Archive for the ‘Financial Planning’ Category

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Estate Planning in Baltimore: A Brief Overview

Wednesday, May 1st, 2013

Estate planning is one of the most important parts of planning for the unexpected. Many people procrastinate about the decisions that need to be made about their estate and if one is unprepared, your beneficiaries may feel disenfranchised when it comes time to deal with your estate.

According to the National Association of Estate Planners & Councils, more than 120 million Americans do not have up-to-date estate plans to protect themselves or their families in the event of sickness, accidents, or death.

By definition, estate planning is a process designed to help you manage and preserve your assets while you are alive, and to conserve and control their distribution after your death according to your goals and objectives. But what estate planning means to you specifically depends on who you are.

Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate planning needs. For example, you may have a small estate and may be concerned only that certain people receive particular things. A simple will is probably all you’ll need. Or, you may have a large estate, and minimizing any potential estate tax impact is your foremost goal. Here, you’ll need to use more sophisticated techniques in your estate plan, such as a trust.

Here are a few estate planning tips from Safe Retirement Solutions:

  • Prepare a will – If you don’t prepare a will, the laws that govern your domicile will determine who inherits what. This is important for non-financial resources such as your prized possessions that relatives may want. Making a will can ensure that your possessions get inherited by the correct people.
  • Create a trust – A trust will make sure that your funds are allocated to cover specific expenses after you’ve passed on. Expenses such as funeral costs, school loans, house payments and any other bills that are overdue can be adequately planned and paid for using a trust.
  • Minimize the impact of Estate & Income Taxes – Using tax-efficient strategies can help curb the costs of estate and income taxes. Strategies such as giving your saved-up wealth as a gift to beneficiaries or leaving your taxable assets to charities are both great ways to minimize the effects of these taxes. Talking with your local Annapolis estate planning professionals at Safe Retirement Solutions can help you figure out ways to avoid heavy taxes.

 

If you’re ready to plan your estate, that’s where we come in. The financial advisors in Annapolis at Safe Retirement Solutions can help you develop a diversified portfolio to help you make the most of your investments. The Baltimore financial advisors at Safe Retirement Solutions can help you determine what steps to take to make sure your estate is properly taken care of, and provide alternative retirement savings guidance. To get started, call 877-268-4086 or visit our website today!

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Is Early Retirement a Wise Idea? Tips from Baltimore Retirement Planners

Friday, February 15th, 2013

Retirement has all the magnetism of a charismatic crush, but is it a wise idea to retire early? If you’re considering doing so, we recommend buckling down and analyzing if you can realistically live comfortably off of your savings and reduced income. Though the perks of escaping the fast-paced work force are undeniable, the trade-off of potentially not having enough to see you through life after your career mightn’t be worth the risk. Here are some things to keep in mind if you’re thinking about retiring early.

Penalties for Withdrawing From Retirement Plans Early

Withdrawing money from retirement accounts like 401(k)s or individual accounts early will leave you forced to pay penalties to the IRS when you file your taxes, generally 10% of the total amount you take out.

Life Expectancy

The average lifespan of Americans is growing greater and greater. According to the Social Security Administration, a man who reached age 65 in 2012 can expect to live to 83, and a woman, to 85. That means that before you retire, you must have at least enough money to make it through twenty years of life.

Financial Planning

The financial advisors in Baltimore at Safe Retirement Solutions will be realistic with you about whether retiring early is a smart move for you, and can assist you in developing a plan to help you meet your savings goals for retirements so you can lead the lifestyle you’ve always looked forward to having.

For more information about retirement planning and consultations in and around Baltimore, Maryland, call 877-268-4086 or visit our website today!

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Sources:

Calculators: Life Expectancy

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Asset Allocation Field Guide from Baltimore Financial Advisor

Thursday, January 31st, 2013

So you want to invest in stocks and need advice on how to handle your asset allocation? Here’s a few tips to get your started.

Start early: the farther you are from retirement, the larger the percentage of assets you can afford to invest in stocks.

Take risks: If you can handle watching the inevitable rise and fall of stocks, put more money towards them in order to ultimately have the chance of seeing a bigger and better return.

Get smart: With the exorbitant costs of a college education and prices increasing faster than inflation, parents should consider investing in stocks to fund higher education pursuits. As your children age, transfer the money from the stocks to bonds.

