Are you stressed about saving for retirement?

October 22, 2018

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Gary Whitmer

Gary Whitmer

Financial Professional

1424 N Brown Rd
Suite 200
Lawrenceville, GA 30043-8117

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October 22, 2018

How to expect the unexpected

How to expect the unexpected

Unexpected expenses can put a damper on your financial life.

You never know what may come up – vet bills, car repairs, unplanned travel expenses. Life is nothing if not full of surprises.

So, how do you pay for unexpected expenses when they arise? Borrow? Use your credit card? Take out a payday loan?

There is a better way. Wouldn’t it be nice to have some cash stored away to help you out when those emergencies pop up? Well, you can! It’s called an emergency fund. That’s what it’s for!

What is an emergency fund?
An emergency fund is a designated amount of cash – easily accessible – to prevent you from going into debt in case of a financial emergency. But how much should you put aside? Most experts agree a suitable amount for an emergency fund is 6-12 months’ worth of expenses.[i]

Sound like a lot of money? It is, but don’t let that stop you. An emergency fund can help make the difference between getting through a single emergency with merely a hiccup or spiraling down the financial rabbit hole of debt. Or it may help you ride through a few months if you lose your source of income.

It’s okay to start small
The thought of saving six months’ worth of income might make most of us throw up our hands in defeat before we even start.

Don’t let that get you down, though. The point is to start, even if it’s small. Just don’t give up. Begin with a goal of saving $500. Once you’ve achieved that, celebrate it! And then work on the next $500.

Slowly, over time, your emergency fund will increase and hopefully, so will your peace of mind.

Take advantage of “found money”
Found money is extra money that comes your way, that isn’t part of your normal income. It can include things like bonuses, inheritances, gifts, or cash from selling personal items.

When you find yourself with some found money, keep the 50/50 rule in mind. Put half the money toward your emergency fund, and put half toward whatever you like – your retirement, making this holiday season a little extra special, or add it to the college fund.

Let’s say you earned a bonus of $500 at your job. You worked hard and want to reward yourself. Go for it! Use half the bonus to buy the new shoes or the basketball game tickets, but put the other half in your emergency fund. It’ll be a win-win for you.

Take advantage of direct deposit
One of the best ways to help build your emergency fund is to make your deposits automatic. Siphon off a percentage of your paycheck into your emergency fund. Again, it’s key to start small here.

Know what an emergency is and what it is not
One of the fundamentals of building and maintaining an emergency fund is knowing what an emergency is and what it’s not. Unexpected expenses that require a dip into your emergency fund will happen – that’s what it’s for. But tapping in to your emergency fund on a regular basis shouldn’t be the norm. (If it is, you might need to take a look at your overall budget.)

Unexpected expenses your emergency fund may help cover:

  • Car repairs
  • Unexpected medical bills
  • Emergency home repairs
  • Unplanned travel for a death in the family

Some expenses that are not really emergencies:

  • A great sale on a cute winter coat
  • A spur of the moment weekend getaway
  • A spa day – no matter how much you need it!

Keep financial safety in mind
So the next time you see a gorgeous pair of shoes that you just “have to have” – ask yourself if they’ll be worth it if your 10-year-old dishwasher fails and your next dishwasher has to be you!

Don’t forget – start small. An emergency fund is about helping put a financial safety net in place. Don’t find yourself potentially compounding the difficulty of a true emergency by not having the funds to deal with it.


[i] https://www.nerdwallet.com/blog/banking/banking-basics/life-build-emergency-fund/

October 22, 2018

Are you stressed about saving for retirement?

Are you stressed about saving for retirement?

Most of us might feel at least a little anxiety when the subject of preparing for retirement comes up.

Many Americans feel like they haven’t saved enough. In fact, 79% of American workers plan on working longer to make up for what they haven’t saved.[i]

But anticipating staying in the workforce may not be the best strategy when it comes to funding your golden years. Why? Because there are many unforeseen events that can affect your ability (or desire) to work – health problems, caretaking, loss of opportunity in your field… or just wanting to spend time with your grandkids or travel with your partner.

With so much uncertainty, it’s no wonder many Americans feel stressed, burdened, and unprepared when it comes to saving for retirement.

But don’t let retirement worries steal your joy. When it comes to saving for retirement there are a lot of choices you can make to help you prepare. Read on for some principles and tips that may help lessen your stress about the future.

Small changes add up
Retirement saving may seem like an insurmountable task when faced with the high cost of daily life. It’s easy to think we can’t afford to save for retirement and get stuck in a pattern of defeat. But small changes over time can add up to big results.

Shake off despair by implementing small strategies. Consistent saving adds up over time, and it can help build your finance muscle. Read on for some more easy tips.

Direct deposit
Set up a portion of your direct deposit to go straight into a savings account. This is a “set it and forget it” savings strategy, and you’ll be amazed how quickly it can build.

Save found money
Found money is extra cash that comes your way outside of your normal income. It can be from bonuses, gifts, or even a side gig. You weren’t planning on receiving that money anyway, so throw it right into your savings.

Practice frugality
Instead of becoming stressed out and hyper-focused on saving every possible penny, practice frugality. Frugal living can put your energy into something positive – creating a new habit and lifestyle. Also, frugal habits may help prepare you for living on a fixed income during retirement. Try these tips for starters:

Consider downsizing your home
Cut back or eliminate “extras” such as dining out, movies, and concerts When making a purchase, use any available coupons or discount codes Seek sources of free entertainment such as community festivals or neighborhood gatherings

Hire a financial professional
If no matter what you do you still can’t help feeling unprepared and stressed about your retirement, consider hiring a financial professional.

A financial professional may be able to help you change your perspective on preparing for retirement and help empower you with strategies custom made for you.

Remember, financial professionals work with people of all income levels, so don’t hesitate if you need help to get a handle on your retirement. They may assist with:

  • Creating a budget
  • Setting up savings accounts
  • Clarifying your retirement goals
  • Strategies for eliminating debt

Change your perspective on preparing for retirement
If you’re anxious about having enough money for your retirement, try changing your perspective. Focus on small goals and lifestyle habits. Frugality, consistent savings, and solid financial strategies may help take the stress out of retirement planning.

Consistency over time is the name of the game with retirement savings. So implement a few strategies that you can live with now.


[i] https://www.washingtonpost.com/news/get-there/wp/2018/03/19/no-retirement-savings-thinking-youll-just-work-longer-think-again/?utm_term=.bd1f94eea6e3

October 15, 2018

The More You Know! Building a Financial Vocabulary

The More You Know! Building a Financial Vocabulary

Part of gaining financial literacy is becoming familiar with the lingo.

Like all subjects, finance has its own terms, acronyms, abbreviations, and slang.

If you’re just beginning to dip your toe into the pool of personal financial planning, here’s a handy guide to some terms that are likely to come up when learning about finance and investments.

