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Confidence Wealth & Insurance Solutions January 12, 2016 No Comments

Tips for Women Entrepreneurs

According to the National Women’s Business Council, nearly 8 million women-owned businesses exist in the United States. Women-owned firms comprise 28.7% of all nonfarm businesses and generate more than $1.2 trillion in revenue. Interestingly, 88.3% of women-owned businesses have no employees, indicating that many women strike out on their own, perhaps to better balance work and family.¹ If you’re considering the launch of a new venture (or know someone who is), the following information may be helpful.

Facing unique challenges

Although there are no gender differences in the steps involved in starting a business, women may indeed face unique challenges when it comes to implementing those steps.

According to a Babson College study, women entrepreneurs tend to have less confidence than their male peers. Among those who have identified new business opportunities, 34% of women admit to a fear of failure, compared with 29% of men, and less than half of women believe they have the capabilities to start a business, compared with 63% of men.²

Women may also face challenges in securing venture capital (VC) funding. In a different study, Babson researchers found that 85% of all VC-funded companies have no women on the executive team, and only 2.7% of VC-funded companies are led by a woman CEO. However, VC firms with women partners were more than twice as likely to invest in firms with women on the executive team and more than three times as likely to fund a company with a woman at the helm.³

Overcoming the obstacles

So what should a woman with a great business idea do?

First and most important, define what success means to you. Do you want a thriving operation with dozens of employees, or are you looking for self-employment to bring in additional income while allowing more time for family needs? Or maybe it’s something in between? Be sure you have a clear vision of your dream before you launch.

Understand that preparation and knowledge are keys to building confidence. Develop a written business plan that describes your business’s products and/or services, target market, marketing and sales strategy, opportunities and challenges, competition and how you will address it, and other key success factors. This document and the hard work involved in preparing it will be especially important if you plan to seek financing from lenders, angel investors, VC firms, or other outside sources. The required research will help prepare you to answer the tough questions from potential financiers.

Know that successful entrepreneurs are typically willing to take calculated risks. Don’t let fear drive your decision making. Once again, preparation is important, but don’t let your analysis end up in paralysis.

Be sure you have enough funds set aside to survive the start-up phase, which can last as little as a few weeks or as long as several years, depending on your business. Having enough money to live on during this period may further bolster your confidence, reduce fear of failure, and support wise risk taking.

Finally, take heart in knowing help is available. The Small Business Administration,Women’s Business Centers, and Community Development Financial Institutions (CDFIs) across the country provide resources and information especially for women business owners.

¹ National Women’s Business Council fact sheet, June 2015
² Babson College, Global Entrepreneurship Monitor, 2013 United States Report
³ Babson College, Women Entrepreneurs 2014: Bridging the Gender Gap in Venture Capital

Confidence Wealth & Insurance Solutions January 8, 2016 No Comments

[Financial Friday] Give Your Retirement Plan an Annual Checkup

Financial professionals typically recommend that you review your employer-sponsored retirement savings plan annually and when major life changes occur. If you haven’t revisited your plan yet in 2015, the end of the year may be an ideal time to do so.

Reexamine your risk tolerance

This past year saw moments that would try even the most resilient investor’s resolve. When you hear media reports about stock market volatility, is your immediate reaction to consider selling some of the stock investments in your plan? If that’s the case, you might begin your annual review by reexamining your risk tolerance.

Risk tolerance refers to how well you can ride out fluctuations in the value of your investments while pursuing your long-term goals. An assessment of your risk tolerance considers, among other factors, your investment time horizon, your accumulation goal, and assets you may have outside of your plan account. Your retirement plan’s educational materials likely include tools to help you evaluate your risk tolerance, typically worksheets that ask a series of questions. After answering the questions, you will likely be assigned a risk tolerance ranking from conservative to aggressive. In addition, suggested asset allocations are often provided for consideration.

Have you experienced any life changes?

Since your last retirement plan review, did you get married or divorced, buy or sell a house, have a baby, or send a child to college? Perhaps you or your spouse changed jobs, received a promotion, or left the workforce entirely. Has someone in your family experienced a change in health? Or maybe you inherited a sum of money that has had a material impact on your net worth. Any of these situations can affect both your current and future financial situation.

In addition, if your marital situation has changed, you may want to review the beneficiary designations in your plan account to make sure they reflect your current wishes. With many employer-sponsored plans, your spouse is automatically your plan beneficiary unless he or she waives that right in writing.

