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It’s Never Too Early to Plan Your Retirement

Even when you’ve determined an exact date you want to retire, it’s hard to know how many years your retirement will last. So it stands to reason that planning for an early retirement could be a challenge.

However, there are ways. We can take a look at your current financial situation and figure out if there is a strategy to help you retire or semi-retire with a retirement income plan that you can have confidence in. In the meantime, here are a few ideas to bear in mind.

First of all, should you wish to retire at age 55, you will not be subject to the standard 10 percent early withdrawal penalty from your current employer’s retirement plan, including a defined contribution plan, on distributions made before age 59 ½. The penalty-free retirement age drops to 50 for people who work in public safety professions.

Why public safety officers? These generally are higher-risk jobs in which stress takes its toll, leading more people to retire earlier than from other careers. Examples include federal law enforcement officers, firefighters, border patrol officers and air-traffic controllers.

Note that this penalty exception does not apply to IRAs or any retirement plan you may have still with prior employers. This is important to remember if you’re thinking of rolling over your employer plan into an IRA. If you do that when you retire early, you may not be able to tap that money before age 59 ½ without triggering the penalty charge.

[CLICK HERE to read the article, “How to avoid the 10% penalty when retiring early,” from MarketWatch.com, Feb. 5, 2016.]

[CLICK HERE to read the article, “Getting Your Retirement Money Early -- Without Penalty,” from Nolo.]

In the past, another concern with regard to retiring early was health insurance. However, due to health care reform, you can buy your own policy on the exchange to hold you over until you’re eligible to enroll in Medicare.

You may pay higher premiums due to your age, but you won’t be penalized for any pre-existing conditions, such as diabetes or heart disease. Remember, if you’re retiring early and living on far less income, you could qualify for tax subsidies to help pay for your health insurance.

[CLICK HERE to read the article, “The New Rules for Early Retirement,” from Time, 2015.]

While some wealthy entrepreneurs retire early and live a life of luxury, many early retirees choose the trade-off of freedom from work in lieu of wealth. That could mean drastically cutting living expenses. To help you get to that point, reduce expenses while you’re still working and stash that extra cash into your retirement savings. Then when you retire early, it won’t seem like such a lifestyle downgrade.

[CLICK HERE to read the article, “Retiring Early and Moving Abroad: How One Couple Made It Happen,” from Time, 2015.]

[CLICK HERE to read the article, “5 Lessons From People Who Retired at 40,” from Entrepreneur.com, Feb. 3, 2016.]

And finally, one of the most important decisions you can make regarding early retirement is whether to start drawing Social Security benefits. Of all of your retirement assets, this may be the one you want to hold off on the longest.

Here’s a good rule of thumb to consider: If both of your parents lived past 90 years old, delay. If you have major health issues, draw sooner. At the end of the day, it’s all about effectively utilizing the retirement income sources available to you.

[CLICK HERE to read the article, “Tips for People Who Will Retire in 2016,” from U.S. News & World Report, Dec. 7, 2015.]

[CLICK HERE to read the article, “A soon-to-be retiree’s guide to a crazy market,” from CNNMoney, Feb. 11, 2016.]

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

We are able to provide you with information but not guidance or advice related to federal benefits. Our firm is not affiliated with the U.S. government or any governmental agency.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 

Spare Time??

 We all have spare time. However, it’s possible to be so busy, to have such a long list of things to do, that you actually feel guilty taking a bit of time to flake out in front of the television set, read a not-so-literary book or take a mid-afternoon nap.

 Even visiting with family and friends is something you can check off your to-do list -- the “nourishing friendships” line item that you never quite write down but feel guilty if you don’t do it.

 This is the typical lifestyle of a person who works and/or raises children. But what about when you retire? When you wake up in the morning and there’s no place you have to be and the children are all grown and (mostly) self-sufficient?

 We spend a big part of our adult lives planning and saving for retirement. This is an area where we can help. As financial professionals, we are here to help you create a retirement income strategy that you can feel confident about.

 However, once you create a retirement income strategy, have you thought about a plan for how you will spend the 40 or 50 hours a week during retirement that you previously spent at your job?

 [CLICK HERE to read the article, “The Retirement Problem: What Will You Do With All That Time?” from Knowledge@Wharton, Jan. 14, 2016.]

 [CLICK HERE to read the article, “Turn Your 2016 Bucket List Into A Love List” from The Huffington Post, Jan. 5, 2016.]

 Retirement isn’t all leisure and social activity. With today’s more transient society, more people end up in pre-retirement neighborhoods and friendships that were not lifelong. Along the way, individuals and couples start entertaining what they would like to do during retirement. Play more golf with your foursome. Spend more time barbecuing and hanging out with the next-door neighbors. Go sailing with your spouse.

 The problem with these vague plan ideas is that they may not be compatible with the people you want to spend time with in retirement. It’s unlikely your golf buddies will all retire at the same time you do. The neighbors might be planning to move away to their retirement dream destination. Your spouse might be prone to seasickness, or consider a weekend shopping in New York City far more preferable.

 While you may need to have more conversations about those “big plans” with your family and friends, what about your day-to-day activities in retirement? Perhaps you should think about an alternative, part-time work situation that you would enjoy. Or volunteer your time for a cause for which you’ve always felt a special tug. After all, people retiring today at age 65 could live another 20 to 30 years.

 [CLICK HERE to read the article, “Show goes on for retiree turned volunteer” from The Welland Tribune, Dec. 28, 2015.]

 [CLICK HERE to read the article, “Volunteer Topeka: Retiree beats boredom by volunteering at ReStore” from The Topeka Capital-Journal, Nov. 28, 2015.]

