Financial Planning

It’s never easy talking about what will happen to your family if something were to happen to you. And yet, the greatest possible gift you might consider for your family as Christmas approaches is insurance.

Preparing for the unforseen can help your family rest easy and overcome the fear associated with dealing with the death or serious disability of a loved one. Family won’t want to talk about it. Yet planning ahead to take care of the special needs of your family is so very important.

The best plan is to integrate disability, life, and long-lasting care insurance into a comprehensive protective package.

Disability Insurance

People aged 25 to 65 are at a higher threat for disability than death, according to studies. Lifestyles, genetics, random occurrences and a lot more can take place in an immediate and leave individuals handicapped momentarily, or for life. Disability insurance needs to be included as part of an insurance strategy to guarantee appropriate resources should they be required.

Life Insurance

Life insurance is, for many, a tough topic to discuss. It’s grim to consider and easy to ignore. Yet ensuring your loved ones have a solid financial backing to carry them through is important.

Life insurance comes in many forms and can be structured to cover for emergencies or as a broader part of a retirement strategy.

Long-Term Care Insurance

As we age, the chances for injury and limitations on physical capabilities increases. While Medicare may cover some expenditures, the vast majority can be out of pocket… Long Term Care steps in to pay for home care, assisted living, and much more. When you realize that home and nursing care can cost $5,000 to $10,000 (or more) per month, the lack of Long Term Care protection could leave your loved ones destitute if they have to tap into savings for your care.

Investing a little time to understand your options and to give the gift of protection is well worth it when you realize the peace of mind you’ll provide. So please reach out with questions and we’ll help you craft a plan that’s perfect for your unique needs.

Having great insurance is the foundation of a solid personal money management strategy. Insurance serves as both preventative and protective measures, offering financial stability in case of disaster. Disability, illness, mishaps, and death are all regrettable possibilities. Insurance can assist in handling related expenses and offering a financial bridge as one encounters the unknown factors that tend to surface in day-to-day living. Insurance can also be a fantastic retirement savings tool when implemented correctly.

Insurance policies are going to differ depending on the carrier, policy, and much more. Some types of insurance are needed or mandated by law. The following is a list of the most common types of insurance individuals will encounter.

Life Insurance.

Life insurance can assist survivors with the day-to-day cost of living following death. Depending on the personal or household requirements, life insurance policies can be secured to fill a variety of needs such as mortgage payoff and funding future anticipated college expenses. A financial advisor can assist in determining adequate coverage based upon earnings and expenditures.

Long-Term Care Insurance.

A great deal of Americans depend on Medicare for long-term care options. While Medicare can offer some relief for long-lasting care costs, eligibility requirements and coverage limitations mean that Medicare alone is not a viable option. Obtaining extra long-term care insurance may be advantageous. Rather than exhausting individual retirement savings on nursing or at home care, speak with an agent about obtaining long-term care insurance instead.

Disability Insurance.

For many individuals, the chances of becoming handicapped outweigh those for death. Disability can happen in quickly and have a long-term impact on earnings and lifestyle. Disability insurance offers monetary stability in case of disability. Disability insurance is frequently secured through an employer-offered benefits program and can be bought through a personal carrier. For the best protection, search for policies using at least 2/3 earnings replacement.

Automobile Insurance.

A must for driving lawfully, auto insurance policies range from basic coverage to better, full-featured policies. Driver history, deductible, insurance carrier and more will all impact rates and protection. Following a mishap, bare-bones coverage will leave you largely unprotected… so be careful with “cheap” insurance. Getting sufficient auto insurance with adequate coverage is best done by consulting an independent insurance agency who can give you multiple quotes from different carriers.

Home Insurance.

Homeowners insurance protects houses and contents from catastrophes both natural and triggered by others. Your location, house size, residential or commercial property attributes, individual belongings and more will all have bearing on the right level of house insurance protection you require.

Extra Liability Insurance.

It can happen where you are found to be individually liable for a monetary impact that extends well beyond what’s covered by your standard insurance. (We live in a litigious society.) An umbrella policy helps safeguard your finances with additional liability protection. Such protection is more affordable than what most folks realize.

If you’re ready for a comprehensive assessment regarding your individual insurance requirements, talk to one of our professional insurance experts.

As you get older, you inevitably have more and more things to pay for, most of which aren’t cheap. Although everyday budgeting can deal with your everyday problems, larger unexpected issues can require a lot of money to fix. Whether it’s a car issue, medical expenses, or a problem with your home, sometimes you need access to money in times of desperation. As a result, having savings put away for times of crisis is essential.

