Archive - April 22, 2013

1
How Manipulations To The CPI Affect Your Retirement Planning
2
Increasing Your Income While Hedging Your Risk
3
Medicare Advantage Plans: Are They For You?
4
The Current State Of Social Security
5
How Financial Advisers Get Paid

How Manipulations To The CPI Affect Your Retirement Planning

Every year it gets harder to live off a Social Security paycheck. Cost-of-living adjustments (COLAs) fail to keep up with the true out-of-pocket expenses. Retirees must plan to supplement this slowly dwindling paycheck or risk having to make hard sacrifices during what is supposed to be their golden years.

If there was ever a time our federal government should take responsibility for transparent price stability for pensioners, it is now. In this age of unprecedented central bank monetary policy followed by Ben Bernanke and Co. and their counterparts in the developed world, retirees should expect more.

History of COLA Adjustments

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Increasing Your Income While Hedging Your Risk

The equity (stock) market has done very well so far this year, and I hope it continues, but it is volatile and there is a real danger of the market making another significant correction. If you’re younger, in your 40s or early 50s, that isn’t necessarily be an issue, but if you are retired and living off of your investments, even a moderate decrease in your portfolio can have a significant impact over the long term.

For example, let’s say your portfolio is worth $100,000. If there is a 20% correction in the market, you would lose $20,000 and the …

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Medicare Advantage Plans: Are They For You?

As Americans approach age 65, they must begin making complex health insurance decisions related to the government run Medicare program. Like food choices on a cafeteria line, there are hundreds of ways to assemble your own plate. As you begin this journey, the first big decision is whether to enroll in Original Medicare or one of the newer Medicare Advantage programs.

Medicare Advantage, also known as Part C for its place in the ABCDs of Medicare, was birthed in the Balanced Budget Act of 1997. It was created to offer much needed private competition to the government-run health program …

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The Current State Of Social Security

Democrats are typically the staunchest supporters of the American social safety net, particularly when it comes to Medicare and Social Security. Thus, it came as a surprise when President Obama submitted a budget that made some concessions to congressional Republicans on Social Security.

The crux of the President’s proposal for Social Security was that its benefits would be linked to the Consumer Price Index (CPI). As it stands, Social Security pension benefits are periodically evaluated and adjusted for inflation, which makes cost-of-living cost increases manageable for pensioners. By tying benefits to the CPI, people receiving Social Security benefits would get …

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How Financial Advisers Get Paid

As you begin your search for a financial professional it’s going to be important to know how the particular professional you choose will get paid. It will also be important to ask questions not only in regards to their compensation, but who actually pays the adviser.  There are generally three ways in which financial advisers and planners get paid.

Commission:  An adviser that’s paid on commission generally gets paid based on the underlying product they sell. Commission rates vary depending on the product sold – anywhere from 5% to 50%. Term Life insurance for example, will have roughly a 40% …

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