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Retirement a distant dream for many entrepreneurs

Monday, December 20th, 2010

The term early retirement scares many of us. Nonetheless, typically life throws at us unexpected situations that we cannot avoid. Being prepared for such a situation before it happens is the best coping method.
What are the chances that that you will have an excellent early retirement? That actually depends on your company’s pensions and benefits. It additionally has to do with your own personal investment portfolio.

We need to do early retirement planning to start our retirement phase of life. Even if we work to normal retirement age, it is wise to do planning for early retirement.

We came across this news article which opens up the fact that Retirement policy is not just for employees but also for entrepreneurs.

Toronto hairstylist Anthony Avola started to prepare for his retirement years ago. Over a 40-year career, he sold off his interests in three hairstyling salons and, more than two decades ago, purchased what is now called the Avola College of Hairstyling & Esthetics, hoping to live off the income it all would provide.

But at 72, he still has scissors in his hands, working four days a week as an employee of an upscale salon he used to co-own.

“I work because I like it,” Mr. Avola says. “But there’s also the lifestyle issue. I need to work to maintain my lifestyle.”

He’s not alone. Studies show that retirement is a more distant dream for many entrepreneurs than for others in the work force.

Nearly one in five – 19 per cent – of the self-employed believe they will be able to retire comfortably only at the age of 70 or beyond, according to an April survey by the Canadian Federation of Independent Business (CFIB) of more than 7,800 respondents. Another 28 per cent don’t see themselves leaving work behind until they are 65 to 69.

And entrepreneurs do tend to retire later than others: The average retirement age of the self-employed – (65 in 2008) – was three to five years higher than for employees in the private or public sectors, the study noted.

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Important Tips on Retirement Planning

Monday, December 13th, 2010
Every responsible adult should think about the future and saving for retirement for themselves and their spouse. Everyone seems very concerned that they ‘have enough saved’ when the time to retire becomes a little ‘closer. Well, there’s no way we can determine if there is enough until you have determined what kind of lifestyle we want for our retirement! We must answer many questions for our retirement plan effectively. There are many factors that enter into the plan. The most important are health, age and fitness. Therefore, it is necessary to take stock of our responsibilities to our parents, brothers, sons and other family members. All these things will have a role in the plan.
We came across this article which clearly indicates the importance of retirement planning in our life.
Tips on Retirement Planning.

  1. Nowadays, people are living longer so retirees are spending 30 years or more in retirement. It is important toplan ahead if you want to maintain your standard of living during that time. Investing in tax-deferred savingsplans and investing in other sources can help you get to a comfortable level for retirement. Determine yourcurrent situation. Obtain the current value of regular accounts, IRAs, and company tax-deferred savings plans. Get an estimate of any company pension plan. Estimate your future Social Security benefits. This can be done more easily with a retirement calculator.
  2. Choose a retirement date.
  3. No matter how young or old you are, get started today. Due to the miracle of compounding, starting a little earlier makes a big difference. Consider the following (assuming a 10% annual return): Who do you think would have more money in 40 years, a person who contributes a fixed amount every year for the first 8 years and then does nothing for 32 years, or the person who does nothing for the first 8 years and then contributes that same amount every year for the next 32 years? Believe it or not, the first person would be ahead at the end. Get started today!

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The Importance of Investing for Retirement

Friday, December 10th, 2010

I am sure all of us would want an early retirement with a nice house, fancy car and the works. But very few of you take it seriously and actually start working on it. For some it does not even feature in their future vision. Very few of us take retirement planning take seriously.

However, the key to retirement planning success is to start early and gain the benefit of the power of compounding.We came across this article which will definitely make you understand the importance of investing in retirement planning.
For many busy working-class people, saving money and thinking about setting up a retirement plan is the last thing that they want to consider. They’re pulling in a decent paycheck, spending it on bills and a few pleasurable activities, and because they’re young and energetic, they’re confident that this status quo will continue for as long as necessary.

