Adult Financial Education

Sizzlin’ Summer Series: PART 3

What does Summer remind you of? Maybe it’s the feeling of jumping into a cool pool after a day in the summer heat; or maybe it’s the sound of the ice cream truck as you are bolting out the door with whatever change you could get your hands on. From lazy days in air conditioning to random road trips and more; summer is full of memories, and more importantly, choices.

In Part 3 and the final installation of ‘SIZZLIN SUMMER SERIES’, we will go into the top 3 financial choices you should research before making a decision:

1. 401(K) and 401(k) Roth:

Up until recent, most companies would only offer a traditional 401(k) to employees; however, a Roth 401(k) has become a regular option as well. The difference comes down to one simple, yet complex word: taxes. In short, a traditional 401(k) is taxed when you pull the money out when you retire. Opposite of traditional; a Roth 401(k) is taxed now, so you don’t have to pay Uncle Sam when you retire. So which one is best? It all depends on your tax bracket and current tax rate. For instance, tax rates are the lowest they have ever been in the last 100 years, so it would make sense to rollover to a Roth 401(k).

Key Point: A 401(k) is a vital part to any retirement portfolio. When looking at the 2 types, consider your current tax bracket, how your income will change in the coming years, and tax rate predictions.

2. Variable Annuity and Fixed Index Annuity:

In short, an annuity is a fixed sum of money paid to someone, typically for the rest of their life on a annual basis. While guaranteed income is a great addition to any retirement plan, its crucial to know the two types of annuities and how they differ. A Fixed Index Annuity (FIA) typically provides a set amount of money annually in exchange for a lump purchase payment. An FIA is the safest annuity type as it is offers no market downturn and a guaranteed rate of interest. On the contrary, a Variable Annuity provides irregular payments based on investment funds designed by the insurance company. In addition, directly correlates with the market, so any downside in the market will reflect in a loss in return.

Key Point: An FIA is the most commonly used Annuity type and offers guaranteed upside potential with no downside risk. A Variable Annuity has the opportunity to earn much more return in less time than an FIA, but usually carries an aggressive risk.

3. Risk and Reward

Learning to ride a bike and creating an investment strategy have one key trait in common, balance. Where as a bike requires hand eye coordination and practice, a proper investment portfolio requires constant attention and updates. This is because life is always changing, from career change, to starting a family, to new bills and more, finances need to say in tune with your current needs, wants, and goals. While someone who is younger with a time horizon of 5+ years may choose a riskier portfolio, another, older couple may choose a safer portfolio with little to no downside risk.

Key Point: A successful investment strategy does not require a balance beam or seesaw to work properly. What it does require is consistent checks and adjustments to make sure your portfolio is in the best spot for your current goals and financial situation.

A financial plan has a lot of moving parts and just like a car, requires upkeep and maintenance to keep things rolling smoothly. Regardless of where you are on your financial journey, chat with a financial professional today to see how you can achieve your retirement goals.

Content derived from www.schwab.com,  www.investopedia.com, and www.businessinsider.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

The post Sizzlin’ Summer Series: PART 3 appeared first on Adult Financial Education Services.

Source: Adult Financial

Sizzlin’ Summer Series: PART 3

Sizzlin’ Summer Series: PART 2

The official start of Summer – June 21^st – is right around the corner. As we cruise into part two or our Sizzlin’ Summer Series, we will make a splash with the best cities to retire in 2019.

Get your Hawaiian shirts on, coolers filled, and beach towels ready, because here come the Top 4 Places To retire!

1. Independence, Kentucky

Ranked the 31^st safest city in the U.S., Independence, Kentucky offers everything you can expect from a larger city, with a quaint feeling of an upscale suburban atmosphere. Beyond its centralized location between two large metropolitan areas, Independence offers a mild climate with extremes of 20’s and 80’s and a vast landscape of trees and greenery. Top it off with Kentucky’s retirement-friendly tax structure that does not tax Social Security benefits and has little to no tax impact on other retirement income sources, you can see why this was one of the top places to retire in 2019.

