What We Learned at Schwab IMPACT 2016 That Impacts YOUR Financial Life

Every year we trek to the Schwab IMPACT conference to learn the latest developments in financial planning and investment management so we can better serve you.

Day 1&2: The Election PLUS Tips For Your Kids 18+

screen-shot-2016-10-29-at-3-22-07-pm

The Market & The 2016 Presidential Election

Greg Valliere, Schwab’s Chief Political Strategist had this to say:

  • If Trump wins the markets may not respond favorably
  • On the flipside, if Hillary wins there may not be much in the way of volatility
  • Valliere anticipates Hillary winning by a 5-7 point lead spread
  • However, if Hillary wins by a wider margin we could see strong volatility along with potential changes to the house (not good historically for the markets)

Tips for Your Kids Heading To College

  • Consider having them sign Power of Attorney form (POA) before going off to school since you may not have access to their accounts.
  • Fill out the HIPAA release form at the college your child is attending. If something were to happen to your child the college could then release the information to you.

Day 3: Malcolm Gladwell PLUS Balancing Retirement & College Saving

screen-shot-2016-10-29-at-3-23-41-pm

Insights from Malcolm Gladwell

This year was packed with thought provoking commentaries from the likes of Malcolm Gladwell and political insight from Greg Valliere, Ian Bremmer, Alan Simpson and Robert Reich, plus MUCH more.
For those of you that don’t know, Malcolm Gladwell is the author of the Tipping Point, Blink, and Outliers.
He coined the phrase “Tipping Point” which is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.

The Internet of Things

In his session he predicted that the internet of things is going to be as big as the industrial revolution. That’s a bold statement, but one to take notice of. We are beginning to see products like Amazon Dash, which is a Wi-Fi connected device that reorders your favorite product with the press of a button.The growth of internet connected “things” is expect to accelerated.

Playing Basketball vs. Playing Soccer

Gladwell also discussed how our country and economy has traditionally focused on making the best people even better. He illustrated that we operate like a basketball team. For a basketball team to be great, you really only need a few amazing players. It doesn’t matter how weak the rest of the team is so long as you have a few great players. And, if you work on making your best players even better, the team as a whole usually improves.
Soccer on the other hand requires that ALL players work together. Studies have shown that soccer scores can increase dramatically when time and energy is invested in coaching the weakest players on the team not the strongest players like in basketball.

Malcolm’s Advice: Improve The Weak Links

In the new world order, Gladwell suggests we invest in what he calls the weak links. He went on to explain that the best way to improve our economy is to invest in the weakest links.

College Planning vs. Retirement Planning

The balance between saving for college AND saving for retirement is difficult for most families. A study by JP Morgan reveals some useful guidance:

  • Only 0.3% of college student receive enough grants and scholarships to cover ALL costs
  • You need to to start saving now and seriously consider a 529 savings plan
  • The most important thing is to be saving for retirement
  • Saving for retirement should come BEFORE saving for college
  • The JP Morgan study says that saving 15% of what you make is the optimal number

Saving 15% is a great rule of thumb, however your situation could be different. What you need will depend on things like how much you have already saved, if are you planning on moving during retirement, if you will you work, or if you will receive an inheritance. So, there are lots of factors to consider which is where we can assist. At Weiss Financial Group we help figure out how much you NEED to save, how much you CAN save, and WHERE to invest the money.

For the Latest LIVE Videos Don’t Forget to Like Our Facebook Page 

I am live Wednesdays at noon answering your questions and providing smart tips.

Check it out here: http://bit.ly/WFGFacebook

3 Things You MUST Think About When Changing Jobs

Fall seems to be the time of year many people either willingly decide to change jobs or are forced to due to downsizings or restructuring. If you are changing jobs, here are the top financial considerations:
jobchanges-thumbnail

SWITCHING FROM ONE JOB TO ANOTHER CAN LITERALLY PAY OFF

Data from payroll processing giant ADP confirms that statement. In the first quarter of 2016, the average job hopper realized a 6% pay boost!

That’s a pretty significant jump in pay, so it’s definitely something to consider. We all get comfortable in our jobs, but as you can see it may pay to look elsewhere. You never know what opportunity may be out there for you if you are not looking.

Nevertheless, before you make that leap, be sure you address these matters:

CONSIDERATION #1

HEALTH CARE

How quickly can you arrange health coverage?

If you already pay for your own health insurance, this will not be an issue. If you had coverage at your old job you will need to figure out how to replace it.

If you were enrolled in an employer-sponsored health plan, you need to find out when the coverage from your previous job ends – and, if applicable, when coverage under your new employer’s health plan begins.

If the interval between jobs is prolonged, and COBRA will not cover you for the entirety of it, you may want to check whether you can obtain coverage from your alumni association, your guild or union, or AARP.

If you are leaving a career to start a business, confer with an insurance professional to search for a good group health plan.

CONSIDERATION #2

YOUR RETIREMENT SAVINGS

What Happens With Your Retirement Savings?

You will likely have four options regarding the money you have saved up in your workplace retirement plan: you can leave the money in the plan, roll it over into an IRA (this is the option we help with at Weiss Financial Group), transfer the assets into the retirement plan at your new job, or cash it out.

Keep in mind that the last option will be taxable and may incur a 10% early withdrawal penalty if you are not yet 59 1/2.