Yet, how do you put away savings if you’re already struggling financially? Here we offer you some tips!

Start sooner rather than later

Although it’s easy to put off saving, especially when thinking about retirement, it’s better to start early. Save and invest as much as you can now, because it’s a good idea to let that compound interest start building up early, creating a snowball effect which will only accelerate down the road.

Automate the saving process

If you’re trying to save money, whether it’s for retirement or for the simple security of having a fund put away, it may be a good idea to take your own free will out of the equation! There are now numerous automated funding services which allow you to make scheduled contributions of set amounts to your preferred savings account, meaning your money will leave you straight away without you having to do anything.

It’s easier to part with money which you “never see” than it is to part with money which you do. If you’ve ever had to pay your own taxes, you’re no doubt familiar with this feeling. Sending away money manually can lead to separation anxiety – it’s much easier to automate the process and never have access to it in the first place.

Look at your budget

Sit down and look at your monthly budget, being prepared to make some tough cuts across the board. Look at all of your outgoings every month, particularly those which are regular or directly debited from your account. Paying for a gym membership which you never use? Go to the gym or ditch it. Paying insurance on a device which you very rarely use? Consider canceling the premium. Be realistic about your budget, and make sure that you are able to live within your means on the amount of money that you have coming in every month. Only once you control your budget and live within your means will you be able to set aside money for a rainy day.

Cut unnecessary spending

Here’s a harsh reality – what a lot of people think of as “necessary spending” is simply a waste of cash. Although some things are essential, others are not. For example, if you buy your lunch from a café while you’re out at work every day… why? Make yourself a packed lunch from store-bought ingredients and you’ll save yourself a small fortune. This might sound trivial, but if you save $5 every day by taking a pre-packed lunch to work, that’s $1300 over the course of a year. Simply packing a lunch could save you over a grand!

Be critical of your spending and carefully distinguish between what is “necessary” and what is simply considered “normal” by most people. Guess what? Most “normal” people are terrible at saving money because they’re buying $5 iced coffees numerous times a day and wondering why they’re broke.

Set goals

If you want to achieve your savings desires, you need to set about coming up with realistic goals for your savings going forward. It may be worth using a financial calculator or working with an advisor in order to come up with these goals, but rest assured that it can be done.

When setting your goals for your savings, make sure that they’re specific and actionable. For example, having one meta-goal of “I want to save money” isn’t very helpful, while saying “I will save $50 per month by switching car insurance provider” is much more specific and reachable. Set yourself some milestones and make sure that you plan out your journey instead of having a vague goal and expecting savings to magically start appearing out of the ether.

It doesn’t matter if you’re saving for retirement, a vacation, Christmas, or a rainy day – saving money is difficult for everyone. Nonetheless, if you’re looking for advice on how to save money on your insurance premiums, contact a member of our team today.

It’s easy to develop bad habits with your finances, whether it’s overdoing it on your credit card or spending too much money on luxury products you don’t need. If you find yourself struggling to pay your car insurance or rent every month, why not take heed of our advice?

Bailing People Out

It’s not uncommon for people to lend money to their friends or relatives from time to time, but be careful if doing so. Unless you have confidence that the person you’re lending to will repay you quickly and in full, avoid lending out money if possible. Some people are flakey and will leave you at a loss. After all, if someone can’t budget and manage their own money, why should you come to their assistance just because you manage your money well? If you’re going to lend money and bail people out, be very strict about your repayments and do not hesitate to pester them for your money back – it’s your money!

Living Beyond Your Means

We live in a materialistic, consumerist culture, and as a result, many people live beyond their means and go broke in the process. Reports estimate that the average US household has $15,654 in credit card debt, and we’re willing to wager that most of the things bought with those credit cards weren’t bare-bones essentials. Do you really want a fancy new blender but can’t afford to buy it in full? Tough luck! Paying your rent and car insurance is more important than a fancy new toy which will be outdated or broken in a few years.

Not Saving

Some people simply don’t save their money; they have a mentality of “money is there, so I must spend it!” Living from paycheck to paycheck is inherently dangerous and anxiety-inducing – wouldn’t you rather have an emergency fund and safety net to fall back on in times of crisis? Sometimes if you’re trying to save but simply cannot afford it, you may have to look into getting a second job or upping your hours at your current job – the easiest way to put money away is to have more of it in the first place!

Failing to Budget

Even if you earn a decent amount of money, we all need to budget ourselves in order to maintain our lifestyles. You might put $100 away every week which is simply for disposable spending such as eating out and going to the movies, but you should still budget these things so that you don’t get ahead of yourself.

