Understanding Social Security

There is a lot of talk, especially as you get older, about social security benefits and how it can and does help people. Unfortunately, however, many people do not accurately understand social security and what it is and does.    

To put it in basic terms, social security is a government program that is funded by payroll taxes. These taxes are paid by employed and self-employed workers, as well as employers. The taxes, which are collected under the Federal Insurance Contribution Act, go to support a wide variety of approved programs, including:

·         Old-Age Insurance

·         Disability Insurance

·         Survivor’s insurance

A great many people benefit immensely from these programs, including:

·         Elderly Americans

·         Disabled workers

·         People who have lost spouses/parents

As a worker yourself, you stand to benefit from social security funds. In fact, while you work, the Social Security Administration tracks your earnings and, after retirement, offers you a social security benefit based on how much you have earned in your life and the age at which you retire. Generally, the longer you work, the higher your social security benefit will be.

If you are curious about approximately how much your own social security benefit will be and/or would like to know this amount to accurately plan for retirement, visit the official governmental Social Security site and use the benefit calculator. You can also get an accurate estimate of your benefit by working with a finance or tax professional.

A tax or finance professional can also assist you in determining how to increase your social security benefit, such as by putting off retirement and through other strategies. Getting professional help is wise to help you accurately and fully plan for retirement and to make the most of your social security benefit.

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Are Investment Apps a Good Fit for You

These days, you can do just about anything with an app. There are apps for dating, for posting pictures, and so much more. Believe it or not, there are even some apps for investing.

People, especially young people, tend to love these apps because they don’t typically have minimum investment requirements, meaning you can invest as much or as little as you like. Some even allow you to invest your spare change!   

However, these apps may not be as wonderful as they seem at first. To start off with, they don’t always offer the type of investing that would be best for a person’s situation, and they also tend to target people who may not really be ready to invest.

Is Investing Really the Right Thing for You?

Most of us are taught, from a young age, that investing our money is a good and smart thing to do. These investing apps also send that message, that there is nothing better you could possibly be doing than investing your money.

And, while it is true that investing is a good thing when you’re prepared to do so, it’s not always the best thing in every situation. If you, for example, have a lot of debt, you’ll likely need to focus on paying that down before you start investing. Likewise, if you don’t have a good savings account or haven’t even started storing up money for retirement, those kinds of things need to take priority over investing.

The best strategy, before you dive into using the newest investment app, is to speak with a financial adviser. Talk about the details of your current financial situation and see what things need to take priority for you right now. You may find that you are ready to invest, and, if so, your adviser can help you to choose the best investment app or other strategy, but, if you’re not ready, you can learn and do all the right things so that you will soon be ready!

Risks and Fees

Another thing to keep in mind is that, sometimes, these investment apps that sound “oh so awesome” can be riddled with risks that you may not want to take or even realize you are taking, as well as hefty fees and charges that can steal away a large chunk of any profit you make from using the app.

Because there is always the chance that you could be getting yourself into something negative by using an app, do all the research possible and read the fine print before you start using any investment app out there.

In fact, it’s a good idea to run new apps by your financial adviser before you start using them. This will keep you from getting scammed!

If you can follow these tips and have a helpful, knowledgeable financial adviser to rely on, then you should be able to steer clear of bad investment apps or bad investment decisions and to invest, whether you use an app or not, in all the right ways.

Golf and Investments

If you’re investing your money in companies, then you’re probably curious, and sometimes even downright anxious, to know how those investments are likely to perform, as you should be. However, you don’t have all that many ways to really know for sure how your investment will perform, outside of trading on the informational illegally, but who wants to take that route and wind up in prison?

Because of how difficult it can be to really know how an investment will perform, people have developed some funny little ways to determine how successful a business is likely to be and, thus, how successful investments into that business are likely to be.  

