Savers vs Investors

A saver is someone who does not and usually cannot accept risk. This can be because of age or upbringing. This could because of a lack of understanding about investing. This also can be just attributed to fixed pensions and standard of living.

For the last 5 – 6 years the Fed has reduced interest rates to practically zero and also implemented QE1, 2,3. It was just this month that the Fed made an incremental raise in rates. During this period savers were offered extremely and unpalatable interest rates at the safe places, the banks. Savers were told to just tighten their belts, that there was no inflation to worry about. However these figure usually did not include food or energy costs. The savers had no option but place their funds in the stock market. The influx of capital was a prime reason for the increase in the stock market. After a time caution was thrown to the wind and the thought of risk or loss was neatly pushed aside. But what about now?


Call today to learn how to protect your principal

719-633-0747

Social Security – Should you bet that your life will be short?

Yes, you might get less over your lifetime if you claim later

Monthly benefits are set so that lifetime benefits are much the same no matter when the average person starts to collect Social Security.

– If you’re in poor health and unlikely to live as long as the average person, you’ll probably get less, over your lifetime, the later you claim. (That’s because you probably won’t get the highter monthly benefit long enough to make up for starting later).

But note: many whose health is poor still outlive the “average person”.

Should you bet that your life will be short?

No one really knows how long they will live. But if you health is OK, you’ll probably outlive the average person. If you’re married and both in good health, the odds are even greater that you or your spouse outlives the average person.

 

The cost could be quite high if you lose the bet and live “too long”. If blessed with long life, you might barely scrape by in your 80’s.

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.

Social Security – More Options if You’re Married

social security, retirement, financial planning, financial advisor colorado springsSpecial Rules that raise the benefits of the lower-earning spouse-most often the wife-generally make claiming later an attractive option for married men.

The spousal benefit

If both husband and wife have claimed benefits, each is guaranteed half what the other would get at the Full Retirement Age (whih used to be 65, is now 66, and will be 67).

  • Spousal benefits are reduced up to 35% if claimed before the recipient’s Full Retirement Age.

The survivor benefit

Widow(er)s can keep their own benefit or, if they chose, instead claim a survivor benefit equal to their spouse’s monthly benefit.

  • Survivor benefits are available as early as age 60, or age 50 if disabled, but are reduced up to 28.5% if claimed before the recipient’s Full Retirement Age.
  • Survivor benefits almost always go to widows, as most survivors are women (wives are generally younger than their husbands and live longer) and most wives have lower monthly benefits (they generally ear less and start to collect at younger ages).

Ex-spouses are entitled to these benefits if the marriage lasted 10 years.

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Husbands can get more for their wives

Most wives will outlive their husband, by about 7 years on average, and most widows get their husband’s higher monthly benefit in place of their own.

A husband can increase the monthly benefit his wife gets as his survivor more than 20% if he claims Social Security at 66, no 62, and 60% if he claims at 70.

*Claiming later could be the most effective way a husband can improve his wife’s long-term financial security.

© 2009, by Trustees of Boston College, Center for Retirement Research

 

Social Security – Claim Later Get More

The later you claim, the more you get.

The monthly benefit you earn as a worker is generally based on when you start to collect and the average of the highest 35 years of earnings on which you’ve paid Social Security payroll tax.

social security, retirement, financial planning, financial advisor colorado springs, social security graph, living graph

 

 

 

 

 

 

 

 

 

 

 

75% of original income is need to keep your standard of living.

*As the Full Retirement Age rises to 67, benefits claimed at any age will replace a smaller share of earnings.

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You get even more…

…if working longer raises the average of the highest 35 years of earnings on which you’ve paid Social Security payroll tax. For example, say you were 62 in 2005 and had 31 years of employment, at $40,000 a year.

If you retire and start to collect benefits at 62:

The average of your highest 35 years of earnings = $35,400

your monthly benefit, based on your average earnings and claiming age = $1,030

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If you work four more years, at $40,000 a year, and retire at 66:

The average of your highest 35 years of earnings = $40,000

your monthly benefit, based on your average earnings and claiming age = $1,500

33% for claiming later + 12% more for more earnings = 45% more overall

 

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.

