your situation such as term life insurance or whole life insurance. 

Again, consider your income, combined debts and future financial goals such as college and home buying. Then, subtract out assets such as Social Security benefits, other life policies, your spouse's income, and retirement plan benefits. The difference should be your minimum coverage to replace your income in the event of your death.

With the assistance of testing, at times it is extremely hard to prove disabling conditions of a person. As a result, in those cases it relies on a disabled person’s representative or legal assist to demonstrate doctor’s health reports correctly & to convince the government that a person is eligible for social security benefits. 

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from SOCIAL SECURITY BENEFITS EXPLAINED - Blog http://ift.tt/1UKmOA0

Use Life Insurance to Pay for Final Expenses

When a loved one dies, the last thing a family needs is a sudden financial challenge. Too often, funeral and burial costs present this kind of dilemma. Final expense life insurance provides an answer.

No one is ever turned down for this type of life insurance. The death benefits on these policies usually range from $1,000-$50,000 (the full payout is typically offered after the policy has been owned for two years) and policies may either be term life or permanent life in nature.¹ 

If you don’t want your heirs to be saddled with paying the costs of a funeral (which can often exceed $10,000), please let me know how I may help you find final expense insurance. No family should be burdened with a large, sudden cost at such a trying time.

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You are restricted in how much money you can be paid when collecting Social Security

While you're restricted in how much money you can be paid when you are under full retirement age and collecting Social Security, as soon as you attain full retirement age you may make as much as you desire without your retirement benefits being lowered. 

Yet another plan may be to take a part time job when you finally retire so that you can postpone collecting Social Security benefits.

Here's a hypothetical example. Leslie is about to reach her full retirement age of 66, but she wants to postpone filing for Social Security benefits so that she can increase her monthly retirement benefit from $2,000 at full retirement age to $2,640 at age 70 (32% more). 

However, her husband Lou (who has had substantially lower lifetime earnings) wants to retire in a few months at his full retirement age (also 66). He will be eligible for a higher monthly spousal benefit based on Leslie's work record than on his own   $1,000 vs. $70 So that Lou can receive the higher spousal benefit as soon as he retires, Leslie files an application for benefits, but then immediately suspends it. 

Leslie can then earn delayed retirement credits, resulting in a higher retirement benefit for her at age 70 and a higher widower's benefit for Lou in the event of her death.

When you are married, you can claim your spouse's benefits. Even if you never held a job yourself you are entitled to share your spouse's Social Security benefits. If you wait until both of you are of retirement age (currently 66 years old) you can claim 50% of your spouse's benefit. 

If you claim it before age 66, the percentage goes down. Social Security has no marriage penalty, so there's absolutely no downside in claiming both benefits. Social Security allows a widow or widower to claim their spouse's benefits, even if they remarry. 

You can claim a deceased spouse's benefits as early as age 60, and add their own benefit whenever necessary   though waiting until age 70 will bring the highest benefit possible.

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All members of FPA must demonstrate a commitment to the highest standards

The major components of strategic management according to Hunger and Wheelen (2007) are financial planning, forecast based planning, externally oriented planning, and “strategic management”. 

Each of these components must be supported and held accountable to be effective. Basic financial planning relates to the idea that an organization must seek better operational control relative to an annual budget. The organization maps out expenses and anticipated income on a yearly basis and attempts to meet its goals.

The organization was created in 2000 through the merger of the Institute of Certified Financial Planners (ICFP) and the International Association for Financial Planning (IAFP), Its stated Primary Aim is to be the community that fosters the value of financial planning and advances the practice and profession of financial planning. FPA is governed by a volunteer Board of Directors who are charged with helping the organization reach its mission while upholding the organization's bylaws.

All members of FPA must demonstrate a commitment to the highest standards of professional competence, ethical conduct and clear, complete disclosure for financial planning professionals. As such, they must adhere to FPA's standard of client care. These standards are as follows: 

Put the client's best interests first; Act with due care and in utmost good faith; Do not mislead clients; Provide full and fair disclosure of all material facts; Disclose and fairly manage all material conflicts of interest. Additionally, all FPA members are asked to commit to a Code of Ethics that reflects their pledge to help clients achieve their life goals. 

Under the Code, an FPA member must offer and provide professional service with integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence. Members that do not adhere to this code can be subject to a review by FPA's Ethics Committee.

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from Choosing A Financial Planner
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Too many financial planners and their clients take a more narrowly focused approach

There are three main bodies awarding qualifications for financial advisers in the UK. The main one is the Chartered Insurance Institute, which offers professional financial services qualifications all the way from beginner to degree levels. 

The IFS School of Finance offers alternative courses/qualifications in certain specialist areas such as mortgages and equity release. The Institute of Financial Planning offers the Certified Financial Planner.

While the common usage of the term "financial plan" often refers to a formal and defined series of steps or goals, there is some technical confusion about what the term "financial plan" actually means in the industry. 

