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December 16th, 2013 by

IRA owners tend to be savers : retirement planning strategy

According to a new report from ICI Research Perspective, IRA owners tend to be savers.

In fact, IRA owners build substantial financial wealth. The median financial nest egg of IRA-owning households were eight times greater than the median financial nest egg of households that did not own IRAs. Those nest egg dollars included DC retirement plan accounts—72 percent of households that owned IRAs also owned such accounts. IRA owners typically exhibit the characteristics that tend to correlate with a greater propensity to save: the financial decision makers of households with IRAs tend to be older and are more likely to be married, employed, and have college or postgraduate degrees than households that do not own IRAs.

Like other savvy households, the majority of IRA-owning households were willing to take some financial risk for overall gain. Willingness to take risk remained the same among IRA-owning households overall between 2012 and 2013. In 2013, 28 percent of IRA-owning households were willing to take substantial or above-average financial risk for similar levels of financial gain, compared with 28 percent in 2012 and 30 percent in 2011.

Source: ICI Research Perspective: NOVEMBER 2013 | VOL. 19, NO. 11

Retirement Planning By Yourself

You may think that because you have a retirement account setup through your employer that you are managing your retirement planning strategy well. Many people miss out on potential to save more for retirement by not seeking the help of someone who is an expert. So, if you are in the DC, MD or VA area, I encourage you to call me for a free consultation about your retirement strategy. I’ve spent 30 years helping retirees get the most out of their nest egg dollars to live the retirement they have always dreamed about.
Call me toll free 833-313-7233 and I’ll help you keep your money safe.

December 13th, 2013 by

Watch the Full Segment Video

If you’re born between 1946-1964, it is likely that you’ll need long term care (skilled care)

An excerpt from “Skills To Pay The Bills”, I talk about the importance of planning to get long term care benefits. In 2012, a study showed that retirees were surprised at the expenses they were incurring for healthcare and groceries.
Tia: A lot of people feel like when they retire, they will be on “easy street” with expenses.
Freeman: This is especially true for middle income employees who earn between $25,000 and $75,000 per year. Retirees find that healthcare and grocery bills are two items that are more expensive than they expected in retirement.

Tia: But, many people think medicaid or medicare would pay for medical costs. Isn’t that true?
Freeman: Yes, some costs will be absorbed with medicare, but I think you’re thinking about long term care planning. Long term care is when you need skilled care. If you’re 65 or married, there’s a 50% chance that you WILL need skilled care.
I’ve heard many people say that it’s too expensive, I may never use it or I won’t qualify. There are products on the market that allow you to add an additional rider to your policy that gives you some long term care benefits. You don’t have to be in perfect health to take advantage of long term care benefit riders. So, if you’re born between 1946-1964, you may not have a pension that will outlast your retirement years, especially if you need long term care.

Tia: This long term care is something that people need to think about…
Freeman: Yes, it’s a must to acquire to protect yourself against depleting your nest egg dollars if you don’t have a long term care plan or rider for your skilled care needs.

Call Freeman Owen Jr For Retirement Planning

Don’t Wait Any Longer To Add Long Term Care

Long term care planning is something we don’t want to think about. But, it is very likely that you’ll need it. So, protect your nest egg and yourself. Add a long term care rider to one of your financial instruments as soon as possible. I can help you get it done! Call: 1.833.313.7233

December 12, 2013
December 12th, 2013 by

Car buying know hows

The average new car loan was $26,691 at the end of 2012. With a major monthly expense at stake, buyers who intend to finance a new car purchase should generally shop carefully for the best price and terms they can find.

In the fourth quarter of 2012, the average length of a new car loan increased to 65 months, a new record. A larger percentage of car buyers are taking out loans with repayment periods that last for six to seven years, which might help them qualify to buy a pricier car but also increases the effective cost over time.

For example, a borrower with a five-year, $25,000 car loan with a 4.5% APR would have monthly payments of $466 and pay $2,960 in total interest. A seven-year loan at the same rate would have lower monthly payments of $348, but the borrower would pay $1,272 in additional interest over the life of the loan.
About 20% of all car transactions are leases, which means the consumer pays to use the car for a set number of months before returning it to the dealer. Leaseholders who surpass a preset mile allotment typically must pay a penalty for every extra mile driven.

Car manufacturers sometimes offer “subsidized” leases that can make them a better deal than a purchase. As with a sale, a buyer can haggle with the dealer over the capitalized cost (or vehicle price). The money factor (which represents the interest rate) and the residual value (what the car or truck is worth at the end of the lease) may also be negotiated with the lender.

Sources: Kiplinger.com, October 31, 2012; CNBC.com, March 5, 2013; usnews.com, September 14, 2012

Research, Planning and Expert Help

Just like car buying, retirement strategies involve research and early planning. It’s never a good idea to wait until your car’s engine is completely burned out before starting to think about buying a new vehicle. In the same way, it’s never a good idea to start your retirement planning a few years before you decide to go on retirement. You need help from an expert to plan early for a retirement that meets your ideal expectations.

Let me help you with your planning for retirement. I provide no obligation consultations in MD, VA and DC areas.
Or call toll free at 833-313-7233.

December 9th, 2013 by

Does The US Government Owe Me Money?

Federal and state agencies are collectively holding more than $58 billion in unclaimed assets and benefits for U.S. residents.

State laws typically require financial institutions and corporations to turn over to state coffers including paychecks, refunds, insurance payouts, and bank account balances that have been “abandoned” for a certain number of years.

Millions of Americans — including celebrities such as Mark Zuckerberg, Justin Timberlake, and Lindsay Lohan — could find their names in the following public databases designed to help people reunite with their lost money.

  • State-held property. The National Association of Unclaimed Property Administrators provides a gateway to each state database. Visit unclaimed.org and click on the state you want to search. Remember to check all states you have lived in; funds often go undelivered because the recipient (or a beneficiary) moved and the issuer didn’t have a current address.
  • U.S. savings bonds. The U.S. Treasury has 45 million matured savings bonds (worth $16 billion) that have not been redeemed. Go to treasuryhunt.gov to search by name; it may be worthwhile to look up older family members who might have forgotten bonds purchased many years ago.
  • Pensions. The Pension Benefit Guaranty Corporation also has an online search directory for accrued retirement benefits owed to about 38,000 people atsearch.pbgc.gov.

Source: CNNMoney, January 27 and March 5, 2013

Getting a Little Help

I motivate my clients, friends and family about “being prepared”. This goes for keep track of your possible “lost money” as well as for retirement planning. If you haven’t thought about planning for retirement, today is the day to do it. And, I’m the expert that can help you keep your money safe so that you never outlive it.  
Call 1-833-313-7233 and let’s get better prepared together!