 A recent survey found that two-thirds of workers age 50 and older either plan to work past age 65 or not retire at all. If you are considering a working retirement, note that experts say you shouldn’t take off too much time between jobs.

 Even with retirement as an excuse, you don’t want to have long employment gaps. Things change quickly in the work world -- particularly with technology -- and you don’t want to get too far behind the curve when it comes to new processes and trends.

 Experts also caution that age discrimination still exists, so your best bet is to use your network and connections to help secure a gig. If you just apply online to job postings, you could appear overqualified and too expensive for a position, or underqualified if you’re thinking of changing career path.

 Offering to volunteer your time and expertise can be a good way for you and a potential employer to test the waters to see if it’s a good fit for a future paid position.

 Whatever you do, consider that a plan for how to spend your time in retirement is just as important as a plan for your financial well-being.

 [CLICK HERE to read the article, “6 Best Career Moves to Make in Your 60s” from Time, Jan. 11, 2016.]

 [CLICK HERE to read the article, “10 tips for those who want to consult after they retire” from MarketWatch, Dec. 17, 2015.]

 We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

 The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.

 If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Ditch Multitasking, Embrace Interstitial Time and Get Productive!

For years, multitasking has been a valued skill -- one that many folks have become quite adept at and proud of -- but scientific analysis is showing more and more that it amounts to being a jack of all trades, master of none.

Scientists say humans don’t actually multitask; the brain switches back and forth quickly from one task to another, which keeps it from operating at full capacity during both activities. Multitasking actually diminishes the focus and general effectiveness of what you’re trying to do compared to giving one task full attention before moving on to another.

[CLICK HERE to read the article, “What’s Really Happening in Your Brain When You Multitask,” from The Huffington Post, Feb. 2, 2015.]

[CLICK HERE to read the article, “Multi-tasking: how to survive in the 21st century,” from FT Magazine, Sept. 2, 2015.]

If multitasking can diminish effectiveness, it’s best if the important decisions get undivided attention. With our focus on retirement income strategies, we can help you work toward your monetary goals without a split-screen experience. We are financial professionals so you don’t have to be, so call us when you need a full focus on your retirement income strategy.

[CLICK HERE to read the article, “‘There’s No Such Thing As Multitasking,’” from Forbes, Jan. 7, 2015.]

There’s a space of time that could be used to accomplish some of the to-dos that often get multitasked. Instead of flitting between a series of tasks, use your interstitial time. This is when you have intervals during the day when you’re doing absolutely nothing. Most people feel they don’t have any extra time, but consider the time you spend waiting at the checkout line in a store, waiting to pick up your kids or grandkids from school or activities, riding an elevator, or even all that time you spend on hold.

Instead of wasting your valuable time at home or work -- or rudely “multitasking” when someone’s trying to have a conversation with you -- check your Facebook page or ballgame scores on your cellphone during these interstitial times. You can use these in-between times to return phone calls and respond to emails and texts. When you make better use of interstitial periods, you can free up time throughout your day for other things, other people or even for yourself.

[CLICK HERE to read the article, “Life’s Work: An Interview with Neil deGrasse Tyson,” from Harvard Business Review, January 2016.]

[CLICK HERE to read the article, “Lawyers, Here’s How to Take Back Your Interstitial Time,” from Legal Practice Pro, June 22, 2015.]

Searching for productivity often strains your creative energies most of all. After all, the new project idea, event title or anniversary gift idea never comes on demand, right? Multitasking and clicking through the never-ending task list -- even if you are using interstitial time -- doesn't always leave room for the idea bulb.

When it comes to having creative and inventive ideas, the best time is usually when you’re a little tired, as a relaxed brain is more open to conjuring less obvious ideas. That means if you’re a night bird, you may have better ideas in the morning. If you’re a morning person, your fatigued brain may be more productive later in the day. Who knew?

[CLICK HERE to read the article, “The Best Time of Day to Do Everything at Work,” from FastCompany, June 23, 2015.]

[CLICK HERE to read the article, “The best time of day to take a break,” from The Washington Post, Sept. 14, 2015.]

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

 www.resourcecenterinc.com

No Matter the Age, There’s No Place Like Home

The word “home” takes on added meaning around the holiday season.

For many, — hopefully most — home represents security and acceptance. A place to retreat when things don’t go your way; a place to celebrate when they do.

Not long ago, the holidays were the one time of the year when the family reconvened to spend time together under one roof. Now, it’s not uncommon for relatives to share a home year-round. Gone are the days when a son or daughter moved on to college or a career at the age of 18, only to return on special November and December occasions.

For better or worse, boomers are growing accustomed to welcoming back grown children, as well as seniors seeking care from a familiar face.

Retirees typically prefer to live in the comfort of their own home as long as possible, but the best alternative may be moving back in with adult children.

As your financial professional, we focus on helping clients feel confident in their finances now and in the future, and, if necessary, develop contingency plans, because even the best-laid plans can go awry. If we can help you with your retirement income plan, please contact us for a meeting.

[CLICK HERE to read the article, “The ‘elder orphans’ of the Baby Boom generation,” at CNN, May 18, 2015.]

Most people need more than just a retirement strategy — they need an aging plan. An aging plan has two components. First, a place to live that is suitable for seniors, such as a one-story home, preferably with large doorways. The second component is access to people willing to offer help when needed.

[CLICK HERE to read the article, “Retirement: Are Tiny Homes One Big Fix for Senior Housing?” at The Ticker Tape, Oct. 30, 2015.]

While moving in with adult children certainly meets these criteria, there are alternatives. Cooperative communities have been popping up all around the country via shared homes, clusters of homes, condominium and apartment communities.