One of the crazier methods for determining a business’ success, for example, is looking at how often the CEO golfs! Does that sound nuts? Well, believe it or not, research has actually shown that the more a CEO golfs, the poorer that CEO’s business’ return on assets is likely to be. To give this trick a try, check the Gold Handicap Information Network to see how (and how often) the CEO of interest to you is performing!

If the golfing thing is a little too “out there” for your tastes, then try and take notice when a CEO makes other investments, especially if they seem a little on the “wacky” side. Investing in things totally unrelated or extravagant, like a sports stadium, for example, can often mean that a business doesn’t have its priorities straight and is likely to face failure in the future. Of course, you have to be careful with this one because sometimes these types of investments can also indicate that a business is doing quite well and has extra money to spend!

Of course, if you don’t like to play guessing games and would rather have a much clearer picture of how your investments are likely to perform and whether or not you’re making smart moves, try finding a good financial adviser who knows the ins and outs of the investing world and can provide you with solid feedback on what you should and shouldn’t do and the likely outcomes. After all, that’s a whole lot more accurate than stalking somebody’s golf game!

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Thematic Investing

When it comes to investing, there are many different types and styles of investing to choose from. One of the most common options in this day and age, however, especially among the younger set, is thematic investing. Thematic investing is popular among the younger generation for a variety of reasons; young investors tend to love the following facts especially:

- Thematic investors get to ick exactly what they are investing in

- Most thematic investment options come with a variety of useful interactive tools for more control over the investment process

- A variety of investment strategies can be put to use, including newer methods

It’s easy to see why people, especially people with a “do it yourself” outlook, love thematic investing. After all, this type of investing offers the best way to choose investments carefully and then to stay in control every step of the way during the investment process. Furthermore, it allows people the chance to choose investment opportunities they are actually interested in, which can make them more likely to actually care about and carefully manage their investments.

If you, personally, are new to thematic investing but are ready to give it a try, keeping a few tips in mind can be helpful.

To start with, it’s smart to invest in something you know and understand. Choose an industry that you’re familiar with, that you’ve researched, or that is relevant to you and/or your career. The more you understand about what you are investing in, the more likely you are to make smart, informed choices that will benefit you in the long run.

And, while you should definitely pick a specific industry/theme for your investments, don’t get TOO concentrated or specific. Make your theme as broad as possible to keep your investments diverse and to benefit as much as possible.

If you can keep these tips in mind and maybe get some help and advice from a financial adviser familiar with thematic investing, you should be just fine!

Reasons Not to Retire Just Yet

If you’re like most Americans, then you have probably spent a good chunk of your life looking forward to the day when you can finally retire- the day when you will no longer be forced to punch a time clock. And, if that day is fast approaching, you may be counting down how long you have to go before you can FINALLY retire.   

With that said, though, there are actually some pretty good reasons to prolong retirement for as long as possible, and while that may not be at the top of your wish list, you should at least consider these reasons and, if you find that retiring later will be beneficial to you, to put off retirement for at least a little while longer.

Reason #1: The Market is Performing Well

Right now, the market is performing relatively well. In fact, we’re in a great period that is known as a “market top,” and, while that might seem like the perfect time to retire, the opposite is actually true. People who retire when the market is doing well will often lose their money and savings more quickly due to higher inflation rates. Because the economy is performing well, in other words, things tend to cost more, and less interest is typically garnered from savings and other assets.

If you want to make the most of your money and not get the raw end of the deal, you’re better off waiting until a time- probably in the next two years or so- when the market isn’t performing quite as well and when inflation is lower and assets are garnering more.

Reason #2: You’ll Probably Get More Social Security Money

If you’re relying or heavily relying on social security income to get you through retirement, then that is all the more reason to retire later than you originally planned! See, most people can start getting their full retirement benefits when they turn 66 or 67, but, if you work beyond your retirement age, you can typically gain about 8% on your money for each additional year that you work.

While that might not seem like a huge increase, it can really add up over time, especially if you end up living a longer than average lifespan and thus having more time to collect on your money.

