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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.

Confidence Wealth & Insurance Solutions July 1, 2015 No Comments

Travel Tips and Tricks For Women Over 50

The idea of traveling has changed for today’s woman over 50.

While older generations considered it to be something reserved only for the very affluent, today’s woman considers it to be a necessity to their well-being.

Although there may have been certain locations that were considered to be “retirement destinations”, today’s women don’t put boundaries on where they can go or what they can do.

Women in their 50s today have completely changed the look of travel.

Today new destinations are pencilled in, from all-inclusive resorts to going it alone while backpacking through Europe.

Traveling for Baby Boomers is becoming such a priority that travel numbers for this group have been on the rise for the past several years. Yes, even amid a downturn in the economy.

If it’s time for you to get up and go out on your own, with a group of gal pals, or with your significant other, keep reading.

You’ll find out where to go and how to get the best deal when going there.

Where to go?

So time is cleared on your schedule and you’re all set to get up and go somewhere. Anywhere that gets you away from it all and puts you in a place you can truly relax.

But where is that exactly? How do you even begin to get ideas of places that would make for an unforgettable getaway?

Start with these top five ideas, provided by Carol and David Porter, creators of the online travel magazine, The Roaming Boomers.

Alaskan cruises – These trips have been popular for at least the past ten years and they’ll continue to be for many more. No matter how many visitors these parts see, their pristine beauty is still as untouched and breathtaking for each new traveler that visits. Alaskan cruises are also the perfect trip whether you’re going solo or you’ve already got a group you’re bringing along. Groups will find plenty to do, while traveling alone will give you the opportunity to meet new people.

Road trips along the Big Sur – Want to take charge of when you head out, how far you go, and how many stops you make along the way? Big Sur is an almost desolate stretch of the Santa Lucia Mountains along the central coast of California. Ride along them and you can be dazzled with the one-of-a-kind views while being thrilled by the winding mountain roads.

Arizona – Enough said, Arizona is a great spot for travelers over 50 and you really can’t pick a bad place in Arizona to go. Phoenix, Tucson, Sedona, Tempe, Scottsdale, and Flagstaff are just a few of the choices you’ll have. They’ll all provide for plenty of fun in the sun in one of the most beautiful spots in America.

Santa Barbara – When you want to trade in hiking boots for heels and travel mugs for wine glasses, Santa Barbara, California is the place to go. You can still find beaches and mountains here for the outdoorsy-type, but this destination is mostly known for its world-renowned food and wine.

Hawaii – Like Arizona, you can’t go wrong no matter where you go in Hawaii. However, those in their 50s often want less of the hurried tourist crowd and more of the peaceful, serene beaches and natural wonders. For this reason, of all the Hawaiian Islands, The Big Island is the top spot for Boomers.

No one can be expected to choose their vacation spot after hearing of just a few choices. To review all of your best options, and maybe even open up the door to new places, there are a number of online travel companies that cater specifically to those over the age of 50.

It can make for a great opportunity to grab your friends and head out on a girls’ getaway.

Or take the time for yourself and enjoy a few days of being solo.

If opting to go it alone, there are some important safety factors to take into consideration.

Travel insurance is one of the most important items you need when traveling. Unfortunately, it’s also one of the most often overlooked. Whether you’re on your own or with others, travel insurance is important for people of any age. It’s so important that if you’re over the age of 50, you’re likely eligible for a discount on travel insurance.

In addition to travel insurance, make sure you register yourself as a traveler with the Department of Foreign Affairs, especially if you’re traveling abroad. This might be the only point of contact you have with your country while away.

Leaving your information with the Department of Foreign Affairs will give them a way to contact you while you’re away. This can be invaluable if you need to be informed of any emergencies. They’ll also provide you with safety information on sexual assault in certain countries, and keeping yourself safe from theft.

For women in particular, it’s of utmost importance that when traveling to a different country, you familiarize yourself with local customs and traditions. Some countries have strict rules for a woman’s dress and behavior and it’s important you know what they are.

All-inclusive vacations

When choosing your ultimate getaway location, you’re not only going to consider where you’d like to go, but also where it will be most affordable for you to go.

But just what are the best budget choices out there for travel? Will cruises get you the best bang for your buck, and are all-inclusive vacations really everything they promise to be?

All-inclusive vacations can be great deals, but you need to make sure you know what you’re getting before you sign any contract or deal.

All-inclusive resorts can provide you with all the sports, recreation, and entertainment you could ask for. Plus they’ll give you up to three full meals a day, sometimes even with free cocktails included.

Read the fine print. Find out exactly what will be “included” in the trip because different locales have different definitions. If you’re unsure of exactly what’s included, you could end up paying a lot more than you thought.

Availability can also be a tricky thing to maneuver with all-inclusive deals. Dates are filled quickly so if your heart is set on a particular time, you’ll need to book as early as possible. However, prices tend to get cheaper the closer you get to the date so if you can be flexible, you can save yourself some cash by booking at the last minute.

However, all-inclusive resorts aren’t for everyone.

If you like to hop from town to town, try different restaurants, and be free to go where you want when you want, you might want to look at a different vacation option.

Cruises

Cruises are very much like all-inclusive resorts in the way that you’ll book your trip, pay for it, and have nearly everything you need provided for you.

Like all-inclusive resorts, you’ll need to book as early as possible to ensure there’s a spot available for you. But, being flexible and snapping up last minute deals can also be a great way to go on a cruise that fits easily within your budget.

One of the best ways to get a deal when taking a cruise is to speak to a travel agent that specializes in cruises. They’ll be able to direct you to the best prices currently available, and tell you about early booking discounts and credits you can receive onboard.

When booking a cruise, don’t forget about “Wave Season,” which runs January through March.

Traveling at this time of year doesn’t mean that you’ll experience high, rolling waves on your cruise. It’s simply the time of year that the travel industry sees its best sales, and when you’ll likely be able to snap up the best deals.

Traveling when you’re in your 50s can be one of the greatest things you’ll ever do. Whether you choose to take the road less traveled by, or visit some of the top spots for Boomers, take these safety and travel tips with you. They’ll help you get the vacation you want at the price you want.

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