For example, one of the industry's leading professional organizations, the Certified Financial Planner Board of Standards, lacks any definition for the term "financial plan" in its Standards of Professional Conduct publication. This publication outlines the professional financial planner's job, and explains the process of financial planning, but the term "financial plan" never appears in the publication'

In the past far too many financial planners and their clients took a far more narrowly focused approach to Financial Planning.  Each consideration was held out and dealt with separately. One by one increments or facets of a person’s finances would be analyzed and dealt with as a singular unit.

Reducing impact of financial crisis: In case an emergency arises in your family, you can take care of it without waiting for someone else to help you out. If you have to borrow every time there is a financial need, then you may find yourself suffering from financial crisis in times of family emergencies. A family emergency could be anything from a family member falling ill or unexpected medical bills. However, good financial planning helps you come out of these situations with ease, as you will have savings to help you in your crisis periods.

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from Choosing A Financial Planner
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Determining when to collect social security income

Determining when to collect social security income is a very important decision and there are many factors that should be taken into consideration to maximize social security benefits such as longevity, income needs and survivors needs to name a few.  

However, by taking the time to understand your social security benefits now, you can make an educated decision when the time comes.

Every year, the Trustees of the Social Security Trust Funds release a report to Congress on the current financial condition and projected financial outlook of the program. 

This year's report, released on July 28, contains valuable information about the health of Social Security that may help you understand how your Social Security benefits might be affected.

The Social Security program consists of two parts. Retired workers, their families, and survivors of workers receive monthly benefits under the Old Age and Survivors Insurance (OASI) program; disabled workers and their families receive monthly benefits under the Disability Insurance (DI) program. 

The combined programs are referred to as OASDI. Each program has a financial account (a trust fund) that holds the Social Security payroll taxes that are collected to pay Social Security benefits. Other income (reimbursements from the General Fund of the Treasury and income tax revenue from benefit taxation) is also deposited in these accounts. 

Money that is not needed in the current year to pay benefits and administrative costs is invested (by law) in special Treasury bonds that are guaranteed by the U.S. government and earn interest. 

As a result, the Social Security Trust Funds have built up reserves that can be used to cover benefit obligations if payroll tax income is insufficient to pay full benefits.

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Protecting Yourself While Shopping Online

What steps should you take?

 

Whether you shop online routinely or infrequently, the risk of identity theft rises as you offer more and more information about yourself online.

Avoid using a debit card, and use only one credit card. If your debit card gets hacked, the thieves may be able to access your bank account. But if you use just one credit card for online shopping, you will have only one card to cancel if your card number is compromised. (It would also be wise to keep a low credit limit on that particular card.)

Look for the “https://” before you enter personal information. When you see that (look for the “s”), it should indicate that you are transmitting data within a secure site. Depending on your browser, you may also see a padlock symbol at the bottom of the browser window.

Watch what you click – and watch out for fake sites. Pop-ups, attachments from mysterious sources, dubious links – do not be tempted to explore where they lead. Hackers have created all manner of “phishing” sites and online surveys – seemingly legitimate, but set up to siphon your information. It is better to be skeptical.

Protect your PC. When did you install the security and firewall programs on your computer? Have you updated them recently?

Change stored passwords frequently. Make them unique and obscure. It is a good idea to change or update your passwords once in a while. Mix letters and numbers, and use an uppercase letter if possible. Never use “password” or your birth date as your password!

 

Don’t shop using an unsecured wi-fi connection. You are really leaving yourself open to identity theft if you shop using public wi-fi. Put away the laptop and wait until you are on a secure, private internet connection. Hackers can tap into your Smartphone via the same tactics by which they can invade your PC.

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information should not be construed as investment, tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

 

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Holistic financial planning begins with a preliminary financial advisory process

Holistic financial planning begins with a preliminary financial advisory process that includes an initial fact finding stage. This initial stage of the process is geared towards assessing a client’s likes and dislikes, general opinions, goals both short and long term. 

Also during this initial fact finding stage, information such as a client’s risk tolerance is also gathered and filed for analysis. Then after the necessary preliminary information has been gathered, it's

With holistic financial planning however, all aspects of client’s finances, goals, lifestyle and ideals are brought together at once and analyzed as a whole. A much bigger picture is viewed, if you will and also other peripheral aspects and factors such as client’s principles are entered into the equation as well. Something that was rarely done in the past on to the next phase.

In broader terms, holistic financial planning identifies and takes into consideration the entirety of a client’s financial situation both present and on into the future. When the client receives completely inclusive or complete holistic advice, they are far better able to make decisions that insure that their total objectives are more realistically obtained.

Students who take the masters financial planning are expected to be computer literate and have completed basic college math courses as the masters study involves a lot of computation. Upon completion of the said program, most of the positions you become eligible for are related to being a financial advisor.