2. Little Elm, Texas,

The first thing to note about Little Elm, Texas is there is nothing little about this city bustling with activities and sites to see.  This 22^nd safest city in the nation – according to RetirementLiving.com, a retirement news source – surrounds 29,000 acres of the well-known Lewisville Lake and offers a lush landscape. For those who enjoy weather that never goes below freezing and sees the highest temperatures in the 90’s, Little Elm is a fantastic retirement option. Throw in no tax on social security, retirement income or state income tax, and things are looking even better. Did we mention the nationally ranked UT Southwestern Medical Center is minutes away in Dallas?

3. Iowa City, Iowa

Coming in at the #1 on Milken Institutes list of best cities for successful aging, Iowa City, Iowa has a lot of offer exploring retirement options. Out of the total population of 158,370, roughly 11% make of the 65 and older demographic. This along with a low unemployment rate and strong small business growth make Iowa City a top choice when retiring in the U.S. Milken Institute also ranks Iowa City #1 in healthcare for small cities. Whether you want to be within walking distance to downtown or enjoy small town living, Iowa City is a great place to discover.

4. Bethel Park, Pennsylvania

Coming in last but certainly not least, Bethel Park, Pennsylvania is positioned on the Blue and Red Lines of the Pittsburgh Port Authority; allowing easy access to South Park and Pittsburgh without the need to drive. In addition to having UPMC Hospital- ranked #11 in geriatric care in the U.S. – within easy access to the transit system, Bethel Park also offers retirees no Social Security Benefits tax and a few options for property tax rebates. And for those who like being minutes away from outdoor activities, Bethel Park contains a 2,013 acre section of South Park, bustling with community events, Golf, ice-rink, hiking trails, historic buildings and more.

Whether you are nearing retirement or still in the planning stages, there is a plethora of places in the United States that offer great opportunities when considering retirement. Next time we will take a dip into the final installment of our Summer Series! Tune in Next Month to see how we’re keeping your summer sizzlin’ and cool!

Content derived from www.retirementliving.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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Source: Adult Financial

Sizzlin’ Summer Series: PART 2

Sizzlin’ Summer Series: PART 1

This last Winter was one for the books. With record snowfall, rain, and cold temperatures, it’s safe to say that most of us are ready for warmer weather. What better way to celebrate the onset of sunshine and warm temps than with a three-part newsletter series to help you enjoy Summer!

In this month’s newsletter, we will dive into the top 3 places to travel, based on the Summer months:

May Travel:

1. Asheville, North Carolina: While the rest of the South will be climbing into high heat and humidity, Asheville will offer nothing but crisp fresh air and endless outdoor activities. Burrowed in the heart of the Blue Ridge Mountains, Asheville is a must-visit destination for music, beer and nature lovers.
2. Cusco, Peru: For those seeking something different, the former capital of the Incan Empire, Cusco, has your name written all over it. Considered the best time to Visit, May is a fantastic month to explore breathtaking views and discover ancient remains, thousands of miles away from home.
3. Bali, Indonesia: Another great international destination, Bali is known for its scenic views and tranquil country side. Traveling here in May will not only give you an experience you won’t find anywhere else, but 12 hours of gorgeous sunlight.

June Travel:

1. Anchorage, Alaska: Some people love the cold, which is why Anchorage is on our list of places to visit this Summer. Specifically, in June, the Summer Solstice occurs which is one of the largest celebrations during the year, full of music, food, and unique entertainment. Expect temperatures in the 50-60’s and what seems like endless sunlight to enjoy.
2. Dubrovnik, Croatia: With crystal clear water and endless enchanting limestone sidewalks. Dubrovnik is the relaxing getaway you’ve been looking for. Whether I’ts exploring or lounging that catches your interest, you will find nothing but enjoyment here.
3. Reykjavik, Iceland: Love the sun? Do you dread when evening comes? Then this is the vacation spot for you. Travel during June and expect close to 24 hours of gorgeous sunlight, and more importantly, weather. Regardless of time or activity, you will find it here.