Eventually, however, they begin to come to their senses – perhaps because of maturity, perhaps by embryonic thoughts of their own mortality – and the realization that nothing lasts forever, and that all things change. At this time, investing a portion of their salary toward their future wellbeing becomes a top priority. Well, as the old saying goes, better late than never.

Unfortunately, most of these people willingly hand over the critical element of retirement planning to someone else – whether it’s the government through Social Security, their company’s pension plan, a 401(k) or a similar arrangement administered by some financial ‘expert’. But the lessons of history (especially recent history) clearly show that many of those retirement vehicles administered by so-called experts come with serious caveats.

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You May Really Need This Expensive Insurance

Thursday, December 9th, 2010

Is insurance for long term care too expensive? It’s a common question, one that typically comes after, “Is long term health care insurance necessary?” LTC may not be cheap, but before we start questioning the cost of LTC, let us understand what LTC saves for us.

Not everyone needs long term health care insurance, but regardless, understanding the costs and structure of long term care are crucial to better understanding this complicated form of insurance. It can be difficult to find out how much LTC is going to cost. Adding to the difficulty, is the fact that there are lots of factors that can impact a LTC quote and what your premiums will actually end up being.

We came across this article which gives us a clear understanding on why we need Long term care insurance and proves that the cost is worth it.

Sales of long-term care (LTC) insurance policies have been falling, spurring MetLife (NYSE: MET) to abandon the business beginning in 2011. But while fewer people may be buying the policies, that doesn’t mean fewer people need them.

One factor keeping many folks away is the cost. Long-term care insurance isn’t cheap, but there’s a good reason for its high price tag. You’re likely to need it, which means insurers face a high probability that they’ll have to shell out for it.

The bad news
Even minimal in-home help can cost $1,000 or more a month, according to the national association AHIP. Assisted-living facilities can eat up $2,000 or more per month. And even in relatively affordable areas, a nursing home can cost $50,000 or more per year. If the thought of such expenses makes you break out in a sweat, and you can afford LTC insurance, you’re a candidate for it.

Better start saving your money: The already high cost of long-term care insurance is set to rise considerably. John Hancock, a division of Manulife Financial (NYSE: MFC), recently sought to raise its LTC premium rates by 40%, on average, atop double-digit increases for many customers in 2008. Genworth Financial (NYSE: GNW), meanwhile, wants to hike rates by 18% for many policyholders.

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Is long-term care insurance worth the cost?

Tuesday, December 7th, 2010

Long term care is a reality of growing old. There is no way to predict what will happen in the future, but there is a way to plan for it. Long term care insurance ensures a secure and  bright financial future, and it all comes at the cost of a small monthly payment.

We came across this article that helps us understand the value of the price you pay towards securing your financial future.

Is long-term care insurance worth the high premiums? There is no objective answer. The answer lies within us; it lies in answering these three questions: Do we want to control how we spend our money in our old age or whom we leave it to? Do we want as much control as possible over how and where we are cared for in our old age?

A word on what long-term care insurance is: It is coverage against the risk of long-term (usually more than three months’) chronic (not medical) care frequently required for stroke victims, diabetics and the mentally disabled, among other disabilities. These chronic conditions commonly strike people in their old age.

Chronic care may be offered in our homes. This is the preferred setting. Chronic care is also offered in assisted-living facilities and nursing homes. The cost of this care is borne exclusively by the patient, the patient’s family or long-term care insurance, except in the case of patients who are destitute or have already spent all of their money. Then Medicaid (not Medicare) will provide nursing-home care only.

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Top 10 Reasons To Obtain Long Term Care Insurance

Friday, December 3rd, 2010

With health care costs rising and longer life expectancies, funding long-term care needs is an increasing concern for millions of people. ”It’s a highly individualized decision that requires you to look closely at multiple factors including your family health history, dependent relationships and personal financial situation.”

To help you make more informed decisions about long-term care insurance coverage, We found an article which provides top 10 reasons for you to obtain Long Term Care Insurance and understand its importance in our lives.

