Category: Life Insurance

Marvin Dutton

Author

In the last five years before you retire, there are several essential measures that you need to take. Let’s go through some of them here.

Estimate your retirement income

To determine whether or not you have sufficient funds to retire, you need to create an accurate estimate of the amount of money you spend each month, as well as the amount of money you will have coming in each month. This is the single most significant action you can take in planning for your retirement.

Put your present monthly costs and the amount of money you bring home from work on paper. Consider the expenses associated with hobbies, house upgrades, and automobile repairs as additional variable costs.

Have a few more weeks off from work

Over the years, one of the most common goals clients have shared with me for their retirement is to see the world. Why wait? Visit the United States of America even if you don’t have time to travel the round-trip journey to New Zealand, which takes 24 hours. Traveling to the middle of the country in a single day is possible. Take a trip to the seas off the Florida Keys to go swimming, go to the Grand Ole Opry in Nashville, go on a whiskey tasting tour in Tennessee, go hiking on the red rocks in southern Utah, or take a rafting trip down the Grand Canyon. All of these activities are great vacation ideas.

Adjust the hours you spend working

Even if you believe your employer will not be amenable to a flexible, remote, or part-time schedule, you should still inquire about the possibility. The New Flexible Retirement survey indicated that 25% of adults over 55 said that their employers permitted workers who were approaching retirement to convert from full-time to part-time schedules. This finding was based on the responses of respondents who were 55 years old or older. You have a one-in-four chance of being one of the lucky ones. If this is the case, you should seize the opportunity. If not, then argue in favor of it.

Live on your retirement income

Conduct a trial run of your retirement plan now if it calls for you to spend only 70-80% of your present salary once you reach retirement age. Could you live on less and enjoy retirement? You won’t know for sure unless you give it a go. Establish an automated transfer from your checking account to your savings account. This will minimize the amount of money you spend each month, simulating the income you would get in retirement.

A significant number of people apply for Social Security benefits as soon as they become eligible for them. Some won’t show up for work, even for one more shift.

Nevertheless, the timing of your initial application for Social Security benefits is a significant issue that is entirely under your control. If you don’t cash the checks immediately, the total amount will increase as you wait.

Not everyone is cut out to be patient. However, because this choice will permanently affect a significant portion of your income—it may be the only source of income you will ever have—it is important to understand what is at risk for you.

Make a wide range of investments

It is never a pleasant experience to see the value of your portfolio rise only to fall again. It doesn’t matter how you got there as long as you end up with enough money; that’s the only thing that matters.

On the other hand, things can drastically change after you’ve reached the retirement age. When you make consistent withdrawals from a portfolio, volatility exerts a significantly stronger influence on the portfolio’s value. Retirement planners term it “sequence risk.” If you can smooth out the fluctuations in your income, there is a better chance that your savings will last you through your whole life expectancy.

Invest some time in calculating which combination of assets will provide you with the required rate of return while still exposing you to a degree of acceptable risk. The portfolio’s risk-to-return characteristics will impact how much income you will have and how long it will continue to flow into your life.

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 implementiong a sound plan for your retirement. We are commited to helping you achieve your goals. Visit us at M. Dutton and Assoiciates.COM. Tel. 212-951-7376: email: [email protected]

Even though retirement is something that many people look forward to, recent findings suggest that a significant proportion of people are unsure about what retirement will be like for them, when they should retire, and how they will pay for it all. These findings indicate a significant disparity between employees’ emphasis on being able to retire comfortably and their confidence in their ability to achieve that aim.

The confidence gap is something that plan sponsors are aware of, and many of them are concerned about the workers’ financial well-being when they reach retirement age.

According to two recent surveys, clients seeking financial and registered investment advisors have similar opinions regarding the significance of retirement income planning as part of an overall financial planning package. This finding suggests that clients and advisors are on the same page regarding this topic.

The American College of Financial Services surveyed close to 400 independent advisors and found that retirement income planning is the area that registered investment advisors (RIAs) most want to become experts in. This was followed by estate planning and advanced tax planning as the areas in which RIAs most wanted to become knowledgeable.