Buying Everything on Cards

Buying things on cards, whether credit or debit, can feel rather painless. Instead, many advisors recommend paying for things in cash wherever possible, as you “feel the burn” more and are likely to be more sensible. For example, if you’re looking to buy a new kitchen gadget for $150, you may be more reluctant if you’re handing over $150 in bills compared to pressing a few harmless buttons on a card machine.

Inadequate Retirement Planning

Planning your retirement is something which is best done with a professional who understands things such as inflation and government policies – planning for your retirement funds without any real financial knowledge is going to be disastrous. People tend to underestimate how much money they will need in their retirement, and most people don’t have the expertise in tax and estate planning necessary for a comfortable and safe retirement.

Are you struggling to budget and manage your money effectively? Our team is able to help! We can offer you bespoke advice on money management and hook you up with insurance deals which will save you a ton of cash!

If you’re looking for financial wellness and stability as we plow through 2018, take a look at these handy tips we have compiled for you!

1. Rebalance your accounts

You should look at rebalancing your accounts, including your taxable investments and retirement funds, as your asset allocation may be off due to the stock market surge we saw recently in 2017. According to CPA Ed Slott, task risks should be diversified just as your investment portfolio should.

2. Prepare a will

Prepare a will if you haven’t already, and consider updating your existing one as times and circumstances change. Although it’s grim and macabre to think about your death and where your assets will go thereafter, it’s essential to make sure that your beneficiaries are organized and that any trusts you set up are mentioned in your will, with trust funds going to the appropriate heir(s) upon your death.

3. Go over your retirement paperwork

Whether its 401ks or IRAs, retirement accounts should be checked over consistently. Be sure to remain on top of your paperwork and ensure that your money is being distributed according to your wishes. Mistakes do happen, and they can be costly!

4. Check your beneficiary designations

Although it’s hard to believe, the beneficiary forms for your retirement savings will actually override whatever is stated in your will, so it’s important to ensure that these forms reflect the wishes of your will. You might also have named beneficiaries for things such as life insurance, annuities, and other holdings too, and these designated heirs will also inherit those assets, so make sure they’re correct and confirmed.

According to Slott, problems can crop up a lot of the time when percentages don’t add up to 100% and multiple heirs are listed on a beneficiary form. He explains:

“I had a case where there were three children named as 30% beneficiaries, instead of what should have been 33.33%”.

In order to get around this problem, use percentages which add up to 100% or use fractions which add up to one whole. You can also designate equal shares too, which makes things easier to understand. For example, in the above case, it would have been wise to specify that the three children get “one third” each or simply “an equal share” each, thereby adding up to 100%.

5. Don’t neglect your insurance policies

If you undergo a major life event such as a death, birth, marriage, divorce, or acquisition of wealth, it’s essential to make sure that your life insurance policy is amended to reflect your new circumstances. For example, you probably don’t want your ex-husband or ex-wife to still receive funds from your life insurance policy in the event of your death. It’s also worth looking into home, auto, flood, and earthquake insurance policies as and when you require them – don’t assume that one insurance policy covers everything.

There’s always more you can do in order to secure a stable financial future. For more in-depth advice, speak to a member of our dedicated and knowledgeable team today!

With 2018 in full steam and the half-year mark approaching quickly, it’s time to look back at the top financial steps of 2018, and see how well you have progressed in these essential areas…

Contributions to Retirement Plan

Have you made adequate contributions to your 401(k)?

A review of your retirement plan will tell you if you’re missing out on opportunities to fully benefit from tax-deferred growth and see if you’re ahead or behind on your contributions.

Savings Through Technology

Are you making full use of technology to boost your savings?

From desktop programs to apps, there are countless new technological innovations that can help you to save money and automate spending plans. With more tech being brought-out continuously, it’s time to check your progress and see if there is a better piece of tech out there for you.

Beneficiary Changes

Does your will reflect any new additions or changes to your family situation?

A key financial step of 2018 is to review your will, life insurance, IRA’s, and bank accounts, to account for changes to your family and any new beneficiaries.

Strategies for Tax

Have you made full use of the tax opportunities and deductions available?

Using opportunities to accelerate tax deductions is a key financial step of 2018, helping you to save more on your tax bill by planning items that hold an influence over your tax for the right time. For all individuals expecting a change to their tax bracket, this is something that it can certainly pay to prioritize.

Fund Use

Are you using your flexible spending account?

Stay on track of the fund-use deadlines and make sure that you make full use of the funds you have in the current year to purchase the essentials.

