Wednesday, July 12, 2017

The Right Questions To Ask For a More Fruitful Retirement Plan

As one approaches retirement, questions about what luxury liner to pick, what country to visit, and other similar expenditures take precedence over more practical matters. It should be fine to reward oneself with a fancy vacation after toiling away for decades, but even that longed-for respite must ultimately be accounted for within the context of one’s possible retirement finances and not decided on a whim.

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There are a number of questions that should be prioritized over accommodation concerns regarding that extravagant trip. One of the more pressing relates to money: How are you going to bankroll your retirement expenses? In the absence of regular paychecks, this shouldn’t come as a surprise. A lot of people tend to overestimate the purchasing or financing capabilities of their retirement resources, but without anything to replenish spent money on luxury getaways, it is difficult to imagine how one can survive in two to three decades.

Financial advisors can sort out some of the planning decisions for the retiree. Other than what one can get from social insurances or defined contribution plans, annuities and other investment accounts can sustain one’s lifestyle. That statement leads to another really important question: What kind of lifestyle are you planning to have during your retirement period? This could help a retiree to figure out a retirement budget that could work with his or her own vision of an enjoyable, comfortable post-career life.

One question that if answered “yes” is clearly a reflection of a careful and thoughtful planning is this: Do you have a backup? Should there be any frustrating ordeals along the way that could compromise one’s capability to support a certain lifestyle, what measures have been allotted to address those obstacles? There might be several options: from taking up a retirement job to keeping away from expenses that one can forego.

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Andrew Corbman is committed to making a big difference in people's lives and dedicates a part of his services to educating clients on investment strategies and tailoring them to suit their specific needs. To learn more about his work, follow this Twitter account.

Friday, June 23, 2017

Healthy Parenting: When Parents cut the Financial Cord on Their Children

At some point in their lives, parents should learn how to cut the financial cord on their children. Given today’s precarious economic situation, doing so may be a difficult decision. However, financial analysts have noted that not doing so may negatively impact both parties. Listed below are a few considerations to take note of.

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Children need to learn: Recent business surveys found that more children are living with their parents past the age of 30. There are many reasons this could be so, but a major factor is that children develop a co-dependent relationship with their parents. It is natural and expected for parents to take care of their children while they are going through financial trouble, but there should also be a limit to this help -- especially if the child in question is a fully-functioning adult. Children need to appreciate the value of independence and making it out on their own.

Parents lose the ability to retire well: On the other side, parents lose their ability to build their nest eggs properly. There are government-mandated policies for retirement; however, financial experts note that these are no longer enough. Older working professionals should begin saving for their retirement as soon as they can using private means of investing. Nevertheless, with the current trend of taking care of one’s children past the expected age, parents are no longer financially capable of retiring when they can. This has led to more adults over the age of 60 choosing to work longer.

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One can see a devastating chain of events that occurs with misplaced benevolence. It must be emphasized that while parents are encouraged to take care of their children, the financial support that comes with it should have its own limitations as well.

Andrew Corbman is passionate about helping his clients achieve financial freedom upon their retirement. For more financial insights, visit this blog.

Tuesday, June 13, 2017

A Beginner’s Guide To Fixed Index Annuity

The most common investment options are bonds and stocks, but the easy choices are not always the best ones. Consider putting your money on a Fixed Index Annuity or FIA. In this type of annuity, the investor’s capital is brought to a life insurance company, which then credits the annuity account with a fixed rate of interest. It’s a lucid and most viable option, and here are some of the reasons why.

The main come-on of a fixed index annuity is the deferment of taxes: meaning, one will not have to pay these until he or she withdraws gains from the account. This lessens the headaches from filling annual 1099 forms. More importantly, it’s highly advisable for those with investments allocated as “cash” to consider annuities since, over time, tax-deferred compounding may produce a greater overall return than other non-qualified investments.

Fixed index annuities likewise often credit investors with higher interest rates than bank CDs. In addition, any investor who has maximized his or her contributions to a given retirement plan (i.e., IRAs, pensions) can contribute without limit.

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Annuities allow investors to retire early, worry-free, and with a lifetime-guaranteed income. They act as valuable tax-savings for employees below 59½ years old that receive large, lump-sum distributions from their 401(k) profit-sharing plans as part of, say, an early retirement or severance package. These amounts can be forwarded to an annuity policy without the need to factor in taxable income.