July Travel:

1. Bristol, Rhode Island: Got any plans for the 4^th of July? If not, check out Bristol for the historic and longest-running Independence Day Celebration. Since 1785, this celebration has gotten so big, a month can’t contain the festivities, which now begin mid-June. For all you history buffs, this is the place for you.
2. Boquete, Panama: Calling all Adventurers! Boquete is a paradise ready to be experienced by you. Hidden in Panama’s green highlands, this haven is popular for hiking, mountain climbing, zip lining, and more adrenaline pumping activities.
3. Athens, Greece: We couldn’t end this list without mentioning one of the most Iconic and well know travel destinations, Athens. Filled with a plethora of things to do and must-see wonders of the world, this is our #1 recommended place to explore this summer.

Make the most of your Summer months by discovering one the amazing destinations listed above; or blaze your own trail and let us know where you went! Tune in next Month for PART 2 of ‘Sizzlin’ Summer Series’, where we will dive in the best places to retire in 2019!

Content derived from www.businessinsider.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

The post Sizzlin’ Summer Series: PART 1 appeared first on Adult Financial Education Services.

Source: Adult Financial

Sizzlin’ Summer Series: PART 1

April is Financial Literacy Month

Do you consider yourself financially literate? According to a study by S&P Global, 57% of American adults are financially literate, ranking the U.S. 14^th in the world. As a way to increase financial understanding, April is considered Financially Literacy month!

Whether you’re a financial guru or consider yourself a newbie, here’s 3 ways to make a difference in your finances this April!

1. Pick & Learn: Always wanted to understand how taxes work? Now’s the time to do so! Pick a financial topic and learn as much as you can about it for the month of April! If taxes aren’t your thing, pick another topic such as mortgage, investing, annuities, and the list goes on. While you most likely won’t be an expert, you can feel more confident on your next financial decision!
2. See Where You Stand: A lot can change in a year, from a new car payment to moving across the country, April is a great time to see how your unique circumstances have changed. Determine where you stand and see if you need to pivot your finances to better support your journey.
3. Create Long-Term Financial Plan: While planning year-to-year when looking at finances is good, creating a long-term financial goal is great. Determine major financial goals such as purchasing a home, assign a cost, and develop a time horizon. Beyond financial goals, look at investments and portfolio volatilities to make sure they coincide with your current and future financial goals.

Financial Literacy Month is a great excuse to take extra time on finances and make sure you are on the right track toward your retirement and lifestyle goals. While these tips are a great start to any planning, speaking with a financial professional will help you get a better understanding of your unique circumstances and what is best for your goals.

Content derived from www.investors.com, www.autopayplus.com , and www.money.usnews.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

The post April is Financial Literacy Month appeared first on Adult Financial Education Services.

Source: Adult Financial

April is Financial Literacy Month

3 Tips to Spring Clean Your Finances

With the official start the Spring being March 20^th, the entire country can now start shedding layers after a record-breaking winter. Along with spring comes nice temperatures, fresh crisp smells, and most importantly, spring cleaning. Typically, spring cleaning will consist of throwing out or donating unused items, organizing the house and cleaning the shed no one has touched since last spring; however, Spring is also a great time to clean up.