ROI: ROI stands for Return on Investment. It’s an acronym usually used when referring to the performance of a stock. ROI can also refer to the performance of other investments, including real estate and currencies. In short, the term describes how much bang you get for your investment buck.

Compound Interest: Compound interest refers to the instance of interest collecting on interest. The best way to understand compound interest is with an example. Let’s say you invest $1,000 in a high interest bearing account. Over the course of one year, your savings collects $100.00 in interest. The next year you’ll earn interest on $1,100.00, and so forth.

Money Market Account: You may hear about money market accounts if you’re shopping for a savings account. A money market account is like a savings account, but it may earn higher interest rates – making it a better choice for some.

There are money market accounts that come with checks or a debit card, so your funds are easily accessible. If you’re planning on opening a money market account to hold your savings or emergency fund, pay attention to any minimum balance requirements and fees.

Liquidity: Liquidity refers to how easy it is for an asset to convert to cash. You can think of it as an investment’s ability to “liquidate” into cash. For example, real estate investments may offer great returns over time, but they aren’t considered liquid assets because they are not easily turned into cash.

A stock or bond, on the other hand, has high liquidity because you can sell a stock and have access to its cash value quickly.

Roth IRA: A Roth IRA is a retirement savings account. IRA stands for “Individual Retirement Account”. A Roth IRA allows you to make contributions or deposits to fund your retirement. The contributions are made with taxed income, but when you take deposits from the account in retirement, the income is not taxed.

A few characteristics of a Roth IRA:

  • Your contribution is always accessible, tax and penalty-free at any time
  • It can help keep you in a lower taxable income bracket during retirement
  • You can contribute to a Roth IRA at any time if you have a job

Bear Market: A Bear Market is a term used to refer to the stock market while there are certain characteristics present. Those characteristics include falling stock prices and low investor confidence.

The term is said to originate from the way a bear attacks – swiping its arm downward on its prey. The downward motion illustrates falling stock prices as investors lose confidence, become pessimistic about the market, and they may begin to sell their stocks to try to prevent further losses.

Bull Market: A Bull Market is a period in which stock prices are increasing and investor confidence is high. A Bull Market mostly refers to stocks, but it can also be used to describe real estate, currencies, and other types of markets.

This term may come from the action of how a bull attacks, by swiping its horns upward.

Finance lingo is for everyone
No matter where you are on the personal finance spectrum – just beginning to create a budget with your first job or preparing to retire – there are special terms to describe financial phenomena, tools, and features. Learning some of the lingo is a great first step toward taking charge of your financial life!

October 15, 2018

Budget Like a Rock Star with Your First Job

Budget Like a Rock Star with Your First Job

Congratulations! Landing your first full-time job is exciting, especially if you’ve been dreaming of that moment throughout college.

Now you can loosen your belt a little and not spend so much brain power on creative ways to make ramen noodles. But before you go and start spending on the things you’ve had to skimp on in school, it’ll be worth it to take a breath, do some self-examination, and create a budget first.

This is probably the absolute best time in your life to start a habit of budgeting that will last you a lifetime – before life gets more complicated with a family, mortgage, etc. If you become a whiz at your personal financial strategy, tackling all the things that life will bring your way may (hopefully) go a lot smoother.

So here are a few tips on setting up your budget with your first job:

1. Think about why you want a budget
It may sound silly, but knowing why you’re putting yourself on a budget will help you stick to it when temptations to overspend flare up. Beginning a budget early in life when you start your first job will help lay the foundation for responsible financial management.

Think about your goals here. Having a budget will help you (when the time is right) to acquire things like a home, new car, or a family vacation to the islands. Budgeting can also help you enjoy more immediate wants, like a designer handbag or new flat screen TV.

2. Get familiar with your spending
You can’t create a budget without knowing your expenses. Take a good, hard look at not just your income but also your “outgo”. Include all your major expenses of course – rent, insurance, retirement savings, emergency funds. But don’t forget about miscellaneous expenses – even the small ones. That coffee on the way to work – it counts. So does the $3.99 booster pack in your favorite phone game.

Track your expenses over the course of a couple of weeks to a month. This will give you insight into your spending, so your budget is accurate.

3. Count your riches
Now that you have your first job, add up your income. This means the money you take home in your paycheck – not your salary before taxes. Income can also include earnings from side jobs, regular bonuses, or income investment. Whatever money you have coming in counts as income.

4. Set your budget goals
Give yourself permission to dream big here and own it! Set some financial goals for yourself – and make them specific and personal. For example, don’t make “save up for a house” your goal because it’s not specific or personal. Think about the details. What type of house do you want, and where? When do you see yourself purchasing it?

For example, your budget goal may look something like this: “Save $20,000 by the time I’m 27 for a down payment on an industrial loft downtown.“ A good budget goal includes an amount, a deadline, and a specific and detailed outcome.

5. Use a tracker
A budget tracker is simply a tool to create your budget and help you maintain it. It can be as simple as a pen and paper. A budget tracker can also be an elaborate spreadsheet, or you can use an online tool or application.

The best budget tracker is the one you’ll stick to, so don’t be afraid to try a few different methods. It may take some trial and error to find the one that’s right for you.

6. Put it to the test
Test your budget and tracking system to see if it’s working for you. Try to recognize where your pitfalls are and adjust to overcome them, but don’t give up! It’s something your future self will thank you for.

7. Stick to it
Creating a budget that works is a process. Take your time and think it through. You’re probably going to need to tweak it along the way. It’s ok!

The best way to think about a budget is as an ongoing part of your life. Make it your own so that it works for your needs. And as you change – like when you get that promotion – your budget can change with you.

October 8, 2018

Personal Finance: Hire a Professional or DIY?

Personal Finance: Hire a Professional or DIY?

Contrary to popular belief, professional financial planning can potentially benefit people of all income levels.

So the question you may want to ask is not if you make enough money to need professional help, but rather, is your money working to create the life you want?

If your answer is “I don’t know” – no worries. There’s help!

A professional financial planner is, well, a professional
It’s true that personal finance is personal, but for many of us, it can be complicated too. Plus, it’s not something we usually learn about in school. So for many – even for those on the lower end of the income scale – a financial planner may have a lot to offer.

Even though there are some people who do just fine with financial planning on their own, many of us need help to connect the dots. Having a solid financial strategy often isn’t just coming up with a monthly budget and sticking to it. Many Americans don’t seem to have a grip on how personal finance intersects with their lives. In fact, about half of Americans don’t have a financial plan at all.[i] (Are you one of them?)

Maybe you know exactly what you want – let’s say to retire by 60. But you don’t know how to get there. This is where a financial planner may help.

Maybe you don’t know what you want, even though you’re already a disciplined budgeter. You may still need a good financial planner who can help you imagine and create a strategy for the future of your dreams.

A financial planner can foster accountability
One of the most difficult things about creating and living by a financial strategy is accountability. Let’s be real. It can be difficult to find the discipline to consistently stick to a budget, save for retirement, and live within our means.

