Social security is a nice addition to one’s pension or retirement fund, but most likely is not enough to sustain you through your retirement years. Your personal savings and investments are the best bet when trying to cover the short fall.
The first step towards retirement is to start saving now. Most financial planners recommend that you save 10% to 15% of your income for retirement, starting in your 20s. The best way to get a true picture of what you will need to cover the gap between your social security and retirement needs is to estimate how much you need each year extra. On average you need about $15 to $20 in savings to cover each dollar of the annual difference between your income and your expenses.
Besides saving your money now while you are employed, investing is a good idea. Basically there are three investment categories, which include stocks, bonds, and cash. Your retirement accounts should contain a mix of bonds, stocks and a small amount of cash. Real estate can also be included as well.
John Labunski advises his clients to stay on the side of safe. It’s better to be safe than sorry when it comes to making sure you have enough money to live on once you can no longer work. His company Lincoln Wealth partnered with Fund Architects LLC., a move aimed at making sure each client’s goals and needs are met. Fund Architects is a full -service money management firm who share the belief that preventing loss is the true key to success for seniors.
John Labunski is a financial advisor and the CEO of a reputable investment company. One topic he must tackle daily with various clients is how to plan for retirement. Failing to have the right plan in place can be disastrous. There are a few things that people can do in anticipation of their retirement. First of all, make sure to save as much as possible while you are still working. Sock away any bonuses, extra tax money, etc.
Assess your health and longevity. Are you a smoker? Do you have questionable health now? These factors can help you determine how long your money needs to stretch. It can also help you plan for medical expenses that may arise.
Once you’ve calculated your life expectancy, you can gauge how much you’ll be able to withdraw from your portfolio without going through your entire savings. Most experts agree that you can take out 4% of your balance in year one of retirement, if your life expectancy is 25 years.
As an extra insurance to your current portfolio, put some of your portfolio in a deferred-income annuity, also known as a longevity annuity. These annuities differ from other annuities, which pay out right away. They take about 15 or 20 years or more, to mature. It can be thought of as old age insurance.
John Labunski provides full financial, wealth and retirement services to all his radio listeners and potential clients. He wants to make sure each client’s goals and needs were met, so that they can enjoy their golden years.
John Labunski has found that over the years, there is probably nothing more stressful than money troubles. Bad money habits can take a toll on one’s health, whether it’s bills, credit card debt or bad investing. Studies have actually shown that those people who save wisely suffer less stress and therefore have better health. You don’t have to make a ton of money to save wisely. According to investment counselors, finding ways to save regularly not only helps provide financial security but may also contribute to keeping people healthy long enough to enjoy their retirement. Here are some ways to start saving today.
Probably the easiest way to save for the future is a 401(k) plan. Many of them now incorporate features like auto enrollment, and auto escalation of contributions. Most would be savers like these features and would enroll in plans that automatically contributed 6% of their pay. The hardest part of saving is allocating those funds every month, but the earlier you get started, the better. For example, let’s say you make $41,000 a year, and saved 8% of pay. It would be necessary for you to begin saving at age 20, so by age 65 your retirement income would be $29,000 a year.
John Labunski has worked with many newbie investors and helped them save for the future. He began first by helping his mother resolve her own financial crisis after following the advice of a well-known financial investment advisor. It was then that he knew he wanted to start his own company and help people plan for their retirement and show them how to invest wisely.
John Labunski knows that sometimes it seems hard to find that extra money to invest in your future. Many people believe that you need a large sum of money to buy a portfolio, but nothing is further from the truth. Actually with just 1,000, a new investor can build a diversified IRA portfolio. There are a few online advisement companies that will help you invest the money and not charge anything until you reach $10,000.
For those who feel a little more adventurous, lean into the risky market place. Investing a small amount of money in an area that has been beaten up could prove profitable. Funds that hold small “value” companies are down 7.7% over last year. This allows for an investor to earn a nice return on little investment.
Another way to earn a bit on your dollar is to pick one company to invest in, although it may be hard to find the right one. Companies such as Google, CVS and other brand names that are making strategic changes could offer an investor a profit later down the road.
John Labunski works closely with investors to help them make smart choices. Over the years he has seen how many investment companies care more about their bottom line than the circumstances of their investors. He also has a radio show called Retirement Wealth Talk Radio and Wealth 911. Through his show he has helped many people with their investment portfolios.
While many people believe that a plush and easy retirement awaits them in the future because they are paying for social security and their retirement now, you should not be so certain about this. While social security is a viable way that many of the elderly of the past have had a decent retirement, it is far from the only way, and more uncertain than other methods. This becomes even more prevalent when you consider that soon the trust fund developed has been scheduled to run out.
That is correct. It is believed by some financial experts that by the year 2037, the social security common wealth fund will dry up before a substantial amount of the workforce even comes close to retiring. This means that when the time comes to retire, the average payout will only be about three-quarters of what it once was, as people will only be getting the same amount that they were putting in. This means your financial future now more than ever is in your own hands.
If you rely on social security to provide you with a comfortable means for retirement, you may be setting yourself up for disappointment. This however, is no reason to panic. In fact, many people do not need to live off of social security to have a successful retirement. Social security has often just been a base living rate anyway, and those who take proper steps now can plan for a more financially sound retirement.
John Labunski is a finance expert that encourages people to come up with their own retirement strategies and budgets.
In finance, many people hear the word debt and start running for the hills. While debt isn’t always encouraged, it can actually be a good thing from time to time. That is because most debt is made as an investment of sorts.
The most important thing to do to improve your financial situation is to understand and be able to control the amount of debt you have. Too much debt and too little can both be detrimental to your financial situation. This is because with too little debt, you aren’t making any plays or taking any risks to improve.
Many debts come from things like student loans, which help you get a good education and in turn a good career. Debts can also be accumulated by receiving loans to open a business or buy a vehicle. These are necessary expenses that will help improve your financial situation in the long run.
The trouble with debt and finance is not that you should avoid debt all together, but you should find a good medium. This medium should have just enough risk to have an average growth rate and reward, without you worrying about being buried in debt. A common mistake people make in financing is overinvesting. Spending five or six years in college to earn a four year degree for instance. Things like this can make it much harder in the long run to dig yourself out of your hill of debt. That is why you need to find balance.
John Labunski is a finance expert that encourages people to find a happy medium of debt that allows career growth.
Finance is one of the most difficult fields for the average person to master, especially when it comes to their own finances. This is because often we are not good judges of our own situation, as obvious bias can exist. The majority of people are in a state of financial ruin, which seems ridiculous because the world is populated by generally smart people. Well the problem is that there are equally intelligent people who are trying to take your money while you are trying to save it. This happens all of the time in the form of marketing, advertising, and special promotions, all designed by an elite team to part you with your hard-earned cash. It is these kinds of spending traps that encourage you to spend money with the illusion of saving it.
One great example of a classing spending trap is the rewards incentive that is offered by most credit card companies. Remember that these companies have one goal, to make as much money as possible, something that they can’t achieve by giving it away. The same thing applies to you and your finances. While rewards for spending sounds like a good idea, because you are getting money to spend money, you are always spending far more money than you are saving. Reward cards also usually carry hidden costs like a higher interest rate. So while it may seem like you are saving money, in reality you are actually losing money in a cleverly devised spending trap.
John Labunski is a finance expert who notes that you need to be wary about spending traps and marketing schemes.