The final components are the ethics and continuing education requirements. Students and certificates are required to adhere to the CFP Board Code of Ethics and Professional Responsibility and to the Financial Planning Practice Standards. Registered investment advisors have a fiduciary duty to care for investments. The CFP Board has the right to enforce them through its Disciplinary Rules and Procedures.

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from Choosing A Financial Planner
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Web based Social Security benefits calculator

In 2004, Urban Institute economists C. Eugene Steuerle and Adam Carasso created a Web based Social Security benefits calculator. Using this calculator it is possible to estimate net Social Security benefits (i.e., estimated lifetime benefits minus estimated lifetime FICA taxes paid) for different types of recipients. 

In the book Democrats and Republicans – Rhetoric and Reality Joseph Fried used the calculator to create graphical depictions of the estimated net benefits of men and women who were at different wage levels, single and married (with stay at home spouses), and retiring in different years. 

These graphs vividly show that generalizations about Social Security benefits may be of little predictive value for any given worker, due to the wide disparity of net benefits for people at different income levels and in different demographic groups. 

For example, the graph below (Figure 168) shows the impact of wage level and retirement date on a male worker. As income goes up, net benefits get smaller – even negative.

The amount of social security income a retiree will receive at full retirement age is based on the top 35 years of earnings.  

The benefit is then reduced or increased according to when you apply. Retirees can apply for social security benefits when they have attained age 60.

Unfortunately, by collecting social security income early a retiree settles for a reduced benefit. One way a retiree can maximize their social security income is by simply postponing the application. 

Social security benefits at age 62 are roughly 75% of what they would be at Full Retirement age and increase by roughly 8% each year that they are delayed up to the maximum benefit at age 70.

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Taking a Loan from Your Retirement Plan = Bad Idea

Why you should refrain from making this move.

 

Thinking about borrowing money from your 401(k), 403(b), or 457 account? Think twice about that, because these loans are not only risky but injurious to your retirement planning.

A loan of this kind damages your retirement savings prospects. A 401(k), 403(b), or 457 should never be viewed like a savings or checking account. When you withdraw from a bank account, you pull out cash. When you take a loan from your workplace retirement plan, you sell shares of your investments to generate cash. You buy back investment shares as you repay the loan.

So in borrowing from a 401(k), 403(b), or 457, you siphon down your invested retirement assets, leaving a smaller account balance that experiences a smaller degree of compounding. In repaying the loan, you will likely repurchase investment shares at higher prices than in the past – in other words, you will be buying high. None of this makes financial sense.¹

Most plans charge a $75 origination fee for a loan, and of course they charge interest – often around 5%. The interest paid will eventually return to your account, but that interest still represents money that could have remained in the account and remained invested.¹

Your contributions to the plan may be halted. Some workplace retirement plans suspend regular employee salary deferrals when a loan is taken. They can resume when you settle the loan.¹

Your take-home pay may be docked. Most loans from 401(k), 403(b), and 457 plans are repaid incrementally – the plan subtracts X dollars from your paycheck, month after month, until the amount borrowed is fully restored.¹

If you leave your job, you will quickly have to pay 100% of your loan back. This applies if you quit; it applies if you are laid off or fired. You will have 30-60 days (per the terms of the plan) to repay the loan in full, with interest.²

If you are younger than age 59½ and fail to pay the full amount of the loan back, the IRS will characterize any amount not repaid as a premature distribution from a retirement plan – taxable income that is also subject to an early withdrawal penalty.^1,2

Even if you have great job security, the loan will probably have to be repaid in full within five years. Most workplace retirement plans set such terms. If the terms are not met, then the unpaid balance becomes a taxable distribution with possible penalties (assuming you will not turn 59½ in the year in which repayment is due). If you default on the loan, the retirement plan may bar you from making future contributions.¹

Would you like to be taxed twice? When you borrow from an employee retirement plan, you invite that prospect. One, you will be repaying your loan with after-tax dollars. Two, those dollars will be taxed again when you withdraw them for retirement (unless your plan offers you a Roth option).¹

Why go into debt to pay off debt? If you borrow from your retirement plan, you will be assuming one debt to pay off another. It is better to go to a reputable lender for a personal loan; borrowing cash has fewer potential drawbacks.   

You should never confuse your retirement plan with a bank account. Some employees seem to do just that – in 2013, Fidelity researched participants in its retirement plans and found that 66% of those who had borrowed from 401(k)s had done so more than once. No doubt they became acquainted with the above dilemmas in the process.¹

In a recent TIAA-CREF survey, 44% of those who had taken loans from their 401(k) plans said they regretted doing so. Why risk joining their ranks? Look elsewhere for money in a crisis, and borrow from your employer-sponsored retirement plan only as a last resort.² 

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 – http://ift.tt/1gjdiEl [9/14/14]

2 – http://ift.tt/1gjdgwg [7/24/14]

 

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