No one wants to consider a premature death, but failing to do so can create serious financial difficulties for those you leave behind. Getting this aspect of your financial plan under control is important.
There are more than 2,000 companies selling life insurance in the United States, all offering similar products. Finding the right product at the right price for your situation can be a challenge.
If you own a home, homeowner's insurance is a necessity. Although it's not required by law, if you borrow money to buy a home, your lender will almost certainly require that you have homeowner's insurance to help them protect their investment.
Even if your house is completely paid off, it's still a good idea to carry homeowner's insurance to help protect your investment.
In either case, there are steps you can take to avoid overpaying for your insurance coverage.
Check out these tips to help ensure you’re paying the lowest possible rates:
Do you have health insurance? It is undeniable that health insurance makes healthcare more accessible, including preventive services such as screenings and regular check-ups with your doctor.
Consider the fact that only a third of the uninsured U.S population scheduled a preventive visit with their doctor in 2018. On the other hand, 74% of adults with health insurance saw their doctor for a preventive visit during the same year.
If you don’t have insurance, or have a policy that doesn’t meet your needs, it’s important that you learn more about healthcare coverage to find a policy that matches your needs and your budget.
Ask yourself these important questions before purchasing a policy:
There are many downsides to not having healthcare, including putting off screenings for a number of health conditions and not scheduling regular check-ups with your doctor. Should you become ill or injured, you would end up with huge medical bills.
A more important question to ask yourself might be, “Can I afford not to have health insurance?”
Q: : I have a significant net worth and am concerned about the estate taxes my family will have to pay when I am gone. Do I have any simple options for handling this issue
A: One tool that is commonly used by those with considerable wealth to deal with estate/inheritance taxes is life insurance, more specifically an Irrevocable Life Insurance Trust (ILIT). This is actually a very common estate-planning tool for the affluent.
There are many benefits to this type of trust:
1.Wealthy individuals do not always have wealthy heirs. Handling paying for estate taxes, which can be as high as 40%, can be terribly burdensome for many. Your heirs may be forced to sell real estate, stocks, bonds, or even personal property to raise the necessary cash.
2.In a nutshell, your heirs don’t have to pay taxes on any assets within the trust.
3. In nearly all cases, life insurance proceeds are exempt from taxes and can be used to pay any estate taxes that may come due.
Life insurance can be a great estate-planning tool. Keep in mind that trusts can be complicated, and it’s important to find an attorney with the knowledge and experience to set it up properly.
Life insurance provides cash for handling taxes and other expenses. For smaller estates, even if taxes aren’t a critical issue, life insurance can provide great flexibility and peace of mind for all involved.
Is a free retirement planning program worth your time and effort? Quite simply, many people want to know this, because they don’t even have the time or energy to plan their retirement for themselves. Also, they may not have the knowledge necessary to make the right investing decisions.
Usually, the options available to you will be either to hire a financial planning advisor, which will cost a pretty penny, or to plan it out yourself. A free retirement planning program can be a great alternative to these choices, because it will provide you some important tips and your retirement planning process.
However, keep in mind that most of these free retirement planning programs are simply an introduction to the retirement planning process. They will not give you enough information to help you really have map out your retirement planning yourself, at least to the extent you will need.
For instance, you may already ready know the kind of lifestyle you want to live in your retirement years to, and you might already know how much money that will cost you. However, the most important step is finding the right investment vehicle to help you get there. Generally, a free retirement planning program will not help you with this vital step.
For this, you will generally need to hire a financial planning advisor to help you find the right investment vehicle for you. Now, you may have to pay some money for this process, but it will be well worth it in the long run.
Also, you certainly might want to consider learning about investing yourself and making your own investing decision. Not only would this be the cheaper option, as you wouldnt have to hire somebody to tell you what to invest in, but it is the far more lucrative way to go financially.
Very simply, whenever you can spot good investment opportunities on your own, you have the chance to become wealthy. There is virtually no financially well off person today who doesnt have the ability to spot a good investment opportunity on their own; without good financial knowledge, you can never hope to have as much money as you otherwise would.
The best way to go about doing this would be to simply read books about successful financial investors and wealthy people, and find out what theyve done to achieve their wealth. Whether it be starting a business, investing in the stock market or investing in real estate, simply finding somebody whos already done it and modeling their success is a very powerful way to become financially independent. This is by far the quickest way, because you can avoid a lot of the mistakes that those you are modeling made when they were first learning the tools of the trade.
You would not want to entrust your retirement plans to a free retirement planning program, particularly since they are merely to give you a general overview of the retirement planning process. Follow these important steps and you will achieve the retirement planning you want, quickly and easily.
he Civil Service Retirement System (CSRS) began in 1920 and has given disability, survivor and retirement benefits for the majority of civilian employees in the Federal government until 1987 when the new Federal Employees Retirement System (FERS) was created. Nevertheless, over two million people carry on receiving Civil Service Retirement System retirement and survivor benefits every month.