Most Desired Offering

According to the second poll of 1,157 people with investable financial assets of at least $25,000, retirement income planning was the service customers sought the most, regardless of age or gender.

According to the American College of Financial Services, 31.3% of customers chose “understanding how much I can comfortably spend in retirement” as the top service they sought from a financial adviser as the top service they wanted from a financial advisor.

Both consumers and independent advisors place a high value on ongoing education. According to the survey, 49.2% of consumers ranked knowledge as one of the top three characteristics of their advisor, and 27.1% said it was the most important characteristic. Independent advisors also place a high value on education.

Helping in Career

The American College of Financial Services reports that among independent advisers, 58.5% of respondents strongly agreed that the enhanced knowledge that comes with the process of acquiring a financial services certification had helped them better their profession.

According to the survey, 79.4% of the financial advisors agreed that they would not have been able to provide integrated services if it had not been for the knowledge they obtained while working toward such a designation. 

Michael Finke, a professor of wealth management and director for the O. Alfred Granum Center for Financial Security at The American College of Financial Services, stated that continuous learning is critical to the growth and success of investment advisors. When we take a look at the statistics, we notice a definite demand for further education and specialized expertise in planning retirement income. This is precisely what customers want and what advisers in the RIA community think is beneficial.

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 implementiong a sound plan for your retirement. We are commited to helping you achieve your goals. Visit us at M. Dutton and Assoiciates.COM. Tel. 212-951-7376: email: [email protected]

The average life expectancy has risen to over 78 throughout the United States, considerably influencing how citizens care for themselves into their golden years. With an influx of aging Americans, the number of people needing long-term care has increased and will only continue to do so. There are near-limitless ways to save for retirement, including 401(k)s, IRAs, HSAs, and more. Long-term care insurance is another way in which retirees can enjoy coverage for in-home care, adult daycare, and more due to chronic health conditions. If you have considered long-term care insurance for yourself or a loved one, there are various questions and considerations before taking the plunge.

The COVID pandemic has dramatically impacted every facet of our world, including health insurance. The rising costs were partly due to the increased pressure and the changing regulations required to keep everyone safe and healthy. In 2020 especially, it was difficult for insurance companies to offer guarantees alongside solutions, which also caused insurance costs to skyrocket. As time marches on, we can expect premiums to increase for new policies, price increases for existing policies, and additional difficulties in attempting to get insurance coverage.

There are many reasons to invest in long-term care insurance, especially when it comes to your age and overall health. If you are currently in excellent health, and getting adequate coverage through a solid plan, chances are your rate will be lower compared to that of others in poor health. Maybe you have recently become a parent or are looking to provide a safety net for yourself and your children. Take time to read the fine print of everything involved with your chosen long-term insurance plan to avoid “use it or lose it” clauses within fine print sections.

Once you begin shopping for long-term care insurance, you will find many policy options that provide death benefits or a cash value upon your death. Essentially, if you find yourself needing care, you will enjoy the necessary coverage or care. However, should you never utilize these benefits, your loved ones can reap the benefits upon your death, highlighting the importance of adding the desired beneficiaries to your plan.

What other details affect your premiums and suitable long-term care insurance options? Gender can affect coverage and cost, although married couples often enjoy lowered premiums due to a marital discount. On the other hand, single women typically pay higher premiums since they experience a long life expectancy compared to their male counterparts and have a higher chance of utilizing said insurance.

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

Marvin Dutton

Author

It’s much easier than you think to lose money in your retirement savings.

Do you want to get the most out of your Social Security benefits? I’d be surprised if you didn’t. It’s only natural to expect more from a pension that will last the rest of your days. The following are six ways to maximize your Social Security benefits.

Verify your earnings history

Your Social Security payout is based on your past work history. Your benefits will be artificially reduced if your earnings history is incomplete.

Your earnings history may be seen by registering for an account with my Social Security. Form SSA-7004 can be used to get a copy of your earnings record from the Social Security Administration (SSA).

Gather your tax returns, pay stubs, or any other proof, and call your local Social Security office if your income is missing from your record.