Reassess your retirement income needs

After you evaluate your risk tolerance and consider any life changes, you may want to take another look at the future. Have your dreams for retirement changed at all? And if so, will those changes affect how much money you will need to live on? Maybe you’ve reconsidered plans to relocate or travel extensively, or now plan to start a business or work part-time during retirement.

All of these factors can affect your retirement income needs, which in turn affects how much you need to save and how you invest today.

Is your asset allocation still on track?

Once you have assessed your current situation related to your risk tolerance, life changes, and retirement income needs, a good next step is to revisit the asset allocation in your plan. Is your investment mix still appropriate? Should you aim for a higher or lower percentage of aggressive investments, such as stocks? Or maybe your original target is still on track but your portfolio calls for a little rebalancing.

There are two ways to rebalance your retirement plan portfolio. The quickest way is to sell investments in which you are overweighted and invest the proceeds in underweighted assets until you hit your target. For example, if your target allocation is 75% stocks, 20% bonds, and 5% cash but your current allocation is 80% stocks, 15% bonds, and 5% cash, then you’d likely sell some stock investments and invest the proceeds in bonds. Another way to rebalance is to direct new investments into the underweighted assets until the target is achieved. In the example above, you would direct new money into bond investments until you reach your 75/20/5 target allocation.

Revisit your plan rules and features

Finally, an annual review is also a good time to take a fresh look at your employer-sponsored plan documents and plan features. For example, if your plan offers a Roth account and you haven’t investigated its potential benefits, you might consider whether directing a portion of your contributions into it might be a good idea. Also consider how much you’re contributing in relation to plan maximums. Could you add a little more each pay period? If you’re 50 or older, you might also review the rules for catch-up contributions, which allow those approaching retirement to contribute more than younger employees.

Although it’s generally not a good idea to monitor your employer-sponsored retirement plan on a daily, or even monthly, basis, it’s important to take a look at least once a year. With a little annual maintenance, you can help your plan keep working for you.

Confidence Wealth & Insurance Solutions January 5, 2016 No Comments

7 Easy Morning Routines To Help Stay In Shape

When most of us think about staying in shape, we picture a lot of hard work and exercise. We may picture an hour or more at the gym or a long sweaty jog. Guess what, it doesn’t have to be this way. These ideas will help you to stay in shape both mentally and physically. After all, part of our physical exercise is staying mentally fit as well.

You’ll find that when you’re physically fit, the rest of your fitness falls readily into place. From your mental outlook on life to your finances, if you are staying in shape, you’re going to feel great all the way around. These 7 tips will help you to streamline your morning with ease.

1. Get Your Sleep Number

No, we’re not talking about your mattress; we’re talking about getting the right number of hours of sleep. In order to start your morning off right you’re going to have to determine how many of hours of sleep your body requires. To do this you’ll need to take a few measures.

Start by planning out 8 hours of sleep. Go to bed at a reasonable time, let’s say 11:00 pm for example. This would mean that you get up at 7:00 am. Try this for a few days and see if you wake up feeling refreshed. Some of us may need up to 9 hours of sleep and others may be able to sneak by on only 5 hours of sleep. You may have to play with this for a week or so to determine what works best for you.

Once you get it all figured out start aiming for that amount of sleep on a nightly basis. You can’t stay in shape if you’re not getting the rest you need. Your body heals and recovers at night so be sure that you’re taking good care of your body by giving it plenty of rest.

Another trick to help you get to sleep is to cut out all electronics at least a half an hour before bedtime. This will help your body to wind down and start to relax. If getting up to use the bathroom at night is an issue you may also need to cut back on liquids after about 4:00 or 5:00 pm.

2. Stretch It Out

When your alarm goes off, slowly move to a sitting position at the side of your bed. This is your first mini workout. You’re going to take a few minutes and slowly start stretching. Begin with your toes and curl them up and slowly release them. Now move to your ankles. Twist your torso slowly to one side and then the other. Now stretch those arms up over your head and work your way up your body until you reach your neck. Do a few neck rolls and slowly stand.

Some people prefer to reverse the order of this and start with their head and arms and work their way down. Either way is fine just be sure to do it. By stretching you’re giving your muscles a few minutes to wake up and you’re getting the blood flow going again.

If you do this right you’ve just spent about 5 to 7 minutes getting your body stretched and the blood circulating. You’re now on your way to a great morning routine and staying in better shape.