These are really just two of a great many benefits to working longer and retiring later. Only you, hopefully with the help of your financial adviser, can ultimately make the decision about whether or not a longer working life is for you, but you should, at the very least, talk with your adviser and consider the potential benefits of working longer before making the decision to retire.

Tips for Choosing a Financial Adviser

Financial advisers can be incredibly helpful. In fact, they can make all the difference in whether or not you meet big life goals, like being able to pay for college or being able to buy the home you’ve always wanted. These professionals can provide you with the advice and assistance that you need to make smart investments and wise financial decisions that are going to help you as you work to reach your goals. However, not all financial advisers are created equally, and it is very important that you choose your financial adviser carefully so that you end up with one that will actually help you instead of causing you more stress and hassle.   

Know What You Want

First of all, make sure you know what you are looking for in a financial adviser. After all, if you don’t know what you want, it can be pretty hard to find it! Determine if you want a financial adviser that is very “hands on” and that wants to hep you every step of the way or if you want one that will let you make the big decisions and that will just provide a little guidance as needed. Once you have determined what it is you want and need in a financial adviser, you will have a much easier time selecting the right one.

Be Selective

Remember, when you select a financial adviser, you are selecting someone who will be dealing with your money and your future to some degree, someone you will need to be able to put your full trust in. As such, do not be afraid to be highly selective when it comes to choosing your financial adviser. Choose someone who has a high degree of education, who has a solid work history, who has great references from past clients, and above all else, who makes you feel comfortable and puts you at ease.

Know What You’ll Owe

Finally, don’t neglect to know exactly how much you will be expected to pay your financial adviser. Some advisers might charge a flat rate for their services while others may charge by the hour. Some many only charge you a percentage of the assets they manage for you, while others will only profit when you profit by working on commission.

There’s no “right” or “wrong”way to charge, but the fees and the way they are handled should be acceptable to you and should work for your budget and needs.

As you can see, it can take some effort and thought to choose the right financial adviser, but if you put in this effort, it will pay off in the form of a great, trustworthy financial adviser that you will enjoy working with and that will help you to make the most of your money.

Understanding the 403(b)

These days, there are all kinds of investment and savings options available, and, as such, it can be difficult to determine which ones are right for your particular needs and situations. One option that has been getting a lot of attention recently is the 403(b). If you are considering this particular choice, it’s important to understand what it is and how it works so that you can accurately determine whether or not it’s a good fit for you and your needs.  

The Basics

A 403(b) is what is considered a tax-sheltered annuity. In other words, it offers a way to save for retirement. It is designed specifically for employees who work with smaller companies.

In some cases, employees are actually required to have a 403(b) plan in order to work with their company of choice, but this isn’t always the case.

Those who do sign up for the plan will have contributions automatically deducted from their wages before taxes in most cases. Many people like the fact that, because of this, their contributions aren’t really noticeable; they don’t feel like they’re losing money and, instead, are just building up a nice little nest egg, little by little, each payday.

Annuities Vs. Mutual Funds

Another thing that people really like about 403(b) plans is the fact that they have some choices in terms of where their money goes. Typically, they can either choose annuities or mutual funds.

When going with the latter option, there’s a combination of stocks, bonds and money market holdings involved. For the former, contributors can choose between fixed annuities, equity indexed annuities, and variable annuities. The option chosen will influence the interest rate.

Because so many options exist, people can easily choose the 403(b) plan that works for them and their needs. The key is just to choose a low-fee 403(b).

Getting Your Money

Funds placed in a 403(b) plan are strictly for retirement. That means that, as is the case with many retirement plans, there are penalties involved if you attempt to take out your money early.

The general rule is that, in most cases, you will face hefty withdrawal penalties if you take out money before you have reached the age of 59.5. However, there are some exceptions. For example, if you switch jobs, you can roll over your funds. You can also make a withdrawal of elective deferrals if you experience verifiable financial hardship. The same goes for those in the reserves who get called up and those who become disabled.