Financial Goal Setting – YouTube Channel

I will be starting a YouTube Channel in the next week about financial planning. I will be discussing all financial aspects (planning, life insurance, annuities, social security, ect). This is my logo sting (intro) to my new YouTube Channel.

Social Security – Filing Claim

social security, retirement, financial planning, financial advisor colorado springsHow old you are when you claim Social Security has a dramatic effect on the monthly benefits you and, if married, your spouse will get for the rest of your lives.

© 2009, by Trustees of Boston College, Center for Retirement Research

Dale Payne – Financial Advisor in Colorado Springs

financial advisor in colorado springs, financial advise, financial advisor colorado springs, insurance agent colorado springs, retirement colorado springs, long term care, long term care colorado springs, life insurance, life insurance agentMy name is Dale Payne and I am an independent Financial Advisor in Colorado Springs. I’ve worked in securities since 1986 and a licensed insurance agent since 1990. Over my 28 years of experience, I’ve found that it takes both securities and insurance to make a plan work. My objective is to help you achieve your goal of financial freedom. I can help you with a complete Financial Plan, Insurance needs, Annuities and even How to Save Money at any income level. I am also a Registered Tax Return Preparer.

I am an Investment Advisory Representative of Pearl Street Advisors, LLC. Pearl Street is an SEC Registered Investment Advisor.

Credentials – CFP®, ChFC®, CLU®, CDFA®
I am a graduate of the University of Phoenix with a Bachelors Degree of Science in Business Management. I earned my ChFC® (Chartered Financial Consultant) in 2007 and CLU® (Certified Life Underwriter) in 2008 from the American College and my CFP® (Certified Financial Planning Practitioner) in 2012 http://CFP.net.  CDFA® (Certified Divorce Financial Analyst. Additional professional designations of CAS® (Certified Annuity Specialist) and the CFS® (Certified Fund Specialist) with the Institute of Business and Finance. Additionally, I am a member of the Better Business Bureau.

My passion is financial planning and the relationships that result when I make a difference. My other passions are travel, writing short stories, the practice of yoga, and my Miniature Schnauzer, Bella.

Previously Held

  • Series 7 General Securities 8/16/1986
  • Series 24 Securities Principal 12/13/1988
  • Series 65 Investment Advisor 5/31/1995
  • Series 51 Municipal Securities 2005

I am no longer associated with a broker dealer or FINRA. These are shown only to illustrate experience.

Women and Money

As a woman, you have financial needs that are unique to your situation in life. Perhaps you would like to buy your first home. Maybe you need to start saving for your child’s college education. Or you might be concerned about planning for retirement. Whatever your circumstances may be, it’s important to have a clear understanding of your overall financial position.

That means constructing and implementing a plan. With a financial plan in place, you’ll be better able to focus on your financial goals and understand what it will take to reach them. The three main steps in creating and implementing an effective financial plan involve:

  • Developing a clear picture of your current financial situation
  • Setting and prioritizing financial goals and time frames
  • Implementing appropriate saving and investment strategies

Developing a clear picture of your current financial situation

The first step to creating and implementing a financial plan is to develop a clear picture of your current financial situation. If you don’t already have one, consider establishing a budget or a spending plan. Creating a budget requires you to:

  • Identify your current monthly income and expenses
  • Evaluate your spending habits
  • Monitor your overall spending

To develop a budget, you’ll need to identify your current monthly income and expenses. Start out by adding up all of your income. In addition to your regular salary and wages, be sure to include other types of income, such as dividends, interest, and child support.

Next, add up all of your expenses. If it makes it easier, you can divide your expenses into two categories: fixed and discretionary. Fixed expenses include things that are necessities, such as housing, food, transportation, and clothing. Discretionary expenses include things like entertainment, vacations, and hobbies. You’ll want to be sure to include out-of-pattern expenses (e.g., holiday gifts, car maintenance) in your budget as well.