Investment Combinations

Do your investments still reflect your primary goals and take into account current risks?

A good start to the year may have changed the value of bonds, holdings, or stocks that your own. If you haven’t checked your investment combinations already this year, there is no better time to check and rebalance if needed.

Budget Shape-Ups

Are you sticking to your budget for the year?

To plan for fixed expenditures and account for emergencies, having a set budget in place is an essential. If you’ve fallen behind on your new-year budget, then it might be time to reassess and design a new budget for the remainder of 2018.

Enrolment in Health Insurance

Does your health insurance meet your needs?

The right health insurance coverage for your needs is important, as is taking opportunities offered in open-enrollment periods. If you didn’t review your coverage plan at the start of the year, the time has come to save money and get better coverage, by reassessing your health insurance.

Goal Planning

Have you met your mid-year goals?

The setting of short and long-term goals was a major part of pre-2018 financial prep. These can help you to plan ahead and get a better understanding of where your finances should be at different stages of the year.

Insurance Coverage

Does your insurance still cover you for the essentials?

Reviewing your personal insurance coverage is vital in making sure that you’re getting the best back from your insurance, and importantly, that you’re fully covered for home insurance, auto insurance, liability insurance, and every other area that keeps you protected. If you have extra features you don’t need, or you think you’re paying more, it can pay to review, change, and shop around.

Need help with your insurance cover, changing your life insurance beneficiaries, or understanding how you can get the most back from your health or business insurance? Don’t delay in asking us for help with insurance today and get more from your personal insurance.

Financial planning is like dieting – you need to change your habits for life if you want to see consistent results and reach your goals. With that said, it can be very hard to know how to financially plan for your future. Here we offer you some tips for financial planning, allowing you to remain confident that your finances are (and will be) in order for the future.

Acquire an emergency fund

Before you do anything else financially, save up and make a rainy day fund. You should start by establishing an emergency fund, which should ideally be around 3-6 months’ worth of your pay. Medical emergencies and job losses are not uncommon, and it’s important to be prepared for the worst case scenario at all times. The goal is to ensure that you could continue your current lifestyle and spending patterns if a disaster struck you out of nowhere.

Develop good habits

Although people look for quick-fix solutions a lot of the time, people who are financially well-off simply tend to develop good everyday habits that save them small amounts of money on a daily basis. As you may have guessed, these small savings soon add up over time. An endowment plan is a good way to save up for short-term goals, as it encourages you to be disciplined and its compounding ROI helps your funds to increase over time.

When it comes to long-term goals, you need to think about things such as retirement planning. Pension funds are important, so take advantage if your company offers one. If you don’t have a retirement fund or pension plan in place, be sure to open one sooner rather than later. The sooner you open a fund, the bigger it will be when it comes time to cash it out in many years’ time.

Diversify your portfolio

Diversifying your portfolio allows you to minimize your risks in the event of an economic downturn. Asset allocation strategies (within your risk threshold) can also be incredibly useful too. When you diversify your portfolio, you protect yourself against certain market crashes. For example, you’ll be in a terrible situation if you invest in nothing but real estate and then we see another housing crash!

Look into professional help

A professional financial planner can help you to make sense of all the companies and financial products on the market; they can be very complex and hard to understand if you’re not experienced! A good planner can get you a plan that suits you, and should aim to tailor your plan as your circumstances change in life. If you get married or change jobs, for example, it can be useful to have your finances reexamined thoroughly by a professional.

Remain strict and disciplined

Stick to your financial plans or don’t bother with them at all – it’s that simple. Although there will be inevitable slip-ups in your plans (because life happens) you need to stick to your goals consistently if you want to see results. Assets need time in order to grow, so be patient! If it helps you to do so, ask your loved ones and friends to hold you accountable for your spending, forcing them to rein you in and make you be sensible with your money. Balancing the three financial pillars of earning, spending, and saving takes practice and discipline, but stick with them and don’t lose hope.

If you’re looking for more advice on financial planning and securing yourself a decent amount of savings and assets, get in touch with us today!

There are many money mistakes which continue to plague Americans and see them sink into debt and poverty. To help you avoid them and live a prosperous life, we’ve compiled 7 of the biggest money mistakes that we regularly see Americans doing.

1. Failing to set goals

Whether you’re aiming to be mortgage-free or to be able to afford fancy vacations every year, you need to set financial goals and hold yourself accountable to them. Quantify your goals and set targets for your finances; it’s the best way to keep yourself on track.