Certain other exceptions do exist, so you can always check with your financial adviser to see if your desired withdrawal qualifies for a penalty-free exception.

403(b) Limits

Finally, keep in mind that contribution limits do exist with 403(b) plans. Currently, the limit on elective salary deferrals is $18,000. For total contributions, the limit is either $53,000 or all employee compensation, depending on which is lower. However, if you are over 50, you can make “catch-up” contributions of as much as $6000.

As you can see, 403(b) plans are good options for many people. The key is just to determine if such a plan will work for you and your needs. If so, you can contact a financial adviser to help you get started, and, if not, you can still contact a financial adviser to learn about other options that may work for you.

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Tips to Improve Your Finances

2016 is about a quarter of the way through, so if you made a promise to yourself to get in better financial shape and haven’t yet honored that promise, you better act fast!

Perform an Investment Checkup

One of the first things you can do to make things better is to do a “check in” on all of the financial products and/or services you currently use. So many people make the mistake of entering into financial or investment decisions and then just seeing what happens from there on out. In truth, you need to consistently stay on top of your financial endeavors and make sure everything is still working for you as it originally did. And, there’s definitely no time like the present to see how your choices are performing and to make sure you’re not missing out on better terms elsewhere. Check in on your current investments and plans and make changes as needed for a brighter future.

See if Your Savings are Sufficient

Not only should you check to see how your investments are performing, but you’ll also want to take a close look at your savings/emergency fund. If you’re like most people, you dip into your “set aside” money a little here and there as needed. And, unfortunately, if you’re not careful, you can end up using way more of this money than you anticipated. Take the time to ensure you’re still in good shape in terms of saving and/or emergency money. If you find that funds are running a little low, beef up your savings contributions until you could comfortably ride out any special circumstance life throws your way.

Check Your Credit Score

Another wise thing to do is to check up on your credit report. You can do this for free through any of the major credit reporting bureaus. Find out what your credit score is and, if applicable, what things are dragging your score down. Once you know what issues exist, you can file a complaint on credit remarks that don’t currently apply or that have been wrongly issued. You can also take note of any accurate negative reports on your credit history and take steps to remedy them, or, at the very least, to start building new and better credit.

Talk to a Pro

Finally, if you’re not already working with a financial adviser, there is no better time than the present! As you probably already know, managing your taxes and general finances on your own is tough and complex. That’s why, to ensure the best possible outcome in all financial matters, you should consider hiring a professional and trustworthy financial adviser to help you through the process. The sooner you do, the sooner you can get your financial goals and reputation on the right track, no matter what your starting point.

5 Money Saving Tips from the Pros

Are you looking for an easy way to save more money? If so, you’re not alone. Savings tops the list of financial concerns for most Americans. Fortunately, though, saving really isn’t all that hard if you have a manageable plan and then follow it accordingly.  

In an effort to help you make those first steps toward saving, we’ve talked with financial advisers to solicit some of their top pieces of advice, which we’ll share with you below. However, keep in mind that there is no substitute for having your own financial adviser who can look over the details of your finances and give you advice based on your situation.

Tip #1: Don’t Bank it All on Your Business

First things first, if you own a business or are about to go into business, don’t make the mistake of putting all of your equity into that business. Going into business is a risk in and of itself, and you add a whole other (and bad) layer of risk when you put everything you have into your start up.

Be smart and only take risks you can afford; there’s a chance your business will be a smashing success, but there’s an even bigger chance it will fail. So, think positively but also plan smartly and give yourself some money to fall back on! In other words, don’t go into business until you have enough saved up that you’d still be okay even if your business isn’t as profitable as planned.

Tip #2: Avoid ALL Impulse Purchases

Whether you’ve got lots of money flowing in or just enough to get by, the fact remains that impulse purchases are almost always a bad decision. No matter how much money you have coming in, you should ideally be living on a carefully planned budget, one that includes required spending money, savings, and necessities.

