Confidence Wealth & Insurance Solutions, Author at Confidence Wealth & Insurance Solutions

Confidence Wealth & Insurance Solutions May 22, 2015 No Comments

9 Hidden and Affordable US Vacation Spots for Retirees

There are so many hidden treasure spots that many don’t know about! Locations across the United States are available for vacations that won’t break the bank, and will offer fun things to do with comfortable accommodations. The following are well known by locals, but they’re not always found by tourists, which is is one reason why retirees will love visiting these destinations.

Eureka Springs, Arkansas

Eureka Springs, Arkansas is a charming town in the Ozarks’ region of Arkansas. It’s one of the most unique towns in the state because all of the city’s streets are curved. Businesses can be accessed from multiple levels as the entrances are on different street levels due to the mountainous terrain. There are numerous tourist attractions, romantic getaways, and relaxation to be found on the decks of restaurants. Trolley rides are available and encouraged because the walk is up and down hills, and curbside parking is limited. The historical downtown business district is sight to behold. A haunted hotel, a glass chapel, and the Christ of the Ozarks Statue are among the landmarks that can be found at this unique getaway.

Yuma, Arizona

Yuma, Arizona is one scenic destination. Golfing, casinos, and the beauty of the Colorado River make this a great place for retirees to spend time relaxing in the sun. It’s one of the sunniest cities in the U.S. and is a quiet location by the river or on a boat.

Springfield, Missouri

You will love the shopping atmosphere and the peacefulness found in Springfield. A national battlefield and Route 66 make this destination a hidden gem for retirees to enjoy. Fall colors of the Ozarks are nearby.

Lake Providence, Louisiana

If a getaway to a quiet tiny town in the South is what you’re looking for, this is the destination for you. The lake is gorgeous — tree-lined and great for fishing or sitting and enjoying the view. The town is a step into relaxation with only one local motel, gravel side streets, and southern hospitality.

Cloudland Canyon, Georgia

A local state park with a secluded feel can be found near Lookout Mountain. It’s located near the Alabama and Tennessee state lines. A beautiful waterfall and spectacular scenery make this mountain destination one of the finest in Georgia.

Ackerman, Mississippi

Located near the forest, and only a short 30-minute drive to all of the shopping opportunities that Starkville has to offer, Ackerman is a great place for retirees to visit. Southern hospitality at its finest can be found at the local restaurants. Beautiful pine trees, a coal mine, and visits with the locals will make your stay a fine one.

Georgetown, Colorado

Georgetown, Colorado is a former mining town that is surrounded by the glorious Rocky Mountains. It’s a great vacation destination for a harmonious pace. Retirees will love this getaway.

Texarkana, Texas and Arkansas

Texarkana is a twin city, divided by the state line. It’s not far from favorite destinations such as the Murfreesboro diamond mine and the Ouachita Mountains. Retirees will love the city amenities and the destinations to explore nearby.

Jasper, Arkansas

This little Ozarks’ town closes down at 10 p.m., but the beauty of the Buffalo National River, the local elk that is available to be seen and photographed, and the small town hospitality will make this your favorite retirement destination. Visiting with local artists, canoeing the Buffalo, or hiking the Buffalo River Trails are just a few of the local activities that bring retirees back year after year.

Retirement is a time when we get to reward ourselves for years of hard work. Visit any of the places above. You’ll be transformed from good ol’ tourists to feeling like a local in these fun-filled destinations. You deserve it!

Confidence Wealth & Insurance Solutions May 15, 2015 No Comments

Does more wealth lead to more happiness?

Researchers have tackled this question for decades, and although the results have differed, one fact is certain: The relationship between money and happiness–or “well-being,” as many researchers put it–is complicated.

Think before you spend

In the book Happy Money: The Science of Smarter Spending, Professors Elizabeth Dunn and Michael Norton summarize their own and others’ research. What they found is that it’s not necessarily how much you make that matters to overall happiness (although that certainly contributes), but what you do with your money. They boiled down the findings to five “key principles of happy money.”