2. Committing to a 30-Year Mortgage

Having a 15-year mortgage may seem daunting, but it will save you an awful lot of money on interest in the long run. For example, if you get a 30-year mortgage with a 3.5% interest rate attached, you may incur around $150,000 in interest over those 30 years. Paying for the same home with a 15-year mortgage, however, sees you paying around only $70,000 in interest.

3. Buying small, unnecessary purchases

So many Americans spend small sums of money regularly which they don’t need to, and then wonder where all their money seems to have gone. For example, do you buy your lunch from a café every day rather than taking a prepacked lunch to work? Even if you save yourself $3 or $4 per day on your lunch break, that’s over $1,000 over the course of the year. Stop buying things you don’t need if there’s a cheaper alternative!

4. Relinquishing your financial responsibilities

Giving control of your finance’s to your spouse can be very dangerous, especially if your spouse passes away, becomes very ill, or you get a divorce. It’s essential to remain up-to-date on your financial accounts, and if you turn your investments over to a financial consultant or a broker, be sure to keep an eye on what’s being done with your money.

5. Not saving for your retirement properly

Save around 10% to 15% of your income for your retirement, even if you’re younger. People in their 20s and 30s can inevitably delay their retirement payments, as it seems like it’s a very long time away, which it is! Nonetheless, saving for your retirement early allows you to rest assured that the money is there as you age.

6. Cashing out your retirement funds

50% of Americans will cash out their 401(k) balances upon changing a job. Some people may also take out loans against their 401(k) balances, which can ultimately reduce the amount of earnings they would have seen otherwise. Tax-deferred retirement plans, like a 401(k), are a good way to save money for your golden years. You should, however, avoid the temptation to cash them out before you’re grey and old.

7. Having too much credit card debt

Stay away from credit cards and pay for things in cash whenever you can. People who are rich and financially smart simply do not go around buying a bunch of things on credit – they don’t see why they should pay more over the long term. If you can’t buy something in full with cash, then don’t buy it. It’s really that simple – you can wait.

These 7 mistakes are just the tip of the iceberg! With over 81% of Americans reportedly being in debt, it appears that we have a lot of work to do in order to get more and more US bank accounts out of the red and into the black. If you’re looking for more advice and tips about saving money, feel free to get in touch with us today!

The rate at which the world is changing is faster than most people can process.  We find ourselves asking, what just happened and what does that mean? There is a constant ripple effect resulting from each change happening in the world. This affects you, your family, your close relations, the ones you love, your friends, your colleagues, etc.

In the midst of all these changes and challenges, many people sleep well at night while others are so stressed, they find it difficult to get a great night’s rest. So, what are some ways to achieve peace of mind?

1. Start saving… today!

The amount saved is less relevant to building a habit of regularly saving. It’s this habit that will help you get ahead each month. Pay yourself first and then simply find a way to make up for it by more aggressively looking for bargains in your everyday spending. As for debt, you simply need a plan to help you manage it. Of course, if you have debt, protecting against a loss in income is super-important. Savings combined with insurance can help.

2. Instead of thinking “what’s in it for me” think “what’s in it for us.”

When thinking about financial planning for your family, realize that it is a team effort. Learn to communicate things clearly, create a future plan together, and be clear about your mutual financial goals.

3. In life, certain events will occur!

Life will throw many things at you. With a little planning they won’t overwhelm you. Sure there are the things you plan like buying houses and cars, or taking trips. However, there are other things that might be unexpected… You might discover you’re pregnant (surprise!). You might receive a pink slip and lose your primary source of income. As you develop a financial strategy, leverage the 3Ps – Plan, prepare, and protect to safeguard the assets you have.

4. Think about insurance as part each major financial decision. Also, set a regular schedule to think about insurance.

Be aware that insurance will always part of the decisions you will have to make for every major life event. Having a regularly scheduled “insurance review” and revisiting all your insurance coverage for your major life events  helps ensure you have adequate protection. And when life changes occur, it’s best to include your financial planner and independent insurance agent in the discussions to get the best advice for your evolving situation.

5. Have “go-to” people who can help you in difficult times.

Speaking of getting help… having people you trust that you can quickly reach out to in moments of uncertainty will ensure you make the best decisions and give you further peace of mind… (We’re here for you when you need us!!!)

Planning creates peace of mind!

People usually don’t like thinking about catastrophic events that could happen. People don’t like thinking about unforeseen dangers or risks to enable them to come up with a plan for each. Yet life becomes easier to manage when you consider these things and have a plan of action including insurance.

Did this article prompt a question? Reach out to us! We would love to hear from you…