These communities give residents a network of neighbors who can check in on you, take you grocery shopping or drive you to a doctor’s appointment. Not surprisingly, the housing arrangement seen on the hit TV show, “The Golden Girls” is becoming more prevalent, as retirees pool resources to look after each other and become less isolated.

[CLICK HERE to read the article, “Meet the new Golden Girls (and guys): How boomers are coming up with creative living arrangements,” at The Globe and Mail, Nov. 12, 2015.]

Whether you prefer to live alone, with family members or in a cooperative community, we’re here to help make that a possibility financially. If you have any questions about where you stand now and in the future, give us a call.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Bruce Porter on Ozarks Live at 3 on Kolr 10 ‘Dollars and Cents’ 

 Video can be seen at https://youtu.be/R7FjA4CWdq4.   

Speaker 1:           And welcome back. Bruce Porter joins us now for this week's Dollars and Sense segment. Thanks for coming in Bruce. Good to see you.

Bruce:                  Good to be back.

Speaker 1:           All right. We have a financial question. Let's take a look and see what it is. "I have a large IRA account as a result of me retiring and moving my 401(k). I am not needing the income as of yet. Do you have any ideas on how to avoid tax liabilities on that money and the potential tax on my Social Security?" They don't need it now. There is a, depending on the age there's a certain distribution you have to take. Where do we start here?

Bruce:                  Well, the question is can we avoid tax and all that. Well, there are some techniques that you can do to do that. The big problem with qualified retirement planning is that it's qualified to be taxed. It doesn't matter if it's you, your spouse, your children if you pass away, somebody is going to have to pay tax on that lump sum of money. Potentially it can create some huge tax liabilities for the recipients, whether it's you or your family.

                             Now you always want to try to get a game plan before you retire. Like when people come and talk to us we always want to sit down and the first thing we want to do is develop a income game plan. Figure a cost analysis, figure out where we're at, what we've got, what's the overall objective of what you want to do. If your objective is to try to not have your provisional income above the threshold which causes the taxation on your Social Security, then we try to make provisions ahead of that to try to get some of the funds in a tax-free environment.

                             What we're going to talk about today is a Roth IRA. A Roth IRA is a wonderful tool to use for tax-free retirement planning. Now, there are some things that you have to do to get to that point but let's look at it. There's benefits to a Roth IRA. Freedom from future tax increases. Whatever money you've got in or converted into a Roth, you may have tax liability as you convert in but it's never going to be taxed again, not the benefit you receive, not the benefit you push on to your spouse or your children. Everybody gets to take advantage of that tax-free.

                             Our national debt is $18 trillion. That's $150 thousand per household. Chances are income taxes are probably going to go up. Now if we just do the simple math, politicians are going to have to work within their own budget. Well, that's an impossibility. Chances are we're going to be facing larger tax increases. As that's the case, that qualified money may have future taxes that are more than what they are right now.

                             Trying to figure that out. There's no minimum distribution on a Roth IRA like an IRA that forces you to take money out. We don't have to deal with that.

Speaker 1:           The Roth does not have that.

Bruce:                  The Roth doesn't have a required minimum distribution.

Speaker 1:           The traditional does. Okay, that's important.

Bruce:                  There's no additional tax on your Social Security on the income coming out of a Roth IRA. That's tax-free income so tax-free income does not negatively impact your provisional income threshold so your tax on your Social Security is not going to be affected. If you're gone, it's going to pass on to your kids or your spouse tax-free as well and they get to use the benefits of that.

                             It's very important to realize that when you're facing retirement and you have a concern about taxation, look for the tools to do something about it now and that'll help you in the long run.

                             There's no rules on restrictions on income. Used to if you had a certain amount of income, you were restricted on what you could put in a Roth IRA. Those rules have gone away. There's no income restriction, no rules on how much or how little you convert. You could take all of your 401(k) and convert it to a Roth but you've got to remember, that particular year you've got taxes on all that money.

                             Now, you might weigh the effect of doing that and taking income tax-free for the rest of your life off that. That's just something that you've got to decide with you and your adviser.

Speaker 1:           Yeah, and it might help to have that adviser help you figure out what you think your income and your tax liability might be several years down the road because that could make a big difference.

Bruce:                  That's right.

Speaker 1:           All right. If you have a question for Bruce you can e-mail him here at [email protected]. He'll answer your question on the show. It's good to see you as always.

Feeling Like a Fish Out of Water?

As the 2016 election approaches, immigration is being brought up more than ever.

But the issue is nothing new, and will still be around long after the next U.S. President is elected.

Some have viewed immigration as a concern since the French, Spanish, Dutch and Swedish settled in America back in the late 16th century, while others argue none of us would be here in the first place if it wasn’t for immigration.

We’ve all had a first day at a new school or job where we had to wonder how we would be treated and if we would fit in. Imagine that predicament if you moved to a place where everyone around you had a different native tongue.

On occasion, consumers unfamiliar with the world of finance may feel like everyone’s speaking a whole new language. Our job as your financial professional is to clear this confusion and help ensure your financial strategy is suited to your unique needs.

[CLICK HERE to read the article, “Immigration Timeline,” from The Statue of Liberty – Ellis Island Foundation, 2015.]

[CLICK HERE to read the article, “U.S. Immigration Before 1965,” from History.com, 2015.]

Like any other time in our nation’s history, viewpoints on immigration are all over the spectrum. Today’s presidential candidates have proposed interesting ways to deal with immigration, from building a wall with a big, welcoming gate, to tracking people the way UPS tracks packages.

