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February 27th, 2014 by

Part of planning for retirement is knowing how our government is changing laws and planning for how it will affect us.

Review my segment with Tia Young on “Skills To Pay The Bills” TV to know more about “OBAMACARE” ie. The Affordable Health Care Act. I provide a free resource Life Guide on The Affordable Health Care Act to help you with your retirement planning.

Being Prepared For Retirement

If the new Affordable Health Care Act has you concerned about your retirement plans, contact my office for a free consultation. Let’s review your retirement strategy and make the necessary adjust to keep you on track to enjoy a retirement nest egg you can’t outlive.

Toll free: 1-833-313-7233

 

February 24th, 2014 by

In a survey of workers who participate in an employer-sponsored retirement plan, 71% said they wanted their employers to increase their contributions to retirement account automatically by 1% each year.1 

Although there’s nothing magical about a 1% annual increase, it may be a manageable way to get closer to an appropriate contribution level for your age and personal situation. So, here are a few suggestions that could help you save more without making major changes to your current lifestyle.

1. Save your raise. When you receive a raise, it’s tempting to increase your spending, but it’s also a great opportunity to increase your nest egg dollars. Even if you need some of the additional income for current expenses, divert the rest to you retirement account. When you contribute on a pre-tax basis, the difference in your take-home pay may not be as significant as you might expect.

2. Make payments to your future. If you pay off the balance on a car loan, student loan, or credit card, you could continue making the same monthly payments directly to your retirement account. Because the payment is already part of your monthly budget, this provides a way to help increase your nest egg without a major change to your cash flow.

3. Pay as you go. Paying off a credit card may allow you to save more, but it might be wiser to avoid credit-card debt in the first place. Unless you pay off your balance in full each month, credit-card interest can grow quickly and could stand in the way of building the retirement nest egg dollars you may need.

4. Limit the daily treats. You deserve an occasional treat, but spending on “little things” can add up over time. For example, if you stop for a $3.50 latte each day on your way to work and have another one in the afternoon, you would spend about $150 each month. If this amount was added to your retirement strategy, and increased with a 6% annual growth, you could accumulate more than $100,000 after 25 years.

Of course, these are hypothetical examples. But, these examples show you how you can make a big different to your retirement future by making small and manageable changes during your working years.

Regardless of whether you save by default or by choice, increasing your retirement contributions could make a big difference in the amount you accumulate during your working years (see chart).

The 1% factor : adding to your nest egg | Just Ask Freeman | VA | MD | DC

Sources: 1) AdvisorOne.com, January 17, 2013

Just Ask Freeman For Retirement Strategy Advice

Because I have years of experience in retirement strategies, I encourage you to call my office for your free consultation. Retirement planning shouldn’t be done alone. So, let me help you create the kind of retirement that is free from worry about outliving your money.

Toll Free: 1-833-313-7233

February 13th, 2014 by

According to the US Department of Labor, fewer than half of Americans have calculated how much they need to save for retirement.1 In 2012, 30 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate.2 And, with little to no planning, the average American spends 20 years in retirement.3

Live Now For The Future

I always consult with my customers about thinking ahead of the “now”. Even when you’re feeling the pinch of recovering from holiday spending or putting a child through college, your retirement money is not an ATM. When you use your retirement dollars as liquid and available cash, you often times will incur costly penalties and you cannot recoup the time it took to gather those nest egg dollars.

Rather, it’s imperative to plan early for any kind of spending you may want or need to do. I hear from many families that are stuck in the hustle-and-bustle of everyday life that there isn’t time to think about retirement and retirement planning. But, that’s why I can help. It takes a simple consultation to review where you are financially and where you want to be in the future so that a reliable strategy can be developed to get there.

Source: 1-3. US Dept of Labor “Top 10 Ways to Prepare for Retirement” http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html

Watch My TV Segment

On “Skills To Pay The Bills” TV segment, I discuss the effects of using your retirement dollars like an ATM and how it can impact you immediately and in the future.

Make A Change For Your Retirement Future

Rather than thinking the same way about retirement planning, let me help you better prepare for the future. If you’re in Maryland, Washington, DC or Virginia, please visit my office for a free consultation.

Toll Free 1-833-313-7233.

February 6th, 2014 by

Longevity Risk

photo credit: 401(K) 2013 via photopin cc

The uncertainty of an individual’s lifespan cannot be eliminated.  However, planning to have sufficient monies requires setting realistic expectations of how long retirement will last.   According to the Social Security Commission, the average life expectancy for those still alive at age 65 is 84 for males and 86 for females.  Planning, however, needs to take into consideration living longer than average, or half of retirees could run out of money before they die. So another consideration is the possibility of living longer than average. The data shows that one in four people alive at age 65 will live past age 90 and one in ten will live past 95.

Life Expectancy By Calculator?

To help identify the average life expectancy for a stated age and gender, the Social Security Administration provides a life expectancy calculator.  Estimating life expectancy may begin with a table or calculator, but the next step must take into consideration personal and family health history.  One online calculator, the living to 100 Calculator, takes these personal factors into consideration when creating a life expectancy estimate.  By entering information about your current health, lifestyle habits, and family’s health history, the calculator is able to create a more accurate personal life expectancy estimate.

Planning Against Longevity Risk

It sounds like a fancy strategy, but planning against longevity risk is simply planning to never outlive your resources in retirement. And, there are ways to ensure that never happens. Here are some options:

  • Deferring Social Security benefits
  • Electing life annuity payments from an employer sponsored retirement plan
  • Purchasing a life annuity can create a stream of income
  • Purchasing a deferred income annuity (a life annuity that begins at a later date)
  • Deferred annuities can be purchased with riders
  • Lifetime income is also available through life insurance contracts with a death benefit

Source: FORBES http://www.forbes.com/sites/jamiehopkins/2014/02/03/planning-for-an-uncertain-life-expectancy-in-retirement/

A FREE Call: Just Ask Freeman

Your retirement strategy is important. Now is the time to contact me so we can discuss the best options available to you.

Call toll free 833-313-7233 for a FREE consultation.