3. Eat A Healthy Breakfast

It’s long been said that breakfast is the most important meal of the day. This is so very true. If you’re like many of us, you don’t bother to eat you just throw on your clothes and race right out the door. This isn’t healthy and you’re going to find yourself crashing within a very short time if you get into this habit. You’ll also be much more likely to overeat.

Start your day with a healthy breakfast that has some carbohydrates and protein in it. You don’t have to eat a lot, but do try to eat a little bit to fuel your body up for the day. If you simply cannot eat try a breakfast smoothie or shake. There are many to choose from on the market today or you could even create your own with your favorite fruits and veggies.

4. Your Work Out

Now that you’re all fueled up it’s time to consider your workout. You’ll want to create a workout routine that you can enjoy. For many of us this means something that will rotate. If you’re like many of us you get bored with the same old thing day after day so step it up and change things around. Here are some great workout ideas to get you started. Mix and match them or choose one per day for best results.

Go for a walk with a friend or friends.
Take the dog for a walk.
Run your errands but park farther away and walk the distance.
Walk to the grocery store or for the errands.
Do some aerobics with either a class, a friend or by using a video to keep you going.
Plan out a routine that has repetitive steps such as sit ups, pushups, jumping jacks etc. Do this for about 30 minutes per day.
Go for a bike ride.
Go swimming or do water aerobics.
Do some Yoga.

Remember, your exercise routine doesn’t have to be boring. It can easily be vamped up or down to accommodate you with your daily needs. Remember that if a routine gets boring it’s time to change it up. Your routine should be something fun and enjoyable that you look forward to.

5. Meditate

Schedule some time in to simply meditate and breathe in your day. We’ve found that when we do this we are rejuvenating and reenergizing ourselves. While it may seem counterproductive it actually is healthier and can help to lower blood pressure and ease stress.

Don’t focus on anything but your most serene picture in your mind and let your body relax. It is amazing how putting some meditation into your routine can become of your daily routine and help you to stay in shape physically, mentally and financially. When you take time to focus on nothing but relaxing you allow your body to reduce stress and you can realign your body with your world.

Staying in shape requires many steps and learning how to relax is just one of the many steps that we use to stay in shape.

6. Do The Most Challenging Things First

As you begin the rest of your day decide which tasks are most challenging and get those done while you still have the energy to do them. This is also a great way to stay in shape as it will help you to mentally get them out of the way. You won’t be stressing about them or worrying about any of the small details.

By channeling your energy first thing you can often get more done and save the less intensive tasks for last. If you do something challenging at the end of the day you’ll stress about it all day long. This is very counterproductive to staying in shape.

7. Pre Plan

The last step for easy morning routines to stay in shape is to pre plan tomorrow. Take a few minutes each evening to pre plan your next day. You may wish to set out your clothes for the next day. You might want to write out a list of things to do and organize the list into what is priority and what is simply something that you can do whenever you desire.

When you pre plan you can focus more on your day and enjoying it rather than worrying about what you might need to do next or may have forgotten. As all of these steps become habit in your life you’ll likely find that you actually have more time on your hands.

When you take the time to focus on more challenging tasks earlier in the day when you have the energy you’ll find that they take less time. When you make out your list the night before you’ll find that you have more time in your day. After all of this becomes routine you’ll realize how much time you’ve been wasting on things that you didn’t need to.

Staying in shape is easier when you use these tips and focus more on what life is all about. You’ll find that your body, mind and finances are all in better shape when you adopt a routine like this. It took most of us about six to eight weeks to fully adapt to this new routine but once we did we found that we had more energy than ever before.

Confidence Wealth & Insurance Solutions January 1, 2016 1 Comment

[Financial Friday] Joy-Based Budgeting—Is There Such A Thing?

The happily-ever-after starts with YOU. Have a positive attitude about money… even budgeting!

Don’t think of budgeting as deprivation. Call it “joy-based spending” instead!

Rather than telling yourself all the things you shouldn’t spend money on, focus on maximizing the amount of joy you get out of each dollar you do spend.

This way, rather than allowing spending restraints to drain your will power and sap your serenity, you focus on deliberately increasing your happiness through targeted, deliberate spending.

How?

Write down everything you’ve spent.
Highlight and mark any spending that brought you happiness.
Now look at what’s left over.
That’s where you can start cutting back on your spending, without eliminating any joy from your life.