Impulse purchases are not a necessary part of any budget, and if something doesn’t fit into your budgetary plan, it’s probably not worth having in the first place. When you stop impulse spending in its tracks, you’ll be shocked at how much you can save and how quickly you can save it.

Tip #3: Take Care with Your Taxes

Finally, bear in mind that the way in which you file your taxes can play a big role in whether you’re “living large” or just barely scraping by. There are all kinds of ways to save on taxes, such as exemptions, special credits, and more.

If, however, you’re not working with a professional accountant who knows all the clever ways to save, you’re probably missing out big time. If you really want to save as much money as possible, you’ll follow these tips and hire a knowledgeable professional to help you along the way.

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Get Started Investing

To a lot of people, investing seems incredibly overwhelming. As such, many people will just flat-out avoid it. And, while they may think they’re avoiding a big hassle, what they’re actually avoiding is the chance to make a lot of money and to enjoy great returns.

If you’ve avoided investing in the past because you thought it would be too hard, stop! Find an investment adviser to help you, and start enjoying the many benefits; the sooner you do, the better. Below, you’ll also find some great tips to help you out as you’re getting started in the world of investing.

Be Safe and Smart

To begin with, make sure you start investing at the right time. When money is tight and you’re barely making it from one paycheck to the next, that is NOT the time to start investing. Furthermore, you should never invest money that you need for basic survival.

When you’re in a decent place, financially, however, and have more money than you need coming in, that’s the time to invest! Even then, though, make sure you’re taking smart chances. Very risky investments are never a good thing, but especially not when you’re just starting out.

Determine Your Involvement Level

Another thing you’ll also want to decide ahead of time is what kind of an investor you want to be. If you want to be very passive, meaning you can simply pick a fund, invest, and then let it do its thing, that’s fine. It’s also okay, though, if you want to be a more involved investor, one who stays on top of and carefully watches each investment. Once you’ve decided this, you’ll want to let your investment adviser know the involvement level you’re comfortable with so that he or she can pick the right investments for your specific needs.

Have Clear Goals

Finally, you’ll want to develop some clear goals as to what you hope to gain from your investments. Maybe you’re hoping to make enough to retire early or maybe you just want something to leave behind for your loved ones. It doesn’t really matter what your exact goals are as much as it matters that you have specific goals you’re working toward.

You can share these goals with your financial adviser so that he or she can create an investing strategy that will work for you and that will help you to get to those goals sooner rather than later!

As you can see, investing isn’t all that hard, especially not with the right help and guidance! Remember, the sooner you start investing, the sooner you can start benefiting, so don’t delay.

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Tips for Making the Most of Your 401K

In recent years, thanks in large part to pensions becoming less widely available, 401(k) plans have become the option of choice for those planning for their retirement. These plans, while beneficial, can sometimes cause confusion. Most people don’t know how much to put into these accounts or whether they should even have one, but with a little advice from us and your financial advisor, you can make smart decisions about how much to contribute.   

Busting the Match Myth

Most employers are willing to match 401(k) contributions but only up to a certain amount, usually around 6%. Thus, many people who have these plans only contribute up to that 6% mark and then stop.

It’s important to know, however, that it’s usually best to contribute more than that. In most cases, the IRS allows up to $18,000 in elective 401(k) deferrals. Those who are 50 or older can even contribute more if they wish, currently a whopping $6000 more!

Know Your Contribution Limit

While you do want to contribute more than 6% if you can, it’s important that you do know the limits the IRS has put in place for contributions. Do bear in mind, however, that though these limits apply to most people in the respective categories, it’s always best to check with your investment advisor as there may be special considerations in your case:

Elective Deferrals Limit: $18,000

Total Contribution Limit for 50+: $59,000

Total Contribution Limit with employer contributions: $53,000

As mentioned, an investment advisor really is your best bet for making the most of these tips and for making the most of your 401(k) in general.

