Political Ideology and your Retirement

We are in the midst of the 2012 presidential election.   Ideology, Taxes, The Future Economy will be effected as we choose the next leader in America.   Although the US economy will most likely change in one direction or the other, your retirement, your savings and your financial future will be determined by what you do today, regardless of the global economy.

Governments often claim to be responsible for creating our economy.   For this reason, most governments believe they are entitled to a share of the "economic profits," in the form of taxes.   It is true that political conditions and regulations can either help or hinder the progress of economic pursuits. However, governments do not create our economy.  We do!

We create the economy.  We chose to build a business, hire a team of workers, provide a product or service to our community.  We engage in commerce, create an industry, or simply help a neighbor solve a problem.  The primary purpose of government is to provide protection for our borders, and peace or tranquility for its citizens.

Thus, if things go well, it will be because we have chosen to do what is right.  We have stood for justice.  We have created the opportunity for others to benefit and prosper. We have allowed capitalism, free enterprise, and those who are willing to work hard; do what they do best!   We have again decided to live like Americans.

Learning how to save what we earn is a first step.  If you have already created a written plan of financial goals and objectives, you are well on your way to finding financial freedom.  If you are considering the process and would like to review your options, speaking with a licensed and qualified consultant is also a first step.   It takes time to build a business, and just as it takes time to build a career or a retirement.   For more details click here. 

Debt Free Living - How long to Pay Off My Mortgage?

As we approach another year it may be time to set some serious "savings goals" for the future.   The idea of attaining a "debt free" life style is becoming a real objective, for many Americans.   In order to achieve this goal, especially before retirement, will take some planning.   A very simple method is to begin by saving between 10% and 15% of every paycheck.   Those who can handle the self-discipline will, in short time, accumulate a nice savings account.   The greatest temptation will always be to dip in to your savings, when things are tight.  It takes courage to realize that the money we save each year is the most important financial accomplishment, that we can make.   Remember, it not want you earn that is important.  It is what you save.

Ok, the next step is figuring out how much ongoing debt can be resolved this year.   There are many calculators available online, to help you do these calculations.  My Mortgage Calculator is one of the best ways to determine how long it will take to pay off your home mortgage.  The home is usually the largest investment of a family.  It is important to pay it off as early as you can, and free up more money for saving toward retirement. 

Most banking institutions do well in selling a 30 year mortgage.  The numbers usually workout so that the bank earns several times the amount of the initial loan, in the form of interest fees.  If you can budget extra payments toward you mortgage every week, two weeks, or month, you can reduce the number of years needed to repay a loan.  This one action can save you thousands of dollars in interest payments. 

Reducing the home mortgage is a tremendous start to living "debt free". Starting to save is the key.  The two most important functions is 1) paying down debt and 2) accumulating savings.  Both are important and should not be combined.   Both keys should be treated separately until all debt is relinquished.   For additional strategies or more information about saving methodologies, please click here.

Protecting Assets Is Important, Protecting Income, More Important?

Most of us do consider insurance protections for our home, car, boat, health and life.  We often spend a significant percentage of our income to transfer the liability of loss, should an unforeseen circumstance diminish any of these assets.   Yet, a great number of us do not own protection to replace our ability to earn a living.

Disability Insurance has most often been marketed to professionals who enjoy very high income.  Doctors, Attorneys, Dentists, Accountants, and engineers subscribe to these benefits along with many other professional designation.   Replacing a percentage of income is vital to retaining integrity within our financial picture and family unit should an injury or illness keep us from performing the main duties of our occupation.

An individual disability plan is available to practically all employment situations.    The age, health, and current income status of the applicant have a direct bearing on the cost of this benefit.   If the applicant currently enjoys group disability benefits, the amount of personal coverage may be limited.   Many disability claims last less than three years, but a very long term disability for serious illness or injury, can continue permanently.  If you need additional information regarding benefits available to you, please call our office (407) 913-4815, or click here

Managing Your Assets - Before and During Retirement

We all manage assets during our working lives.   We live in a world which is looking to help us manage these assets every day.  Advertisers, television, radio, newspaper, yellow-pages, and internet, "all of these" market products and services to lure your attention, and convenience you to direct your liquid assets to their particular product or service.   

(This is a important factor which no other generation before us has had to confront!)

Our spending patterns are influenced by "all of these," along with parents, friends, peers, associates, past experience, neighborhood pressures, internal believes, appetites and cravings.   Some of us have developed habits, of how we manage assets, over a very long period of time.    It is important, when considering retirement, that we practice the best methods of managing our liquid assets.