Set goals: Determine early on what it is you’re trying to use your investment money towards. A more comfortable retirement? Dispensable income to support travel? A second income property? Establishing long-term goals makes it easier to set up a plan for investing in stocks.

Consult: Get professional financial advice when looking to allocate assets in stocks. The financial advisors in Baltimore, Maryland at Safe Retirement Solutions can help you to evaluate your assets and understand the nature of stocks you are interested in investing in as well as their performance. A qualified financial planner is one of your most reliable resources in designing and implementing an effective asset allocation plan.

For more information, call 877-268-4086 or visit our website today!

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Sources:

Best practices for asset allocation

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Tips from Maryland Financial Advisors: Get Your Social Security Statement

Friday, December 28th, 2012

Social Security Statements: they used to be issued annually, allowing Americans to have convenient access to the retirement benefits ahead of them, but in efforts to save money, the Social Security Administration has seriously cut back on distribution in recent years. Now, that’s beginning to change, as Social Security Statements can be viewed online as of May of this year.

So how can this be of benefit to you as you plan for retirement? See our quick rundown on the pertinent information contained in Social Security Statements:

-          A predication of the retirement and disability benefits available to you in the future

-          An Assessment of the benefits bequeathed to your family when you receive Social Security, or upon your death

-          A catalogue of the earnings you’ve made over your lifetime, according to Social Security’s records

-          An estimate of how much you’ve already paid in Social Security and Medicare taxes

-          Instructions on signing up for Medicare and your qualification status

-          Tips to keep in mind for those nearing retirement age

-          Facts and updates about Social Security on a broad level

-          Information about how to apply online for retirement and disability benefits

The biggest and probably most important takeaway from your online Social Security Statement? The information it provides on the benefits you will receive upon retirement based on your earnings, referred to as your “Primary Insurance Amount” (PIA). This data is calculated based on the assumption that you will continue earning your present salary up until retirement.

A fairly comprehensive forecast of your benefits in retirement, the Social Security Statement details information that serves as a good springboard for retirement planning: log on and access yours today.

Need help making sense of the information on your statement? Don’t know what the numbers you see mean for your retirement? The financial advisors in Maryland at Safe Retirement Solutions can help. For more information, call 877-268-4086 or visit our website today!

Follow us on Facebook, Twitter, LinkedIn, and Google+ for more retirement planning tips.

Sources:

Get Your Social Security Statement Online

The First Steps in Retirement Planning

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Financial Advisor, Towson: Social Security Checks Rise for Retirees

Friday, November 30th, 2012

Social Security recipients will see an increase in their monthly payments by the New Year – a result of a measure of inflation. Currently, the average monthly Social Security check received by retirees comes in at around $1,237, which adds up to about $14,800 a year. With the anticipated 1.7% increase, payments will inevitably increase by close to $21 a month, which makes up $252 a year. In other words, retirees will be collecting more green from Uncle Sam in 2013.

And there’s more:  about 8 million individuals who receive Supplemental Security Income will also collect cost-of-living adjustment, or COLA, which is expected to assist retirees avoid poverty amidst the rising prices of food, utilities, and health care.

According to the Social Security Administration, the majority of retired Americans rely on Social Security as their primary source of income, with COLA helping to augment their annual intake of money over the past decade.

Even with the soon-to-be increase in Social Security checks, though most retirees ultimately discover that Social Security alone isn’t an adequate means of income to usher them through all of retirement. Alternative investments and retirement savings plans are generally deemed necessary in making money last over the course of the post-work lifetime. To help in determining where and how to invest, the advice of professional financial advisors is sought by many future retirees.

The financial advisors in Towson, Maryland at Safe Retirement Solutions help our clients in all phases of their retirement planning. We ensure a retirement free from financial worries, so that the retirement years can be enjoyed as they were meant to be. Safe Retirement Solution’s financial advisors assist in enabling our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

For more information about Social Security and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

You can also follow us on Facebook, Twitter, LinkedIn, and Google+!

Sources:

Social Security benefits to go up by 1.7% in 2013

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Retirement Financial Advisor in Annapolis, Maryland: Overlooked Benefits

Wednesday, November 21st, 2012

Talk about standard retirement benefits – Social Security, Medicare, and the like – crop up so often in news media and elsewhere that even most school-aged children are at least aware of the terms, even if they haven’t memorized their definitions like the words in weekly vocabulary lists.