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The Worst Investment Mistakes

Anytime you invest, you’re taking a risk. Obviously, the hope is that this risk will work out in your favor and that you’ll end up making money. And, while some investments are riskier than others, it is important to keep in mind that you do have some control over the investment process. By making smart choices and taking calculated risks where the odds are in your favor, you can come out on top most of the time. Plus, if you are careful to avoid the most common (and worst!) investment mistakes, your chances of success are even better.   

Mistake #1: Leaping Before You Look

As mentioned above, smart investing is about taking calculated risks, risks where you’ve done your research and know that you have a good chance of everything working out in your favor. When you neglect to do that research and/or allow yourself to get swept in fast-talk or big promises, there’s a good chance you’re going to be disappointed with how your investment turns out.

In addition to learning everything you can about a particular investment venture before signing anything or putting any money into it, follow these basic tips:

l  For stocks, check the company size, revenues, profits, and projections

l  For mutual funds, look at performance, costs, and investment types

l  For financial planners, look for non-commission based, experienced, certified professionals

Mistake #2: Neglecting to Think About Taxes

Some investments aren’t really worth it, even if you make a profit, thanks to the huge amount of taxes you’ll have to pay. Thus, it’s always important to think about the long-term tax implications of your investment choices. Instead of just seeing a potential for profit and going for it, really study to see if that profit is going to be worth the taxes you’ll have to pay, not to mention all the effort you’ll have to expend to get it. Making choices with these things in mind will make your choices much better.

Mistake #3: Not Working with a Professional

Finally, don’t make the mistake of making all of your investment decisions on your own. While you can accomplish a lot and make some good decisions through your own research and hard work, it’s a whole lot easier to trust in those decisions and to see potential problems you might not have noticed when you have a pair of professional eyes helping you out. Find an affordable investment advisor who will help you to make good choices. Doing that and following these tips should ensure successful investments the majority of the time.  #InvestmentProcess

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How to Protect Your Retirement Funds

It’s extremely important to tread carefully when it comes to all matters related to your retirement. There are so many scams and cons out there that, if you aren’t careful, you can fall victim to and end up losing everything you’ve worked so hard for in the process.

One of the best things you can do to protect yourself and your funds is to choose a trustworthy financial advisor. Look for someone experienced and well-educated who will always put your best interests first. By reading online reviews, researching any potential candidates, and always making decisions carefully, you can find the perfect person to help you to make the most of your retirement funds and to avoid scams.

And, believe it or not, scams are increasingly common. Not only are there “investment advisors” who don’t know what they’re doing, who charge too-high fees, and/or who will sometimes outright steal your money, there are also investments that are scams from the start. Generally, anything that

promises huge benefits with very small investments is worth checking out a little further, as is anything that sounds too good to be true.

It doesn’t help matters that most people who retire are considered “elderly,” making them favorite targets of scam artists. The good news is, though, that if you do find the right help, you can make wonderful investment choices that will benefit you both now and in the future. So, don’t take any chances; be serious about finding the right retirement help, and, if you ever have questions or concerns, voice them. You can never be too careful when it comes to protecting the retirement funds that you have worked so hard for.  #InvestmentAdvisors

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Common Investor Mistakes to Avoid

Look, we all make mistakes as investors, but some of them are worse than others. While some mistakes can cause only mild setbacks, others can lead to ruined portfolios, lots of lost money, and other big problems. Thus, it’s important to educate yourself on smart investing strategies, hopefully with the help of a professional financial advisor, and to recognize your potentially big blunders early on so you can fix them before they wreak serious havoc. To help you do just that- avoid major investing consequences- make sure you avoid these all-too-common mistakes:

Mistake #1: Chasing a Stock with Reckless Abandon

We’ve all fallen in love with a particular stock. Some stocks just have a way of luring us in through careful marketing, having lots of promise, or just being hot and talked about. However, the very

stocks that are so alluring and popular today can be the ones that end up in severe capital losses increases later if the popularity of the stock falls. Trends come and go (Myspace, anyone?), so be mindful of that and don’t stay devoted to a stock just because it’s “cool” or you’re into it; instead, look at financial figures and make smart, well thought-out decisions about when to let a stock loose.