[CLICK HERE to view the article and video, “Trump Gets Down to Business on 60 Minutes,” from CBSnews.com, Sept. 27, 2015.]

[CLICK HERE to read the article, “Ben Carson Immigration Reform: Let Undocumented Immigrants Work on Farms,” from International Business Times, Sept. 16, 2015.]

[CLICK HERE to read the article, “Where Do the Presidential Candidates Stand on Immigration?” from Bloomberg, May 6, 2015.]

Some economic analysts offer a different perspective. For example, in response to a comment made by Donald Trump early in his campaign, one scholar reveals that the immigrant crime rate in the U.S. is very low compared to native people.

Many also believe that more immigration is necessary to replace the tens of millions of retiring baby boomers over the next two decades, and that it is a tremendous driver of economic growth. In fact, many of Silicon Valley’s startups in the 1990s were founded by immigrant entrepreneurs.

[CLICK HERE to read the article, “The Immigration Boogeyman: Separating Fact from Fiction,” from Knowledge@Wharton, Sept. 30, 2015.]

[CLICK HERE to read the article, “The Immigration Act That Inadvertently Changed America,” from The Atlantic, Oct. 2, 2015.]

[CLICK HERE to read the article, “Modern Immigration Wave Brings 59 Million to U.S., Driving Population Growth and Change Through 2065,” from Pew Research Center, Sept. 28, 2015.]

It takes more than luck and courage to try something new and succeed, yet for hundreds of years, millions of immigrants have done just that. The same can be said for deciding on the strategies that can help you feel confident in your family’s future.

For many people, trying to navigate the financial world can make you feel like you’re not in your element — a fish out of water. Luckily, it’s our world, and we welcome the opportunity to help you make decisions that can benefit you now and for years to come.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.  The Resource Center Inc, 417-882-1800  www.resourcecenterinc.com.

The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Top Financial Terms To Know NOW!

Bruce Porter with The Resource Center interviewed on Ozarks Live July 23, 2015.   www.resourcecenterinc.com

Joy:                       Welcome back. Bruce Porter joins us now, for this weeks Dollars and Cents segment. Thank you so much for coming in today.

Bruce:                  Glad to be here.

Joy:                       All right. A lot of people have a lot of financial questions. Based on this segment here on Ozarks Live, people are always asking Bruce questions. Today, we're going to talk about 7 topics that you get asked about over and over again. If we don't hit them all, we're going to continue this down the road. Let's start with one.

Bruce:                  That's right.

Joy:                       What about capital gains? Talk a little bit about that.

Bruce:                  Capital gains. Let's talk about long-term capital gains. If you're in the 10 to 15% tax bracket, there is no long-term capital gain percentage. If you're 25 to 35% bracket, capital gains is 15%. If you're a 39.6, it's going to be 20% of gains on your investment.

Joy:                       Right.

Bruce:                  Collectibles, and I'm not sure how they would classify a collectible or what it would be, but long-term capital gains on a collectible is 28%. Un-recaptured depreciation is 25%. Capital gains is an additional tax on gains, on appreciation of an investment.

Joy:                       Right. When you get to sell that stock, keep in mind that some of that money is going to need to be used for capital gains.

Bruce:                  That's exactly right.

Joy:                       Depending on how long you've had it, and your worth, and all of that. All right.

Bruce:                  That's exactly right.

Joy:                       Jumbo CDs. What is a jumbo CD?

Bruce:                  Jumbo CDs can vary by institution. Most banks will classify a CD as a jumbo, at $250,000 or higher. Because interest rates have been low, they have lowered that down to $100,000. Some banks have. If you have $100,000 or a quarter of a million dollars in CDs, the idea from the institution was, "We're gonna give a little bit higher rate of return on the jumbo status then we would on somebody with $5,000 or $10,000 in a CD."

Joy:                       Okay.

Bruce:                  If you bring a larger amount of money to me, it's a jumbo, and I'm going to pay a little bit higher interest rate. What I found is, that doesn't necessarily ... In the environment we're in today, it doesn't affect rate of return that much. Rate of return has been so low-

Joy:                       Right.

Bruce:                  -that it's ... Right now, it really doesn't matter what the balance is. You're going to have a very low rate of return.

Joy:                       Okay. Keep that in mind if you're looking at CDs. Tax deferrals.

Bruce:                  Tax deferral is ... The way to answer that, am I going to get a 1099 on my investment, which is current taxation of my gains, or is it in deferral? Am I going to be taxed later? An example would be an IRA. An IRA, you put money in pre-tax, or you make a contribution that's deductible, but it grows in deferral and it compounds, which can be significant.

Joy:                       Sure.

Bruce:                  When you go to make a withdrawal out of your IRA, that's when you're going to pay tax. The idea is that hopefully, you're going to be in a little bit lower tax bracket later in life, when you need to take the money out, as opposed to paying tax now in your earning years, when you're in a higher bracket. Deferral is very important for compounding your growth, and building your retirement account.

Joy:                       Exactly. Ask an expert about that for sure.

Bruce:                  Absolutely.

Joy:                       Okay. A lot of people have questions about life insurance.

Bruce:                  Life insurance. It depends on what your need is. There's whole life insurance, with dividends and eventually has a permanent status, and it's paid for.

Joy:                       Cash value of the year.

Bruce:                  Cash value, things like that. There's universal life, that is basically term insurance with a side fund. Whether it's fixed interest, or a variable, or an index. You have a cost of insurance that goes up based on age, every year, internally, but your premium stays the same. Your death benefit can either be increasing or level, so there's variations of that. There's term insurance, which is the least expensive.

Joy:                       Right.

