Friday, 11 March 2016
Having a baby is an extraordinary, life-changing event. Although positive emotions can overwhelm new mothers and fathers, parenthood also creates significant responsibility—and sometimes anxiety. Without proper planning, a little bundle of joy can lead to a very large financial burden. There is no way to fully anticipate the emotional, financial and lifestyle shifts of becoming a parent, but here are some key areas that all parents should address with their financial planner:
- Review Additional Living Expenses and Plan Accordingly
If your financial house is in order, you may already have a strong handle on your monthly cash flows and budget. But everything changes when you have a baby. Evaluating the major additional expenses and understanding how to optimize after-tax savings is imperative for long-term financial success.
2. Health Insurance Family Coverage
Health insurance costs are rising. According to Zane Benefits, the cost of family healthcare has tripled since 2001 and continues to grow at an increasing rate, climbing 6.3% in 2015. At the very least, new parents should expect family coverage to cost...
Tuesday, 08 March 2016
Many employees love the convenience of investing in 401(k)s, 403(b)s or other qualified employer retirement plans.
With automatic contributions, prepackaged investment choices, and employer matching—the system enables an easy retirement savings process.
But many feel stuck with the inflexibility of 401(k)s. The investment choices can be limited and may only include expensive actively managed mutual funds or target date funds. Depending on the individual, these options might not be the best.
Tuesday, 09 February 2016
“Everyone has a plan until they get hit in the mouth.” – Mike Tyson
As January gym crowds shrink and many Americans slip into their old routines, we’re reminded of the difficulties in developing disciplined and consistent habits towards achieving a long term goal. As busy professionals, our schedules change rapidly, and too often, our best laid plans go awry. After a few weeks of work, there are no immediate results and it becomes easier to ditch the gym for drinks after work, or have a few too
Part I: The Basic Retirement Planning Equation
Retirees must fund an enjoyable lifestyle without working, which is no small feat. With fewer pensions, lackluster social security benefits, low-interest rates, and significant market volatility—hard-earned retirement savings may not last until age 90 or later.
Retirement is generally considered sustainable if total portfolio withdrawals during the first year of retirement are no higher than 4% of portfolio value (the so-called 4% rule). But it turns out even 4% could be too much if retirees suffer a market downturn in early retirement. Or any number of other things can go wrong.