In this edition of Return On Investment, we have included information on the following topics:
1. The Importance of Risk Control
2. Are You Nearing the Age of 71?
3. Pension Reform: The CPP is Set to Change
4. Transferring Wealth: Preparing Your Heirs
5. Unclaimed Balances: Are Funds Owed to You?
6. Year-End Tax Planning Considerations
In this edition of Return On Investment, we have included information on the following topics:
1. The Importance of Risk Control
2. Are You Nearing the Age of 71?
3. Pension Reform: The CPP is Set to Change
4. Transferring Wealth: Preparing Your Heirs
5. Unclaimed Balances: Are Funds Owed to You?
6. Year-End Tax Planning Considerations
Investing is an important part of achieving financial stability. It's one of those crucial financial tips that young individuals, as well as those over the age of 40 years, should keep in mind. When you invest a portion of your income, you keep yourself ready to face any financial emergency. Whether it's medical uncertainty, sudden losses in business, or layoffs in your organisation, investment assists in every difficult time.
Understanding annuities once and for allKirk Ashburn
Your guide to understanding the fundamentals of annuities, including their pros and cons, in an easy to understand manner so you can make an educated decision. Is guaranteed income for the rest of my life important to me? Is protecting the downside of my investment important to my family? Will I sleep better at night knowing that my investment will not lose value if the market drops tomorrow?
Want to learn more about protecting your future income from inflation? This Abaris module covers the inflation rider feature of annuities.
Inflation is the idea that the price levels of goods and services in the economy increase over time. This increase impacts how much you can get for your dollar, a concept known as your purchasing power. As inflation climbs higher and higher, your purchasing power dips lower and lower. How does this connect to annuities? Inflation affects interest rates, which, in turn, help determine how much your annuity will cost to purchase today. It also affects how much your monthly annuity payouts buy in goods and services. And it may even affect how fast your monthly payout increases So inflation is definitely something you care about.
Inflation is more or less inevitable in the economy. While you can’t avoid it, there are ways to defend yourself from bearing the burdens of decreased purchasing power. Inflation riders protect your annuity income against the reduction in purchasing power brought on by rising economic inflation. In other words, an inflation rider, also known as a cost of living adjustment or COLA, preemptively raises your future annuity income in order to account for the inflation that occurs.
A typical inflation rider has a flat annual increase, such as a 1% increase per year. The range of the annual increase levels offered varies across insurance companies, as well as individual products. Additionally, many insurance companies provide a consumer price index rider, or a CPI rider. The CPI measures changes in the price of a basket of goods and services, and demonstrates this change by showing the current price of the basket, as well as its price in the same period of the previous year. This side-by-side comparison of prices illustrates the change in your purchasing power resulting from inflation.
While inflation riders are a helpful tool for protecting your purchasing power, they have a few considerations of their own. For one thing, inflation riders don’t kick in until you start receiving your annuity income, meaning that the rider won’t cover the deferral period (the time between annuity purchase and the start of annuity income payments). A smart way to approach this stipulation is to incorporate some growth into your future income needs, as to take into account the inflation that will occur over the deferral period. We can help you figure out how much this might be. Another caveat of inflation riders is that with the rider comes an associated cost. It’s important for you to make sure you understand that cost before making any decision.
A Target Retirement Income Plan is a nonqualified, supplemental, after-tax executive retirement benefit program that changes the focus from return on investment to certainty of predictable income in retirement.
Investing is an important part of achieving financial stability. It's one of those crucial financial tips that young individuals, as well as those over the age of 40 years, should keep in mind. When you invest a portion of your income, you keep yourself ready to face any financial emergency. Whether it's medical uncertainty, sudden losses in business, or layoffs in your organisation, investment assists in every difficult time.
Understanding annuities once and for allKirk Ashburn
Your guide to understanding the fundamentals of annuities, including their pros and cons, in an easy to understand manner so you can make an educated decision. Is guaranteed income for the rest of my life important to me? Is protecting the downside of my investment important to my family? Will I sleep better at night knowing that my investment will not lose value if the market drops tomorrow?
Want to learn more about protecting your future income from inflation? This Abaris module covers the inflation rider feature of annuities.
Inflation is the idea that the price levels of goods and services in the economy increase over time. This increase impacts how much you can get for your dollar, a concept known as your purchasing power. As inflation climbs higher and higher, your purchasing power dips lower and lower. How does this connect to annuities? Inflation affects interest rates, which, in turn, help determine how much your annuity will cost to purchase today. It also affects how much your monthly annuity payouts buy in goods and services. And it may even affect how fast your monthly payout increases So inflation is definitely something you care about.
Inflation is more or less inevitable in the economy. While you can’t avoid it, there are ways to defend yourself from bearing the burdens of decreased purchasing power. Inflation riders protect your annuity income against the reduction in purchasing power brought on by rising economic inflation. In other words, an inflation rider, also known as a cost of living adjustment or COLA, preemptively raises your future annuity income in order to account for the inflation that occurs.
A typical inflation rider has a flat annual increase, such as a 1% increase per year. The range of the annual increase levels offered varies across insurance companies, as well as individual products. Additionally, many insurance companies provide a consumer price index rider, or a CPI rider. The CPI measures changes in the price of a basket of goods and services, and demonstrates this change by showing the current price of the basket, as well as its price in the same period of the previous year. This side-by-side comparison of prices illustrates the change in your purchasing power resulting from inflation.