Bruce:                  It's used for a purpose. I need life insurance for 20 years, until I'm got my debt paid, and then I don't need it anymore.

Joy:                       Right.

Bruce:                  While you're raising your family, I would recommend some life insurance. Don't overextend yourself on a premium. Buy what you can afford, because that's a very important part of stability in your family. Mortgage life insurance. I don't recommend it a lot, because it decreases with your mortgage and the premium usually stays the same. Your better option is to buy term insurance to protect that mortgage.

Joy:                       Okay.

Bruce:                  There's a lot of variations of life insurance, but we just try to analyze what the purpose is, and then we go from there.

Joy:                       All right. Lots of people sending you lots of questions. We've got some we didn't even get to this time.

Bruce:                  Yup.

Joy:                       That'll be, potentially, our next segment. All right. If you have a question for Bruce, email him at [email protected]. He'll answer your financial question here on the show. Bruce, thanks very much.

Bruce:                  Thank you.

Joy:                       All right. Ozarks Live will return right after this.

Finding Fulfillment in Part-Time Work

Professional employees in their 50s and 60s are starting to think more strategically about retirement. Not just about how to pay for it, but how they’ll spend their time once they get there.

 For some, that means they’d like to keep doing what they’re doing -- just not quite so much of it. According to one survey, 80 percent of workers in their 50s and up indicate an interest in staying in the workforce past their planned retirement date if they could scale back their hours and responsibilities.

Take Steve Norwitz, for example. After 38 years working in media relations at T. Rowe Price, he took a 25 percent pay cut in exchange for just over three months’ vacation time each year. Now, at age 68, in between the special projects he manages for the company, Steve and his wife have traveled to Ecuador, China and Slovenia and taken a river cruise down the Rhine.

When he’s home, Steve’s happily engaged at work and out of his wife’s hair. It’s a win-win, not only for the couple, but also for his company that benefits from his same experience for a much lower price.

[CLICK HERE to read the article, “Facing Retirement, but Easing Your Way Out the Door,” from The New York Times, Aug. 28, 2015.]

[CLICK HERE to view the infographic, “Retirement Throughout the Ages: Expectations and Preparations of Workers of All Ages,” from Transamerica Center for Retirement Studies, 2015.]

As your financial professional, we specialize in creating financial retirement solutions, but not all of them are asset-based. As people live longer, a better solution than retiring altogether might be to save for periods of unemployment, with eventual returns in and out of the workforce. For that, you need flexible and customized retirement income strategies.

Today’s buzz word in the halls of human resource departments is “work-life balance.” If the millennials can demand it, why not soon-to-be retirees? According to one research report, work-life balance is the single most important factor on staff morale -- up from its No. 6 ranking in 2009. Interestingly, it’s those in senior management who complain of having the worst work-life balance.

Maybe it’s time for a change. Not a dramatic change, like retirement, but a reorganization of priorities -- so mature workers can keep the responsibilities they like and delegate the ones they don’t. At the same time, this opens the door for younger workers to pick up more responsibilities and management opportunities under the watchful eye of an experienced coach.

[CLICK HERE to read the article, “Bosses have the worst work-life balance in 2015,” from Human Resources Online, Aug. 18, 2015.]

[CLICK HERE to read the report, “Wellbeing and Business Performance,” from Morgan Redwood, 2015.]

Unfortunately, while it looks like companies are starting to embrace a culture change that includes workplace flexibility, not everyone is on board. And so it may in your world. But consider whether that should stop you from achieving your own work-life balance.

There are other companies and other jobs that may value your skills and experience in a less demanding environment. To go this route, consider two things. First, focus on your skill set, not your past job descriptions. You may find that your knowledge is applicable across different types of businesses and industries.

Second, consider how to transform from a workaholic Type A personality to a more laid-back Type B. This doesn’t mean you have to drop your standards for work performance, simply that you learn to enjoy your labors more. After all, at the pre-retirement stage in a career it’s important to appreciate that work is a privilege, since it may not always be an option.

[CLICK HERE to read the article, “The Future of Work and Our Social Compact,” from Forbes, June 18, 2015.]

[CLICK HERE to read the report, “How to Go From Type A to Type B in Retirement,” from NextAvenue, July 14, 2015.]

If you’d like to discuss ways to integrate your retirement income plan with your career, please give us a call.  www.resourcecenterinc.com.

IS COLLEGE WORTH THE INVESTMENT?

By J.J. Burns, CFP®

It’s almost back-to-school time—or possibly the time you’re starting your college search. Given the skyrocketing costs of a college education, some parents and students wonder if higher education is really worth the investment. According to employers, it is.  But the specific courses a student decides to take in college seem to be less important to potential employers than the more generalized skills acquired during the four years of advanced education.

The Association of American Colleges & Universities recently conducted a study that highlighted the five attributes that employers look for in newly minted graduates:*

Possesses innovation. This is a bit tricky as sometimes “innovation” is more of a buzzword than it is a skill. However, 95 percent of employers say they give hiring preferences to college graduates with capabilities that enable them to contribute to innovation in the workplace. It’s up to the job candidate to figure out how to add innovation to a project, department, or company. Researching online and conducting informational interviews can provide insight into what innovation means to a specific organization.

Has critical thinking, communication, and problem solving skills. It doesn’t really matter if a student majored in French or literature, or excelled in math or science. According to the study, 93 percent of employers said that a demonstrated capacity to think critically, communicate clearly, and solve complex problems is more important than a job candidate’s undergraduate major.

Has a broad learning background. Also, 80 percent of employers think that regardless of major, broad knowledge in the liberal arts and sciences is essential. To employers, this shows the broad-based perspective and integrative thinking skills they are seeking for a variety of positions.