If you’re coming up short in the discipline department, hiring a financial planner may help create some accountability for you. This isn’t to say they’re going to wag their finger if you splurge on a spontaneous girls’ weekend in Cozumel, but they may help create a sense of accountability by checking in with you regularly to see if you’re on the right track. You might decide that girls’ weekend could be planned a little closer to home instead…

A financial planner offers expertise at every life stage
A financial strategy isn’t something you create and then forget about. A wise financial strategy changes as your life changes, so it must be revisited. A good time to take a fresh look at your financial strategy is during life events such as:

  • Getting a new job
  • Making a major purchase, such as a home
  • Starting a business
  • Getting married
  • Having a child

Every one of these milestones signals a time to revisit your finances. A professional financial advisor can help ease these transitions by taking the pulse of your financial health at every life change.

What a financial planner can’t do
If you’re not ready to deal with your personal finances, a financial planner won’t be much help to you. In other words, they can’t make you take initiative when it comes to your financial life. But if you’re ready to explore the world of personal finance, they may help make the difference between a dream and a reality!


[i] https://www.fool.com/investing/2018/06/10/half-of-americans-lack-a-long-term-financial-plan.aspx

October 8, 2018

Retirement planning tips you can use right now

Retirement planning tips you can use right now

The sooner you start planning for retirement, the better off you’re going to be.

That’s hard to argue with. But no matter where you are on your retirement planning journey, there are always great financial planning steps you can take to help you get and stay on the road to a happy retirement.

Time is money
When it comes to retirement savings, the old expression, “Time is Money” means more than ever. It makes sense that the sooner you start saving, the more you’ll have when your retirement comes. But there’s a phenomenon you can take advantage of that can help your money grow while you’re saving.

It’s called compound interest. This is basically earning interest on the interest. This is how it works: Your principal investment earns interest. The following year, your principal plus last year’s interest earns interest. You could stuff the same amount of cash under your mattress – and you might be able to store away a hefty sum over the years that way – but with compound interest, your money can “grow”. Taking advantage of compound interest can be one of the best ways to build your retirement savings.

Starting to save in your 20s and 30s: Set yourself up
If you’re in your 20s or 30s and you’re already thinking about retirement – give yourself a pat on the back. This is the best time to begin planning for your golden years. At this age, a retirement strategy is probably going to be the most flexible, and it’s more likely that your retirement dream can become a reality.

One of the best tools to take advantage of during this time is an employer-sponsored 401(k) plan. Make sure you’re taking full advantage of it. There are two major benefits:

  1. Time: Remember compound interest? The more you invest now in a retirement savings plan, the more you’ll have come retirement time.
  2. Company match: This is the money your employer puts in your 401(k) plan for you. Most employers will match your contributions up to a certain percentage. It’s like free money. Be sure you don’t leave it on the table.

Starting in middle age: Maximize your retirement savings
If you’re in your middle years, you still have some advantages when it comes to a retirement strategy. First, retirement should feel a little less like a fantasy and more like reality at this age – it’s not too far beyond the horizon! Use this reality check as motivation to start some serious planning and saving.

Second, your earnings may be higher on the career curve than they were when you were just starting out. If so, this is a great time to go all out with your savings plan. Try these tips for starters:

  1. Consider an IRA: An IRA can function as a savings tool when you’ve maxed out your 401(k). The savings are pre-tax as well.
  2. Professional financial planning: If you’re having a hard time getting your head around retirement planning, seek financial planning expertise. A financial professional can help make sense of your particular retirement picture. This way you can better identify needs and create strategies to fill them.

Your 50s and 60s: Getting real about retirement income
This is the age when retirement planning gets real. You’re thinking may now shift from savings to distributions. The question that arises is how you’ll replace that paycheck you’ve been earning with another source of income, if you’re not willing or able to work beyond a certain age.

  1. Social security benefits: You become eligible to tap into your social security benefits at 60. You can collect full benefits at around 65, but if you wait until you’re 70, you’ll get the largest possible payout from social security.
  2. Distributions: When you’re 59 ½ you can take distributions from your retirement accounts without a penalty. But keep in mind those distributions may count as taxable income.

A good retirement favors the prepared
No matter where you are on the road to retirement, wise financial planning is the key to a happy and healthy retirement. Start today!

This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing or enacting a retirement strategy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options.

October 1, 2018

Consumer Debt: How it helps and how it hurts

Consumer Debt: How it helps and how it hurts

What exactly is consumer debt? It’s “We the People” debt, as opposed to government or business debt.

Consumer debt is our debt. And we, the people, have a lot of it – it’s record-breaking in fact. In May of 2018, U.S. consumer debt was projected to exceed $4 trillion by the end of 2018[i].

That’s a lot of zeros. So, in case you’re wondering, what makes up consumer debt?

Consumer debt consists of credit card debt and non-revolving loans – like automobile financing or a student loan. (Mortgages aren’t considered consumer debt – they’re classified under real estate investments.)

So, how did we get buried under all this debt?
There are a few reasons consumer debt is so high – some of them not entirely in our control. The rise of student loan debt: Most consumer debt consists of school loans. During the recession, many Americans returned to school to re-train or to pursue graduate degrees to increase their competitiveness in a tough job market.

Bankruptcy: Changing bankruptcy laws under the Credit Card Protection Act of 2005 made it harder for Americans to file for bankruptcy. This led to consumer credit card debt climbing to a record high of $1.028 trillion in 2008[ii].

Good auto loan rates: The number of auto loans has skyrocketed due to attractive interest rates. After the recession, the federal government lowered interest rates to spur spending and help lift the country out of the recession. Americans responded by financing more automobiles, which added to the consumer debt total.

Is all this consumer debt a bad thing?
Not all consumer debt is bad debt. And there are ways that it helps the economy – both personal and shared. A student loan for example – particularly a government-backed student loan – can offer a borrower a low-interest rate, deferred repayment, and of course, the benefit of gaining a higher education which may bring a higher salary. A college graduate earns 56 percent more than a high school graduate over their lifetime, according to the Economic Policy Institute. So, getting a student loan may make good economic sense.

Credit card debt that won’t go away
Credit card debt is a different story. According to the National Foundation for Credit Counseling (NFCC), 61 percent of U.S. adults have had credit card debt in the past 12 months. Nearly two in five carry debt from month-to-month.

Still, the amount of credit card debt Americans carry has been on the decline, with the average carried per adult a little more than $3,000.

Credit card debt won’t hurt you with interest charges if you pay off the balance monthly. Some households prefer to conduct their spending this way to take advantage of cashback purchases or airline points. As always, make sure spending with credit works within your budget.

If you’re carrying a balance from month to month on your credit cards, however, there is going to be a negative impact in the form of interest payments. Avoid doing this whenever possible.

Stay on the good side of consumer debt
Consumer debt is a mixed bag. Staying on the good side of consumer debt may pay off for you in the long run if you’re conscientious about borrowing money, plan your budget carefully, and always seek to live within your means.


