Watch this short video to find out how we can help…
Watch this short video to find out how we can help…
Determining the right time to begin collecting Social Security can seem like aiming at a moving target. There are factors to consider such as health, marital status, and current income. There is no “right” time to begin collecting benefits, but there are considerations to collecting earlier or later.
The decision that will have the largest impact on your Social Security benefits is the age at which you begin collecting. This choice will dictate your annual Social Security income for the rest of your life. More than half of retirees begin to collect benefits early, or before full retirement age. By collecting early, beneficiaries will experience a reduction of benefits by 8% annually resulting in a total permanent reduction of benefits between 25-30%. If recipients begin collecting at their full retirement age, they will collect 100% of their benefits, which will be adjusted for expected longevity and inflation. The maximum benefit is gained by delaying Social Security benefit collection until age 70.
Types of Claims.
Choosing when and how to file for Social Security benefits can be confusing, and it is important to consider all factors when making your decision.
Call Asset Planning Group, LLC at 814-536-1040 to discuss your options, and learn more about how to maximize your benefits.
Whether changing career paths or advancing at a new company, there is a certain excitement around changing jobs. In the midst of all of the planning, however, there is one important detail that should not be overlooked: what to do with an existing 401(k).
To help decide which option is best for you, we can work together to consider the following factors:
Are you on pace to meet your financial and personal goals for retirement?
How long will your retirement savings need to last? How much may your retirement expenses be?
What are the pros and cons to preserving the tax-deferred status of your current retirement plan compared to taking a lump-sum distribution?
Is it more beneficial for you to do a direct rollover to a traditional IRA or a Roth IRA?
Are your retirement savings diversified enough to help deliver the returns you will need to enjoy the retirement you envision? Should you look into adding new investments to your portfolio to help maintain balance?
If you are currently starting a new job, or are preparing to make a change, please call Asset Planning Group,LLC at 5814-5636-1040 to schedule an appointment to review your options and help you decide what solution will best suit your needs.
The average retirement savings for those between 32 and 61 years of age is $60,000. Retirement seems to be a lifetime away for millennials, but saving for retirement should begin early. Some studies even suggest that saving an amount that is double your salary by age 35 is the recommended start. This could be alarming to many millennials, who are still paying massive school loans and other debt. It leads to questions about how to prepare to invest and when to start.
When to start?
Understanding the way compounding works over extended periods of time is useful for determining when to begin an investment. With average market growth, investing $100 per month ($1,200/year) for 40 years, can leave one with close to $1.1 million. The sooner a retirement fund starts, the larger the sum of money that builds over time.
Those in their thirties have around 30 years to grow their nest egg for retirement. With a jump-start on a portfolio, you have time to invest more aggressively. The following chart shows the ideal amounts of money to be saved by each age.
|2x salary||3x salary||4x salary||6x salary||8x salary|
How do I get ready to invest?
Student loan payments can be a burden on savings. Paying the monthly balance while putting extra cash toward high interest loans can help finish off this debt.
The median age to buy a home is 33. Taking time to gain financial footing before buying a home is becoming much more common, as the median age continues to rise. It is never too early to get ahead of the game and hold a home as an asset.
Saving small amounts of paychecks before it ever reaches your hand is a great way to feel like you’re not coming up short. Living 10%-15% below your means, and investing that money before you see it, can enhance your preparedness for the future.
Having a plan and understanding your risk tolerance are essential parts of investing. Know if investing more aggressively or passively satisfies your risk tolerance better, and make a plan for retirement investments following that information.
With 28% of working adults claiming they have zero retirement savings, it is important to understand the fundamentals and opportunity of starting retirement investment early. Starting as soon as possible with a plan of action is essential, and can put you ahead of the crowd in savings. I encourage you to call Asset Planning Group, LLC at 814.536.1040 with any questions or concerns about retirement saving and the effects of not saving enough.
The increasing cost of healthcare is a concern for workers of all ages. Each year healthcare becomes more expensive, meaning a larger portion of retirement savings will be spent on health related costs. A health savings account, commonly referred to as an HSA, is a tax-advantaged account that can be used to pay for medical expenses now or in retirement. The account is FDIC-insured, and can be invested for greater returns.