Check out these 3 ways to spring clean your finances:

1. Set a goal: Although this sounds like an obvious tip, spring cleaning can engulf you if you don’t set parameters beforehand. Spring cleaning finances is usually even worse, so make sure you set goals up front. Some goals could be:
   1. Sort the top two drawers of the file cabinet
   2. Organize the dreaded ‘paperwork closet’
   3. Track and record receipts for the last 3 months
2. Clear out the clutter: Just like cleaning out the garage, you should take time to go through old paperwork and see what you no longer need. Don’t go overboard and throw away everything. Here’s a quick breakdown of do’s and don’ts
   1. Tax Returns: Keep these forever, the IRS says this will help prepare future tax returns and show proof of filing taxes.
   2. Insurance Documents: If the document involves a claim, ask your insurance agent or company how long to hold on to them, just in case.
   3. Electronic Copies: Any paperwork or documents that are stored online should be ok to discard; BUT, if electronic documents are held by your bank, a financial company, or 3^rd party, ask how long they retain electronic copies.
3. Do A Financial Audit: With holidays in the rearview and summer fast approaching, now is a great time to see where you stand on your financial journey. Some questions to ask yourself would be:
   1. Are you on track for your retirement plan?
   2. Do you have the best tax exemptions for your situation?
   3. When was the last time you looked at your insurance coverage?

Spring Cleaning is looked forward to by some and dreaded by others. Regardless, it is an important part of the year because it allows you to review, renew, and refresh and regrow not only your household, but also your finances. These are just a few ways to stay on track with your finances, before making changes to your financial plan, speak to a financial professional today to understand your unique situation.

Content derived from www.consumerfinance.com, www.creditcards.com, www.moneytalksnews.com, and www.money.usnews.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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Source: Adult Financial

3 Tips to Spring Clean Your Finances

Your 2019 Financial Calendar

There are 12 Months, 52 weeks, 365 days, 525,949 minutes in a year. From holidays, to appointments and birthdays, a lot can happen and even more can be forgotten.

To help you worry about less and focus on more; here’s 5 important dates you should remember when it comes to planning your financial journey:

1. April 15th – This day is most well known as the last day to file taxes for the prior year; but, this day is also the last day to boost your savings! You can do this by funding previous years IRA’s and Health Savings Accounts!
2. June 30th – Are you or your child attending college this year? If so, June 30th is the last day to file for financial aid, or FAFSA. If this is not submitted in time, students cannot access federal loans and/or grants.
3. October 1st – November 1st: During this time, keep an eye out for open enrollment period, which is the time span your employer will allow you to update/change your benefits for the upcoming year.
4. November 1st – January 31st: Unemployed, Self-Employed, or Retired? During this time, you can enroll in new health insurance for the upcoming year through Healthcare.gov.
5. December 31st – This date not only marks the end of the year but also is the last day to take required minimum distributions for IRA, 401(k) and inherited IRA’s!

Along with these important dates listed above, here are 3 annual financial reminders you should set up as well!

1. Free Credit Score – Every 4 months, you should check your credit report for any errors or unwanted surprises. You can pull one free credit report from each of the three credit reporting bureaus at www.annualcreditreport.com
2. Self-Employed and Business Owners – Small business owners and self employed individuals should mark their calendars 4 times a year as deadlines to pay estimated tax bills. These dates are April 15th, June 15th, September 15th, and January 15th.
3. Birthdays – Whether its yours or a close family member or significant others birthday, make sure you are aware of age milestones. From the official move from parents’ insurance, to retirees ability to access Medicare and Social Security, its important to be aware of your close families birthday milestones!

A year of planning can be hard; a life time of planning finances can be even harder! Make it easier by utilizing this Financial Calendar and reaching out to a financial professional, today!

Content derived from www.money.usnews.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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Source: Adult Financial

Your 2019 Financial Calendar

Financial Resolutions for 2019

The holidays are in the rearview and the New Year is just over the horizon. As everyone starts the New Year off with positive changes and new annual goals, make sure your finances are one of them! Don’t let your financial dreams fall out of reach by checking out these 4 financial changes you should promise yourself as you head into 2019.