Confidence Wealth & Insurance Solutions November 5, 2015 No Comments

When Should I Retire?

If you’re considering retirement within the next five years or so, you’re in the retirement “zone.” This is a critical time period during which you’ll be faced with a number of important choices, and the decisions you make can have long-lasting consequences. It’s a period of transition: a shift from a mindset that’s focused on accumulating assets for retirement to one that’s focused on distributing wealth and drawing down resources. It can be confusing and chaotic, but it doesn’t have to be. The key is to understand the underlying issues, and to recognize the long-term effects of the decisions you make today.

Tip: If you’ve recently retired, you’re also in the retirement zone. You’ll want to evaluate your financial situation in light of the decisions that you’ve already made, and consider adjusting your overall plan to reflect your current expectations and circumstances.

Are you ready to retire?

The first question that you should ask yourself is: “Am I ready to retire?” For many, the question isn’t as easy to answer as it might seem. That’s because it needs to be considered on two levels. The first, and probably the most obvious, is the financial side. Can you afford to retire? More specifically, can you afford the retirement you want? On another level, though, the question relates to the emotional issues surrounding retirement–how prepared are you for this new phase of your life? Consider both the financial and emotional aspects of retirement carefully; retiring before you’re ready can put a strain on the best-devised retirement plan.

Tip: There’s not always a “right” time to retire. There can be, though, a wrong time to retire. If you’re not emotionally ready to retire, it may not make sense to do so simply because you’ve reached age 62 (or 65, or 70). In fact, postponing retirement can pay dividends on the financial side of the equation. Similarly, if you’re emotionally ready to retire, but come up short financially, consider whether your plans for retirement are realistic. Evaluate how much of a difference postponing retirement could make, and then weigh your options.

Transitioning into retirement: Financial issues

Start with the basics:

If you do not already have a projection of the annual income you’ll need in retirement, spend the time now to develop one. Factor in anticipated costs relating to basic needs, housing, health care, and long-term care. If you plan to travel in retirement, estimate a corresponding annual dollar amount. If you’re financially responsible for other family members, or plan to make monetary gifts, you’ll want to include these commitments in your calculations. Be as specific as you can. If it’s been more than a year since you’ve done this exercise, revisit your numbers. Consider and account for inflation.
Estimate the income that you’ll be able to rely on from Social Security and any benefits from a traditional employer pension, and compare the result with your projected retirement income need. The difference may need to be funded through your personal savings.
Take stock of your personal savings. Are your personal savings sufficient to provide you with the annual income that you’ll need?
When will you retire? The age at which you retire can have an enormous impact on your overall retirement income situation, so you’ll want to make sure you’ve considered your decision from every angle. Why does the timing of your retirement make such a difference? The earlier you retire, the sooner you need to start drawing on your retirement savings. You’re also giving up what could be prime earning years, when you could be making substantial additions to your retirement savings. That combination, even for just a few years, can make a tremendous difference.

Other factors to consider:

The longer the retirement period that you need to plan for, the greater the potential that inflation will eat away at your purchasing power. That means the earlier you retire, the more important it is to account for inflation in your overall plan.
You can begin receiving Social Security retirement benefits as early as age 62. However, your benefit may be as much as 20 to 30 percent less than if you waited until full retirement age (65 to 67, depending on the year you were born). Weigh your options, and choose the start date that makes the most sense for your individual financial circumstances.
If you’re covered by a traditional employer pension plan, check to make sure it won’t be negatively affected by your early retirement. Because the greatest accrual of benefits generally occurs during the final years of employment, it’s possible that early retirement could effectively reduce the benefits you receive. Make sure that you understand how the plan calculates benefits and any payout options under the plan.
If you plan to start using your 401(k) or traditional IRA savings before you turn 59½ (55 in the case of distributions from a 401(k) plan after you terminate employment), you may have to pay a 10 percent early distribution penalty tax in addition to any regular income taxes (with some exceptions, this includes payments made due to disability). Consider as well the order in which you’ll tap your personal savings during retirement. For example, you might consider withdrawing from tax-advantaged accounts like IRAs and 401(k)s last. If you postpone retirement beyond age 70½, you’ll need to begin taking required minimum distributions from any traditional IRAs and employer-sponsored retirement plans (other than your current employer’s retirement plan), even if you do not need the funds.
You’re not eligible for Medicare until you turn 65. Unless you’ll be eligible for retiree health benefits through your employer (or have coverage through your spouse’s plan), or you take another job that offers health insurance, you’ll need to calculate the cost of paying for insurance or health care out-of-pocket, at least until you can receive Medicare coverage.

