Wednesday, January 28, 2015

Do you think fixed annuities are bad for you

Do you think fixed annuities are bad for you?

Do you think fixed annuities are bad for you?

Let’s get this one out of the way first. Even setting aside the reality that there are several distinct types of annuities, and 100's of products of each type, there's no such thing as a category of financial products that is inherently “bad.”

That is not to allege that annuities are proper for everybody; that would be equally ridiculous. Because on most things in life, the solution lies somewhere in between. What is beneficial or risky for a customer depends to a great extent upon their case-by-case circumstances. The perfect customer for a fixed annuity is usually at or almost retirement age, possesses hundred thousand or more in liquid assets, and has a low risk tolerance.

Even within that subset of the population, though, there are myriad alternatives available. Should you look at a SPIA? - or - A Differed Indexed Annuity (DIA)? - or - An indexed annuity? - or maybe - Should you buy an income rider or not?.

See also: Annuities

Alleging that every annuity is bad is similar of stating every vehicle is bad. Whenever you've a one mile commute to work or you do not travel a lot, and you likely should not be driving an sport utility vehicle just for that reason. If you are a contractor who on a regular basis hauls heavy equipment working, a convertible is not going to function fine for you, right?... The same rule applies for annuities, or any other financial instrument.

To learn more contact me for a FREE consultation (NJ residents only)

Monday, January 12, 2015

Magic Age for Retirement is No Longer 65

Magic Age for Retirement is No Longer 65

The study - The Middle-Income baby boomer Retirement Gap: Savings, Education and Advice – surveyed a thousand Americans seniors 50 to 68 with an yearly house income between $25,000 and $100,000. From the respondents, 45% were already retired. Of those still working, several expect to retire after age 65 (43%) than before age 65 (16%). Just 2 in 10 (19%) expect to retire at age 65.

Financial roadblocks to a comfy retirement

Although baby boomers are optimistic about retirement, a lot are concerned about meeting their financial needs in retirement. Although one-third (38%) feel very or super confident about their retirement nest egg, two-thirds (62%) express a few doubts, with a quarter (25%) being not too assured or not at all confident.

Health care expenses a growing concern, with good cause

According to the National Center for Health Statistics, the life expectancy of a 65-year-old has grown by 37% since 1950. As a result, the amount of money needed to fund a secure retirement – especially health care – has grown as well.

In an August 2013 CSR survey, Retirement Care Planning: The Middle-Income Boomer
Perspective, middle-income Boomers estimated the cost of one year of nursing home care at $46,890. Yet the true cost is nearly double: $90,520 on average. With median investable assets of $25,000 to $100,000, one year in a nursing home could effectively consume the entire savings of many middle-income Boomers.

Further, Boomers are largely unprepared for managing major changes in their health:

  • 65% don't have a current health care power of attorney
  • 64% lack an up-to-date living will
  • 63% do not have a current last will and testament

"Boomers are facing a challenging retirement environment, but just about any of them can improve their financial security through a combination of investment and protection products," said Scott Goldberg, president of Bankers Life. "A professional advisor can play an important role in re-positioning assets for future income and reducing the risk of financial disruption throughout retirement."

SOURCE: Bankers Life Center for a Secure Retirement

Tuesday, January 6, 2015

5 States where the Alzheimer’s Death Rate Soared

5 States where the Alzheimer’s Death Rate Soared

Americans continue to have a 100 percent ultimate mortality rate, but they are reaching the final outcome a little more slowly.

The managers of the National Vital Statistics System, an arm of the U.S. Centers for Disease Control and Prevention (CDC), have published a new statistical picture of the slowdown in the final 2013 mortality data report.

A comparison with the 2012 report shows that the overall U.S. age-adjusted death rate fell to 731.9 per 100,000 in 2013, from 732.8 per 100,000 in 2012.

The overall age-adjusted national death rate from a condition of keen interest to the long-term care insurance (LTCI) and long-term care (LTC) planning communities -- Alzheimer's disease -- fell 1 percent, to 23.5 percent.