To be eligible to establish a health savings account, an individual must:
It is possible that an individual’s eligibility will change after opening an HSA, especially if he or she enrolls in a different healthcare plan. Regardless of eligibility, the account owner maintains control of the account and funds indefinitely. If the individual loses eligibility, he or she may not contribute to the HSA, but the account may be invested and continue to grow, or be withdrawn from if the need arises.
Other Important Facts.
The sooner the account is established and contributions made, the more opportunity the funds will have to grow over time. I encourage you to call Asset Planning Group, LLC at 814.536.1040 to discuss health savings accounts and how they can be an asset to your retirement savings strategy.
Half of eligible employees under age 34 do not contribute to their employer sponsored 401(k) plans. Of the employees who do contribute, 40% do not contribute enough to take advantage of the employer match program. Read on to discover why it is never too early to begin to save for retirement and how employer sponsored savings plans are a gift you can give to yourself.
The Internet allows us to access unlimited sources of information and to even invest online at a low cost. The cost of your time, however, is high. Vanguard reports that the value added by a financial advisor can be reported by portfolio net returns of 3%. However, return on investment of a good financial advisor amounts to more than net returns. A financial advisor not only can earn you higher returns, but also employ their expert perspective and resources to create the best comprehensive strategy for you. Let us help you achieve your financial goals so that you can spend your time doing what you love.
Welcome to the New Year! Start the year 2018 with a complete understanding of where you stand financially, and begin to set goals for yourself. We have compiled a checklist to help you through this process.
List all assets, including accounts, real estate, savings, valuables, etc.
List all debts including mortgage, student loans, credit cards, and any other loans.
Identify and monitor your credit score.
Determine whether a Roth or Traditional IRA is best for you.
Rollover old 401(k) accounts from previous employers.
Analyze your anticipated expenses in retirement and adjust your annual contributions accordingly.
Analyze your level of risk aversion and make sure that your portfolio matches that level of risk.
Make corrections to portfolio where market shifts occurred to realign diversification with investment strategy.
Create or revise an estate plan based upon current assets.
Contribute to 529 College Savings Plan for family members. Investigate and decide upon a strategy for capital gains taxes, such as reinvestment.
Consider establishing a trust or making charitable donations.
Build and maintain an emergency fund of three to six months’ worth of expenses.
Consider investing in temporary disability insurance.
Ensure that a proper agent is granted power of attorney.
Set Financial Goals
Set realistic savings goals. o Cut out expenses that you don’t need.
o Channel paychecks directly into multiple accounts with direct deposit.
o Analyze your insurance coverage.
Be Prepared. o What are the chances of needing to make a large purchase such as a car or college tuition this year? o Am I prepared to manage such costs? o Will I need to take on any debt?
o Stay up to date on your financial situation through frequent monitoring and review.
o Conduct beneficiary reviews as major life events occur (marriage, children, etc.)
November and December tend to be slow months in the real estate market, but the season can provide great opportunities for both buyer and seller.
For the seller:
* Homeowners make a special effort to have their homes at their best during the holidays. While extensive decorating is not advised, decorations that don’t overpower a house can enhance it.
* Typically, those who actually look at a house are serious buyers. People who are just shopping around won’t bother you.
* There is less competition for those selling in December. Many homeowners wait until spring to list their homes.
For the buyer:
*Homes repossessed by lenders may be offered at bargain prices. The banks and mortgage companies don’t want them on the books when the new year begins.
* Because many business relocations occur at this time of year, there could be an unusual opportunity to buy at a lower price from someone who must move very soon.
* Typically, mortgage interest rates are reduced at the end of the year.
As usual, with any financial issue like this, DON’T TRY TO DO THIS YOURSELF! We’ll be glad to work with you on how to plan to avoid paying taxes, and coordinate your relocation with an attorney and accountant! Please keep in mind that this tip is designed to be of help for you, but is not to be relied upon as advice. It is merely a reminder that there are many choices you have available to you, and that planning is the only way to find the right answers for your situation! As with any financial issues, make sure you get the right information before making a decision! If you have any questions, we’ll be glad to help you!