1. Buy Experiences. Investing in memories can result in a more sustained level of happiness than buying a bigger house, a more luxurious car, or other material goods. Buying the latest technological gadget might elicit the kind of joy of a child experiences opening a new toy on the holidays, but just like that new toy, the gadget loses its novelty with time–a principle psychologists refer to as “hedonic adaptation.” On the other hand, experiences–even those that are fleeting or may initially provoke trepidation, such as hang gliding–create memories that help foster prolonged contentment.

2. Make It a Treat. While you’re investing in those experiences, be sure to spread them out so they don’t become expectations or habits. In this way, the novelty of each new experience will be fully realized. As the book says, “Abundance is the enemy of appreciation.” This is also true with something as simple as a cappuccino. If you make it a daily ritual, it becomes a habit. If you instead substitute your daily coffee once a week with a froth-covered treat, then it becomes a reward to savor.

3. Buy Time. According to Dunn and Norton, individuals should ask themselves the question, “How will this purchase change the way I use my time?” For example, will it allow you to spend more time with your friends or family, or create more “to-dos” to clog your list? Will it free you up to participate in more activities you enjoy? Investing in products or services that allow you to spend time on the things you love will lead to greater overall well-being. And, say the authors, don’t fall into the trap of putting a dollar value on your time, as this leads to increased stress levels. “Simply feeling like your time is valuable can make it seem scarce.”

4. Pay Now, Consume Later. Paying for a treat or experience up front, such as event tickets you buy months in advance, allows you to benefit from the extended pleasure of eager anticipation. With all due respect to Tom Petty, the waiting, it seems, may be the best part. Conversely, credit cards can be a dangerous, albeit convenient, financial tool, facilitating a “consume now, pay later” dynamic. One study cited in Happy Money found that all 30 people surveyed underestimated their monthly credit-card bills by a sizable average of nearly 30%.

5. Invest in Others. Regardless of your circumstances–wealthy or not, young or old–research finds that spending money on others leads to greater happiness than spending on oneself.

The danger zones

While some experts differ on whether higher incomes result in greater levels of happiness, they tend to agree on the following: Increasing debt levels are detrimental to happiness, and keeping up with the Joneses can lead to a general sense of dissatisfaction. Instead, actively managing debt while finding ways to appreciate what you already have on a day-to-day basis may help you make well-thought-out saving and spending choices that support your overall level of well-being.

Confidence Wealth & Insurance Solutions May 10, 2015 No Comments

Every day is Mother’s Day

There isn’t a day that goes by that our mother’s teachings, wisdom, and way of living doesn’t permeate into our lives.

Parent or not, we women make great sacrifices to nurture our loved ones and be the provider and role model of our family.

We’ve always put our needs before others, taking care of ourselves last.

In that spirit, here’s 8 quotes that celebrate the true meaning of this special day.

Confidence Wealth & Insurance Solutions April 30, 2015 No Comments

Three College Savings Strategies with Tax Advantages

To limit borrowing at college time, it’s smart to start saving as soon as possible. But where should you put your money? In the college savings game, you should generally opt for tax-advantaged strategies whenever possible because any money you save on taxes is more money available for your savings fund.

529 plans

A 529 plan is a savings vehicle designed specifically for college that offers federal and state tax benefits if certain conditions are met. Anyone can contribute to a 529 plan, and lifetime contribution limits, which vary by state, are high–typically $300,000 and up.

Contributions to a 529 plan accumulate tax deferred at the federal level, and earnings are tax free if they’re used to pay the beneficiary’s qualified education expenses. Many states also offer their own 529 plan tax benefits, such as an income tax deduction for contributions and tax-free earnings. However, if a withdrawal is used for a non-educational expense, the earnings portion is subject to federal income tax and a 10% federal penalty (and possibly state tax).