3 Tips for Retiring out of State

3 Tips for Retiring out of State

3 Tips for Retiring out of State

Where are the best places to retire in America? if you guessed Florida and Arizona you'd be off the mark, according to a recent survey by Bankrate.

Average number of sunny days get those states high scores, but sunny days alone don't mean happy golden years.

“As this report correctly suggests, pre-retirees need to consider a lot more than snow days and tradition,” says Rodger Friedman, founding partner and wealth manager at Steward Partners Global Advisory and author of “Forging Bonds of Steel,” a guide to developing an excellent working relationship with your financial advisor.


Monday, January 5, 2015

3 Retirement Essentials Every Baby Boomer Should Follow

3 Retirement Essentials Every Baby Boomer Should Follow

Carl Edwards, MBA, ChFC, and owner of C.E. Wealth Group, is something of an expert on baby boomers and figuring out what they need to have a happy and successful retirement.

In his research, gained from working with the boomer generation and helping them plan for those golden years, Edwards has identified three retirement essentials every baby boomer should follow.


Friday, January 2, 2015

Save Money And Time On Your Retirement Needs

Save Money And Time On Your Retirement Needs

Are you looking for retirement?... There are many options to choose from. These tips are going to teach you out tremendously with your goals.

Determine what your needs and expenses will need in retirement. You need about 75% of your current income to live comfortably. Workers that don't make too much as it is may need at least 90 percent or so.

Begin saving now and continue steadily throughout your life.It doesn't matter if the amount is small; you should save today. Your savings will exponentially grow as your income rises. When your money is accruing interest, your money has the chance to grow to provide you with extra money later on.

People who have worked their whole lives look forward to retiring. They think that retiring is going to be a wonderful thing, but if they didn't plan ahead most likely they will encounter themselves face-to-face to reality.

Contribute to your employer 401K regularly and maximize the amount you're allow to match provided to you. You also can put away money in other products that is not taxed while growing (tax-differed) like Annuities. No many people know that Annuities are awesome vehicles to safe money for retirement, not to mention you won't lose a penny even if the market crashes tomorrow, plus many other benefits.

Are you overwhelmed and thinking about retirement because you haven't started to save? 

You still have time to start. Examine your monthly budget and determine the maximum amount you can invest each month, the company I represent have great products backed with more than 135 years in the business.

Another good way to plan for your retirement is to think about a Insurance plan that's for long term care. Health often declines for the majority of folks as they age. As health declines, you can expect your medical costs to increase. If you have a insurance/health plan like long term care [LTCi], you will be able to have the help you need at home or in an adult living center or nursing home.

Make sure you set both short and longer term goals. Goals are really important and can help you save money. If you are aware of the amount of money needed, you will be aware of what to save. A few simple calculations will help you goals to work towards on a monthly or weekly basis.

Retirement is a great time to start a small business you have always thought would be successful. A lot of people turn their hobby into successful home based businesses. This situation can reduce stress and bring you feel from a regular job.

If you're someone who is over 50 years old, you can catch up on your Annuity / IRA contributions, but there is usually a limit of your contributions ($5,000-$6,000) every year depending on a company or product you have, also it's essential you work with a professional when it comes to your investments, this allows you to quickly make up for retirement savings.

When you calculate what you need for retirement, plan to live about the same lifestyle you were living before retirement. If this is the case, you can estimate expenses at about 80% of what they are now since you will not be working. Just be mindful not to spend extra money in your new free time, but have fun.

Look for some other retirees to befriend. Finding a good group of others that don't work can be one way to enjoy your time. You all can also have a group of people around to support you when that is needed.

These tips were the beginning; continue to learn along the way during your retirement, This tips that you read here will allow you to adequately prepare for a comfortable retirement. And remember, if you are properly prepared, you can have an enjoyable retirement.

If you need help planning for you retirement from the investment point of view and happens to live in south jersey, contact me for a no cost - no obligation review of your retirement needs.