Has an e-portfolio. In the study, 83 percent of employers said an electronic portfolio goes a long way in exhibiting a job candidate’s talents. For college students, this means that posting their research papers, writing a blog or sharing videos can be an effective way to display their communication skills and technological proficiency.

Has real-life experience. Work study, internships, and community service all showcase an ability to add value, prioritize commitments, and work within a team. While classroom learning is beneficial, it can also be passive.  Eighty-six percent of employers agree that active hands-on learning gives students an opportunity to apply critical thinking, develop team skills and ethical judgment, and further hone their education.

When a student decides to pursue higher education, it’s more important to focus on knowledge and skills than a specific field of study. Employers want college grads who can be flexible and adapt quickly to changing demands. The ability to think creatively, solve complex problems, communicate clearly, manage multiple priorities, and work as a member of a team will help students to thrive in a 21st century environment and be successful in their life and careers. As you consider your financial plan for the future, don’t overlook the need to set yourself up for success.

*Association of American Colleges and Universities and Hart Research Associates, It Takes More than a Major: Employer Priorities for College Learning and Student Success (2013).

Health Care Reform Here to Stay

If there were any lingering doubts about the long-term sustainability of the Affordable Care Act (also known as the ACA or Obamacare), a recent Supreme Court ruling assured the health care overhaul is here to stay.

Not only does the King v. Burwell ruling handed down by Chief Justice John Roberts put the ACA on firm ground for the future, it also puts to rest challenges of the health law’s tax rules from opponents hoping to exploit loopholes.

A few lines pulled from the Supreme Court ruling: “We cannot interpret federal statutes to negate their own stated purposes.” “Congress passed the ACA to improve health insurance markets, not to destroy them.”

Roberts’ decision may go a long way in clarifying the ACA’s intentions, but for the average person, it’s understandable if all the legislative, medical and financial arguments remain clear as mud. Health insurance is a complex issue at both the state and national levels, but as your financial professional, we know that what matters most is how the law affects you individually.

[CLICK HERE to read the article, “What to Take Away from the Supreme Court Decision on Health Care,” from The New York Times, June 25, 2015.]

[CLICK HERE to search the Rate Review database, “Find Rate Review Information about Your Insurer,” on Healthcare.gov, accessed June 24, 2015.]

Talks of the 2016 presidential race have already started picking up as new, high-profile candidates throw their names into the ring. In that regard, it can be difficult to predict what changes are on the horizon. But, as King v. Burwell established, it will take more than just a Presidential change to eliminate the ACA.

The ruling strengthens the law to the point that it will take an act of Congress to make changes in the future. Roberts wrote that he believes subsidizing universal health insurance is of “deep economic and political significance,” and that if Congress wanted to give future Presidents an escape hatch from the legislation, “it surely would have done so expressly.”

[CLICK HERE to read the article, “Why John Roberts’ Obamacare decision goes further than you think,” from MSNBC.com, June 25, 2015.]

So here’s what we know: The initiative to get everyone in the country covered by health insurance, regardless of income level, will continue as planned. Ensuring the care is at a certain degree of quality … well, that has its challenges.

Take a look at veterans who have sought care at VA hospitals. One of their greatest needs, mental health care, appears to be a weakness in this delivery system. In fact, according to the U.S. Government Accountability Office, as many as 22 veterans die by suicide each day. This travesty appears to emanate from incorrect diagnoses, poor record-keeping, lack of follow-ups and the VHA’s lack of compliance with its own policies and procedures.

[CLICK HERE to read the article, “GAO: VA’s errors and noncompliance hinder suicide prevention efforts,” from Modern Healthcare, June 11, 2015.]

Access to quality care also is a major issue in rural locations throughout the country. Fortunately, this has been addressed in recent years by loosening up practice requirements by nurse practitioners (NPs) who have earned a master’s degree or better.

New state laws have begun to permit NPs greater autonomy to perform services such as ordering and interpreting diagnostic tests, prescribing medications and administering treatments for patients in rural states that struggle to recruit doctors to remote areas.

[CLICK HERE to read the article “Doctoring, without the Doctor,” from The New York Times, May 25, 2015.]

On the other hand, greater demand for providers necessitates more money. This has been evident in rate requests filed by health insurers for 2016. Increases thus far have ranged from 6 percent for high-level platinum plans to 14 percent for silver plans.

[CLICK HERE to read the article, “3 must-know facts about 2016 health rate filings,” from LifeHealthPro, June 11, 2015.]

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Overthinking Retirement Income Planning

You can’t pick up a newspaper or magazine or scan Internet headlines today without seeing something about the challenges of retirement and new surveys about how unprepared people are. Yes, it’s a concern. But consider for a moment that, really, it’s a personal one.

You can solve your own concerns — you don’t have to tackle them on a national scale. To that end, break down your retirement income planning process into bite-sized steps, engage the help of financial professionals and do what’s necessary to start moving forward with planning for retirement. Then move on to the rest of your life, keeping retirement income planning on the peripheral.

When you’re actually in retirement, it’s important to stay on task but not obsess. Recognize that the first five years you may be working toward some of your long-awaited goals, like travel or starting a new venture. The important thing to bear in mind is that you probably won’t keep spending money at that same pace throughout your golden years. Those first few years you may run through some savings, but bear in mind that will eventually need to let up.

After a while, take a serious look at your retirement assets and review your budget. Is your retirement spending on track? Do you need to cut back or look at other ways to potentially increase your income?

[CLICK HERE to read the article, “5 things to think about on your journey to retirement,” from Vanguard, May 4, 2015.]

