Category: Life Insurance

Women today are breaking ground by handling everything from paying the bills and investing to planning their retirement. Women are increasingly taking charge of budgeting at home. In the post-pandemic era, people want more control over their finances, including how they pay bills, save for the future, and invest their earnings. 

Do you know that women now outnumber men in college graduation rates and the workforce? A majority take the lead in managing their money and financial portfolios. This newfound economic autonomy is the clearest indicator that women are rejecting the idea that money matters should be left up to men. Therefore now the following ideas are true.

The Stakes are Higher for Women

If women don’t take charge, they stand to lose more than males. Females have a five-year life expectancy advantage over males, although they are paid less. Therefore, they must save enough money to endure during their potentially decades-long retirements, some of which will be spent in relative isolation.

For decades, many women have been discouraged from pursuing high-paying finance jobs or investing independently due to a lack of financial education. Now women are becoming more financially secure because:

1. Women take charge of business because women live longer than men.
2. They are financially literate and self-reliant, feel safer, and have more faith in their abilities, money, and investments. 
3. Female investors typically outperform their male counterparts.
4. Women are receptive to financial guidance, which is essential for financial planning.

Why Are They Able to do This?

Women are reclaiming control over their financial situations and concentrating on enhancing the quality of their professional lives. Only 60% of the women surveyed agreed that their workplaces were making strides toward equality for women in the workplace. 

However, there is some good news: women are taking charge of their professional lives. Though, a higher percentage of them are unhappy with their pay and want to leave their current jobs and find better ones. And that’s great news for us because the job market is hotter than it’s been in years.

Characters of Women in Our Dispensation

Becoming financially self-reliant takes bravery, determination, and a hunger for knowledge. Managing the household budget can be difficult, but adding investing and retirement savings can be overwhelming.

That’s why educating yourself and getting help when you’re stuck is crucial. Financial independence is more attainable for women who are not afraid to ask for help and listen to professionals’ advice. Building a plan that works for both the short and long term requires using a reliable financial expert.

Bottom Line

It takes careful planning to ensure women have enough money to last for twenty, thirty, or more years after we retire, and that money should come from secure, long-term sources. 

To all the ladies, it’s time to take charge—and find a financial professional who looks out for your interests. Anyone who looks down on women in this dispensation does so at their financial peril.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

Marvin Dutton

Author

By following these procedures, you may establish a solid foundation for your financial future in retirement.

It’s time to start planning your money for 2023 as 2022 winds up. No matter how close you are to retirement or how many years you have left in the workforce, there are some Social Security decisions you must make. These measures won’t take long, but they can ensure a more secure financial future in old age.

1. Establish the age at which you can fully retire

At FRA, you can collect 100% of your benefit amount based on your lifetime of work. For example, a person’s FRA is 67 if born in 1960 or after. So, if you were born before 1960, you can anticipate retiring at 66 or 66 plus a specific number of months.

Benefits can be started as early as age 62, but they are reduced by 8% per month until the full retirement age is reached. However, you can receive a monthly bonus on top of your regular benefit payment if you wait to start collecting until after your FRA (up to age 70).

Knowing your FRA can help you settle on a claiming age that works best for you. Knowing your FRA can also help determine when you can retire and apply for Social Security.

2. Verify your estimated benefit amount 

Years before you retire, you can still get a rough idea of your benefits. First, you can log into your Social Security account online and review your most recent online statements. Then, by entering your actual salary history, you can calculate a reasonable estimate of your future pension.

Consider that this sum is predicated on your submission at your FRA. As a result, depending on whether you start getting benefits right now or wait, your benefit amount could decrease or increase. The amount of your pension may also alter if you have several years to go before retiring, depending on your future salary.

3. Review your finances

Knowing your estimated Social Security benefit amount might help you plan for retirement on a more secure financial footing. You can next evaluate your savings to determine if you have enough to supplement your Social Security income and live well in retirement. You might have to increase your savings rate if you discover that your Social Security benefits will be lower than anticipated.

Even if retirement is decades away, it is wise to prepare now. If you discover that you will need to dip into your savings more than anticipated, giving yourself additional time to save will make it much simpler to get to your goal.

A wonderful time to evaluate your financial situation is at the beginning of the year and make any required changes to your retirement plans, investing strategy, and savings goals. If you take these three steps, you may enter 2023 with as much preparedness as possible.

Most seniors are entirely unaware of the $18,984 Social Security bonus.

