Below is the latest market commentary from our research department at LPL regarding the debt downgrade. Please pay special attention to the last section titled “What is next for the markets”. Let us know if you have questions.
Social Security at age 61 – a financial decision
March 29, 2011 By Leave a Comment
Ben Leyhew, MBA, Wealth Advisor
Many people ask if they should start taking social security as soon as they are eligible or wait.
Although many people claim social security as soon as they become eligible, at age 62, the benefits of waiting to apply for benefits cannot be underestimated. Consider it this way: If you claim early, age 62, your benefit is reduced by 25% for your lifetime. but if you wait until age 70, you’ll get a 32% increase in your benefit. You should consider holding off claiming social security retirement benefits, regardless of whether or not you continue to work, until you actually need them. The longer you wait, up until age 70, the greater your monthly benefit amount. However, if you need the income, then you should take it when eleigible.
written by: Ben Leyhew, MBA, Wealth Advisor, Financial Services & Solutions
Murfreesboro Insurance Advisor speaks on Long Term Care
March 29, 2011 By Leave a Comment
Scott Flowers, Wealth Advisor
Long Term Care insurance can be expensive. Nevertheless, it is a huge part of retirement and estate palnning. Every person may run the risk of the state taking a large portion of your assets if you do not have long term care insurance. Depending on your circumstances, the state could possibly sell your house to recoup the cost of paying for your care. Individuals need to look at long term care insurance not as a nursing home insurance but possibly as asset protection. Some companies offer alternative long term care coverage which includes life insurance and provisions that allow for the premiums to be returned if the insurance is never used.
Financial Services & Solutions thinks everyone can benefit from meeting with a financial planner
March 29, 2011 By Leave a Comment
Jeff Brown, CPA, CFP
I don’t have millions of dollars. Can I benefit from meeting with a financial planner?
Yes. Financial planning is much more than just investments. A financial planner can help you with your entire financial life, or just a portion of it. Items such as long term care and estate planning are issues to discuss with your financial planner. You may also want to confer about your life and disability insurance. College funding is another subject that financial planners can help you with.
written by Jeffrey O. Brown, CPA, Certified Financial Planner
Retirement Account Advice from Financial Services & Solutions
November 12, 2010 By Leave a Comment
If you are already age 50, is it too late to start a retirement account?
The answer is an emphatic, NO! Consider the old adage, better late than never. People are living longer than ever before, which could mean more years in retirement. Starting to save for retirement later will almost certainly have an effect on a person’s retirement. If you are starting late, you should consider all the retirement savings vehicles that are available to you. Company retirement plans, Roth and Traditional IRAs, as well as retirement plans for self employed individuals can help. Consult with a financial planner who can show you the options that could help make your retirement a more comfortable one.
Submitted by Jeff Brown, CPA, CFP
Life Insurance for Young Families – Murfreesboro Insurance Advisor comments
November 12, 2010 By Leave a Comment
How much life insurance do you need for young families?
Applying for life insurance when young and healthy is a great way to help secure the financial future for your family. Don’t wait until you have children to start looking for life insurance. With health and age greatly affecting life insurance rates you want to take advantage of lower premiums. Make sure you apply for an amount that adequately covers all of your debts, and allows your family several years to adjust to your lost income. Also be mindful that your income will increase in the future. Homemakers need coverage to help pay for the rising cost of child care. Contact your financial professional today to learn how much life insurance your family needs.
Submitted by Scott Flowers, Wealth Advisor
401K vs. Roth IRA – Financial Services and Solutions, Murfreesboro
November 12, 2010 By Leave a Comment
Should I invest in my company 401K or start a Roth IRA?
If your employer matches contributions, then you should definitely take advantage with the 401K. Contribute up to the match, if you have money left over then you should invest in a Roth (if you qualify). If you max out the Roth and still have money left, then you can max out your employer retirement plan. 401K plans are pre-tax and Roth IRAs are post-tax. Your time horizon, company investment options, and tax bracket should also factor into the decision on which one would be best to invest in.
Submitted by: Ben Leyhew, MBA
Murfreesboro Financial Advisor answers question on debt versus investments
August 13, 2010 By Leave a Comment
Should I pay off debt first before investing?
It is always a good idea to pay down bad debt first (credit cards, auto loans, unsecured debt, etc). I also recommend building up an emergency fund of 3-6 months expenses before starting an investment program. If you have a 401K that matches, then you should take advantage of the program while working on your emergency fund. Once you have that in place, you can invest in Individual Retirement Accounts (IRA’s), increase 401K contributions and look at other investment vehicles depending on your time horizon and individual needs.
Submitted by Ben Leyhew, MBA, Wealth Advisor
Tennessee Sales Tax Holiday Upcoming
July 28, 2010 By Leave a Comment
The Tennessee sales-tax free weekend is August 6th through August 8th. This is a great time to do back to school shopping especially for the large items.
Some of tax free items include clothing and clothing accessories, protective equipment and sports gear under $100 per item.
School supplies including calculators, art supplies, backpacks, etc as long as they are under $100 per item.
And computers and computer accessories under $1,500 each.
You can get a full list of the items that are applicable by visiting www.tn.gov/revenue/salestaxholiday
Education Savings Account is an option
July 13, 2010 By Leave a Comment
People want to know — “Should I open an ESA or a 529 plan for my child?”
If the money is only for K-12 schools then an Education Savings Account (ESA) makes sense. With a $2,000 annual contribution limit, distributions are tax-free if they are “qualified education expenses”. These include: tuition, books, room, board, etc. However, certain income limits might restrict parents from contributing to ESA’s.
If the money is for college or post secondary education then a 529 plan may be a suitable option. With lifetime contribution limits up to $250,000 per child, and distributions tax-free for qualified expenses there is a lot of flexibility. Contact your financial professional today to explore the best options for your family.
To find out more about college planning, use our college planning calculator located on our Investment Tools page of our website. This is an easy way to determine how much money you may need to be saving for the future.
Submitted by Scott Flowers, Wealth Advisor