  1. The government isn’t going to pay for long term care at home, in a nursing home, or in an assisted living center. Medicare pays 100% of long term care for 20 days and all but $95.00 per day for the next 80 days–after that nothing. However Medicare only pays for skilled care and most long term care is not skilled care.
  2. The national average cost for nursing homes is approximately $105.00 per day. Assisted living ranges anywhere from $50 – $90 per day. If you live on the Eastern Seaboard you can easily spend $50,000 to $80,000 for a year’s stay in a nursing home. These costs are perfectly capable of wiping out a lifetime of savings, not to mention the emotional effect long term care has on a family

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The Importance of Long Term Care Insurance

Wednesday, December 1st, 2010

Long-term care insurance provides health insurance for extended periods of time, covering expenses that many private insurance policies, medicaid and medicare do not cover.

The next thought, of course, is how will we pay for it?  Private insurance policies, Medicaid and Medicare will only cover a limited amount of long-term care, which then forces you to ponder the need for long-term care insurance.  You will need to inform yourself of the cost of long-term care and long-term care insurance and balance that against the odds you will need long-term care.

This article we found details out some of the reasons why Long Term Care should be part of your core financial planning.

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Options for a Fulfilling Retirement

Wednesday, November 24th, 2010

The transition from a regular job to retirement is usually fraught with numerous queries ranging from “What subjects, hobbies, ideas am I enthusiastic about? What are the areas I must contribute? What should be my legacy?” Planning for retirement can be an occasion to learn of new and original pursuits and passions, and fulfill the things you never had time to do while you were busy on the job. Then again, you might want to get employed at another job either full-time, half-time, as an advisor, or on a volunteer basis. The reason why most people choose to work even during retirement is to maintain their benefits, keep a steady course of income, or because they cannot imagine staying idle! Whether you decide to keep a job or not, you may discover that retirement is a time for deliberating the various options at hand that will bring you satisfaction.

Where do I Draw the Line?

Imagine for a minute that you would like to uphold your current manner of living even in retirement, the foremost thought in your mind is likely, “How much am I going to need?” An answer to that question lies in knowing in advance an estimate of your present annual expenditures. If you would like to know whether your outgoing costs would vary from month to month, or you would be living within a budget or if you would be having a good hold on your daily expenses, making a record of your “Current Annual Expenses” can be a good start to summarize how much you would need to maintain your current lifestyle.

Setting Aside for Sunny and Rainy Days

It is always a good idea to review your savings strategies to help you realize your vision of retirement, and how you would like to live in retirement. When it comes to investing and getting the most out of your funds, time is of the greatest essence and a huge asset in helping money grow. For instance, if you calculate that you will need $600,000 in monetary funds during retirement (to augment the cash flow from your Social Security and work pension), you will need to build on the Current Annual Expenses chart to know how much you would need to save and invest, taking for granted an 8 percent tax-deferred annual rate of return.

Planning Makes All the Difference

Retirement planning is elaborate and may call for a considerable period of time and effort; but all for a good cause. You may want to assess and appraise your requirements, map out a plan, and confer with experts you trust, including your consultant, autonomous accountant and lawyer. They will help you ascertain how much you may want to set aside for your retirement and what steps you would want to take to achieve those goals. You might want to seek financial counselling from the company you work in, to help you understand your retirement funding alternatives.

Taking a practical look towards the future and planning cautiously can help to reach your retirement goals.

NAIFA Annual Meeting, Seattle

Wednesday, September 22nd, 2010

Randhir Judge from Judge For Yourself Insurance & Financial Services, Inc.

We at JFY Insurance & Financial Services Inc. just got back from the NAIFA Annual Meeting held at the Washington State Convention & Trade Center at Seattle, WA. It is always a treat to watch a mix of experienced & enthusiastic visionaries under one roof, to hear them share their rich insights on Financial planning.

Click Here for a set of photographs from the NAIFA event.