Annuitizing your fixed index annuity gives you the option to swap its value for “immediate annuity” income streams. These are income riders which provide withdrawal benefits similar to immediate annuities, providing investors a constant and guaranteed monthly check throughout course of their lifetime.

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Andrew Corbman and his firm, ASC Financial, Inc., assist retirees in expanding their investments, employing tried-and-true methods of financial planning and asset and wealth management and evaluating each client's unique situation to determine eligibility for an array of post-retirement benefits. For more articles on investments, visit this blog.

Wednesday, March 15, 2017

Life Planning: The Huge Discount In Early Investment

Many people will tend to cringe at the sound of any business proposal that mentions life planning, including those who are a few years away from retirement. Truly, the lack of urgency stems from the absence of anything tangible to the one who is expected to pay a sum of money for a need that may come in the not so near future.

This does make sense. However, there’s an argument against this that makes sense too, perhaps even more than people care to understand.

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Choosing to make an investment today rather than in the far future allows you to save a lot of money. There are three indispensable realities to consider here.

The value of goods will always follow a progression. Goods don’t grow any cheaper. They naturally become more expensive. This is the reality called inflation.

As a person grows older, he becomes more at risk. To put it bluntly, anyone is in this situation simply by living, and the influence of this factor gets bigger with age.

To make things worse, the amount of money that afforded one the chance to buy a specific thing once upon a time simply cannot buy the same thing later.

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If you learn to make peace with these realities, then you can see the value of managing wealth sooner rather than later. You may be approaching retirement, but if you’re not very old, you still have a chance to secure yourself further. This means that retirement can be made more affordable if you make sound investments today.

Andrew Corbman, founder of ASC Financial, assists clients in making wise decisions on what to do with their assets. For more information on retirement planning, visit this website.

Tuesday, February 28, 2017

Longevity’s role in rethinking retirement

At the core of a retirement plan is enabling an individual to maintain his standard of living for the remainder of his days. At the onset, they must plan significantly ahead to make sure that they stay in the black throughout their golden years, which becomes increasingly difficult as the years roll on.

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While a broad array of economic factors contributes to the complication of earning enough for retirement, none are as significant as the gradual increase in average life expectancy. Thanks to advances in medical science and a heightened awareness of good health, people generally live longer than previously expected. This very welcome development is nonetheless a good reason for many people in good health to reevaluate their approach to retirement planning. 

Expected longevity may influence exactly when a person can retire. Even when the economy is good, a prospective retiree in good health may find it fiscally beneficial to defer retirement slightly for a few years, which gives more time for funds to accumulate while preventing the premature use of Social Security and other finite retirement benefits. 

This added time might itself be an advantage for investing in retirement. With time once again on their side, retirees and individuals close to retirement age can go on the aggressive with their investments, allocating more funds to stocks and others in their portfolio. This aggressive new strategy allows older adults to hedge against monetary inflation, although this is not without its risks.

Careful planning and analysis can help avert the danger of outliving one’s retirement funds, allowing one to truly live long and prosper. 

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Andrew Corbman and the team at ASC Financial provide older adults with guidance and advice throughout the process of planning for their financial future. For more information on retirement planning options, visit this page.

Friday, January 20, 2017

Making The Most Out Of Social Security In Retirement Planning

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When planning for their post-retirement finances, older adults need to get an exact income projection from all their available income sources, including social security. More than 90 per cent of American retirees would rely on social security, and it pays to understand how to maximize these benefits during retirement itself.

When to draw from social security is one of the salient questions posed both by future retirees retirees and their financial advisers. This answer, of course, is influenced by the uncomfortable question of how long a retiree can expect to live after retirement.

The mean age of individuals collecting social security benefits is 66. The health of the person, however, can determine individual cases. People with worrying medical histories are advised to take social security benefits sooner (e.g. at age 62) whereas those who are healthier and can expect to live longer could delay social security benefits until age 70, allowing them to stretch out those funds for longer.

Receiving social security early, meanwhile, can also open up opportunities for individuals to invest the funds elsewhere. When properly invested, these funds can yield an appropriate return in bullish markets.

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Retirees can also tap into other social security benefits to make the most out of all available revenue streams later in retirement. For instance, some individuals could be eligible for specific benefits, such as those for dependents or caregivers.

In many instances, social security can also affect the tax status of investments made during retirement. Andrew Corbman and the team at ASC Financial can help individuals identify potential shortfalls of their social security funds and maximize their revenue streams post-retirement. Visit this page on his company's website for more information.