Retirement benefits are presently financed by both Government and employee contributions to the retirement fund, and the benefits are provided based on the duration of service and the average pay over the highest three years of pay.
What are the eligibility requirements for Civil Service Retirement System benefits? An employee is qualified to retire voluntarily if the following provisions are met: at least five years of creditable civilian service; is separated from a position subject to Civil Service Retirement System coverage; is covered by Civil Service Retirement System for at least one year within the two-year period immediately preceding the separation; and meets age/service combinations of age 55 with 30 years of service, or age 60 with 20 years of service, or age 62 with five years of service.
For employees who separate from service and have met the criteria except for the age/service combination may be permitted to a deferred annuity at age sixty-two. To be qualified, the employee must not take a refund of retirement deductions upon separation.
In determining the service which may be used for an employees eligibility for retirement under the Civil Service Retirement System, is not restricted to service in positions subject to CSRS retirement deductions, it may also comprise service where the pay of the employee is not subject to retirement deductions, such as under a temporary appointment.
Honorable active military service may also be qualified, subject to conditions: it was executed before the separation date upon which is the basis for entitlement to annuity; it is not comprised in computation of military retired pay except for certain service-connected disability requirements; if the military service was executed after December 31, 1956, some employees will have to create a deposit for the service to receive firstly or for other employees, to retain credit after the age of sixty-two.
Although the service used in determining an employees eligibility for retirement is typically the same as creditable service for computation purposes, there are some exceptions: periods of CSRS service refunded, will not be creditable unless a redeposit is made; if the refunded service was executed before October 1, 1990, it will be qualified even if no redeposit is made but the annuity will be actuarially decreased; non-education service is made on or October 1, 1982, is not qualified if a deposit has not been made.
October 1, 1982 prior service is creditable by the annuity will be decreased by ten percent of amount owed; active military service executed after December 31, 1956 is not creditable for employees first employed in a covered position after September 30, 1982 except if a military deposit for the service is made; and unused sick leave is commendable in computing benefits.
Sick leave is changed into days or months of service using the Sick Leave Chart in the OPM operating manual, but it can never be used for eligibility.
You just spent 30 years making reports, fielding phone calls, filing papers, and pacifying your boss at the office. At the end of each day, you find your energy gradually waning as you reach that point wherein you wanted to declare the last part of your work retirement.
Retirement is when an individual feels like withdrawing from their occupation to find some time for their selves and contemplate on how much he or she has earned or saved.
Everybody needs a time to stop working, reflect back upon the past, and enjoy whatever life has to offer with the individuals retirement plan or pension staying close behind.
However, the problem of retirement using the typical pensions plans like that of the Social Security; people should start relying on their own savings than the usual way of planning for retirement. This is because the Social Security is gradually losing more assets than it should be gaining in order to adequately supply the much-needed funds of their members.
In fact, the agency asserts that they are paying more than what they collect and they fear that by the year 2010, 76 million people are estimated to reach their retirement age. They estimated that by that time, with all the assets being utilized at exceptional rate, they might only be paying 72% of the expected retirement compensation of the members.
This goes to show that people should try to rely more on their personal savings and other sources of their retirement plans. This will bring about a more balanced view of all the aspects as far as retirement is concerned.
So what are the alternatives to Social Security? Here is a list of the other retirement schemes that you can start planning by now so that by the time you reach your retirement age, you will not solely rely upon your social security retirement benefits.
These are highly adaptable insurance contracts intended to provide earnings and help you reach financial stability even after you have reached your retirement age.
Saving money is just the beginning. You have to choose ventures that will provide you with greater money over the long period.
Try to look for the lifestyle mutual fund, which puts a portion of your money in diversified stocks and the other portion in bonds, and maintains a solid balance between the two.
Another good choice is the target retirement fund. Its portfolio becomes more conservative as you approach retirement age.
3. 401 (k)
Your employers 401 (k) or 403 (b0 can be great sources of retirement benefits. Here, the company will deduct a portion of your income and invest the amount on mutual funds, usually on your chosen instrument.
4. Emergency account
Try to move your money automatically each month from your checking account into an account earmarked for unexpected expenses. Aim for a sum that will cover three months worth of basics (mortgage, food, utilities, car payments, etc.)
Once you have built this nest egg, you would not have to withdraw from long-term savings if a crisis hits.
There is no secret to building wealth after retirement. You only need to live less than you make and invest the surplus well. When you save money and invest automatically, your retirement would definitely be the best phase in your life where you enjoy relaxation with no financial obligations to worry about.