529 plans offer a unique savings feature: accelerated gifting. Specifically, a lump-sum gift of up to five times the annual gift tax exclusion ($14,000 in 2015) is allowed in a single year per beneficiary, which means that individuals can make a lump-sum gift of up to $70,000 and married couples can gift up to $140,000. No gift tax will be owed if the gift is treated as having been made in equal installments over a five-year period and no other gifts are made to that beneficiary during the five years. This can be a favorable way for grandparents to contribute to their grandchildren’s education.

Also, starting in 2015, account owners can change the investment option on their existing 529 account funds twice per year (prior to 2015, the rule was once per year).

¹ Survey of grandchildren and their grandparents performed by KRC Research on behalf of TIAA-CREF, April 2014.
² CollegeBoard Trends in College Pricing 2013 http://trends.collegeboard.org
³ U.S. Department of Education, National Center for Education Statistics (2013). Digest of Education Statistics, 2012 http://nces.ed.gov/fastfacts/display.asp?id=76
Image source: https://www.aarpcollegesavings.com/help-your-grandchildren-save-college

Note: Investors should consider the investment objectives, risks, fees, and expenses associated with 529 plans before investing. More information about specific 529 plans is available in each issuer’s official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits. Finally, there is the risk that investments may lose money or not perform well enough to cover college costs as anticipated.

Coverdell education savings accounts

A Coverdell education savings account (ESA) lets you contribute up to $2,000 per year for a child’s college expenses if the child (beneficiary) is under age 18 and your modified adjusted gross income in 2015 is less than $220,000 if married filing jointly and less than $110,000 if a single filer.

Image source: http://lajollamom.com/scholarshare-529-california-college-savings-plans/

The federal tax treatment of a Coverdell account is exactly the same as a 529 plan; contributions accumulate tax deferred and earnings are tax free when used to pay the beneficiary’s qualified education expenses. And if a withdrawal is used for a non-educational expense, the earnings portion of the withdrawal is subject to income tax and a 10% penalty.

The $2,000 annual limit makes Coverdell ESAs less suitable as a way to accumulate significant sums for college, though a Coverdell account might be useful as a supplement to another college savings strategy.

Image source: http://lajollamom.com/scholarshare-529-california-college-savings-plans/

Roth IRAs

Though traditionally used for retirement savings, Roth IRAs are an increasingly favored way for parents to save for college. Contributions can be withdrawn at any time and are always tax free (because contributions to a Roth IRA are made with after-tax dollars). For parents age 59½ and older, a withdrawal of earnings is also tax free if the account has been open for at least five years. For parents younger than 59½, a withdrawal of earnings–typically subject to income tax and a 10% premature distribution penalty tax–is spared the 10% penalty if the withdrawal is used to pay a child’s college expenses.

Roth IRAs offer some flexibility over 529 plans and Coverdell ESAs. First, Roth savers won’t be penalized for using the money for something other than college. Second, federal and college financial aid formulas do not consider the value of Roth IRAs, or any retirement accounts, when determining financial need. On the flip side, using Roth funds for college means you’ll have less available for retirement. To be eligible to contribute up to the annual limit to a Roth IRA, your modified adjusted gross income in 2015 must be less than $183,000 if married filing jointly and less than $116,000 if a single filer (a reduced contribution amount is allowed at incomes slightly above these levels).

And here’s another way to use a Roth IRA: If a student is working and has earned income, he or she can open a Roth IRA. Contributions will be available for college costs if needed, yet the funds won’t be counted against the student for financial aid purposes.

Source:
http://cgi.money.cnn.com/tools/collegeplanner/collegeplanner.jsp
http://blog.classesandcareers.com/education/2014/01/08/infographic-saving-for-college-tuition-expenses/

Scenario #1: If you start saving at your child’s birth, you must put away $2,121 per year into a 529 plan, and then other plans once that’s maxed out, in order to have enough for your child to begin college at 18 and finish in four years.

Scenario #2: If you start saving at your child’s sixth birthday, you must put away $3,059 per year into a 529 plan, and then other plans once that’s maxed out, in order to have enough for your child to begin college at 18 and finish in four years.