Here is a link to another blog post that goes into greater detail about what to do with your retirement account when you leave your job: 4 Options for Your 401(k) When You Leave Your Job

CONSIDERATION #3

YOUR CASH FLOW

Can you manage your cash flow effectively between one job & the next?

First, you’ll need to truly understand if you can make this work. I suggest taking pencil to paper and filling out a cash flow worksheet to figure out what your needs are.

Here is a link to our cash flow worksheet to make things easier for you: http://bit.ly/CashFlowWorksheet

Use can also online tools to help with this. We use first step cash management with our clients. In my opinion this is the best cashflow planning strategy available. If you are interested, as a thank you for watching the video and reading this post I will give you free access. Simply send a private message request to the Weiss Financial Group Facebook page and I’ll get you set up.

This all makes the case for having an emergency fund in place. Do you have one? Take a look at this blog post I wrote: How Big Should Your Emergency Fund Be?.

Finally, I recommend postponing big purchases, and avoid running up large credit card debts you will regret later.

BOTTOM LINE

  • Make sure you keep your household money needs top of mind
  • Make sure you address your insurance needs
  • Strive to keep saving for your future at your new workplace

Sources

  1. qz.com/666915/when-to-switch-jobs-to-get-the-biggest-salary-increase/
  2. money.cnn.com/2016/04/12/news/economy/millennials-change-jobs-frequently/
  3. healthcare.gov/quick-guide/dates-and-deadlines/
  4. lifereimagined.aarp.org/stories/14481-Financial-Checklist-for-Job-Changers
  5. This material was prepared, in part, by MarketingPro, Inc.

Stay On Track: 3 Financial Tips for October

Staying on top of your financial life can be a daunting task, however if you tackle a few smaller tasks every month it becomes more manageable. Here are 3 things you can do in October to help to keep your financial life on track this year:

#1
OPEN ENROLLMENT

Open enrollment is the perfect time to review what your employer offers to help you manage your finances.

Did you have a baby this year? If so, you may be interested in the dependent care flexible spending account.

Is your employer offering a high-deductible health insurance plan? If so, you should learn more about the benefits of a health savings account (HSA)

#2

SUBMIT YOUR TAX RETURN

If You’ve Filed for an Extension Submit Your Taxes by October 15th.

October 15 is the last day that you can submit your taxes if you’ve filed for an extension.

#3
ESTATE PLANNING TASKS

Since you may be dealing with open enrollment this month, you can also tack on some estate planning tasks.

First, check the beneficiary designations on your retirement plans and make updates if needed.

Also, while you’re at it take a look at your will and health care directive to see if want to make any changes there.


Sources:

1.http://www.learnvest.com/knowledge-center/your-january-2016-financial-to-dos/
2.http://money.usnews.com/money/personal-finance/articles/2014/12/02/your-end-of-year-financial-checklist
3.http://www.forbes.com/sites/learnvest/2013/01/04/your-financial-to-dos-for-every-month-in-2013/#14fe6d3d41d4

 

Are You Properly Insured? Should You Insure Your Kids? [VIDEO]

September is National Life Insurance Awareness Month – a good time to think about the value and importance of insuring yourself.
 insurance-thumbnail-2-play

Too many Americans Have No Life Insurance At All

According to a recent Bankrate survey, 42% of Americans have no life insurance at all. (1) Many growing families have inadequate life insurance coverage. The Bankrate survey discovered that 37% of parents with children under age 18 had no policy at all. The Good news life insurance coverage has become much more affordable than it once was.

What Life Insurance Does for You

Life insurance is about managing risk, and if other people rely on you financially, you need to have it in place in case your passing puts them at financial risk. When a spouse or parent dies, there are financial matters to address: a sudden lack of income for a household, bills and mortgages or rent to pay, final expenses such as funeral or cremation costs, and the cost of children’s education. Without adequate life insurance coverage, a household is hard-pressed to meet these immediate, financially draining challenges.

How Much Coverage is Adequate For You?

Ideally, you should determine that with the help of an insurance professional. As a rough rule of thumb, the death benefit on a policy should be about 15 times your income.
Ideally, you should determine that with the help of an insurance professional. As a rough rule of thumb, the death benefit on a policy should be about 20x’s income in your 40’s 15x’s income in your 50’s. You can use this calculator to help determine what may be right for you.

What Kind of Insurance Should You Get?

There are basically 2 types of insurance: Temporary (Term) and Permanent (Whole Life). What’s right for you depends on so many factors you will probably need to discuss this with a professional. Term is significantly less expensive but will end after a specified period of time. If you are considering a term life policy, the term should not end before your envisioned retirement age.(2)

Should You Have Life Insurance on Your Children?

A small life insurance policy could help cover these expenses if the unthinkable occured:
  1. Outstanding Healthcare costs
  2. Lost income from taking time off to mourn
  3. Funeral costs

Make Sure You Have Coverage in Place

While you may decide you prefer one kind of policy over another, the important thing is to have coverage in place – not just to reassure yourself, but those you love. Life insurance can help a spouse or a family maintain financial equilibrium at a time when it is most needed.


Sources

  1. bankrate.com/finance/insurance/money-pulse-0715.aspx [7/8/15]
  2. forbes.com/sites/timmaurer/2016/01/05/10-things-you-absolutely-need-to-know-about-life-insurance/ [1/5/16]
  3. nerdwallet.com/blog/insurance/should-you-consider-cash-value-life-insurance/ [5/6/15]
  4. This material was prepared, in part, by MarketingPro, Inc.