Mistake #2: Not Listening to Contrarians

All kinds of people offer up opinions (often unsolicited) about what you should and shouldn’t do stock-wise. Sometimes, though, it’s the ones you least expect who can offer the best advice, like contrarians. They, for example, invested heavily during the economic downturn of 2009, a time when everyone seemed to be steering clear of the stock market, and they ended up, to everyone’s surprise, coming out on top big time. While it’s important to listen to the major, mainstream voices and advice in the investment world, be sure to consider a wide range of educated opinions and even to take some risks here and there. This is all made much easier with the help of an investment advisor, who can enable you to see which “out there” investment strategies might actually be pretty solid and what risks are worth taking.

Mistake #3: Not Rebalancing Your Portfolio

You never want to let your investment portfolio get too stale or too set in its ways, so be willing to change things up from time to time. Regularly take stock of how your stocks are doing, and be willing to make changes as necessary, and also make smart additions to your portfolio on a regular basis to keep it fresh and diverse.

By following these tips and getting the right investment help, you should see nothing but good come from your investment efforts.  #InvestWisely

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Here is How to Tell if You are Ready to Retire

If you’re pretty darn sick of working, you may take that as a sign that you’re ready to retire. But, unfortunately, being truly ready to retire is about more than just desire. It’s about actually being financially ready, i.e. having the monetary means to retire and still live the life you want.

You’re Sticking to a Retirement-Ready Budget   

Sticking to a budget, any budget, is tough. Sticking to a retirement-stable budget is even tougher.

If you’ve been living, for at least the last three months or so, on a budget that is sustainable during retirement, and you have no reason to believe you couldn’t sustain that long-term, then you just might be ready to retire.

You’ve got a Nice Savings

Another major sign that you’re ready to retire is that you have a nice nest egg tucked away. We’re not talking go-shopping-on-a-rainy-day nest egg either. We’re talking live-for-six-months-to-a-year-easily nest egg.

If you’ve got that kind of savings, or better, backing you, you might be ready.

Your Financial Advisor Gives you the A-Ok

Finally, if you have a financial advisor- and you should- and that person has carefully examined your finances and given you the go-ahead, then you’re ready.

If you don’t have a financial advisor period, you’re probably not ready.

See, smart soon-to-be retirees realize that, no matter how well they’ve planned, they aren’t experts. And, because they’re not experts, they know that, if they want to live well in retirement, they need to trust their money management to an expert.

Once you’ve done that, achieving the nice savings and the livable budget we mentioned...and ultimately...achieving a comfortable retirement will be a lot easier.

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Why You Need a Financial Advisor

If you are someone who is looking to maximize his wealth and minimize his debts, then you absolutely need a financial advisor. While these professionals often get a bad rep thanks to a few bad eggs and while it is true that some of them are not as trustworthy as they might present themselves to be, there are a lot of good financial advisors out there. And, believe it or not, you could actually benefit from their services in a variety of ways.

No Knee-Jerk Reactions

Undoubtedly, your goal is to create long-term wealth for yourself and your family. It’s important for you to understand, however, that long-term wealth is almost always the result of concentrated, well-planned decisions. It is not the result of knee-jerk reactions and panicking.

When you try to navigate your wealth yourself, it’s only natural that you would “freak out” from time to time. Whether you make the decision to sell at the wrong time, withdraw your investments in a moment of panic, or anything in between, these aren’t usually good decisions. A skilled financial advisor can help you to see past the panic, to make decisions that will benefit you in the long-run- not just immediately, and show you how to get through the present crisis without ruining your future.

Think Through Decisions  

When it comes to financial matters, you will often be called upon to make some pretty tough decisions. Should you give up on that stock when it goes through a bad period, or should you keep pushing through? Should you change up your retirement planning strategy or stick with what you’ve got?