[i] https://www.lendingtree.com/finance/consumer-debt-report-may-2018/
[ii] https://www.creditcards.com/credit-card-news/up-g19-federal-reserve-credit-debt-02072018.php

October 1, 2018

What Millennials can learn from Generation Z

What Millennials can learn from Generation Z

Millennials have been praised for having good financial habits despite facing some difficult economic challenges.

Extremely high housing prices, massive student loan debt, and stagnant wages are just a few of the financial hurdles Millennials have had to overcome.

GenZ, on the other hand – the generation right behind Millennials – exist in a different financial picture. Born between 1995 and 2015, they’re the first generation to grow up with mobile technology, and they’ve lived most of their lives under the shadow of the Great Recession. They have an air of self-reliance and frugality. They display financial grace, and they can deliver some valuable financial lessons for their Millennial predecessors.

Minimizing Student Loan Debt
Student loan debt is the elephant in the Millennial living room. Becoming saddled with massive student loan debt practically became a given if you were born a Millennial. The flipside is that Millennials are more educated than any previous generation.

Looking to learn from those who came before them, GenZ is much warier of incurring student loan debt. According to a study by the Center for Generational Kinetics[i], GenZ students may be more apt to try lower-cost options for higher education, such as community college or in-state university systems. And many are working their way through college, paying tuition as they go.

Finding ways to minimize student loan debt could help those Millennials who are still continuing their education.

Retirement Planning
With GenZ’s aversion to student loan debt, it’s not surprising this post-Millennial generation is very concerned with saving for retirement. They’re open to retirement planning and follow a “save now, spend later” principle when it comes to their finances.

This devotion to saving is something every generation can learn from.

Frugality: Effects of the Great Recession
Generation Z is a frugal bunch. They’re often compared to the Greatest Generation – those born approximately between 1910 and 1924 – in that they have a penchant for beginning to save as soon as they enter the workforce and start earning their own money.

Statistics show that 64 percent of GenZ have a savings account compared to 54 percent of older generations.[ii] They’re also bargain hunters. Whereas the Millennial generation was more inclined to pay top price for a brand they love, GenZ-ers know how to look for a deal.

The Financial Mark of a New Generation
It can be said the Millennial generation has been marked by their massive spending power. GenZ, on the other hand, is taking on a reputation for their saving power. A more conservative, old-school aura of frugality and personal responsibility defines this generation’s financial attitudes.

Turns out GenZ has a lot to teach all the generations about personal financial health. If you have a teenager in your life, you might want to take a closer look at how they’re thinking about their financial futures and seeing what you might learn!


[i] & [ii] https://mic.com/articles/178973/does-gen-z-think-about-money-differently-than-millennials-heres-what-research-shows#.66B2xibb6

September 24, 2018

Can you actually retire?

Can you actually retire?

Retirement is as much a part of the American Dream as owning a home, owning a small business, or just owning your time.

It’s built into the American psyche.

Many while away their working lives dreaming of the day they won’t have to wake up to a jarring alarm clock, fight rush hour traffic, and spend their days trapped behind a desk.

No matter your retirement dream – endless golf, exciting travel, or just hanging out with the grandkids – will you actually be able to pull it off? Will you actually be able to retire?

Sadly, about 25 percent of Americans say no, according to a survey[i] by TD Ameritrade.

It turns out there are some reliable indicators that you may not be ready for retirement. It’s time for a reality check (and some tough love). So roll up your sleeves and let’s get honest. If you regularly practice any of the following financial habits, you may not be able to retire.

You spend without a budget: Do you have a budget? Are you spending indiscriminately on anything that tickles your fancy? Living day to day without a budget – especially if you are approaching your middle years or later – can wreck your chances of retirement. Commit to creating a budget and stick to it. Overspending now can turn your retirement daydream into a nightmare.

You’re not dealing with your credit card debt: If you struggle with credit card debt, you must have a plan to attack it. Credit card debt can cost you money in interest payments that could be funding your retirement instead. If you’re carrying credit card debt, get rid of it as soon as possible. Stick to a payment plan, be patient, and remain diligent. With time you’ll knock out that debt and start funding your retirement.

You’re not creating passive income: Being able to retire depends on whether you can generate income for yourself during your retirement years. You should be setting up your passive income streams now. Your financial advisor can inform you about options you might have, such as retirement investment accounts, real estate assets, stocks, or even life insurance and annuities. Make it a goal to formulate a strategy about how you can generate income later or you might not be able to retire.

You’re pipe dreaming: Ouch. Here’s some really tough love. If your retirement plan includes so-called “get rich quick” scenarios such as investment fads, lottery winnings, or pyramid schemes, your retirement could be in jeopardy. The way to retirement is through tried and true financial planning and implementing solid strategies over time. Try putting the 20 dollars you might spend each week on lottery tickets toward your retirement strategy instead.

A great retirement life isn’t guaranteed to anyone. It takes planning, sacrifice, and discipline. If you’re coming up short, make some changes now so you’ll be ready for your retirement life.

This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing, talk with a financial professional to discuss your options.


[i] https://www.fool.com/retirement/2017/10/22/25-of-americans-say-theyll-never-be-able-to-retire.aspx

September 24, 2018

Inflation Over Time and What it Means for Retirement

Inflation Over Time and What it Means for Retirement

You may have thought that inflation is always bad, but did you know that sometimes it can be good?

Inflation is simply the difference in prices from one year to the next over time. It’s calculated as a percentage and it goes through cycles:

  • Two percent inflation is actually seen as economic growth and is considered “healthy” inflation.
  • As inflation expands beyond three percent it creates a peak and financial bubbles can form.
  • If the percentage falls below two percent, inflation may be seen as negative and recessions can develop.
  • Finally, there is a trough preceding another cycle expansion.

(If you want to geek out about inflation rates, check out a history from 1929 to 2020 at https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-forecast-3306093.)

Good or bad, inflation should be a concern for everyone in the United States. The economy affects us all, but it can be particularly troubling for seniors living in retirement, or who are about to enter retirement. This is because retirement is usually based on a fixed income budget. Inflation can decrease the purchasing power of retirees, especially for goods and services that increase with inflation.

Here are some tips to protect your retirement income from the effects of inflation over time:

Maximize Your Social Security
Social security benefits have a cost of living/inflation increase built into the disbursement. So, as inflation goes up and the cost of living rises, so too does your social security.

This can be beneficial while you’re on a fixed retirement income. Because this is the only retirement investment with this feature, try to maximize your social security earnings by working until age 70 if you can.

Select Investments that May Grow When Inflation Rises
While living expenses such as gas, groceries, and utilities might rise with inflation, some investments may offer better returns as inflation rises. This is another reason a diverse retirement portfolio might be beneficial.

