October 2021 Newsletter

 

October Newsletter 2021

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Greetings!

 

First of all, thank you for allowing us to come into your home and offices with our monthly emails.  We hope you are enjoying them and maybe getting some encouragement.  

 

PLEASE REMEMBER to call your advisor or our office for any questions concerning the IRA fees and/or the required minumim distribution.  

 

Last month, we had a devotion from the mother of a young lady who was in the hospital suffering from Covid 19.  That young lady has since been released and is home with her family.  Below is from a nurse who works the ICU floor and here are her thoughts.....

 

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Lord, Bless this day and give us strength as we care for these patients. Keep us safe and well so we can help others. This is my prayer each day that I work.

 

 My name is Pam and I’m a critical care nurse. I have worked in this area for 20 years and I  love my job{most days}. Some People have said to me “I don’t know how you do this type of work. My response… I believe this is what God has chosen me to do. To be His hands of comfort to others. To show compassion and caring during their sickness. It is a stressful job and not always easy. Especially these last two years.

 

Covid is a very real sickness. Patients young and old that are dying and families asking WHY! To be honest I have asked that same question. I have stood at the bedside and cried with families, trying to comfort them as much as I can. I say… See you tomorrow but not sure if their loved one will make it through the night,  praying and asking God to heal if its His will.

 

We have to remember that God IS IN CONTROL!! God knows the way before us and we can’t see His plan ahead for our life. We trust in God our Creator because we were created for Him. We are meant to worship and serve Him. I don’t understand why things happen. I have to keep believing that God knows and I have to trust Him. Some days that is not so easy.  I will continue to give care and comfort along with other nurses, care techs, doctors etc  in hopes of making a difference in someones like.

 

Proverbs 3:5-6 Trust in the Lord with all your heart, and lean not on your own understanding. In all your ways acknowledge Him and He will direct your paths.

 

Keeping the faith,

 

 

New Retirement

 

A New Chapter for Retirement

John F. Kennedy once said, “Change is the law of life. And those who look only to the past or present are certain to miss the future.” This is certainly true of preparing for retirement. If we continue to expect that the ways of the past will see us through to our futures, we will be left behind. The methods that helped prepare us for retirement are quickly disappearing, and we must start using others.

 

Today’s companies are rewriting the retirement rules for working Americans. Traditional pension plans, which gained prominence in the 20th century, are rapidly disappearing because of the high costs involved in funding them. Some corporations have underfunded or at-risk plans.

 

To help protect employees with corporate pensions, the federal government enacted laws requiring employers to meet a 100% funding target for their defined-benefit plans. Companies that sponsor pension plans are also required to pay higher insurance premiums to the Pension Benefit Guaranty Corporation (PBGC), which was created by Congress in 1974 to help protect American workers from the risk of pension default. Premiums have increased because the PBGC itself is facing a deficit as a result of more companies defaulting on their pension plans.

 

Because of these costly requirements, it is becoming less and less attractive for companies to provide traditional pensions to retirees. Employers with underfunded plans may simply choose to eliminate them, and even companies with healthy plans may decide that defined-benefit plans are not worth the cost. As a result, it is likely that more companies will offer defined-contribution plans like the 401(k) to attract new employees and to help employees fund their own retirements.

 

Thus, it is important to be aware that you may have less help from your employer and will probably have to rely more on your own savings and investments to fund your retirement.

 

The government has tried to help by raising contribution limits to most employer-sponsored retirement plans. You can contribute money to these plans on a pre-tax basis. Your contributions and any earnings accumulate on a tax-deferred basis. Of course, remember that distributions from most employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% federal income tax penalty.

 

A number of companies are taking steps to help workers fund retirement. Many have instituted automatic enrollment in their defined-contribution plans to encourage more employees to participate. Some are enhancing the benefits of their plans by increasing the amount they contribute to employee accounts and/or enhancing matching contributions.

