Creating a Safety Net
The purpose of life insurance coverage is to create a pool of money upon your death that your loved ones can use to support their lifestyle. Some people use insurance money to pay off a mortgage, pay off credit card debt, start a business, expand a business, pay for college expenses, meet their monthly obligations or fund their retirement. The uses of the cash are endless. The premiums or amount you pay vary based upon policy type and death benefit amount selected, your age, health, height, weight, smoker/non-smoker status and sex. Do you have enough life insurance to protect your family? If the answer is no or you don’t know, maybe now would be a good time to meet with an advisor.
Friday, July 17, 2009
Thursday, July 16, 2009
National Retirement Planning Month - Successful Retirement Living
Creating a Spending/Savings Plan
How much money do you make? How much do you take home? How much money do you need to cover your necessary living expenses? Are you spending more or less than your take home pay? Are you saving for a rainy day? Put all your information down on paper, in a spreadsheet, or a software program like Quicken. You’ll be amazed at where you’re money goes and how much you’re spending. Once you make this conscious effort and you pay attention to where your money goes, you’ll be able to make some conscious changes to improve your personal bottom line and save more money.
How much money do you make? How much do you take home? How much money do you need to cover your necessary living expenses? Are you spending more or less than your take home pay? Are you saving for a rainy day? Put all your information down on paper, in a spreadsheet, or a software program like Quicken. You’ll be amazed at where you’re money goes and how much you’re spending. Once you make this conscious effort and you pay attention to where your money goes, you’ll be able to make some conscious changes to improve your personal bottom line and save more money.
Wednesday, July 15, 2009
National Retirement Planning Month - Creating An Emergency Fund
The purpose of having an emergency fund is to have cash on hand for unexpected emergencies. The goal is to have cash available for these emergencies rather than having to take out a loan or rack up high-interest credit card debt. Many financial advisors recommend setting aside three to sixth months’ worth of living expenses in a savings account. For example, if it costs you $3,000 per month to run your household, you should earmark $9,000 to $18,000. Start setting aside some money from each paycheck even if it’s a small amount like $25-$50. The goal is to develop a savings mentality and the hardest part is getting started.
Tuesday, July 14, 2009
National Retirement Planning Month - The 110 Rule
The 100 Rule: Since it’s likely you’ll live a long life you may need to keep a higher percentage of your assets in equity investments. Consider subtracting your current age from 110. The result could be considered a starting point for your equity allocation. For example, if you are 65 consider allocating 45% of your portfolio to equity investments (110-65 = 45) and allocate 55% to fixed income investments.
Please note that this rule might not be applicable to your situation. There are multiple factors that are taken into account for each individual’s situation. Use this rule as a starting point in your planning and consider working with a professional advisor to gain better clarity.
Please note that this rule might not be applicable to your situation. There are multiple factors that are taken into account for each individual’s situation. Use this rule as a starting point in your planning and consider working with a professional advisor to gain better clarity.
Monday, July 13, 2009
Bill Losey's National Retirement Planning Month - Retirement Tip #77
The Growth versus Value Debate
Investors and money managers who seek out growth stocks are generally looking for quality companies with higher than average earnings growth rates, regardless of what the current market valuation of the stock is.
By comparison, investors and money managers who advocate value investing typically buy shares of stock in companies that have been beaten down in price because they are going through a period of adversity. Value investing usually calls for selling these shares after they have risen in price as a result of the underlying company having recovered from its difficulty.
Growth stocks can fall in share price and become value stocks. Value stocks can rise in price and become growth stocks. It is a never ending cycle of ups and downs. Money mangers and investors alike have their own methodology for determining if a stock is value or growth. In fact, two different money managers may classify the same stock as both growth and value.
As for what style is better, there are reams of research which can illustrate what strategy has achieved the highest rate of return. What you’ll find is that both styles come in and out of favor and most money managers can’t predict with any certainty which will outperform the other.
Investors and money managers who seek out growth stocks are generally looking for quality companies with higher than average earnings growth rates, regardless of what the current market valuation of the stock is.
By comparison, investors and money managers who advocate value investing typically buy shares of stock in companies that have been beaten down in price because they are going through a period of adversity. Value investing usually calls for selling these shares after they have risen in price as a result of the underlying company having recovered from its difficulty.
Growth stocks can fall in share price and become value stocks. Value stocks can rise in price and become growth stocks. It is a never ending cycle of ups and downs. Money mangers and investors alike have their own methodology for determining if a stock is value or growth. In fact, two different money managers may classify the same stock as both growth and value.
As for what style is better, there are reams of research which can illustrate what strategy has achieved the highest rate of return. What you’ll find is that both styles come in and out of favor and most money managers can’t predict with any certainty which will outperform the other.
Saturday, July 11, 2009
Bill Losey's National Retirement Planning Month - Stocks & Bonds 101
The term “stock” and “share” both refer to a fractional ownership interest in a particular company. When a corporate business is first organized, investors contribute money to fund the enterprise, and in return receive shares of stock representing ownership in that company. When the company is successful, it will grow and have profits, and the shares generally become more valuable. If the business isn’t successful, the value of the shares will usually decline.
While stocks represent ownership in a business, bonds are debt. Bonds are issued by institutions such as the federal government, corporations, and state and local governments. A bond is evidence of money borrowed by the bond issuer. In return for loaning money to one of these institutions, you as the bond holder would receive interest and when the bond matures at some point in the future, the principal would be returned to you.
Stocks and bonds both carry many risks. For example, the market value of your shares will fluctuate up and down every day. If you need to sell your shares or bonds on a day when they are worth less than what you invested, a capital loss will result. If you need to sell them on a day when they are worth more than you invested, you have a profit and a capital gain will result.
While stocks represent ownership in a business, bonds are debt. Bonds are issued by institutions such as the federal government, corporations, and state and local governments. A bond is evidence of money borrowed by the bond issuer. In return for loaning money to one of these institutions, you as the bond holder would receive interest and when the bond matures at some point in the future, the principal would be returned to you.
Stocks and bonds both carry many risks. For example, the market value of your shares will fluctuate up and down every day. If you need to sell your shares or bonds on a day when they are worth less than what you invested, a capital loss will result. If you need to sell them on a day when they are worth more than you invested, you have a profit and a capital gain will result.
Friday, July 10, 2009
Being Happy Now & In Retirement
What can you do to have a happier, more fulfilling, less financially-driven lifestyle? It’s simple. As Retirement Coach Ann Fry (www.ItsBoomerTime.com) says:
1. Stop doing what you DON’T want to do.
2. Start doing what you DO want to do.
3. Don’t let anyone else tell you what you CAN’T or SHOULDN’T do.
My wish for you and all people is that the next phase of your life is meaningful, filled with fun and stimulating activities, exploration, passion, happiness, good health and true financial freedom.
Remember, life is too long not to be doing those things that are fun and rewarding. Go for what you REALLY want. Start now!
1. Stop doing what you DON’T want to do.
2. Start doing what you DO want to do.
3. Don’t let anyone else tell you what you CAN’T or SHOULDN’T do.
My wish for you and all people is that the next phase of your life is meaningful, filled with fun and stimulating activities, exploration, passion, happiness, good health and true financial freedom.
Remember, life is too long not to be doing those things that are fun and rewarding. Go for what you REALLY want. Start now!
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