1. Create a budget: According to a recent study on fool.com, over 57% of American households do NOT follow a budget. In fact, 36% of Americans feel budgeting is too much work and not enough reward. A good budget should only take upwards of an hour to set up, and at the most, 30 minutes to revisit each month. The difference between a well-planned budget and not having one at all could be missing your financial goals!
2. Pay off Unhealthy Debt: Every debt is different, from school loans to credit card debt and more. To eliminate your debt effectively, don’t look at the amount of debt, but the different rates you are incurring interest. Whichever debt has the highest interest rate, pay this off first. Also investigate cutting expenses to pay off debts faster!
3. Build Emergency Fund: Do you have enough money to pay for a $400 emergency? If so, you are better off than 40% of Americans. Emergencies and accidents don’t come with a warning and can happen anytime, anywhere. Before finalizing your financial goals this year, make sure you have a minimum of three months’ worth of living expenses saved away.
4. Boost your retirement savings: If you are planning on living off Social Security as your only income once you retire, don’t. When Social Security was created, it was designed to replace roughly 40% of the average workers pre-retirement income. In fact, the average person will need DOUBLE that to live comfortably. Now in 2019, Retirement plan contributions have increased, which is more reason than ever to start saving more for your retirement goals. In addition, look at other ways to receive guaranteed income, like an annuity or IUL.

While the year has just started, rock your finances so you can start saving like it’s 2020! By saving more, creating a financial budget, and overall increasing retirement assets, you can start building your dream retirement, NOW. Before reviewing your current finances, reach out to a financial professional to see how they can help build your financial legacy.

Content derived from financial website, The Motley Fool (www.fool.com).

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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Source: Adult Financial

Financial Resolutions for 2019

8 Year-End Financial Tips

Twas a few weeks before Christmas, and all through the house, not a person was over-spending, not even  on decorations for the house.

Receipts and bills were paid and filed away with care, in hopes of a fresh financial start to the New Year. Retirement funds were nestled all snug in their accounts, while payments and savings would grow that amount.

And while taxes can be less with charitable giving, also pull an annual, free credit report to make sure my 2019 finances are winning.

When out from my phone arose such a clatter, I look at the caller ID and see it’s my Financial Planner!

Away from work I flew like a flash, into Christmas break, time to meet with my advisor, fast!

The meeting was scheduled, for the day after the snow and while it might be cold, my Advisor says my end-of-year finances were looking bold!

When, what to my wondering eyes did appear, but my advisor with 8 tips for an amazing end to the year!

And they whistled, and shouted, and called them by name:

1. Pay off your debts!
2. Pull A free credit report!
3. Create a Christmas budget!
4. Save on your taxes with Charitable giving of course!
5. Make Pretax contributions so save on taxes even more!
6. Build a financial calendar for the upcoming year!
7. Contribute more to retirement so you can do what’s best for your family and you!
8. And most importantly, meet with your financial professional for an annual review!

But I heard them explain, as they drove out of sight

HAPPY CHRISTMAS TO ALL AND TO ALL A GOOD-NIGHT!

From our family to yours, we wish you Happy Holidays! If you haven’t already, schedule some time to go over your 2018 finances with a financial professional!

*Content provided SimplicityMarketing.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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Source: Adult Financial

8 Year-End Financial Tips

4 Must Know Financial Terms

The holidays are upon us! And with the holidays comes the fun tradition of holiday shopping! Just as you should plan when shopping, you should also plan of when dealing with finances. Although Financial Literacy month isn’t until next year, we wanted to get a head start by celebrating Canada’s Financial Literacy month, November! Before meeting with your financial planner, check out these 4 must know financial terms:

Asset Allocation

This is the most widely utilized investment strategy and is a crucial step when developing a financial plan. Asset allocation aims to balance risk and is built based off an individual’s financial goals, risk tolerance, and investment horizon. There are three main asset classes-equities, as well as fixed-income, and cash and equivalents; which all have different levels of risk and return, so each will behave differently over time. Since everyone’s finances are different, there is no simply formula to find the right asset allocation. Meet with a financial professional to see what allocation method would be best for your unique financial situation.

Indexing Strategy

An investment strategy that allows you to closely mimic the performance of the index you’re invested in. This strategy allows you to participate in a percentage of upside potential and have little to no participation to the downside risk that you would normally see in the stock market. While there are several different Indexing Strategies out there, consult with a financial professional to find the best one for your financial goals.