Minimize Expenses to Combat Rising Inflation
While none of us can affect the inflation rate itself, we can all work to minimize our expenses during our retirement years. Maximizing your income and minimizing your expenses is the name of the game when you’re living on a fixed budget.

Minimizing housing costs is a strategy to deal with inflation and rising prices. Downsize your home if possible. Perhaps investing in a renewable energy source may help save money on energy expenses. A simple kitchen garden can save you money on groceries – a budget item that can take a big hit from inflation.

The Ebb and Flow of Inflation Over Time
Over time, inflation waxes and wanes. A little planning, diversified investments, and consistent frugality may help you sail through inflation increases during your retirement years.

This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing, talk with a financial professional to discuss your options.

September 17, 2018

Generation X: What They Do Right And What They Can Do Better

Generation X: What They Do Right And What They Can Do Better

There’s a lot of discussion about how Americans aren’t prepared for retirement, and Generation X is no exception.

In fact, Generation X may have even less retirement savings than the Baby Boomer and Millennial generations.

A study by TD Ameritrade[i] highlights the problem many GenXers deal with:

  • 37 percent say they would like to retire someday, but won’t be able to afford it
  • 43 percent are behind in their savings
  • 49 percent are worried about running out of money during retirement
  • Almost two out of 10 aren’t saving or investing

The shortfall of savings isn’t without reason. In their financial lives so far, Generation X has taken some hard knocks. They have faced two recessions, disappearing pensions, the rise of the 401(k), and dwindling social security benefits.

What Generation X Does Right with Their Savings
With all those financial forces against them and a decidedly laid-back approach to savings, is there anything Generation X has going for them? Turns out, there is – 401(k) investments and a strong recovery from the 2008 recession.

The 401(k) Generation: Generation X was the first generation to enroll in 401(k) savings plans en masse. 80 percent are invested in a 401(k) plan or something similar.[ii] The fact that almost all of Generation X has embraced the 401(k) retirement savings plan is a revelation.

Rebound: If every generation receives a financial gift, for Generation X, it is their solid rebound after the Great Recession. According to a study by the Pew Research Center,[iii] the net worth of a GenX household has surpassed what it was in 2007. Meanwhile, the net worth of households headed by Baby Boomers and the Silent Generation remains below their 2007 levels.

What Generation X Can do Better When it Comes to Savings
There’s always room for improvement when it comes to financial planning. For Generation X, those improvements are best focused on saving and getting out of debt. Here are a few pointers: Ramp up your savings: Commit to socking away at least $50 a month to start and increase that amount over time. Make sure savings is factored in to your monthly budget. Pay off credit card debt: Credit card debt is expensive debt. Commit to getting serious and paying it off. If you need help, consider consolidating, balance transfers, or getting a personal loan at a lower rate.

A Mixed Financial Picture
Like other generations, the savings snapshot of Generation X is a mixed picture. They have some great financial tools in place with 401(k) plans and a growing net worth.

If you’re a GenXer and if you’re serious about financial health, it’s not too late to commit to a savings plan, get out of credit card debt, and seek to improve your long-term outlook!


[i] https://www.usatoday.com/story/money/2018/01/10/retirement-crisis-37-gen-x-say-they-wont-able-afford-retire/1016739001/
[ii] https://www.aarp.org/money/credit-loans-debt/info-2015/gen-x-interesting-finance-facts.html
[iii] http://www.pewresearch.org/fact-tank/2018/07/23/gen-x-rebounds-as-the-only-generation-to-recover-the-wealth-lost-after-the-housing-crash/

September 17, 2018

Getting the Most Bang for Your Savings Buck

Getting the Most Bang for Your Savings Buck

Savvy savers know that if they look after their pennies, the dollars will take care of themselves.

So, if you’re looking for places to gain a few extra pennies, why not start by maximizing your savings account?

Granted, a savings account might not be a flashy investment opportunity with a high return. But most of us use one as a place to park our emergency fund or the dream car fund. So, if you’re going to put your money somewhere other than under your mattress, why not put it in the place that gets the best return? Here are some tips for getting the most out of your savings account.

Try an Online-only Account
Your corner bank branch isn’t the only option for a savings account. Why not try an online account? As of September 2018, several well-known banks are offering online savings accounts with rates of 1.85 (some even higher).[i]

With the help of technology, you can link one of these high-interest savings accounts directly to your checking account, making moving money a breeze. Say goodbye to the brick and mortar bank, and hello to some extra cash in your pocket!

Check Out Your Local Credit Union
A credit union offers savers some unique benefits. They differ from a traditional bank as they are usually not for profit. They function more like a cooperative – even paying dividends back to members periodically.

A credit union can also be beneficial as they typically offer a higher interest rate than your everyday bank. Membership in a credit union may also have other perks, such as low-interest rates on personal loans as well as exceptional customer service.

Money Market Accounts
A money market account is like a savings account except it’s tied to bonds and other low-risk investments. A money market can deliver the goods by giving you more for your savings, but there are often account minimums and fees. Before putting your savings into a money market account, check the fees and account minimums to make sure they’ll coincide with your needs.

Don’t Use a Parking Place When You Need a Garage
A savings account is a like a good parking place for cash. Its usefulness is in its ease of access and flexibility.

This makes it a great place to keep savings that you may need to access in the short term – say, within the next 12 months.

For long-term saving (like for retirement), it’s generally not a good idea to rely on a savings account alone. Retirement savings doesn’t belong in a parking place. For that, you need a garage. Talk to your financial professional today about a savings strategy for retirement, and the options that are available for you.

Shopping for a Savings Account
Just because a savings account doesn’t offer high yields, doesn’t mean you shouldn’t consider it carefully. To get the most bang for your savings buck, search out the highest interest possible (which might be online), be aware of fees and penalties, and remember – any saving is better than not saving at all!


[i] https://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001/

September 10, 2018

Disappearing Pensions and Protecting Your Retirement

Disappearing Pensions and Protecting Your Retirement

The old days of working at the same company for 30 years and retiring with a company pension are just about over.

Today, very few companies offer pension plans and those that do are finding those plans in peril.

Most modern workers must learn to plan their retirement without a pension. Luckily, there are still great financial tools for your retirement strategy, and workers who save diligently and prepare well can still look forward to a well-funded retirement.

Disappearing Pensions and the Rise of the 401(k)
A company pension was commonplace a few decades ago. In exchange for hard work and service for somewhere around 30 years, a company would provide you with a guaranteed income stream during your retirement.

Many Americans enjoyed a comfortable and secure retirement with a pension. Coupled with their social security benefits, they lived fairly well in their golden years.

The reason pension plans are going the way of the wind has many factors, including changes in workers’ behavior, longer life expectancies, and rising costs for employers.

A study by the professional services firm Towers Watson found that from 1998 to 2013, the number of Fortune 500 companies offering pension plans dropped 86 percent, from 251 to 34.1 Couple that with the Revenue Act of 1978, which allowed for the creation of 401(k) savings plans, and you’ll have a good view of the modern retirement landscape.