Many Americans are years behind in saving for retirement. However, knowing a few “Social Security secrets” could increase your retirement savings. One simple strategy, for instance, may result in an additional $18,984 in annual income. In addition, you’ll be able to retire stress-free after you understand how to optimize your Social Security payments.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

Government retirement savers could partially compensate for last month’s losses thanks to an impressive October for the stock market, which included the best month for the Dow Jones Industrial Average since 1976.

October’s strong stock market performance was much-needed after a disastrous September in which all Thrift Savings Plan funds lost money except for the infamously conservative G Fund, which invests in government securities. The S&P 500 posted an 8% gain for the month, the NASDAQ rose 3.9%, and the Dow increased by 14%.

This is good news after a late October report from the TSP board revealed that the average account balance for Thrift Savings Plan investors was down roughly $30,000 year-to-date through September. That helped all three of the stock-based funds in the federal government’s 401(k)-like Thrift Savings Plan (TSP) post significant gains in October.

The TSP’s small firm stock S Fund took the lead with a gain of 8.59% in October. Following that, the large firm stock C Fund saw a gain of 8.1%, and the international stock I Fund saw a gain of 5.98%. Despite the improvements in October, these funds still have losses of 23.83%, 17.7%, and 22.9%, respectively; over the past 12 months, they have lost 27%, 14%, and 22.74%, respectively.

The TSP’s bond-based fixed income F Fund fell by 1.26% in October, for a loss of 15.38% for the entire year. The G Fund, the only TSP fund to have made money so far in 2022, increased by 0.34% for the month, bringing its gain for the year to a meager 2.29%.

2055, 2060, and 2065 funds of the TSP’s target-date fund-like lifecycle funds saw the most gains in October, each rising by 7.36%.

	YTD Return at end of September	YTD Return at end of October
G Fund	1.94%	2.29%
C Fund	-23.87%	-17.70%
S Fund	-29.85%	-23.83%
I Fund	-27.25%	-22.90%
F Fund	-14.30%	-15.38%

 All of the core Thrift Savings Plan funds are still significantly down for the year, except for the F Fund, which kept losing in October, but the losses are less after accounting for the gains for each fund in October.

 Below is a summary of TSP’s performance for the year, the last 12 months, and through October 31, 2022. 

Fund	October 2022	Year-to-Date	12-Month Return
G Fund	0.34%	2.29%	2.55%
F Fund	-1.26%	-15.38%	-15.40%
C Fund	8.10%	-17.70%	-14.61%
S Fund	8.59%	-23.83%	-27.24%
I Fund	5.98%	-22.90%	-22.74%
L Income	1.98%	-4.13%	-3.61%
L 2025	3.07%	-8.48%	-7.75%
L 2030	4.52%	-12.45%	-11.62%
L 2035	4.91%	-13.89%	-13.02%
L 2040	5.32%	-15.22%	-14.33%
L 2045	5.66%	-16.42%	-15.53%
L 2050	6.02%	-17.50%	-16.59%
L 2055	7.36%	-20.14%	-19.13%
L 2060	7.36%	-20.15%	-19.14%
L 2065	7.36%	-20.16%	-19.16%

Source: TSPDataCenter.com

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

The U.S. Senate Banking Committee Chair asked Federal Reserve Chairman Jerome Powell on Tuesday to exercise caution when tightening monetary policy so much that it causes millions of Americans already experiencing rising inflation to lose their jobs.

The letter, which was also written to the Fed’s Board of Governors and made publicly available by Brown’s office, reads, “While it is your duty to fight inflation, you must also keep in mind that you also have to make sure we have full employment. We must avoid the effects of aggressive monetary policy, especially when the Fed’s actions fail to address inflation’s primary causes, overwhelm our recent gains and robust labor market.”

At their meeting the following week, Fed policymakers are anticipated to announce their fourth consecutive supersized interest rate hike, pushing the policy rate to between 3.75% and 4% as part of the most significant series of rate increases in about 40 years.

Brown’s letter urged “continued caution” in light of the synchronized tightening of monetary policy by central banks around the world and other factors that pose the real possibility of worsening the global economic situation. Still, it did not specifically ask the Fed to stop or slow the rate hikes.

For his part, Powell has acknowledged these dangers and the possibility that increasing borrowing rates would result in a rise in unemployment, which is currently at a historically low 3.5%.