To help you stay on track with your budget:

  • Get in the habit of saving–try to make budgeting a part of your daily routine
  • Build occasional rewards into your budget
  • Examine your budget regularly and adjust/make changes as needed

Setting and prioritizing financial goals

The second step to creating and implementing a financial plan is to set and prioritize financial goals. Start out by making a list of things that you would like to achieve. It may help to separate the list into two parts: short-term financial goals and long-term financial goals.

Short-term goals may include making sure that your cash reserve is adequately funded or paying off outstanding credit card debt. As for long-term goals, you can ask yourself: Would you like to purchase a new home? Do you want to retire early? Would you like to start saving for your child’s college education?

Once you have established your financial goals, you’ll want to prioritize them. Setting priorities is important, since it may not be possible for you to pursue all of your goals at once. You will have to decide which of your financial goals are most important to you (e.g., sending your child to college) and which goals you may have to place on the back burner (e.g., the beachfront vacation home you’ve always wanted).
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012 IMPORTANT DISCLOSURES The information presented here is not specific to any individual’s personal circumstances.To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable–we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Implementing saving and investment strategies

After you have determined your financial goals, you’ll want to know how much it will take to fund each goal. And if you’ve already started saving towards a goal, you’ll want to know how much further you’ll need to go.

Next, you can focus on implementing appropriate investment strategies. To help determine which investments are suitable for your financial goals, you should ask yourself the following questions:

  • What is my time horizon?
  • What is my emotional and financial tolerance for investment risk?
  • What are my liquidity needs?

Once you’ve answered these questions, you’ll be able to tailor your investments to help you target specific financial goals, such as retirement, education, a large purchase (e.g., home or car), starting a business, or increasing your net worth.

Managing your debt and credit

Whether it is debt from student loans, a mortgage, or credit cards, it is important to avoid the financial pitfalls that can sometimes go hand in hand with borrowing. Any sound financial plan should effectively manage both debt and credit. The following are some tips to help you manage your debt/credit:

  • Make sure that you know exactly how much you owe by keeping track of balances and interest rates
  • Develop a short-term plan to manage your payments and avoid late fees
  • Optimize your repayments by paying off high-interest debt first or take advantage of debt consolidation/refinancing

Understanding what’s on your credit report

An important part of managing debt and credit is to understand the information contained in your credit report. Not only does a credit report contain information about past and present credit transactions, but it is also used by potential lenders to evaluate your creditworthiness.

What information are lenders typically looking for in a credit report? For the most part, a lender will assume that you can be trusted to make timely monthly payments against your debts in the future if you have always done so in the past. As a result, a history of late payments or bad debts will hurt your credit. Based on your track record, if your credit report indicates that you are a poor risk, a new lender is likely to turn you down for credit or extend it to you at a higher interest rate. In addition, too many inquiries on your credit report in a short time period can make lenders suspicious.

Today, good credit is even sometimes viewed by potential employers as a prerequisite for employment–something to think about if you’re in the market for a new job or plan on changing jobs in the near future.

Because a credit report affects so many different aspects of one’s financial situation, it’s important to establish and maintain a good credit history in your own name. You should review your credit report regularly and be sure to correct any errors on it. You’re entitled to a free copy of your credit report from each of the three major credit reporting agencies once every 12 months. You can go to www.annualcreditreport.com for more information.

Working with a financial professional

Although you can certainly do it alone, you may find it helpful to work with a financial professional to assist you in creating and implementing a financial plan.

A financial professional can help you accomplish the following:

  • Determine the state of your current affairs by reviewing income, assets, and liabilities
  • Develop a plan and help you identify your financial goals
  • Make recommendations about specific products/services
  • Monitor your plan
  • Adjust your plan as needed

Tip: Keep in mind that unless you authorize a financial professional to make investment choices for you, a financial professional is solely there to make financial recommendations to you. Ultimately, you have responsibility for your finances and the decisions surrounding them.

IMPORTANT DISCLOSURES The information presented here is not specific to any individual’s personal circumstances.To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable–we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.