Investing

Will Your Investment Portfolio Last Throughout Your Retirement Years

investingStarting to plan your investment portfolio early enough is a good idea but many people lack the financial resources or skills to undertake that step. As a result, they have to begin investing later in life, which makes them wander whether the money would be sufficient for all of their needs during retirement years.

Will your investment portfolio last throughout your retirement years? You have to think about your needs, about diversification and about your investment ability. A consultation with a professional is essential, as well.

How long will Your Portfolio Last?
Most investors wonder whether they will get enough money for their senior years, possibly leaving some of their assets to children and grandchildren.

An investment portfolio contains different investment types that are all held by one person. Having a balanced portfolio is essential because it will guarantee profitability. Most investment portfolios contain high risk items alongside safer types of investment.

A consultation with an investment advisor and a forensic accountant is a must for the creation of an investment portfolio that will last throughout your investment years. Many people lack the specialized knowledge and instinct to come up with the best possible portfolio. To learn more about the role of forensic accountants in the process, contact forths forensic accountants.

Your investment experts will calculate dividends on the basis of your investment and expenditure and suggest lifestyle or portfolio changes that will guarantee the longevity of your funds. Instead of enjoying a costlier lifestyle, some investors may also consider reinvesting the money in an attempt to increase the stability and profitability of the portfolio.

Tips for the Creation of an Investment Portfolio that will last:
The easiest way to make your investment portfolio last throughout your senior years is a conservative strategy. High risk investments are more profitable but the risk of losing money is much higher. A conservative or moderate approach will result in profitability without the risks.

Making adjustments as you go is a good idea, as well. During one period of time, a high risk investment may seem like a good way of making more money. As you age, you should probably try to be a bit more conservative in an attempt to make the assets last. For example, in your 60s, you can have a moderate portfolio approach consisting of 60 percent stocks and 40 percent bonds. As you approach your 80s, switch for a more conservative portfolio that consists of 20 percent stocks and 80 percent bonds or cash.

Finally, you need to have a separate emergency fund. Set some money aside in a bank account, for example. The sum should be sufficient to cover your needs and estimated expenses for at least one year. This emergency fund will be lifesaving in the case of extraordinary circumstances that may affect your investment portfolio.

Begin planning your retirement investment early enough. Research opportunities and consult a professional that understands the little tricks that will help you create a balanced and profitable investment portfolio. Understand your needs and current financial abilities. Stay open to change and get ready to make adjustments on the basis of current circumstances. All of these elements and techniques will help you create the perfect investment portfolio that will last throughout your retirement years.

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Passion

Take A Small Step To Reach Your Passion

What is it that’s keeping you where you are in life? Why is it that you are living paycheck to paycheck? There’s nothing wrong with that life style, if that’s your passion. But if you want more, why don’t you have more?

Maybe you don’t have more because you’re not following your passion. It’s not easy to change your mindset and realize that you can follow your passion.

Look at me, I never thought that I would be able to help people with their financial life because of the way my finances were. But if you want something bad enough, you can overcome those obstacles that are stopping you.

I realized that the experiences and knowledge I gained from my past will help me get people to their dreams as well.

It’s all about taking small steps to reach your passion.

For instance, let’s say your passion is to be a professional golfer, but you don’t have any experience. What would you do?

Well, you could go to golf courses and apply to work in the restaurant or club house. You wouldn’t directly be working with golf, but you’d be surrounded with people that play it.

Maybe you’re working one day and you bring it up to somebody that you want to be a professional golfer. They may say “I know a guy that can help you out and teach you the ropes.”

Now you’re that much closer to becoming a professional golfer.

And this happened because you took a small step towards your passion. You just need to take that first step to surround yourself with your dream.

So don’t look at a job as a way to earn money, look at it as a way to lead you to your passion. If your job is only earning you money, then it’s not a job worth having.

So look at your job now and decide if it is teaching you anything about your passion. If it’s not then look for one that will. Don’t wait till tomorrow because that’s just pushing that small step further away and making it harder to take any steps forward.

Help other people take a small step by Tweeting this post and Facebook Sharing it.

 

So what’s your passion? What small step are you taking today to get you there?

Insurance

What should you do if your insurer is in trouble?

insurer

Is it possible to have a highly successful and seemingly profitable insurance provider to be in trouble? YES. A good example is the American International Group (AIG) $85 billion dollar bailout that happened in 2008 where the shaky foundations of the world’s largest insurer caused consumers to go into widespread panic.