One of the keys to a successful retirement is to be realistic. If you never enjoyed golf before, that may not be the best use of your retirement years. Enjoy doing what you enjoy doing — it makes sense to keep it just that simple. If you always wanted to travel, start out by just thinking of one place you would really like to go. Focus on that trip; research it and put together a realistic budget based on how much it would cost for transportation, meals, accommodations, sightseeing, etc. It can be easier to work toward a tangible goal rather than an abstract idea.

[CLICK HERE to read the article, “A Travel Planning Guide,” from BudgetYourTrip.com, accessed June 6, 2015.]

You may be familiar with the concept of creating problems that didn’t exist before by overthinking solutions or “helpful suggestions.” This is often combatted by the phrase, “If it ain’t broke, don’t fix it.” When it comes to retirement, careful and prudent saving and planning is best. The last thing you want is to not enjoy retirement because you’re too busy trying to figure how to enjoy it better.

[CLICK HERE to read the article, “The impasse created by over thinking,” from PrimeTime Online, Feb. 24, 2015.]

[CLICK HERE to read the article, “8 Ways to Stop Over-Thinking and Find Peace in the Present Moment,” from TheMindUnleashed.com, Sept. 9, 2014.]

In a recent study, researchers from the University of Pennsylvania found that the brain operates most efficiently when people trying to learn a basic task use only the most essential functions.

In other words, there are parts of the brain normally engaged with high-level intellectual strategizing — for which there is always a time and place. However, using these particular brain functions can be detrimental when trying to learn or complete less complex tasks.

[CLICK HERE to read the article, “Why Overthinking Is Holding You Back,” from Huffington Post, May 14, 2015.]

[CLICK HERE to read the article, “Don’t Overthink It,” from The Atlantic, May 2015.]

Whatever you do, try not to overthink it.  Planning for retirement is similar to how you’ve approached every other concern throughout your life. The more concerns you’ve had, the better equipped you may be to cope and problem solve. That’s one way to turn lemons into lemonade.

Another way is to rely on financial professionals, and that’s where we can help. Contact us for guidance, and we’ll help you understand the process.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

This content is provided for informational purposes only. It is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

A Homeowner's Injury Liability for a Trampoline Accident

Under what circumstances can the homeowner be held liable for injuries resulting from a trampoline accident?

by Andrew Suszek

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In 2010, more than 92,000 people went to an emergency room as a result of trampoline-related injuries, according to the U.S. Consumer Product Safety Commission (CPSC). The most common causes of trampoline injuries were:

colliding with another person

landing improperly while jumping or doing stunts

falling or jumping off of the trampoline, and

falling on the trampoline springs or frame.

When people are injured on trampolines, homeowners may be liable. In the sections that follow, we'll illustrate some safety precautions that homeowners can take to reduce the likelihood of a trampoline-related injury and to reduce the likelihood of liability even in the event of an injury. Then we'll turn to the legal theories under which an injured person may be able to sue a homeowner for injuries resulting from a trampoline accident.

Safety Precautions

From a legal standpoint for trampoline owners, taking safety precautions is beneficial for two reasons. First, it reduces the likelihood of injuries. Second, even if someone does become injured, the homeowner will be more likely to prevail in court because he or she will be able to argue that all of the appropriate safety precautions were taken.

To maximize trampoline safety, the CPSC has this advice for parents and homeowners:

Allow only one person on the trampoline at a time.

Do not attempt or allow somersaults.

Do not use the trampoline without shock absorbing pads that completely cover its springs, hooks, and frame.

Place the trampoline away from structures, trees, and other play areas.

No child under six years of age should use a full sized trampoline.

Do not use a ladder with the trampoline because it provides unsupervised access to small children.

Always supervise children who use a trampoline.

Prevent falls off of a trampoline with a trampoline enclosure.

Legal Landscape

Liability for trampoline injuries is a matter of state laws, which vary from jurisdiction to jurisdiction. But generally speaking, a trampoline owner will be liable for injuries if theowner’s negligence caused the injuries.

Negligence. In many different situations, homeowners and others have a legal obligation to exercise appropriate care when it comes to the safety of people who are visiting their property. Anyone who breaches that duty may be deemed negligent in the eyes of the law, and may be on the legal hook for any resulting injuries.

When it comes to a backyard trampoline, homeowners have a duty to take reasonable steps to make sure the equipment is in good condition and is being used properly. A homeowner's failure to adhere to the trampoline safety precautions discussed above might amount to a breach of this legal duty, in the eyes of a court. For example, a property owner might be deemed negligent for allowing young children to play on an old trampoline even though it has a dangerous metal frame exposed, or for allowing children to use the trampoline without supervision.

In some states, a trampoline owner may be liable for injuries even if he or she takes reasonable safety precautions. In those states, a trampoline is said to be an "attractive nuisance" which gives rise to a property owner's heightened duty to protect kids from injury, and that's often true even when children are technically trespassing.

Causation. For a property owner to be liable for trampoline-related injuries, the owner’s negligence must have actually caused the injuries. For example, imagine an owner leaves a small ladder next to a trampoline. A 14-year-old child from the neighborhood uses the trampoline and becomes injured. The owner probably acted negligently by leaving the ladder next to the trampoline. But the negligence probably did not actually cause the injuries. A 14-year-old child could get onto a trampoline without using a ladder. So, the negligence could be said to be unrelated to the resulting injuries, and the homeowner may not necessarily be liable

Figuring Out Where And How To Buy Auto Insurance

Nobody really wants to think about an auto insurance policy since it involves thinking about the life of your car. And of course, it involves thinking about your car being destroyed. Still, it’s important to know what kind of plan you need to better prepare your vehicle. The article below has many tips to help you plan out a good auto insurance policy.