How to Retire Without a Pension
The company pension isn’t coming back, so what can workers do to secure a retirement like their parents and grandparents had?

Here are a few retirement planning tools that every worker can put to good use.

Take Full Advantage of Your Company 401(k) Plan
If your company offers a 401(k) retirement plan, make sure you’re taking full advantage of it. Here are a few ways to maximize your 401(k) plan.

  • Make the match: If your employer offers matching contributions, don’t leave the match on the table. Contribute the required percentage to collect the most you can.
  • Get fully vested: Make sure you are fully vested before you make any employment changes. Your contributions to a 401(k) will always be yours, but to keep 100% of your employer contributions, you must be fully vested.

Open a Roth IRA
A Roth plan is funded with taxed income. The upside is that you won’t pay taxes when you take it out. If your 401(k) contributions are maxed out, a Roth could be a good savings vehicle for you.

Consider an Annuity
If you like the idea of a guaranteed income stream, consider an annuity. An annuity is an insurance product, so most of the time it isn’t invested. In exchange for a lump sum of money, an annuity will pay a guaranteed monthly income stream.

Talk to a Trusted Financial Professional
Pensions are all but gone. This means today’s workers must be more involved in how they create a strategy for their retirement. There are many great retirement savings tools. Talk to a trusted financial advisor to understand and learn how you can make sure your retirement income is going to be there when you need it.

This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you.


Source: https://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/07/20/pensions-are-taking-the-long-lonely-road-to-retirement

September 10, 2018

Take your dream vacation, without causing a retirement nightmare

Take your dream vacation, without causing a retirement nightmare

Now that the kids are out of the house, maybe you and your spouse want to take that once-in-a-lifetime island-hopping cruise.

Or maybe your friends are planning a super-exciting cross-country road trip to see all the sites you learned about in school. It can be tempting to skim a little off the top of your retirement savings to fund that dream vacation and make it happen. But whatever your vacation dream is, you shouldn’t sacrifice your retirement savings to live it.

This isn’t to say you shouldn’t take that trip. Vacation is important to health and wellbeing. If anything, studies show that Americans aren’t taking enough vacation during the year.

But, for those that do take a break, many are going into debt to do it, sadly enough. A survey by the financial planning platform LearnVest asked 1,000 adults how they finance their vacations. The answer? They go into debt.

The study found:¹

  • On average Americans will accrue $1,108 of debt for a vacation.
  • 32 percent said saving money for a vacation was their top financial priority – above saving for a home or retirement!

So, what to do if you’re hungry for travel and need a getaway? Here are some simple strategies to help you save for that vacation, all while protecting your funds for retirement.

1) Follow the $5 a day rule: The $5 a day rule simply means you put a fiver away each day toward your vacation. Most of us could probably scrape together $5 a day just by making coffee at home and bringing a sandwich or two to work each week. If you muster up the discipline to stick to it for a year, you’ll end up with $1,825 – a pretty decent vacation fund.

2) Use a rebate app: Rebates can put cash in your pocket. Try an app like Ibotta.² Just sign up and select the rebates for items you purchase at the stores you frequent. Shop and scan your receipt. The app will put the rebate into an account. You can withdraw the cash through Paypal or Venmo.

3) Cancel the gym: Working out is critical to staying healthy! But ask yourself if you really need that gym membership. Gym memberships can cost anywhere from $35 to more than $100 a month. Consider saving that money for a vacation and start working out at home.

4) Cut down on your food budget: Of course, you gotta eat. But we could all probably tighten up our food budget a bit. Try meal planning and batch cooking. Plan your meals around what’s on sale and in season.

5) Find free entertainment: Can’t live without getting some weekly entertainment? You don’t have to – just look for the free events going on in your community. Consult your local newspaper or town’s website for info on community festivals, outdoor concerts, and art shows.

Keep Calm and Save On
Saving for anything has its challenges. But with a little effort and perseverance, you can have your dream vacation and your retirement, too!


  1. https://www.marketwatch.com/story/75-of-americans-have-done-this-to-pay-for-a-vacation-2017-06-21\
  2. https://ibotta.com/

September 3, 2018

Retiring Boomers: Can You Afford the Long Life You’ve Been Hoping For?

Retiring Boomers: Can You Afford the Long Life You’ve Been Hoping For?

As Baby Boomers retire or prepare to retire, there’s good news and bad news. The good news is Baby Boomers are living much longer – into their 80s. The bad news is that many aren’t financially prepared to handle the gift of a long life.

Can You Afford the Long Life You’ve Been Hoping For?
In 1900 the average lifespan was 47 years – nowadays, that’s just about midlife. The average life expectancy in 2018 is about 80. This means if you’re planning on retiring at 65, you may have another two decades to go. And that means you must have another two decades of income.

A long life is a blessing, but a long life without enough money? That might be a curse.

Baby Boomer Retirement by the Numbers
According to a study by the Insured Retirement Institute – a trade association for the retirement income industry – surprisingly, many Boomers are not financially prepared for retirement.

  • 24 percent of Boomers have no retirement savings
  • 55 percent have some retirement savings
  • 42 percent of those with some retirement savings have less than $100,000

There are a few reasons Baby Boomers are coming up short on retirement savings. Many were heavily invested during the 2008 crash and never fully recovered. Boomers were also the first generation to be tasked with saving for retirement largely on their own. Company pensions were already declining, and the rise of the 401(k) plan was underway.

Also, wages have stagnated, and interest rates have declined. Add to this a relaxed approach to retirement savings and it’s no wonder Baby Boomers are struggling with their retirement funds.

Creative Ways Boomers are Boosting Retirement Savings
Baby Boomers are nothing if not self-reliant, and many are handling their retirement dilemma in some creative ways…

  • Staying in the workforce: Some Boomers keep working for the extra income, while others enjoy their work and aren’t ready to give it up entirely.
  • Side gigs: Boomers are taking on the gig economy – earning extra cash by working part-time or through contract.
  • Alternative lifestyles: Some Boomers have decided to stretch their retirement dollars by living in another country where the dollar goes further. Others are forgoing the expense of homeownership for full-time RV travel or living on a sailboat.

Good Planning Gives You Good Options
Whatever you decide to do during your retirement years, the better prepared you are the more choices you’ll have. Whether you’re a young Boomer still in the workforce, or if you’re already living off your retirement savings, financial planning is key.

Contact a professional today to make sure you’re getting the most out of your retirement.

September 3, 2018

What is your #1 financial asset?

What is your #1 financial asset?

What is your #1 financial asset? It’s not your house, your retirement fund, or your rare baseball card collection gathering dust.

Your most valuable financial asset is YOU!
Today – Labor Day, the unofficial last day of summer – let’s look at ways you can develop your skills and outlook in the workforce as we move from summertime vacation mode into finishing 2018 strong.