Many Americans are unaware of alternate retirement benefits, though – ones that could earn them thousands of extra dollars as they save for the golden years. Most of the time, these benefits are ones that future retirees have already paid for with their tax dollars or through their work with a company. Below, we’ve listed some of the most commonly overlooked retirement benefits.

Retirement Accounts from Past Employers

Even though many employers allow workers to transfer their retirement plans when they leave the company, a recent study conducted by ING DIRECT USA revealed that around 50% of Americans neglect to do so. Even worse – 20% of said individuals abandoned accounts valued at $50,000 – or more. Be sure to manage investments and update beneficiaries to avoid losing your savings. Think about merging preexisting retirement accounts into an IRA or your current company’s plan to prevent this problem from happening to you.

Unclaimed Pensions

In a similar fashion to forgotten retirement accounts, many Americans fail to claim pension benefits, and in fact the Pension Benefit Guaranty Corporation (PBGC) says that over 36,000 Americas have unclaimed pension benefits – totaling to nearly $197 million, and ranging in value from $1 to $676,436.

Employee Stock Purchase Plan

Though you don’t want to invest all your funds in one place – your employer – it can nevertheless be worthwhile to see if your employer will allow you to buy company stock at a discount. With rates of up to 15% off, it’s a quick way to get a return on your investment – even if it doesn’t appreciate – by selling it later for more than you paid. Just make sure you’re not putting more than 5-10% of your portfolio in employee stock.

In order to make sure you’re making the most of your retirement benefits, consider consulting with a professional financial advisor. Safe Retirement Solutions services the Annapolis, Maryland and surrounding areas, preparing clients for retirement, with assistance in planning income distribution, tax benefits and deferrals, and the security of their nest egg.

For more information about Saving for Retirement and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

You can also follow us on Facebook, Twitter, LinkedIn, and Google+!

Sources:

7 Valuable Benefits You May Not Even Know You Have 

 

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Recap on a Study of Bull Markets and Retirees: Annapolis, Maryland Retirement Advisor

Saturday, November 17th, 2012

During bull markets – times of increased investor confidence and anticipated capital gains – make people more prone to retire, but abandoning employment during peak economic times can create financial strain down the line for retirees.

At least, that’s what can be gleaned from a recent study performed by researcher Rui Yao, professor of personal financial planning at the University of Missouri and published in the Journal of Personal Finance. Yao examined the financial and retirement statuses of over 4,000 American households spanning the period from 1992 to 2008 that included retirement aged individuals. The data demonstrated that for every 1% yearly increase in market returns, there was a 2% increase in the probability of a retirement aged individual calling it quits at work.

Yao attributes the correlation between a better economy and the decision to retire in part to the fact that potential retirees are able to more swiftly reach their savings goals while money isn’t tight. But retiring immediately after reaching said targets can cause financial problems later in life, especially because with the cyclical nature of the economy, after a peak, the market is likely to take a downfall.

Economic turns for the worse can create substantial loss for stock-based retirement funds like 401(k)s and IRAs – a problem in particular for those who retired when only barely meeting their savings needs.

Rather than risking outliving retirement funds and dealing with worry over finances during what is supposed to be the golden years of relaxation, it is better to continue saving even when the market is doing well to develop a cushion that can usher retirees through potential economic downturns.

In order to plan for retirement and pad your savings for the future, consider consulting with a professional financial advisor. Safe Retirement Solutions services the Annapolis, Maryland and surrounding areas, preparing clients for their retirement years, handling such details as the planning of income distribution, tax benefits and deferrals, and the general security of their nest egg.

For more information about Saving for Retirement and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

You can also follow us on Facebook, Twitter, LinkedIn, and Google+!

Sources:

Booming Economy? Better keep working

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Mutual Funds 101: Financial Advisors in Baltimore, Maryland

Friday, November 9th, 2012

Last week, we covered some of the common mistakes investors make when purchasing mutual funds, and this week, we’re here to further clarify these financial investment funds in order to help you save wisely.

A mutual fund is a company that garners money from a large group of shareholders and invests money in stocks, bonds, short-term money-market instruments, and alternative securities or assets. Each share corresponds to the portion of the fund’s holdings that the buyers own and the money those holdings produce.