While inflation riders are a helpful tool for protecting your purchasing power, they have a few considerations of their own. For one thing, inflation riders don’t kick in until you start receiving your annuity income, meaning that the rider won’t cover the deferral period (the time between annuity purchase and the start of annuity income payments). A smart way to approach this stipulation is to incorporate some growth into your future income needs, as to take into account the inflation that will occur over the deferral period. We can help you figure out how much this might be. Another caveat of inflation riders is that with the rider comes an associated cost. It’s important for you to make sure you understand that cost before making any decision.
A Target Retirement Income Plan is a nonqualified, supplemental, after-tax executive retirement benefit program that changes the focus from return on investment to certainty of predictable income in retirement.
Jason Beehler presented "Social Media Evidence" at the National Business Institute's "How to Get Your Social Media, Email and Text Evidence Admitted (and Keep Theirs Out)" seminar on October 29, 2015, in Worthington, Ohio.
Big Data for International DevelopmentAlex Rascanu
Alex Rascanu delivered the "Big Data for International Development" presentation at the International Development Conference that took place on February 7, 2015 at University of Toronto Scarborough.
Catalyst Group conducted a qualitative study to see whether people who’d never used digital books preferred the more popular Kindle or Sony’s eReader. The results are intriguing.
Virtualizing the Next Generation of Server Workloads with AMD™James Price
In this white paper, we discuss the potential bottlenecks that organizations typically encounter: high memory
utilization, high processor utilization, and high I/O traffic. We look at the performance characteristics of server
workloads that can be successfully virtualized, and we discuss how an awareness of the performance
characteristics of a particular workload can help inform an intelligent virtualization strategy. We also examine the
improvements in virtualization hardware that are making it possible to virtualize an increasingly wide range of
workloads.
This presentation is to communicate ideas and information that will help you build financial security. We define financial security as a feeling of confidence that you will achieve your financial goals through the actions you are taking today.
1. Caprock Securities 4601 50thst, suite 202Lubbock, texas 79493Serving Lubbock since 1978Member of FINRA / SIPC Insured www.CaprockFinancialPlanning.com 806-797-3513
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5. 45% of parents with adult children are contributing some form of financial supportThe “We” Generation:When retirement andfamily needs collide Source: Putnam/BrightWorks 2005; Putnam/BrightWorks 2006, which is the most recent data available.
6. Five things we can prepare for Building a successful retirement
7. Five things we can prepare for Longevity Rising prices Medical and long-term-care costs Public policy changes Investment risks
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9. Rising prices Sources: U.S. Postal Service, Energy Information Administration, National Association of Theatre Owners, Edmunds, National Association of Realtors. Data reflects prices from these sources as of 6/08. Assumes a 3% rate of inflation.
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11. Expect medical care and health insurance costs to be 20% of pre-retirement income on an annual basis during retirement
15. Medicare does not cover cost of long-term care, except in limited circumstancesFidelity Employer Services Company, March 2007; Hewitt Associates, June 2004; Employee Benefit Research Institute, “Retiree Health Benefits: Savings Needed to Fund Health Care in Retirement,” February 2003, which is the most recent data available.
16. Public policy (social Security) $0 $$ Social Security Administration, “The Future of Social Security”, January 2004, which is the most recent data available.
17. Stock market risk Need a Balanced Strategy to Generate Income vs. You’re money will loose its value over time If you need your money on any given day, it may not all be there
18. Stock market risk A Financial Planner Can Help You Find The Appropriate Balance That’s Right For You.
19. Interest-rate risk Interest rates have an inverse effect on bonds Interest rates -> Bond Prices Bond Prices Interest Rates Income
20. Interest-rate risk Interest rates have an inverse effect on bonds Interest rates -> Bond Prices Bond prices Interest rates Income
21. Building a successful retirement Create an income plan Monitor your Investments Take advantage of tax savings Protect your savings or income stream These are all things we can help you with!
22. Create an income plan Later in retirement Early in your retirement Part/full-timework SocialSecurity Pensionincome IRA withdrawals Immediateannuity Real estate Life insurance 401(k)withdrawals Long-term-care insurance
23. Don’t take income you don’t need Ad hoc withdrawals Systematic withdrawals May need systematic withdrawals to cover expenses Regularincome
24. Choose the right withdrawal rate How long will your money last? Years 10%will last10 years 9%will last11years 4%will last28 years 5%will last21 years 6%will last17 years 7%will last15 years 8%will last13 years 3%will last50 years Percentage of your portfolio’s original balance you withdraw each year This example assumes a 90% probability rate. These hypothetical illustrations are based on a 10,000-iteration Monte Carlo simulation and do not account for the effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. A Monte Carlo simulation is a technique for analyzing the probability of certain events based on historical data. These illustrations use the historical returns from 1926 to 2007 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%) and a 20-year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio is likely to last given various withdrawal rates. A one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.
25. Watch your asset allocation How long will your money last? various asset allocations affect a portfolio’s expected longevity. It assumes that 5% of the original account balance is withdrawn each year and that withdrawals are increased by 3% each year to account for inflation. 95% 3% 24% 98% 50% 17% 93% 71% 57% 89% 71% 60% 75–100% probability 50–74% probability 0–49% probability These portfolios are hypothetical illustrations based on a Monte Carlo simulation using historical data and are not intended as investment advice. You should consider your other assets, income, investment options, and risk tolerance when planning for your specific investment goals. Consult your financial representative for more information. Past performance is not a guarantee of future results.