Book Review: Winning Or Losing The Financial And Retirement Race
Everyone alive today is running in the retirement race of their lives, according to Robert Lamoreaux, author of Winning or Losing the Financial & Retirement Race. As with any race, there are rules to be followed, and times are kept to determine the winners and the also rans. Robert Lmoreaux applies the analogy of running a competitive race to achieving a successful financial status for retirement. The book describes in detail how the reader can finish inside the winners circle upon retirement.
Estate planner Robert Lamoreaux brings thirty-five years of hands on estate planning experience to writing this step by step book of retirement race winning strategies. As with any race, the runner must set some goals, and plan tactics and strategies for reaching them successfully. Since everyone alive today, and is running in the race of a lifetime, we all need to prepare for crossing the finish line with our arms raised in triumph. The book sets out the rules and techniques for finishing the race ahead of the pack.
Robert Lamoreaux (photo left) points out in blunt fashion that everyone is included in the race to retirement simply by virtue of being alive. There is no choice in the matter. At the same time, everyone in the race is at different stages, as the race start has staggered entry times. The book considers the various stages of people’s lives, and the different strategies to be employed to lap the field.
From the very young person, to mid and late career people, to those in retirement now and nearing the end of life, easy to follow instructions are described in detail. From goal setting to practical ideas for living life on a more solid financial foundation, the book provides the framework for victory.
As with any race, the runner must work within the rules, and follow the timing procedures set out by society for the determination of your successful progress. While deliberately avoiding the technical and legal intricacies, the author provides the background and advice for discussions with professional people, in the various fields from accounting to financial planning to law. The book provides the base for further investigation and study of the more specific technical details. By emphasising the important concepts that everyone on the road to retirement must know, the author creates a toolbox that can be applied to anyone at any stage of life, or current financial status.
For me, the power of Winning or Losing the Financial & Retirement Race is its practical step by step approach to achieving financial independence upon retirement. Without sacrificing the good life, a healthy and prosperous retirement is a goal that can be reached without serious painful sacrifices. Solid advice for making good investment decisions, operating a sucessful business, and making wise purchases of the necessities of life are covered in detail.
The author also recognizes that the road won’t be smooth, and the race will often have many hurdles to clear and obstacles to avoid. The book features chapters on health and medical expenses, marriage and family expenditures, as well as planning for funeral expenses and estate planning. By not avoiding potentially painful events of life, the book becomes a much more powerful planning tool for the average person.
I recommend Winning or Losing the Financial & Retirement Race by Robert Lamoreaux as a powerful and honest retirement and estate planning guide. Whether you are twenty or eighty, or any age in between, there is advice suited to you and your personal race to retirement.
Read Winning or Losing the Financial & Retirement Race and be a winner in the retirement race for you and your family. Since you are already entered into the race, you may as well be in it to win it.
Gordon Brown, speaking recently in Scotland, said that there should be a national debate on raising the state pension age, and David Blunkett, Work and Pensions secretary, told the BBC News that a rise in the state pension age should be considered.
The Pension Commission has already suggested that a mixture of higher taxes, larger savings and a higher retirement age could go some way to making sure that people will not be living in poverty in their old age.
Apparently the problem is that people are living longer, and the pensions commission declares that more than 12 million people are not saving enough towards retirement. Since the government, and life insurance firms, didn’t anticipate pensioners living so long, now they are saying that, in order to be able to afford to pay out on their pensions, they will have to work to at least the age of 70.
At first sight this all looks rather bleak, but its not all bad news, because people who work longer, particularly in a job they enjoy, actually live longer. Many people think that if they retire early they will live longer, but researchers have disproved this theory. In fact, those who stop working at 55 have nearly double the death rate of those who continue to work until they reach at least 65!
Baroness Greengross, chief executive of the International Longevity Centre UK, has said Work is a huge part of this equation, and provides mental and physical activity, self-esteem, social interaction and income for many of us is vital for older people to stay mentally and physically active.
So maybe we are all going to have to work for longer, and yet no one wants to be stuck in a job they hate for even more years than they had already anticipated.
Luckily there are some happy alternatives. There’s been quite an increase recently in people wanting to set up an e-commerce business with a view to building it up now, so that it will bring an income during their retirement years.
Usually customers have been planning on setting up an online shop to sell products or services connected with their interests or hobbies. They’re doing this with the intention of using the internet to make money for themselves, and their families, in an enjoyable way, and setting up something they will be able to continue with well into their old age.
These days it is not nearly as expensive or difficult to set up an e-commerce website as it used to be. Getting a site that would let you sell your products or service online can be done quite quickly, and with the minimum of fuss, if you approach a company who has experience in setting up ecommerce websites. You do really need to seek professional help and advice with this though, as its not something a novice can do successfully by themselves.
Making your later years golden could be as simple as expanding your hobby and getting set up to sell related products or services online. With an uncertain future ahead, the security of a little extra income is sure to be very welcome indeed.