Scenario #3: If you start saving at your child’s 12th birthday, you must put away $5,101 per year into a 529 plan, and then other plans once that’s maxed out, in order to have enough for your child to begin college at 18 and finish in four years.

Confidence Wealth & Insurance Solutions April 23, 2015 No Comments

Millennials vs. Boomers: How Wide Is the Gap?

Texting versus email (or even snail mail). Angry Birds versus Monopoly. “The Theory of Everything” versus “The Sound of Music.” “Dancing with the Stars” versus “American Bandstand.”

It’s no secret that there are a lot of differences between baby boomers, born between 1946-1964, and millennials, who were generally born after 1980 (though there is disagreement over the precise time frame for millennials). But when it comes to finances, there may not be as much difference in some areas as you might expect. See if you can guess which generation is more likely to have made the following statements.

Boomer or millennial?

1) I have enough money to lead the life I want, or believe I will in the future.

2) My high school degree has increased my potential earning power.

3) I rely on my checking account to pay for my day-to-day purchases.

4) I consider myself a conservative investor.

5) Generally speaking, most people can be trusted.

6) I’m worried that I won’t be able to pay off the debts that I owe.

The answers

1) Millennials. According to a 2014 survey by the Pew Research Center, millennials were more optimistic about their finances than any other generational cohort, including baby boomers. Roughly 85% of millennials said they either currently had enough to meet their financial needs or expected to be able to live the lives they want in the future; that’s substantially higher than the 60% of boomers who said the same thing. Although a higher percentage of boomers–45%–said they currently have enough to meet their needs, only 32% of millennials felt they had enough money right now, though another 53% were hopeful about their financial futures.
Source: “Millennials in Adulthood,” Pew Research Center, 2014

2) Boomers. The ability of a high school education to provide an income has dropped since the boomers’ last senior prom, while a college education has never been more valuable. In 1979, the typical high school graduate’s earnings were 77% of a college graduate’s; in 2013, millennials with a high school diploma earned only 62% of what a college graduate did. And 22% of millennials with only a high school degree were living in poverty in 2013; back in 1979, the figure for boomers at that age was 7%.
Source: “The Rising Cost of Not Going to College,” Pew Research Center, 2014

3) Boomers. Not surprisingly, millennials are far more likely than boomers to use alternative payment methods for day-to-day expenses. A study by the FINRA Investor Education Foundation found that millennials are almost twice as likely as boomers to use prepaid debit cards (31% compared to 16% of boomers). They’re also more than six times as likely to use mobile payment methods such as Apple Pay or Google Wallet; 13% of milliennials reported using mobile methods, while only 2% of boomers had done so.
Source: “The Financial Capability of Young Adults–A Generational View,” FINRA Foundation Financial Capability Insights, FINRA Investor Education Foundation, 2014

4) Millennials. You might think that with thousands of baby boomers retiring every day, the boomers might be the cautious ones. But in one survey of U.S. investors, only 31% of boomers identified themselves as conservative investors. By contrast, 43% of millennials described themselves as conservative when it came to investing. The survey also found that millennials outscored boomers on whether they wanted to leave money to their children (40% vs. 25%) and in wanting to improve their understanding of investing (44% vs. 38%).
Source: Accenture, “Generation D: An Emerging and Important Investor Segment,” 2013

5) Boomers. Millennials may have been around the track fewer times than boomers have, but their experiences seem to have given them a more jaundiced view of human nature. In the Pew Research “Millennials in Adulthood” survey, only 19% of millennials said most people can be trusted; with boomers, that percentage was 31%. However, millennials were slightly more upbeat about the future of the country; 49% of millennials said the country’s best years lie ahead, while only 44% of boomers agreed.

6) Millennials. However, the difference between the generations might not be as significant as you might think. In the FINRA Foundation financial capability study, 55% of millennials with student loans said they were concerned about being able to pay off their debt. That’s not much higher than the 50% of boomers who were worried about debt repayment.

Important Disclosure

(310) 824-1000