Compile your “side hustle” earnings

Taxes are due on the money you make from any secondary sources of income. If you fail to declare these earnings, you may face penalties from the Internal Revenue Service (IRS). Furthermore, you risk a smaller Social Security payout if you don’t declare all your income.

The IRS Form 1040, Schedule C, and Schedule SE commonly record self-employment income. Self-employment taxes, such as those for Social Security and Medicare, are calculated using Schedule SE.

Work for at least 35 years

This method uses an average of your prior wages to calculate your Social Security payment. The 35 years you made the most money are included in this average. If you’ve worked less than 35 years, the average computation utilizes zeros to fill in the missing years of your career.

For example, let’s assume you’ve worked for 30 years and earned $50,000 throughout that time. The 35-year average of $42,860 is based on an assumption of no income for five years. You might expect to earn $50,000 after 35 years of full-time employment, which is the average.

If you can, work for 35 years. In this way, you can avoid years where you have no income, reducing your wages and, as a result, your pension.

Wait until FRA

For Social Security purposes, your Full Retirement Age (FRA) is the age at which you are eligible for your entire pension without any reductions. Your Social Security payout will be smaller if you begin collecting it before your FRA. A percentage decrease is applied for each month your pension is expedited relative to full retirement age (FRA), and this deduction can be as significant as 30%.

Plan your income

Income limitations apply if you work and receive Social Security benefits before your FRA. Similarly, benefits are slashed if you go beyond certain limitations.

With a rise in your taxable income, you may experience a Medicare-related reduction in Social Security benefits. You may be subject to a higher or greater Medicare premium surcharge on your Social Security benefits if your taxable income (including investment income) rises. A Roth conversion or making a substantial investment gain can result in this.

Surcharges are added to your benefit two years after income is generated, making matters even more complex.

If you’re considering a Roth conversion, you might be willing to put up with a short-term reduction in your Social Security benefits in exchange for the long-term benefits. However, in some cases, timing your income may be able to reduce or prevent an additional penalty.

Repay debts

For delinquent obligations, Social Security may garnish your payments. Unpaid taxes, child support, alimony, and student loans to the Department of Education are among such obligations. Court-ordered victims’ restitution is another.

You must appeal garnishments directly with the Internal Revenue Service (IRS). It’s preferable to avoid these circumstances if you can, as you’ll almost certainly require the assistance of an attorney.

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

Marvin Dutton

Author

Social Security is a significant part of retirement benefits, even though you may not get as much as you want from it, so it’s essential to make wise choices. The outcomes of your decisions about your Social Security will have an effect on how you live your retirement. 

However, some people count solely on Social Security, not knowing that the benefits are approximately 20,000 dollars a year. Others who are wise retire with some money saved up already – the Social Security benefit can come in afterward as an “extra”.

Therefore, before you start getting your retirement benefits, be sure that you can confidently answer the questions below. 

1. When can I retire for good?

The question you’ll need to answer before getting Social Security benefits is easy to answer. At what point will you be financially confident enough to retire?

The answer varies according to an individual; it could be 65, 68, or between that time. This time is the age where full benefits based on your past earnings can start rolling in.

2. What time is best for you to receive Social Security?

There is no particular best time for everyone to receive Social Security, and the decision solely rests on you. You can start getting your Social Security funds as early as 62, and it could be as late as 70. 

Moreover, receiving the benefits early will cause you to get smaller checks in high quantity while receiving them later will give you an 8% increment until age 70. To help your decision, think about how long you want it to last. Waiting a little longer might be great for people with the gift of long life.

3. How much money do I need to live on when I retire?

The best solution is to plan out your retirement in detail. It would be best to calculate how much money you will need throughout your retirement – you should also figure out how you will get it. You may have to save extensively, rely on a pension, or secure an extra source of income.

When you get a rough picture of the money coming from your Social Security retirement benefit and an estimation of what you can save and get from pensions, you will know how and where to invest in new income sources/businesses. 

You can find an estimate for your future social security benefit by creating an account on the Social Security Administration (SSA) website.

It’s advisable to prepare for retirement, make the most of your Social Security retirement benefits, make more money, save as much as possible, and rest assured of a comfortable retirement.

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