Transitioning into retirement: Non-financial issues

When it comes to retirement, it’s easy to focus on the financial aspects of your decision to the exclusion of all other issues. After all, we’ve spent much of our lives saving for retirement, and for many of us, the retirement lifestyle we hope to enjoy depends primarily on the wealth that we’ve accumulated during our working years. But, there are a number of non-financial issues and concerns that are just as important.

Fundamentally, your retirement income plan is just a means to an end: having the ability to do the things you want to do in retirement, for as long as you want to do them.

But that presupposes that you know what it is you want to do in retirement. Many of us have never thought beyond the vague notion we’ve held during most of our working lives: that retirement–if properly planned for–will be something of an extended vacation, a reward for a lifetime of hard work. Retirement may be just that … for the first few weeks or months. The fact is, though, that your job likely demanded your attention for a majority of your waking hours. No longer having that job leaves you with a lot of free time to fill. Just as you have a financial plan when it comes to your retirement, you should consider the type of lifestyle you want and expect from retirement as well.

What do you want to do in retirement? Do you intend to travel? Pursue a hobby? Give some real thought to how you’re going to spend a typical week, and consider actually writing down a hypothetical schedule. If you haven’t already, consider:

Volunteering your time–You can provide a valuable service to the community, while sharing your unique skills and interests. Hospitals, community centers, day-care centers, and tutoring programs are just a few of the places where you could make a difference.
Going to school–Retirement can be the perfect time to pursue a degree, advance your knowledge in your current field or in a new field, or just take classes that interest you. In fact, many institutions offer special rates and programs for retirees.
Starting a new career or business–Retirement can be the perfect opportunity to try something different. If you’ve ever dreamed of starting your own business, now may be your chance.

Having concrete plans can also help overcome problems commonly experienced by those who transition into retirement without thinking ahead:

Loss of identity–Many people identify themselves by their professions. Affirmation and self-worth may have come from the success that you’ve had in your career, and giving up that career can be disconcerting on a number of levels.
Loss of structure–Your job provides a certain structure to your life. You may also have work relationships that are important to you. Without something to fill the void, you may find yourself needing to address unmet emotional needs.
Fear of mortality–Rather than a “new beginning,” some see the “beginning of the end.” This can be exacerbated by the mental shift that accompanies the transition from accumulating assets to drawing down wealth.
Marital discord–If you’re married, consider whether your spouse is as ready as you are for you to retire. Does he or she share your ideas of how you want to spend your retirement? Many married couples find the first few years of retirement a period of rough transition. If you haven’t discussed your plans with your spouse, you should do so; think through what the repercussions will be–both positive and negative–on your roles and relationship.

Working in retirement

Many individuals choose to work in retirement for both financial and non-financial reasons. The obvious advantage of working during retirement is that you’ll be earning money and relying less on your retirement savings–leaving more to potentially grow for the future, and helping your savings last longer. But many retirees also work for personal fulfillment–to stay mentally and physically active, to enjoy the social benefits of working, or to try their hand at something new. If you are thinking of working during your retirement, you’ll want to make sure that you understand how your continued employment will affect other aspects of your retirement. For example:

If you continue to work, will you have access to affordable health care through your employer? If so, this could be an incredibly valuable benefit.
Will working in retirement allow you to delay receiving Social Security retirement benefits? If so, your annual benefit when you begin receiving benefits may be higher.
If you’ll be receiving Social Security benefits while working, how will your work income affect the amount of Social Security benefits that you receive? Additional earnings can increase benefits in future years. However, for years before you reach full retirement age, $1 in benefits will generally be withheld for every $2 you earn over the annual earnings limit ($15,720 in 2015). Special rules apply in the year that you reach full retirement age.

Tip: Some employer pension plan programs allow for “phased retirement.” These programs allow you to continue to work on a part-time basis while accessing all or part of your pension benefit. Federal law encourages these phased retirement programs by allowing pension plans to start paying benefits once you reach age 62, even if you’re still working and haven’t yet reached the plan’s normal retirement age.

Caution: Many people who count on working in retirement find that health problems or job loss prevents them from doing so. When making your retirement plans, it may be wise to consider a fallback plan in case everything doesn’t go as you expect.

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