financial planning for retirement

Retirement moves which you should start taking during your 20s and 30s

Retirement moves

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Though you might be decades away from quitting your job forever, planning your retirement is everything about taking the proper start. During each stage of your journey towards retirement, you will require knowing about the most vital money moves that you should make, the target for savings that you should set an aim for and the ideal way in which you can mix and create the best investment portfolio.

These change when you reach your peak years of earning and when you reach the pre-retirement red zone. If you’re someone who is all set to take the best money moves while you’re in your 20s and 30s, we will offer you some of the best techniques that you should follow in order to stay debt free post retirement. Check them out.

#1: Collect the entire company match for you 401(k)

In case you’re beginning to save money at the age of 35, you will require putting aside 17% of the income for 30 years so that you can retire properly at the age of 65, as per researches done by the American College. You start at the age of 30 and then your target will decrease by 12%. If you begin at 25, the target will drop to 8.8% in a year till you reach the age of 65. Usually, you should save 6% to earn the entire amount. If you think that’s too much, you can start with 3%.

#2: Demand $5000 more in your salary

The amount that you earn during the initial 10 years of your job will always have a long-lasting impact on the wealth that you accumulate. As per studies done by the Federal Reserve Bank of New York, the typical wage of the worker grows between the age of 25 and 35. So, if you can get a boost in your pay of $5000 when you are of the age of 25, this can sum up to $635,000 more in the earnings that you make over the lifetime. You should negotiate irrespective of whether you’re grabbing a job offer or you’re looking for a raise. It is sad enough to note that just 35% of the millennials have ever asked for a raise.

#3: Be smart about paying low investment costs

It is always a smart and a wise decision to keep investing costs down. When you’re still young, you should lock in on the low-fund expenses and this is also a rewarding experience. In case you invest $1000 in a month in a retirement fund for long 30 years, you will end up having $762,000 keeping in mind the average annual returns and mutual fund fees.

#4: Try to know yourself in the future

You should picture yourself in the future and this will give you a clear idea of your savings mindset. There are several kiosks which allow workers to get an idea of how you can look when you’re 65, the number of people who enrolled in a retirement plan rose to 65% as compared to the previous year.

Therefore, whenever you’re worried about the ways in which you can systematically save for your retirement, you can take into account the above mentioned strategies and techniques.

Mushrooming financial wellness programs in 2017 – Trends retirement advisors should know

It has been studied that with the onset of 2017, more and more employers have started addressing their financial wellness beyond retirement to produce a happier and healthier life beyond retirement. Although there is increased participation in workplace retirement accounts like 401(k), yet they don’t seem to be satisfied with their employee savings rates. This is a finding which has come from one of the latest studies by Aon Hewitt. The firm also revealed that 92% of the employers are worried about whether or not their employers have a clear understanding of how much the employees should save.

There are predictions of an increase of financial wellness programs beyond retirement decisions in 2017 to include things like budgeting, financial literacy, financial planning and debt management. Take a look at some points which retirement plan advisors should keep in mind.

Growing interest among employees

As mentioned above, Aon Hewitt’s report found 60% of the employers to already offer assistance in at least a single category which falls under the category of financial wellbeing. By the end of 2017, this percentage is predicted to grow to about 85%. More than half of the employees show tendencies of being extremely concerned about their financial well-being and this figure saw a 10% increase from 2015 which topped employer initiatives in 2016. As more employers bring physical wellness initiatives in their program.

Interest among financial advisors are also growing

For some financial advisors, offering financial wellness programs to companies has become the main factor that can cause differences in doing business. As per a survey from ADP, it was found that while just 24% of advisors work along with employers with regards to financial wellness programs, yet another 48% are already considering it. Financial advisors need to stay in tune with the focus of the client. When an advisor is measuring the success on the replacement income ratio of the participant, not being able to adopt some kind of wellness initiative can hurt your performance rating.

No matter how much the financial advisor helps the employees, can they prove that such initiatives are all worth the effort of investing in them? When you assume a particular company’s benefits, this can automatically persuade the CFO of a company to adopt some program in either 6-12 months and the CFO will probably seek proof of his payoff. How well is the financial well-being program working? How are participants adopting it? Is it changing the way in which employees behave?

So, we see that the employers are gradually making retirement readiness one of the vital parts of their fiscal wellbeing strategy by offering modelers and tools to help workers understand everything realistically how much exactly they would need to retire. Aon Hewitt’s 2017 Hot Topics in Retirement and Financial Wellbeing surveyed around 250 US employers who represented around 9 million workers to analyze the priorities and the possible changes with regards to retirement benefits.

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The Life Insurance Settlement – Is It Right For You?

The Life Insurance Settlement – Is It Right For You?

Life settlements are a relatively new emergence in the life insurance market. Offering benefits to both the policyholder and the investor, it’s no surprise that the life settlement market has grown so explosively in the last few years.

What Is a Life Settlement?

A life settlement is basically an investment made into the life insurance policy of someone else. An investor purchases a policy by paying the original policy owner the purchase price. This gives the investor the right to all death benefits once the policyholder passes away, and also places the onus of premium payments on them.

Who Benefits Most From Selling Their Life Insurance Policy?

Most often, those who can benefit from selling their life insurance policy in the life settlement process are seniors and those having low life expectancy due to illness. Usually, it is those aged 65 and over who can sell their policy.

How Much Can A Senior Make From Selling Their Policy?

The amount that can be received from selling a policy will depend on a range of factors. But the return on a life settlement to a senior can range anywhere from few to over 40% of a policy’s face amount.

Why Are Life Settlements So Popular?

Life settlement popularity is due to the fact that both the investor and the policyholder benefit from the sale; the policyholder receives cash from a policy that may not otherwise pay out, while the investor receives a large payout once the policyholder passes away.

A life settlement also provides a way to avoid the large percentage of insurance policies which don’t pay death benefits upon their expiry, as well as get rid of unwanted coverage with some monetary return.

As with most things, the life settlement option may not work for everyone, even though it may look like a viable way to receive much-needed cash. There are many circumstances which can make a life settlement the wrong choice.

Coverage and Financial Implications of Life Settlements

For those in their retirement years, having life insurance represents an important asset. Engaging in the life settlement process is not a good idea if life insurance coverage is still needed, as selling a policy leaves you without coverage.

As well, insurance companies will limit the amount of coverage they will provide to one person. When life settlement occurs, this affects the total insurability of an individual, meaning that the additional coverage needed to justify a life settlement.

Financially speaking, keeping an existing policy is a good idea if it’s unlikely that the individual will be able to afford coverage following the settlement process.

Many seniors consider life settlement when they want to get better terms with a new policy. But this may not provide the full cash value from the old policy with which to finance the new one. A simple comparison of the tax due on a settlement with the numbers of the exchange will reveal the feasibility of a life settlement.

Any profits received from a life settlement, excluding paid premiums are subject to tax, which can mean that the potential profits are not worth selling the policy.

Identifying Quality Life Settlement Assistance

Care should be taken to select a broker when the decision to go forward with life settlement is made. Most important is finding a broker who will keep your, and not their best interests in mind. A broker who is anxious to close quickly is not a broker that is concerned about the benefits to you.

A broker who is capable of being transparent and who is not afraid to tell you everything you need to know about the advantages and risks of life settlement is the broker to consider. The same should be considered when choosing the company that will process a settlement, as a company whose settlement program is well-managed and who has high standards is much more likely to offer you the quality and knowledge that you need to proceed with this option.

Guest author Adam Foley writes on a variety of topics, but is particularly well-versed in the topic of life insurance.  He is a frequent contributor at  You can also find .

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