He has, however, also maintained that the only way to guarantee the durability of the labor market is to defeat inflation, which is currently running at over three times the Fed’s 2% target.

Brown’s letter to Powell is being published as his fellow Democrats fight to hold onto their slim Senate majority across the nation, with Brown’s home state of Ohio serving as one of the most carefully watched contests. The elections are held one week following the Fed meeting.

Republicans claim they would manage the economy better than Democrats and blame Democrats’ pandemic aid and other policies for high inflation. At the same time, Democrats blame rising prices on avaricious businesses and supply networks.

According to studies, both sky-high demand and supply limits are responsible for driving inflation, and Fed policymakers say they are dedicated to reducing it.

Brown’s letter is unlikely to change their minds, but they are anticipated to at least start discussing reducing rate increases when they meet on November 1-2.

Despite this and the fact that policymakers aim to avoid politics and assert that their efficacy depends on political independence, Brown’s letter highlights the political environment in which the Fed functions.

Interest rates and unemployment

Like the overall economy, interest rate hikes always affect the labor market. First off, higher interest rates often negatively impact consumer spending and corporate investment, resulting in less hiring and more unemployment.

Industries that generate expensive durable goods and those that depend on long-term finance will probably react to drastically higher interest rates more swiftly.

The construction industry will be one of the worst hits. Home prices have risen to historic levels, and the average 30-year fixed mortgage rate has doubled over the previous years. All other things being equal, higher mortgage rates are likely to discourage home purchases, resulting in a downtrend in home sales.

As real estate investment declines with rising rates, further cooling of the housing market would negatively affect construction industry recruitments. Companies would have to pause recruitment or even lay off some employees when fewer contracts are available.

While public infrastructure initiatives and other non-residential investments may temporarily fuel a sustained demand for laborers in the construction industry, they may not be enough to keep the sector afloat.

The manufacturing industry will also be affected. Rising rates make it more costly to finance expensive, long-lasting items like furniture and cars, which reduces demand. This will slow down production and make companies pause any expansion plans, resulting in fewer jobs.

In his letter, Brown said, “I kindly request that you remember your duty to encourage full employment and that the actions you make at the following FOMC meeting demonstrate your dedication to the dual mandate.”

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

If you work for the government, retirement planning and conventional wisdom regarding 401(k) plans and Social Security benefits are unlikely to apply to you. However, there are several ways for government employees to plan for a prosperous retirement. The first step is understanding your benefits and how to apply them to your financial picture effectively. The following are the best retirement planning techniques for government employees.

Hired before January 1, 1984

Let’s say you are an older federal civilian service employee employed on or before December 31, 1983. In that case, you may be eligible for the Civil Service Retirement System (CSRS), which offers retirement, disability, and survivor benefits.

Since you haven’t had Social Security taxes withdrawn from your paycheck, you won’t be eligible for Social Security benefits until you work another job or qualify via a spouse.

If you’re eligible for Social Security benefits, your CSRS pension may lower your benefits.

Hired in or after 1984

If you were hired in civilian service in 1984 or after, you are covered by the Federal Employees Retirement System (FERS).

It offers Social Security benefits, a basic benefit plan (pension), and a Thrift Savings Plan (TSP), which includes automatic government contributions, optional employee contributions, and matching government contributions. The retirement payouts for these plans are structured as annuities depending on your age, years of service, and plan contributions.

Contributions and Investments of the Thrift Savings Plan (TSP)

The TSP is a defined contribution plan, which means you choose how much to contribute and how to invest it.

These decisions determine how much money you will get when you retire.

Contributions and how they work

Employee contributions to a TSP can be made either before or after tax. If you contribute pretax money, you don’t have to pay taxes on them until you begin withdrawing funds from your TSP. If you contribute after-tax funds, you won’t have to pay taxes on the money you withdraw in retirement. In any case, your contributions grow tax-deferred.

For 2021, the maximum TSP contribution is $19,500 (increasing to $20,500 in 2022), with an extra $6,500 in catch-up contributions if you’re 50 or older.

Employees under the CSRS and the FERS can contribute to a TSP. Only FERS employees, however, get employer contributions. If FERS covers you, your employer will automatically contribute an additional 1% of your income, and if you make employee contributions, you’ll be eligible for a matching contribution from your employer.

If you have the resources, it’s suggested that you contribute enough to maximize your employer match and ensure you have enough years of service to qualify for the automatic 1% match. You can also transfer funds from a former employer’s retirement account into your TSP.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]