One of the greatest fears of the current generation is that of running out of our retirement earnings.   The majority of workers today will retire well below their retirement income needs.  There are some easy solutions to these problems.   The more time you have between now and when you will need your retirement income is an important factor.   If you need to speak to a licensed and qualified advisor to better plan your retirement future, please click here.

Do we still need Health Insurance - Since Obamacare?

The simple answer to the question of "Needing Health Insurance", is Yes, of course!   The modification of the health insurance laws of 2010 did not alleviate one's responsibility to pay current, on going or future potential claims.  If anything, the massive governmental regulation has made the process excessively more expensive. 

There is, however, a bright side to ObamaCare.  For those individuals who can afford a modestly priced health insurance plan, but are currently uninsurable due to a pre-existing medical condition, plans are now available on a guaranteed issue basis.   Although affordable, health insurance for the uninsurable is not "free".

The current guaranteed issue individual health plans do have some qualifications.   The applicant should not be currently insured under another group or individual insurance plan.  The applicant does have to be uninsurable due to a pre-existing medical condition.  The applicant must apply for benefits, processed, and approved before coverage begins.   Claims occurring prior to the effective date of coverage will not be paid by the guaranteed issue plan, when approved.

If you need more information regarding these or other fully insured plans, please call our office at your next opportunity (407) 913-4815, or click here.

Tax Changes in 2011 - Are you ready?

As we approach the end of the 2011 tax year, there is lots of interest in preparing for the IRS filing in April of 2012.   One of the advantages of our online Tax-Calculators is in getting prepared.   These programs can help to see opportunities and insure that there are no surprises on the 15th of April.

Many of us today have struggled with the economy and the challenges that resulted.  Still, protecting the our assets, and planning for the future has never been more important.  Even when cash is hard to find, the truth remains that with a serious tragedy, a lack of planning could leave our loved ones in a much worse state. 

One of the best advantages of asset protection is "tax-deferral".   Most people recognize tax-deferral as a component of corporate retirement plans.   In fact all qualified (government regulated) plans offer tax-deferral as a growth component.   Did you know that “Un-Qualified Plans” also offer tax-deferral?    Tax-deferred plans generally provide relief to the tax-payer, during the accumulation years.  One normally pays taxes on retirement earnings during the distribution phase.   There are exceptions to this rule.  Did you know that there are principal safe programs which grow on a tax-deferred basis, yet pay a tax-free distribution?   To learn more about "un-qualified retirement programs" you should speak to a licensed and informed insurance professional.  If you would like to speak to our office for additional information, click here!.

Traditional Life Insurance

Life Insurance has been the most reliable solution for Security, and Family Protection since the late 1800's.   In the beginning, life insurance was designed to protect the life of individuals braving the high seas.  It was dangerous to venture far from shore, but trade with other countries, encouraged profit and risk taking. 

It became common to insure not only property, but also the owner of property, should misfortune strike.   Most of these policies were designed to pay for the final expenses of the property owner, and free up more cash for the survivors in a family.   As the concept of "life insurance" became more broadly accepted as a financial planning tool, better plans also evolved.   By the mid 1900's life insurance offered a cash value savings component that made a "life-Long" policy more affordable.  Many consumers would use their life insurance policy as tax-deferred savings accounts.   Thus, they created a cash "endowment" account to protect their future.  They could always get a loan from their life insurance policy in times of emergency, even when the bank said "no".

Today, many consumers are reconsidering the validity of saving more money in a permanent, tax-deferred, cash value, life insurance policy.   Why?  Well the principle is safe, and it is not subject to volatile stock market fluctuation.  Similar to a qualified retirement plan, Life Insurance cash values grow, "tax-deferred",  but different from "qualified plans,"  Life Insurance Cash Values are available without penalty before 59 1/2.  The policy-owner can borrow money from the policy at low or no interest charges.  Plus, the assets within the policy are creditor proof, and not subject to confiscation through a law suit.  If the policyholder has additional retirement needs, the life insurance policy can, not only provide asset protection during their working years, but also provide a tax-free distribution during retirement   A permanent life insurance policy, provides: asset protection, tax-deferred cash value accumulation, access to assets at anytime, tax-free distribution income options, and a  tax-free death benefit for the beneficiaries at the demise of the insured.  For more information about choosing the right life insurance plan for yourself and your family, click here.