You might be savvy at home improvement, you might be a whiz with your finances, or you might have the eye to spot a hidden treasure at a yard sale, but how do you increase your value as a laborer in the workforce? One of the top traits of successful people is that they come up with a plan and they execute. Waiting for things to happen or taking the crumbs life tosses their way isn’t on their to-do list. Whether you’re dreaming of a secure future for yourself and your family, or if you want to build a career that enables you to help others down the road (or both!), the path to your goal and how fast you get there is up to you.

Increase your value as an employee
Working for someone else doesn’t have to feel like a prison sentence. In a recent study, nearly 60% of entrepreneurs worked full time as an employee for someone else while planning and building their own business on the side. Being employed is a chance to learn alongside experienced mentors, and prime time to experiment with how you can best add value. In many cases, successful entrepreneurs spent their time in the workforce amassing a wealth of information on how businesses are run, making mental notes on what doesn’t work, and practicing what can be done better.

View your time as an employee as an opportunity to hone your problem solving skills. It’s a mindset – one that can make you a more valuable employee and prepare you for great things later. Being seen as a problem solver can grant you more opportunity for promotions, pay increases, greater responsibility, and perhaps most importantly, open up more chances for life-enriching experiences.

Build your financial strategy
While you’re working to increase your value as a laborer, you’ll benefit from steady footing before taking your next big step. This is where building a solid financial strategy comes into play. Nearly everyone has the potential to be financially secure. Where most find trouble is often due to not having a plan or not sticking to the plan. A few simple principles can guide your finances, setting you up for a future where you have freedom to choose the life you envision.

  • Pay yourself first. Starting early and continuing as your earnings grow, begin the habit of paying yourself first. Simply, this means putting away some money every month or every paycheck that can help you reach your financial goals over time. Ideally, this money will be invested where it can grow. The goal is to get the money out of harm’s way, where you would have to think twice before dipping into your savings before you spend.
  • Develop a budget and consider expenses carefully. Think about expenditures before opening your wallet and swiping that credit card. Avoid debt wherever possible. Most people are able to have more money left over at the end of the month than they might realize. Don’t be afraid to tell yourself “no” so you can reach a bigger goal.
  • Plan for loved ones with life insurance. Here is where the value you provide your family through your hard work comes into sharp focus. Life insurance is essentially income replacement, should the worst happen. Meet with your financial professional and put a tailored-to-you life insurance policy in place that assures your family or dependents are taken care of.

Put your skills to work as a leader
Once you’ve established a level of financial security, now is the time to think about giving back by providing opportunities and helping others to realize their goals. There’s an old saying: “You’ll never get rich working for someone else.” While that’s not always true, trying to realize your long-term financial goals in an entry-level position might be an uphill climb. Moving up into a leadership position can teach you new skills and can increase your earning power. The average salary for managers approaches six figures!

You might even be ready to branch out on your own, investing the knowledge and leadership skills you’ve gained over the years in your own venture. Consider becoming an entrepreneur with your own financial services business – this can allow you to help others while building on your continuing success as a financial professional.

Whether you choose to strike out on your own, start a new part-time business, or grow within the organization or industry you’re in now, there are key traits that will help you succeed. Having a future-driven, forward-thinking mindset will guide your decisions. Your sense of commitment and the leadership skills you’ve honed on your journey will define your career – and perhaps even your legacy – as others learn from your example and use the same principles to guide their own success.

August 20, 2018

5 Things to Consider When Starting Your Own Business

5 Things to Consider When Starting Your Own Business

Does anything sound better than being your own boss?

Well, maybe a brand new sports car or free ice cream for life. But even a state-of-the-art fully-decked-out sports car will eventually need routine maintenance, and the taste of mint chocolate chip can get old after a while.

The same kinds of things can happen when you start your own business. There are many details to consider and seemingly endless tasks to keep organized after the initial excitement of being your own boss and keeping your own hours has faded. Circumstances are bound to arise that no one ever prepared you for!

Although this list is not exhaustive, here are 5 things to get you started when creating a business of your own:

1. Startup cost
The startup cost of your business depends heavily on the type of business you want to have. To estimate the startup cost, make a list of anything and everything you’ll need to finance in the first 6 months. Then take each expense and ask:

  • Is this cost fixed or variable?
  • Essential or optional?
  • One-time or recurring?

Once you’ve determined the frequency and necessity of each cost for the first 6 months, add it all together. Then you’ll have a ballpark idea of what your startup costs might be.

(Hint: Don’t forget to add a line item for those unplanned, miscellaneous expenses!)

2. Competitors
“Find a need, and fill it” is general advice for starting a successful business. But if the need is apparent, how many other businesses will be going after the same space to fill? And how do you create a business that can compete? After all, keeping your doors open and your business frequented is priority #1.

The simplest and most effective solution? Be great at what you do. Take the time to learn your business and the need you’re trying to fill – inside and out. Take a step back and think like a customer. Try to imagine how your competitors are failing at meeting customers’ needs. What can you do to solve those issues? Overcoming these hurdles can’t guarantee that your doors will stay open, but your knowledge, talent, and work ethic can set you apart from competitors from the start. This is what builds life-long relationships with customers – the kind of customers that will follow you wherever your business goes.

(Hint: The cost of your product or service should not be the main differentiator from your competition.)

3. Customer acquisition
The key to acquiring customers goes back to the need you’re trying to fill by running your business. If the demand for your product is high, customer acquisition may be easier. And there are always methods to bring in more. First and foremost, be aware of your brand and what your business offers. This will make identifying your target audience more accurate. Then market to them with a varied strategy on multiple fronts: content, email, and social media; search engine optimization; effective copywriting; and the use of analytics.

(Hint: The amount of money you spend on marketing – e.g., Google & Facebook ads – is not as important as who you are targeting.)

4. Building product inventory
This step points directly back to your startup cost. At the beginning, do as much research as you can, then stock your literal (or virtual) shelves with a bit of everything feasible you think your target audience may want or need. Track which products (or services) customers are gravitating towards – what items in your inventory disappear the most quickly? What services in your repertoire are the most requested? After a few weeks or months you’ll have real data to analyse. Then always keep the bestsellers on hand, followed closely by seasonal offerings. And don’t forget to consider making a couple of out-of-the-ordinary offerings available, just in case. Don’t underestimate the power of trying new things from time to time; you never know what could turn into a success!

(Hint: Try to let go of what your favorite items or services might be, if customers are not biting.)

5. Compliance with legal standards
Depending on what type of business you’re in, there may be standards and regulations that you must adhere to. For example, hiring employees falls under the jurisdiction of the Department of Labor and Federal Employment Laws. There are also State Labor Laws to consider.

(Hint: Be absolutely sure to do your research on the legal matters that can arise when beginning your own business. Not many judges are very accepting of “But, Your Honor, I didn’t know that was illegal!”)

Starting your own business is not an impossible task, especially when you’re prepared. And what makes preparing yourself even easier is becoming your own boss with an established company like mine.