Ironic, isn’t it, considering if there’s no ASSURANCE in INSURANCE, then the industry is basically devoid of any substance. Fortunately, insurers do not go bankrupt every other day, so it’s safe to say that you need not bail out of your policy this very moment. 

Reasons why insurers fail

With the existence of so many insurers in the world, it’d be understandable for some people to play the ‘What If’ game. The main question in everyone’s mind is: What IF insurers fail? This is a completely valid question to ask, because it’s happened before. Insurance companies HAVE failed in the past, and it will happen again.

Luckily, there are less insolvent insurers compared to failed financial institution. For example, approximately 700 insurers across the world failed to uphold their business (and their promise to consumers). This happened within the 30 years between the 1970’s to year 2000. Now, compare this number against the 500 financial institutions that went insolvent during the infamous economic crisis of the 1980’s. This figure is applicable to establishments that existed in the United States ALONE. So if you think about it, the low insolvency rate of insurers is pretty encouraging to instill high consumer confidence.

Main reasons why insurers declare insolvency:

  • Underreserving: This is usually caused by poor insurance practices.
  • Lack of insight: Inability to forecast risk of catastrophes will also cause insurers to close up shop.
  • Rapid growth: Too much of a good thing is a bad thing, right? CORRECT. When an insurance company expands too much and too soon using underpricing procedures, it stretches itself thin and pretty soon, causes its own downfall.
  • Fraud: Needless to say, fraudulent activities will cause ANY company to fail. When profitability is manipulated or incompetent management left to run the business, you can be sure that trouble will be brewing very soon. 

What happens when an insurance company goes bankrupt?

Should you hear that your insurer is going bankrupt, don’t panic just yet. Your insurance company may yet be saved by the state Department of Insurance which will decide to put the firm into rehabilitation in order to salvage the situation. If this isn’t possible, they will start the liquidation process.

 You have a guardian angel in the form of your state’s insurance guarantee association. They will do all they can to transfer policies belonging to the insolvent firm to other stable (rival) companies. Policyholders will still enjoy coverage that’s capped up to $300,000. 

Looking for the next best thing?

Should you have the misfortune of having your insurer fail, you should immediately make plans to shop for new coverage. You should have plenty of time before your old policy expires so do take the time and read up on these pointers to make an informed decision regarding which new insurer’s offer to take up.

  • Think about your needs before choosing a new policy. You may be tempted to take on a larger one (thanks to a possibly over-zealous insurance sales rep), but if you assess your needs and financial standing, you should be able to make the right decision and settle on a policy that fits you just right. A cheaper policy won’t provide as much coverage, but it won’t cost you an arm and leg either.
  • Shop around for price quotes. Don’t discount independent agents as they may have their own repertoire of insurance products that fulfill your needs.
  • Before enjoying a payout from your insurer, you must pay an amount called the deductible. Some policies come with higher deductibles, thus lowering your premium, but may not be such a wise choice as more money has to be paid out before your claim will be processed.
  • Contrary to popular thinking, it’s NOT all about the money. An insurance policy may catch your interest with its low premium but what’s even more worth your money is to sign up with a trustworthy insurance company that enjoys excellent financial standing.
  • Don’t be shy in asking for discounts from your sales rep. Some companies may offer discounts at their discretion so do take the initiative to ask if you’re eligible to have your premium lowered. 

Knowing when to quit

They say breaking up is hard to do. Not so, if you’re trying to sever relationship with your insurance company. If you’re not happy with your current insurer, it’s better to throw in the towel early than suffer heartache later. Here are some issues to mull over if you are thinking about switching insurance providers:

–          Are you kept in the dark when you have a question (or a series of questions) to ask? Are your insurance customer service personnel knowledgeable enough to satisfy your curiosity?

–          Does your insurer pay out quickly, or does it take a few angry phone calls to find out what happened to your claims?

–          Do you feel like you’re being short-changed by your insurer? Are their rates way higher than others? 

The conclusion

Let’s face it: finding crystal balls on the shelves of Wal-Mart isn’t as easy as we’d like it to be, so there’s really no way we can find out how to spot insurers that may one day fail to pay out.

The best thing is to only do business with companies that are licensed to sell insurance. It helps to keep yourself informed on the best life insurance companies around. Plus, don’t put all your eggs in one basket. Know when you’re buying a product for protection (insurance) and when you’re paying for investment.