Whatever the decision may be, the chances are that the stakes are high. Do you, as a non-expert, really want to make all these big choices? It’s so much better, any time you’re facing a monetary decision that could have a long-term impact on your life, to have professional advice working for you.

A good financial advisor is like a friend (with a lot of relevant knowledge) you can call on in your time of need. Without one, you’re just leaning on your own faulty understanding of financial matters and taking major risks every time you make a judgment call.

Have Someone In-the-Know

Death isn’t something that anyone likes to think about. Unfortunately, it happens to all of us, sooner or later. Ideally, as depressing as it may sound, you will have planned for your own demise with a will. Whether you have or have not taken that step when the time comes, it just plain makes sense to have someone on your side who is familiar with your finances and your wishes.

Having a financial advisor who understands your assets and what you want to do with them can give you great peace of mind in life and in death, and that, no matter how you slice it, is invaluable. 

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Make the Most of Social Security

Everyone wants to retire comfortably. However, doing that is a lot easier if you know how to maximize your social security income. The real key to making the most out of social security is knowing when to start claiming it. If you time things right, you could end up bringing in a lot more retirement income.

First things first, just because you can claim social security doesn’t mean you should. People can

typically start claiming their social security income once they reach the age of 62. However, for the average American, that’s much too early to actually start claiming. Even if you do actually retire by this age, it’s still smart to put off claiming.     

The reason is that social security benefits get reduced by about one percent each month for the first thirty-six months they’re collected. So, the sooner you start collecting, the sooner you start getting hit with reductions.

Your marital status and your spouse’s age also play a role in when you should start collecting funds. If you can live off of one’s spouse’s funds for a while and then wait until later to start collecting the other spouse’s, you’ll typically wind up with a lot more in the long run.

The bottom line is that when a person should claim is dependent on a wide range of factors, including whether or not that person is able to support himself somehow without a job and without social security benefits. Since the best claiming time varies from individual to individual, it’s important to work with a savvy financial advisor long before it’s time to consider claiming social security benefits. The right advisor can help you to “strike when the iron is hot,” so to speak, and to maximize your benefits.

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Who Can You Trust?

When it comes to financial planning, it’s definitely advisable for all people to have a trusted financial consultant who can help them with saving, investing, and just managing their money in general. Unfortunately, however, not all financial advisers are as trustworthy or as skilled as they might present themselves to be. That’s why you need to be aware of the indicators that point toward a less-than-reputable adviser. 

To start with, you should never hire a particular financial advisor until you’ve checked up on his or her background. Luckily, in today’s world, there are many ways for you to do that. To learn more about your potential adviser, check out background-checking websites, like FINRA BrokerCheck and the SEC Investment Adviser Public Disclosure site.

If everything is all good and clear in your potential adviser’s past, then just make sure that the two of you communicate well, that your adviser asks you about your own goals and plans for your future, and always makes you feel like he or she is on your team and in your corner!

To choose from a wide range of financial planning experts whom you can most definitely trust, check out Platinum Financial Associates, Inc. of Naperville.

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Is Selling Your Home a DIY Project

It used to be that, when people wanted to sell their homes, they would contact a realtor, list the home through that realtor, and then let him or her do the dirty work. And, while there definitely are still some people who rely on realtors, more and more people are choosing to make selling their homes a “do it yourself” project.

Take, for example, a recent report from Zillow.com, a home listing site. The site, which posts both seller and realtor listings, has reported that the number of people who sell their homes without the help of a realtor has doubled from 2012 to 2014. 

ForSaleByOwner.com, a similar site, also reports growth, noting that the number of people who sold their own homes increased by 24% in 2013.

Anytime you sell your home, it’s wise to seek financial advice, but that’s especially important if you’re doing the hard work on your own. Wealth management advisors can keep you from selling your home for too little or making other mistakes that you’ll later regret.

Remember, your home is an asset, a piece of your wealth, if you will, and before you part with it, you want to let a qualified wealth management firm help you do it right. In Naperville, that firm is Platinum Financial Associates.

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