The following qualities apply to the majority of conventional mutual funds:

  • Mutual funds shares are bought directly from the fund itself, not alternative investors like the New York Stock Exchange.
  • The cost of mutual funds shares is determined by the fund’s per share net asset value in addition to shareholder fees that accompany upfront purchase.
  • Investors have the capability to sell their shares back to the fund; they are “redeemable.”
  • Mutual funds operate by generating and selling new shares for new investors on a frequent basis.
  • Outside investment advisors are generally responsible for managing the investment portfolios of mutual funds.

Some of the advantages of mutual fund investments are as follows:

  • Funds are managed and selected by qualified financial consultants, ensuring professional management of your shares.
  • Mutual funds are a good way to diversify investments by spreading money across a broad range of companies, minimizing risk in the case of failed businesses or sectors.
  • With full liquidity, mutual fund shares can be sold and redeemed for their current value at any time.

A flexible and diversified means of investment managed by experts, mutual funds offer a solution to saving for retirement and spreading your money far.

For more information about Mutual Funds and our services or for professional financial advice in Baltimore, Maryland area consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Sources:

Invest Wisely: An Introduction to Mutual Funds

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Retirement 101: Annuities

Friday, October 19th, 2012

Annuities are agreements signed between an individual and an insurance company that are put into place to achieve financial goals for retirement. Under an annuity, the contract-holder makes a one-time payment or series of payments in exchange for the insurer’s promise to make recurring payments to the retiree when he sees fit.

Adding to their appeal, annuities allow for tax-deferred growth of earnings and sometimes encompass a death benefit that will pay an allotted amount to a beneficiary should the need arise. If, however, withdrawals are made from an annuity, gains are taxed at ordinary income rates rather than capital gains rates. Significant penalties may arise, too, if money is taken from an annuity prematurely – usually in the form of surrender charges to the insurance company in addition to tax penalties.

Three types of annuities exist: fixed, indexed, and variable, which are outlined below.

Fixed Annuity: In this type, the insurance company pays a predetermined rate of interest – for either a definite or indefinite amount of time – as the annuity account expands. Like the interest rate, the amount per dollar paid by the insurance company in the account is also specified.

Indexed Annuity: Insurance companies, in this variety, credit the annuity account with a return based on changes in index, while ensuring that the agreed upon value will not drop below a pre-set minimum, even if index performance changes.

Variable Annuity: This kind of annuity allows the user to decide on purchase payments from a breadth of various investment options, usually mutual funds. Depending on the performance of payments, the amount of periodic payments receives changes according to the performance of investment options selected.

In order to help you determine which type of annuity makes the most sense for your investment purposes, it’s a good idea to consult with a financial advisor who can help you to develop a plan based off of your current financial situation and goals for the future.

For more information about Annuities and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Source:

Annuities

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Trends in Retirement Planning: Saving Trumps Investing

Monday, October 15th, 2012

Investments have long been a part of the process of retirement planning. As the profitable cousin to saving, investments have helped to garner supplemental income for people post-workforce as they settle down for life without a full-time job. With the economic downfall, however, recently, savings has become the underrated and yet highly valuable family member, as investments have made a dive for the worse.

Though many Baby Boomers may be making this discovery a little too late, younger generations have been proving to alter their lifestyles accordingly. Between 2003 and 2011, the number of employed adults under the age of 25 contributing to their 401(k) plans increased by nearly 50%, according to Strategic Business Insight’s MacroMonitor. And in order to put money away in the bank, this younger set is making some economical decisions, driving older cars, paying off debts as quickly as possible, and saving at high interest rates.

Because of these shifts in the way retirement preparation is conceived, Wall Street professionals and financial planners everywhere will have to make changes that mirror the ones popping up around retirement planning. That is, they will have to adjust from providing advice about selling products to advice about saving money for financial peace of mind in the future. In essence, guaranteed money, even if of a lesser total sum, has become more important than the potential profits reaped from hypothetical and risky investments; security is key.

The trend in stock and bond obsessions came about in the late 70s, when Wall Street transformed from small partnership firms into global institutions – before that, investments were fairly conservative and planning for the future centered around saving. The Great Recession has ushered this more cautious trend in retirement saving back into style.

The professional advisors at Safe Retirement Solutions are happy to help you figure out how to cut costs and maximize savings in order to align with the current recommendations and directions of retirement planning.

For more information about Saving for Retirement and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Source:

The New Retirement Plan: Save More, Invest Less

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