 

Many companies that still have traditional pension plans should be able to pay their promised benefits. But in light of recent trends, it would be wise to consider all possible sources of retirement income when reviewing your retirement strategy. With the changing retirement landscape, there may be no better time than now to size up your current situation. Your company-sponsored retirement plan will be just one piece of your retirement funding pie.

 

 

Watch Out for These Financial Pitfalls in the New Year

As people move through different stages of life, there are new financial opportunities and potential pitfalls around every As people move through different stages of life, there are new financial opportunities and potential pitfalls around every corner. Here are common money mistakes to watch out for at every age.

 

The Weight of Too Much Debt

 

Approximately 70% of workers with non-mortgage debt say their debt has impacted their ability to save for emergencies and retirement, with 40% saying their debt is a “minor” problem and 21% saying it is a “major” problem.

 

 

 

Source: Employee Benefit Research Institute, 2020

 

Your 20s & 30s

 

Being financially illiterate. By learning as much as you can about saving, budgeting, and investing now, you could benefit from it for the rest of your life.

 

Not saving regularly. Save a portion of every paycheck and then spend what’s left over — not the other way around. You can earmark savings for short-, medium-, and long-term goals. A variety of mobile apps can help you track your savings progress.

 

Living beyond your means. This is the corollary of not saving. If you can’t manage to stash away some savings each month and pay for most of your expenses out-of-pocket, then you need to rein in your lifestyle. Start by cutting your discretionary expenses and then look at ways to reduce your fixed costs.

 

Spending too much on housing. Think twice about buying a house or condo that will stretch your budget to the max, even if a lender says you can afford it. Consider building in space for a possible dip in household income that could result from a job change or a leave from the workforce to care for children.

 

Overlooking the cost of subscriptions and memberships. Keep on top of services you are paying for (e.g., online streaming, cable, the gym, your smartphone bill, food delivery) and assess whether they still make sense on an annual basis.

 

Not saving for retirement. Perhaps saving for retirement wasn’t on your radar in your 20s, but you shouldn’t put it off in your 30s. Start now and you still have 30 years or more to save. Wait much longer and it can be hard to catch up. Start with whatever amount you can afford and add to it as you’re able.

 

Not protecting yourself with insurance. Consider what would happen if you were unable to work and earn a paycheck. Life insurance and disability income insurance can help protect you and your family.

 

Your 40s

 

Not keeping your job skills fresh. Your job is your lifeline to income, employee benefits, and financial security. Look for opportunities to keep your skills up-to-date and stay abreast of new workplace developments and job search technologies.

 

Spending to keep up with others. Avoid spending money you don’t have trying to keep up with your friends, family, neighbors, or colleagues. The only financial life you need to think about is your own.

 

Funding college over retirement. Don’t prioritize saving for college over saving for retirement. If you have limited funds, consider setting aside a portion for college while earmarking the majority for retirement. Closer to college time, have a frank discussion with your child about college options and look for creative ways to help reduce college costs.

 

Using your home equity like a bank. The goal is to pay off your mortgage by the time you retire or close to it — a milestone that will be much harder to achieve if you keep moving the goal posts.

 

Ignoring your health. By taking steps now to improve your fitness level, diet, and overall health, not only will you feel better today but you may reduce your health-care costs in the future.

 

Your 50s & 60s

 

Co-signing loans for adult children. Co-signing means you’re 100% on the hook if your child can’t pay — a less-than-ideal situation as you approach retirement.

 

Raiding your retirement funds before retirement. It goes without saying that dipping into your retirement funds will reduce your nest egg — a significant tradeoff for purchases that aren’t true emergencies.

 

Not knowing your sources of retirement income. As you near retirement, you should know how much money you (and your partner, if applicable) can expect from three sources: your personal retirement accounts (e.g., 401(k) plans and IRAs); pension income from an employer; and Social Security at age 62, full retirement age, and age 70.

 

Not having a will or advance medical directive. No one likes to think about death or catastrophic injury, but these documents can help your loved ones immensely if something unexpected should happen to you.

 

Blessings to you and your family!

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