Archive for the ‘Financial Fitness Test’ Category

Safe Retirement Solutions:: Worst ways to save money

Tuesday, June 19th, 2012

Saving money for retirement is the most sound advice you can get from a financial adviser. Whether it’s cutting back on splurging for that blue ray player or by cutting back on a vacation to France, it sounds like a great way to save money for retirement. However, there are terrible ways to save money and here’s an eclectic list we compiled for you today.

Don’t save money this way

  • Free is not always cost-effective: Buy one get one free is the biggest marketing gimmick out there. Do not fall prey to that. If the item is free, no strings attached, then go for it.
  • Ignoring health problems: Your health should always be a top priority.  An unhealthy body devoid of regular check-ups can lead to costly medical bills. If health insurance is an issue, you can always check out public hospitals and community resources for free preventative measures.
  • Pigging out on Fast Food: As cheap as it is, it’s terribly bad for you down the road.  You increase your risk of heart disease, cancer and  obesity by eating cheaply. Obesity-related ailments are costly too and can be thwarted if you forsake bad eating habits for good ones.
  • Buying Cheap: Buying cheap is expensive. You literally get what you paid for. You get poor quality that will have a short shelf life. It’s best to make investments in high quality items that will last a long period of time.
  • Making Repairs yourself:  It’s more cost effective if you pay for a professional. Though their asking costs may be steep, you need to realize that it takes time and expertise to do a great job.

 

Most people, at some point in their lives, will need financial advice. When the time comes for you to reach out to a professional financial adviser, whom should you trust? How can you be sure that the financial adviser you choose has your best interests in mind? How do you know that your money is in good hands?

The Answer: Trust Safe Retirement Solutions!

For more information about Professional Financial Planning, or for professional financial advice, consult the financial advisers at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

Frugality at its Dumbest: 9 worst ways to save money

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The Benefits of Professional Financial Planning

Wednesday, April 4th, 2012

Did you take our financial test last week? How did you do? Perhaps you passed with flying colors. Maybe you stuggled. Either way, you could still benefit from professional financial planning. Don’t believe us?

Benefits of Professional Financial Planning

The primary goal of a professional financial planner is to help you maintain a comfortable lifestyle while still putting away enough money for the future. What is even more impressive is that financial planners are able to consolidate all aspects of your financial life into one coordinated plan. So, unlike stockbrokers, bankers, insurance agents, or accountants, your financial planner helps make your life less complicated…not more complicated.

The Financial Planning Process

The Foundation

  1. Make basic decisions about your current needs and financial objectives.
  2. Outline your financial goals.
  3. Clarify your financial objectives.
  4. Set financial priorities.

Fact Gathering

  1. Review your investment portfolio
  2. Review insurance contracts
  3. Review the benefit plan provided by your company
  4. Analyze your monthly income
  5. Analyze your monthly expenditures

The Financial Plan

  1. Cash Flow Budgeting Analysis 
  2. Capital Management (debt and investment portfolios) 
  3. Estate Planning and Liquidity Analysis 
  4. Income Tax Planning 
  5. Retirement (forecasting benefits, costs and options) 
  6. Insurance Needs (life, property, casualty and disability) 
  7. Educational Funding Requirements
  8. Employee Benefit Analysis (coordinate personal holdings)
  9. Closely-held Business Analysis 

For professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

What Benefits Can A Planner Provide?

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Testing Your Financial Knowledge

Wednesday, March 28th, 2012

You don’t need professional financial advice, right? You know enough to get by.

Well, it is time to test your knowledge or current financial affairs. The following test was developed by the National Center for Financial Education (NCFE) to help you gauge your financial knowledge and how well you are taking advantage of the financial opportunities presented to you.

Answer either: True, False, or Don’t Know

1. The tax Reform Act of 1986 eliminated the tax advantages of real estate investments.

2. Two earner couples can take a deduction up to $3,000 or 7.5%, whichever is greater.

3. Mutual funds only invest in common stocks.

4. Since interest payments on a mortgage are tax deductible, home owners should always itemize instead of taking standard deduction.

5. A tax “deduction” of $1,000 is better than a tax “credit” of $1,000.

6. If an individual is in a 28% federal tax bracket, 28% of their income goes to the federal government.

7. A couple wants to establish an “education account” for their four year old child. If they use the child’s social security number they will not have to pay income tax on the investment’s earnings.

8. An investment which simply “defers” income tax offers no real tax advantage since the tax must be paid eventually.

9. Life insurance is an inflexible contract which offers no investment options, such as stocks or bonds.

10. If you own a mutual fund, outside of an IRA, there is no way you can avoid being taxed on dividends paid.

11. A wife should usually be the “owner” of her husband’s insurance policy to avoid paying federal estate taxes when she collects on the policy.

12. Joint tenancy is the best way for a couple to hold title to property.

13. Since annuities are offered by insurance companies the primary benefit is insurance.

14. An “insured” municipal bond fund has no investment risk.

15. Interest earned in a life insurance policy is always lower than the rate of interest you can earn in a certificate of deposit.

Questions 16-20 – Answer by Circling One Answer

16. Currently, a self-employed individual will contribute what percentage of his or her income towards Social Security?
a. 6.5% b. 7.51% c. 13.02% d. 15.30%

17. If you invest $1,000 for your child or grandchild, age 1, and the yield averages 12%, approximately how much will the investment be worth when the child reaches age 65?
a. $250,000 b. $500,000 c. $1,000,000 d. $1,500,000

18. In fiscal year 1995, the highest federal rate at which income is subject to tax is:
a. 28% b. 31% c. 39.6% d. 36%

19. Currently, corporate employees earning $50,000 will have the following amount contributed to their social security account:
a. $3,312 b. $4,243 c. $7,650 d. $7,848

20. A 45 year old individual would like to retire on $2,000 a month at age 65. Assuming an average inflation rate of 7.2% over the next 20 years, how much income will this individual need each month in retirement to keep pace with inflation?
a. $4,000 b. $6,000 c. $8,000 d. $10,000

FINANCIAL FITNESS SCORING

ANSWERS TO THE QUIZ:

Questions 1 through 15 are all FALSE

16 = d

17 = d

18 = c

19 = c

20 = c

SCORING: Total the number of correct scores and multiply by five. Twenty correct answers = 100%

RATING:

90-100% = Excellent shape

80- 89% = Good shape

70- 79% = Fair shape

60- 69% = Poor shape

How well did you do? Are you still confident in your knowledge of financial affairs?

For professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

A Financial Fitness Test

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Posted in Financial Advice, Financial Fitness Test, Financial Planning, Planning for Retirement, Retirement Advice | Comments Off