Tax Deferrals

In short, Tax deferral is a legally acceptable way of putting off taxes. When you invest, the goal is to make a return on your money, and depending on tax brackets, you may have more opportunity for growth if you choose a Tax deferred account like a Roth 401(k). Tax deferral is all about long-term income and long-term planning. Tax deferral is a great way to maximize your hard-earned money but has many variables to consider like tax bracket and where you are on your financial journey.

Roth

There are two main types of Roth’s, a Roth IRA and a Roth 401(k). The main difference between a Roth account and traditional account is how they’re taxed. With a traditional IRA for example, you pay income tax when you withdraw the money, where as a Roth IRA, you would pay taxes up front and receive qualified distributions tax free. Depending on where you are on your financial journey, Roth accounts are a great way to minimize tax reductions on income in qualified plans.

Bottom Line:

There are thousands of financial terms, some more important than others. While this is only a short list of some prominent terms, it is best you consult a financial professional to better understand what these mean, and how they can be utilized to help you on your financial journey.

*Content derived from Investopedia.com and Wealthpilgrim.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

The post 4 Must Know Financial Terms appeared first on Adult Financial Education Services.

Source: Adult Financial

4 Must Know Financial Terms

Five Things to Add to Your Financial To-do List

The weather is getting cooler, the colors are changing, and the scent of pumpkin spice fills the air signaling the beginning of fall and holiday season. But October isn’t just known for pumpkin carving and corn mazes, October is also the month for financial planning. It’s a great time to review the fiscal year thus far and begin planning for holiday spending and traveling. Before you break out the long sleeves and pumpkin spice lattes, here are five things to add to your October to-do list:

1. Make a holiday budget: With holiday season comes an increase in spending. Before you shop, create a spreadsheet of your average monthly expenses so you can plan accordingly. Applications such as Mint by TurboTax, will help you track spending and develop a budget.
2. Review Your Credit Report: Every 12 months, you can receive a free credit report from each credit bureau. After the Equifax breach last year, it is crucial that you keeping track of your credit accounts for fraudulent activities and incorrect reporting. In your report, look for credit lines opened without your knowledge and accounts that are closed but are still being reported as open. You can grab your credit report now on https://www.annualcreditreport.com.

3. Fill Out The FASFA: The school semester is coming to an end, and with it, your child might be exploring college options for next year. On October 1^st, the Federal Application for Student Aid will become available and once filled out, will determine your eligibility for financial aid. Because federal aid can be handed out on a first-come, first serve basis, you should submit this as soon as possible. Within a week, expect the Student Aid Report to arrive and show if you qualify for federal need-based aid such as work-study programs and Pell grants. After, you should head to the school’s website and use their net-price calculator to estimate how much school will cost after factoring financial aid.

4. Do A Retirement Plan Check-Up: Whether retirement is around the corner or down the road, you should be making periodic updates and adjustments to your retirement portfolio. When reviewing, check investments and make sure they still reflect your risk tolerance and estimated retirement time. You should also consider how much you are investing and if you should increase or decrease based on your financial situation.

5. Set Goals For Next Year And Beyond: October is a great time to start planning out next year’s financial goals so you can be set for success in the long-term. Look at your day-to-day finances and locate where you can improve and where you can save more. After, consider which goals are most important for your long-term success. Just as time changes, so should your financial plan. Things like marriage, children, and career can impact your financial goals, so make sure you are reviewing your plan at least once a year.

By implementing some or all the tips above into your October to-do list, you can carve your pumpkin in comfort knowing your financial future is good to go. If you go through these steps and do not like where you are financially wise, schedule a meeting with your financial professional to see how they can help you get your finances back on track.

*Content derived from consumerreports.org and cobizmag.com

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Source: Adult Financial

Five Things to Add to Your Financial To-do List