Home Ownership

What The Proposed New Mortgage Lending Rules Mean For Housing

When the housing market collapsed from the sub-prime mortgage crisis in 2008, the blame was laid squarely at the feet of banks and brokers who deliberately approved loans they knew were doomed to fail.  In the years since the initial collapse, lending has become much more restrictive as lenders, buyers, and the federal government fight to avoid another crisis.

In fact those restrictions are about to get much stricter beginning in January next year.  The Consumer Financial Protection Bureau or CFPB, which informs mortgage applicants about the terms of their agreements with lenders, wants tougher mortgage lending rules to restrict the volume of new loans in 2014.

The CFPB argues the rules are necessary to protect American households.  Average household debts across the country are near record highs, with a large percentage of those debts tied up in household financing.

But critics believe that the new rules could go too far, and reverse the newfound strength in the housing market after years of stagnant growth.  Americans are feeling confident about their plans to buy homes, but the new CFPB rules could mean as many as 50 percent of current applicants will be rejected by the new year.

A proper middle ground is required.  The US – and the rest of the world by extension, cannot afford to go through another global meltdown similar to the crisis begun in 2008.  This means that restrictions must be in place to prevent the type of sub-prime mortgage lending that led to the housing collapse.

On the other hand, rules that are too restrictive will prevent a greater number of applicants from being approved for financing.  If there are fewer people qualified to buy homes, the housing recovery will stall, if not reverse entirely.  Americans across the country are nearly unanimous in the belief that the housing market is crucial to the economic recovery as a whole – stalled progress on housing could mean another slide in economic stability.

The important thing for policymakers to remember is what Americans have come to learn on their own – balance is essential.  People will continue yearning to own a home of their own, but recognize they must fulfill that dream through a mortgage that is affordable.  Comparing offers from multiple lenders prior to locking in an agreement can help people get the best possible deal without committing to terms that are doomed to fail.

Frugality

Don’t Miss Out On Easy Savings: Coupons – The Final Edition

Groceries Now we’re finally onto the good stuff. Actually saving money. Sometimes it takes time to save money and couponing is no different.

Using Coupons

Are you prepare to save a ton of money?

Just to let you know, every where has different coupon policies so be sure to check your local store. I’m going to give you the rules for the place I use because it’s pretty basic and I still save a lot of money. I shop at Publix in Florida just for the FYI.

Here’s a few rules for couponing:

  • Double Coupons
  • Buy items on sale
  • you can use 1 manufactured coupon/competitor coupon and 1 store coupon per item
  • Buy one, get one free sales are the best

Doubling

I can’t double in Florida. Not allowed for some reason, but I’m looking into it getting that changed (not really but I’m thinking about it a lot). Anyways, in other states you can double manufacturing coupons that are 50 cents or less, so right there you can save up to $1. That’s one of the reasons to buy more than one paper.

Buy Sale Items

The best thing you can do is look through the weekly ad of wherever you shop and make your list based on what’s on sale. Don’t make the excuse of “nothing I buy ever goes on sell.” Ummm…then start buying what’s on sale. Stop being so picky because it’s costing you a lot of money. Plus A LOT of items go on sale, so I’m sure you can find something that you like.

Buy One Get One FREE

This is the mother load of savings. When you do this deal you can use 4 coupons, yea 4. You’re essentially buying 2 items so you can use 1 manufacture coupon for each and one store coupon for each. So lets say I see that my favorite cereal is BOGOF. It normally costs $4, so I get to use 2 manufacture coupons of $1 off each and 2 store coupons for $1 each. If you can’t count that equals FREE. Doing this can sometimes even get you money back. Now deals aren’t always that great, but they do happen often.

Using these strategies I’ve been able to spend just as much as I save every time I shop. Like, I’ll spend $30 and end up saving $30 or even more sometimes.

Get Some Help

Of course finding savings and putting coupons together with them can be a time consuming task. So, why not have someone do it for you. No, you don’t have to pay for it. There are sites out there that actually post the weekly ads along with which coupons go with it and where they can be found. They also can tell you what’s going to be in the upcoming Sunday coupons so you can plan better. These are a few of the sites I use:

That’s it. This ends the series on coupons. I hope you enjoyed it as much as I have. Now go out there and save some money. :)

What’s the most you’ve ever saved? Do you think couponing is worth the time spent collecting coupons?

Check out the beginning of this series Don’t Miss Out On Easy Savings: Coupons Pt 1