When keeping down the cost of auto insurance, protect your no-claims record. If you have several years of auto insurance with the same company and you have not needed to file any claims, avoid filing a small claim. The increase in your premiums will be more expensive than simply covering the small claim damage out of pocket.

When considering extras for your auto insurance, you can most likely do without the car rental insurance. You will pay nearly $50 a year for rental insurance, when that is the same cost for renting a car for one to two days. Also, your rental car is most likely already covered under your policy, anyhow.

It’s important, if you’re looking to get the most out of your auto insurance dollars, to continue to evaluate whether you’re paying too much in terms of the number of drivers you need to cover. For example, if you’re still carrying auto insurance for your children who are grown and in college who don’t use your car, then take them off the policy and your rates will go down nicely.

You should always make sure to tweak your auto insurance policy in order to save money. When you receive a quote, you are receiving the insurer’s suggested package. If you go through this package with a fine-tooth comb, removing what you don’t need, you can walk away saving hundreds of dollars annually.

Taking the towing option off of your policy will save you money on your premiums. In the case of an accident, towing is generally covered even if you are not paying for the towing option. If you take care of your car and understand how to fix small problems like a flat tire, you will never need to use the towing option and can save yourself up to 30 dollars a year.

Know what the different types of coverage are and what types are available to you in your state. There is body and and property liability, uninsured motorist coverage, coverage of medical expenses, collision and comprehensive coverage. Don’t assume your plan includes all types of coverage. Many insurance companies offer a la carte plans.

If your child receives their driver’s license and you need to get insurance, make sure to ask if your insurer offers a good student discount. Your child will be motivated to keep his grades up in order to keep driving, and you will save money on your monthly premium fee.

See, thinking about a policy in regards to your car wasn’t so bad. Accidents happen a lot and being left without an auto insurance policy can leave your car completely unprotected. Do yourself a favor and follow the above tips to get an auto policy as soon as you can.

Posted by Bruce Warren

The Business of Risk

Cyber threats have created an interesting conundrum in which the criminal perpetrators are frequently more tech savvy than those responsible for preventing their crimes or apprehending them. And the situation, at the moment, doesn’t really show signs of improving.

 Several national security experts recently issued recommendations to help address the problem. They referred to the issue as a “black elephant -- a dangerous crossbreed between the ‘black swan’ risk (capable of producing unexpected outcomes with enormous consequences) and the ‘elephant in the room’ (a large problem that is in plain sight).”

 [CLICK HERE to read the article, “We Don’t Need a Crisis to Act Unitedly Against Cyber Threats,” from Knowledge@Wharton, June 1, 2015.]

 [CLICK HERE to read the article, “RSA Conference: Is Hiring Hackers a New Thing?” from Adeptis Group, May 6, 2015.]

 [CLICK HERE to read the article, “Security Companies Hire Hackers, Ex-Spies to Fight Cyber Attacks,” from Bloomberg, April 14, 2015.]

 While hackers certainly present a grave risk at the national level, frequently the outcomes are more personal. Sure, it’s a real blow to companies like Target and Home Depot for their data to be hacked, but ultimately it’s their customers who may suffer more relative damage.

 And as great as technology is, the more we integrate it into our lives, the more risk we face of being personally “hacked.” For example, what a wonderful convenience to be able to lock and unlock our homes and cars using our cellphones, even when we’re out of town. But consider the benefit to a criminal who hacks into a person’s phone and unlocks the house and car, making for easy theft while knowing the owner isn’t home. It kind of makes the old-school, trusty German shepherd seem a bit more attractive for warding off potential burglars.

 [CLICK HERE to read the article, “Data breaches may cost less than the security to prevent them,” from TechRepublic, April 9, 2015.]

 [CLICK HERE to read the article, “Black Hat 2014: Security experts hack home alarms, smart cars and more,” from CBS News, Aug. 6, 2014.]

 Then there are the security breaches that don’t make the headlines. For example, a data breach at a local vendor that results in unauthorized charges to your bank debit card, PayPal account or other online vendor. These sporadic incidents can range in damages from a minor inconvenience to lost hours trying to identify the issue, resolve it and get your money reimbursed.

 Naturally, it makes sense to protect your own data as much as possible instead of relying solely on vendor and government solutions. For example, experts recommend using a credit card instead of a debit card. Relevant to this advice, it’s a good idea to revisit any of your accounts where you may have entered your bank account or debit card information, even if you only use your credit card with those accounts. Consider what card information is stored at accounts such as Amazon, eBay, Etsy, PayPal, Netflix and other online merchants you might frequent.

 And with another nod to the old-school approach, consider using cash instead of credit at places where they habitually take your credit card out of sight for a few moments (long enough to record its information) -- such as at restaurants and fast-food joints.

 [CLICK HERE to read the article, “7 Reasons Your Debit Card Makes You a Target for Fraud,” from MagnifyMoney.com, Oct. 22, 2014.]

 [CLICK HERE to read the article, “New ways to prevent credit-card fraud,” from Consumer Reports, May 28, 2015.]

 One thing we’ve learned throughout history, no matter the threat, is that the best time to prepare for a disaster is before it occurs. This applies not only to cyber threats, but to health care screenings and creating a plan for retirement security. The more we educate ourselves and the more we plan, the more prepared we are when something unexpected occurs.

 We are here to help you feel more confident in your financial strategy -- now and in the future. Please give us a call.

 We are an independent financial services firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.This content is provided for informational purposes only. It is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.