The need for financial professionals exists – everyone needs to know how money works, and many people need help in pursuing financial independence. My company works with well-known and respected companies to provide a broad range of products for our customers. We take pride in equipping families with products that meet their financial needs.

Anytime you’re ready, I’d be happy to share my own experience with you – as well as many other things to consider.


August 20, 2018

A Surprising Help After Buying a House

A Surprising Help After Buying a House

When I say “buying a house,” what kind of insurance do you think of?

Homeowners insurance. Obvious, right? But there’s another type of insurance you should consider with a few amazing-yet-unexpected benefits for new homeowners. Give up? It’s… life insurance.

Mortgage payments and the cost of upkeep won’t stop with an untimely passing. Life insurance is a significant tool for homeowners because it’s a great way to help protect your loved ones from a sudden and unexpected financial burden. Your family wouldn’t have to lose their home because of missed payments, and if you co-signed a mortgage with someone outside your nuclear family, the benefits of life insurance have the potential to cover your contribution for a time, not leaving that friend or business partner in a financial bind. As for the upkeep of your home, a general rule of thumb is to set aside 1% annually of the purchase price of the house for routine repairs and/or maintenance. For instance, if you paid $250,000 for your home, set aside $2,500 each year. So if you’ve already had to convince yourself that the hole in the roof is almost, sorta, kind of the same as that skylight you always wanted to put in, just imagine what your family might experience if the income you or your spouse provides was no longer available.

Not sure if you have the right policy to help out with your new home in the event of a sudden death? Be sure to talk with a financial professional to make sure you’re financing the future you want – and that you’re doing everything in your power to help your family stay in the house that you’re all working to make a home!


August 13, 2018

Your Life Insurance Rate & You: Poor Health Habits

Your Life Insurance Rate & You: Poor Health Habits

What are you digging so deep in your pocket for? If you’re looking for a lighter, you might need to dig for some extra change, too…

… You’ll need help to meet your higher life insurance rate if you’re planning on lighting up a cigarette.

Health details and everyday habits that may seem small or insignificant can have a massive effect on your life insurance rate. You may have heard something about the underwriting process. The purpose of the underwriting process is to determine how risky a person will be to insure. And the riskier someone is to insure, the higher their rate is likely to be. That risk is calculated by how soon an insurer estimates an applicant will need the full payout of their life insurance policy.

Some factors that influence risk (like age and gender) are out of your control. But did you know that your habits can also send your life insurance rate up?

Here are 3 poor health habits that an underwriter will definitely uncover and will definitely affect your life insurance rate:

1. Smoking
If you smoke cigarettes, expect a higher life insurance rate. Period. Even products like nicotine patches, gum, or lozenges can earn a life insurance applicant “smoker” status (depending on the provider). At this point, are there really any lingering questions about how cigarettes affect your overall health and projected longevity? Cigarettes contain thousands of chemicals and at least 70 known carcinogens.

A bit of good news? The longer it’s been since you quit smoking, the better things might look for you from an underwriting standpoint. For instance, some underwriters are only required to look back into your history as far as 12 months, so if you have quit cigarettes for a year, you may end up with a better classification – and a better classification potentially means a better life insurance rate.

2. Being Too Overweight
An underwriter will also assess your height-to-weight ratio. Your unique ratio will classify you according to a certain rate. Being overweight or obese increases health risks like stroke, type 2 diabetes, coronary heart disease, and high blood pressure, among others. So the more overweight you are, the riskier you are to insure. And what does that mean? You guessed it: your chances of a higher rate are significantly increased.

3. Drinking A LOT of Alcohol
Did reading about this poor health habit throw you off? After all, a few drinks isn’t that bad, right? Well, “a few drinks,” no, but drinking in excess can start to have adverse effects on your overall health. Excessive or “binge” drinking: liver disease, pancreatitis, cancer, brain damage, and more.

How will an underwriter know if you’re drinking to excess? They’ll give you a questionnaire, you’ll be subject to a medical exam, and they’ll see your driving record. So If there is any evidence of drinking excessively and getting behind the wheel of a car, consider your life insurance rates raised.

Kicking these 3 habits can have great effect on your personal health and on your life insurance rate! With a little effort, time, and preparation, you can put yourself in a better position for a potentially more affordable rate. But don’t wait to get started! Remember: when you apply for life insurance, you may not get full credit for changes to these 3 poor health habits made in the 12 months prior to your application..

Every insurer’s rates are going to be a little bit different, and that’s why you have an advantage by working with me. We’ll shop around for the policy and rate that’s tailored to your unique needs.

So if you’ve been waiting for a sign to stop smoking, quit eating too much junk food, or cut back on drinking, consider this it!


August 13, 2018

3 Ways to Save Money (No Formulas Needed)

3 Ways to Save Money (No Formulas Needed)

When you’re ready to take control of your finances, it can seem overwhelming to get your savings plan going.

Every finance expert has a different theory on the best way to save – complete with diagrams, schedules, and algebraic formulas. Ugh. But saving money isn’t complicated. Here’s a secret: the best way to save money is not to spend it. It’s that simple.

Turn Off the TV
The act of turning off your TV to save money on electricity may not make much difference. Running a modern TV for as long as 12 hours per day probably costs less than $10 per month. The real expense associated with your television comes from the advertisements. Look around your home and in your driveway and you’ll probably see some of the fallout associated with watching television. Advertisers have convinced us that we need the latest and greatest gizmos, gadgets, cars, homes, and that we need to try the latest entree at our favorite chain restaurant before the deal goes away forever! Skipping the TV for some time spent with family or enjoying a good book may not only cost you less money in the long run, it’s priceless.

The 30-Day Rule
Here’s how it goes. If you want something, and that something isn’t an emergency, make a note of it and then wait 30 days before revisiting the idea of purchasing that item. Your smartphone is perfect for this because it’ll probably be in your hand when you first find the item you want to buy. Use a note keeping app or a reminder app to document the date and details about the item. After 30 days, the desire to purchase that item may have passed, or you may have concluded that you didn’t really need it in the first place. If you still want the item after 30 days – and it fits into your budget – go for it!

The 10-Second Rule
The 30-day rule is useful in a lot of cases, but it may not work so well for some types of household spending, like grocery shopping. 30 days is too long to wait if you’re out of coffee or cat litter. Even so, the grocery store is a hotbed for impulse buying – sales, specials, and check-out aisle temptations may be too much to resist. Instead of dropping items into your cart on a whim, wait 10 seconds and then ask yourself for one good reason why you need to purchase this particular item right now. Chances are pretty good – that there isn’t a good reason. Ding! You just saved money. That was easy. (Hint: Always make a list before you head to the store.)

Now that you’ve gotten rid of the idea that trigonometry + calculus + geometry = financial independence, which money-saving tip will you put into practice first? (Quick note: The 30 Day Rule does not apply here – no need to wait to get started!)


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